EU and US could reach trade deal this weekend - Reuters
Investing.com -- Shares of Diasorin (NASDAQ:DIA (BME:DIDA)) fell by 1.7% despite the company reporting an 8% increase in Q1 revenue year-on-year (YoY). The revenue of €313 million was slightly above the Visible Alpha consensus and RBC Capital Markets estimate (RBCe), with a 1% positive variance. The company also reiterated its full-year guidance, expecting approximately 7% YoY sales growth at constant exchange rates (CER), or 8% excluding COVID-19 related sales.
The Q1 adjusted EBITDA reached €107 million, translating to a 34.2% margin, aligning closely with both RBCe and consensus projections. Diasorin’s reaffirmation of its fiscal year guidance suggests confidence in maintaining a margin of approximately 34%. Despite the positive revenue growth and stable profit margins, the stock experienced a downturn in the trading session.
The company’s exposure to international tariffs has been a point of discussion, with current tariffs on medical devices including a 10% charge on US imports from Europe and a 125% tariff on US exports to China. However, management has indicated these tariffs have a non-material impact, estimating less than €5 million effect on EBITDA for 2025, which would represent roughly 0.4% of RBCe’s forecast for FY25E group sales.
Additionally, the CFO noted that while no exemptions on medical devices have been granted in China, the tariffs on diagnostic reagents are often not enforced in practice. The potential effects of potential counter-tariffs from Europe on the US were not discussed by management.
RBC Capital Markets commented on the tariff situation, saying, "We don’t have a sense of the proportion of sales currently exported from the US into Europe, but note that Diasorin already has several European sites manufacturing Immuno products and some Molecular products."
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