MUNICH (dpa-AFX) - As expected, the withdrawal of the Corona pandemic is continuing to benefit laboratory services provider Synlab. The fact that the group has sold significantly fewer Covid tests than a year ago makes itself strongly felt in the figures for the first quarter. Sales and earnings declined significantly. But management also sees positive signs for the current year. The Group confirmed its forecast on Wednesday in Munich.

On the stock exchange, the SDax-listed shares of the provider of special tests rose in the morning, most recently by 1.2 percent. Even though the earnings slightly missed analysts' expectations, the growth excluding Covid tests is certainly perceived positively, commented David Adlington of JPMorgan.

Excluding Covid testing revenue, organic growth was 10 percent in a year, well above the annual target, management said. That was primarily due to strong volume growth across the portfolio, but also to price increases, it said. However, the comparison with the year-ago quarter was also more favorable due to a working day effect, it said. However, with Covid testing revenues down, sales from January to March fell by more than a third to 702 million euros. A year earlier, tests had contributed 450 million euros in the first quarter as part of the Omikron bet; now Synlab came in at just 26 million euros.

Adjusted operating profit (Ebitda) fell by 67 percent to 119 million euros, while the operating margin was 16.2 percent. Below the line, Synlab was left with 28 million euros, compared to 216 million euros in the same period last year.

The laboratory chain had initially earned splendidly from the high volume of tests during the pandemic, but sales and profits fell again significantly as early as next year.

However, Synlab sees an upward trend when comparing the figures at the start of the year with the final quarter of 2022. In this case, earnings remained stable and the operating margin even improved somewhat. 2023 is now the "basis for a gradual and consistent improvement" in the group's performance, Synlab CEO Mathieu Floreani commented on the quarterly figures, according to the statement. "We are confident that Synlab is very well positioned for the post-pandemic future."

The group is now sticking to its forecast - which was already lowered in February - with management expecting a further setback in 2023. Sales are expected to fall to 2.7 billion euros and the operating profit margin to 16 to 18 percent. Excluding Covid tests, Synlab expects organic growth of around 4 percent in the current year - driven by strong volume development and price increases in the core business.

This year, the main focus for the group is to return productivity levels to pre-pandemic levels. The Group is therefore significantly cutting back on money for potential acquisitions. The Group has halved its original budget to around 100 million euros. Last quarter, Synlab acquired a medical center in Germany and two veterinary laboratories in Belgium./knd/tav/stk