Laboratory chain Synlab earns significantly less in 2023 - cancels dividend

Published: 2024-03-25 02:49:34 ET SYAB.DE

MUNICH (dpa-AFX) - Europe's largest laboratory chain Synlab has struggled with rising costs and the sharp decline in Covid tests in 2023. Although the Group is countering this with savings, price increases and sales of parts of the company, it was unable to avoid a decline in sales and earnings for the year as a whole. As Synlab announced in Munich on Monday, revenue fell to 2.64 billion euros in 2023, compared to 3.25 billion euros in the previous year. The operating result (adjusted EBITDA) fell from 753.4 million euros to 437.9 million euros. Meanwhile, the planned takeover by financial investor Cinven is still dragging on.

The bottom line for shareholders last year was a profit of 92.7 million euros. In 2022, the company had still earned 150.7 million euros. The management does not intend to pay a dividend for 2023. A year earlier, the company had distributed 33 cents per share to its shareholders.

The laboratory chain is targeting sales of around 2.7 billion euros for the current year. Adjusted earnings before interest, taxes, depreciation and amortization are expected to account for 17 to 18 percent of this figure, compared to 16.6 percent in the previous year.

Synlab is about to be completely taken over by the financial investor and major shareholder Cinven. The latter wants to buy the shares it does not yet own for ten euros each. Cinven only floated Synlab on the stock exchange in spring 2021. The issue price at the time was 18 euros, valuing the company at around four billion euros.

However, the takeover is likely to take some time. "As of today, the conditions set out in the Cinven offer document have not yet been fully met," the company said. In November, financial investor Paul Singer announced a small stake in Synlab. In doing so, the hedge fund manager followed the familiar pattern of wanting to cash in on such takeovers. Singer is known for securing shares in companies that are about to be taken over, for example in order to extract a higher price in a so-called squeeze-out./mne/mis

Go to the original article. Legal disclaimer Legal disclaimerContact us to request a correctionBack