bioMérieux (BIM) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Strategic Review and GO28 Plan

• Launched a comprehensive strategic review with 100 leaders, resulting in the GO28 plan presented in April 2024.

• GO28 targets 7% average annual sales growth and 20% operating/CEBIT margin by 2028, up from 16.6% in 2023.

• Four main growth drivers: BIOFIRE syndromic/non-respiratory panels, SPOTFIRE, microbiology, and industrial applications.

• Focus on top quartile employee engagement and 50% reduction in greenhouse gas emissions by 2030 vs 2019.

Financial Performance and Guidance

• Sales grew 40% and profitability 50% from 2019 to 2023, reaching €3.7bn sales and €610m operating income/CEBIT.

• YTD September 2024 sales growth at 10.3%, outpacing market growth of ~3%.

• 2024 guidance: 8%-10% sales growth and 12%-17% profitability improvement.

• Over 50 initiatives to drive CEBIT margin to 20% by 2028, including manufacturing automation and cost improvements.

• At least 10% annual organic profitability growth targeted.

Innovation, R&D, and Capital Allocation

• Consistent investment of 12% of sales in R&D to drive innovation and sustainable growth.

• Capital expenditure set at 8%-10% of sales/cash flow to support capacity and install base expansion.

• Dividend payout ratio of 25% of net income, with a strong balance sheet enabling M&A activity.