Arseus on course for 2014 growth after solid year start

BRUSSELS, April 8 Tue Apr 8, 2014 2:20am EDT

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BRUSSELS, April 8 (Reuters) - Belgian medical supply company Arseus repeated its full-year outlook on Tuesday after first quarter growth in line with expectation thanks to acquisitions and strong expansion of its pharmaceutical ingredients business.

Arseus, which focuses on supplying ingredients for bespoke medicines and medical IT, said turnover in the Jan-March period rose 26.6 percent to 101.3 million euros ($139.21 million). Excluding acquisitions, the increase was 12.0 percent.

Analysts had been expecting first-quarter sales of 100-101 million euros.

For 2014 the company said revenues would be at least 480 million euros with a recurring core profit margin of 26 percent. This compares with the 386 million euros revenues and a 25.4 percent margin in 2013, excluding the operations to be sold.

Arseus consolidated two pharmaceutical compounding facilities in the United States and Europe as of January. It will add three more in the United States from April. Combined, they are expected to generate an annual 30 million euros to core profit (EBITDA) or 21 million euros for Arseus in 2014.

Chief Executive Ger van Jeveren said the company was on track to complete by the end of the year its divestment of its lower-margin dental and medical supplies units, selling items ranging from dental chairs to hospital gloves. ($1 = 0.7277 Euros) (Reporting by Philip Blenkinsop)

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