Guerbet reports loss as remediation costs pressure margins

Guerbet ($GBT) reported first-half revenue of €379.2 million, down 2.2% as reported but almost unchanged on a constant-currency, like-for-like basis. EBITDA fell to €30.6 million from €46.1 million, and the group recorded a €32.7 million net loss. Remediation at its Raleigh manufacturing site generated €14.3 million of exceptional costs. Net financial debt reached €355.9 million and leverage stood at 5.3 times.

The imaging-products supplier retained its full-year targets, including an approximately 8% restated EBITDA margin and negative free cash flow of €50–70 million. It expects normal batch-release performance at Raleigh by year-end. Refinancing discussions are still under way, with agreement targeted by the end of October; they are not a completed financing. The combination of weaker cash generation and elevated leverage makes execution of that process financially important.

Sources:

• Guerbet company release — GlobeNewswire