Eurofins Scientific SE (ERF) Earnings Call Transcript & Summary

Hello, and welcome to the Eurofins Scientific trading update. [Operator Instructions] During this call, Eurofins' management may make forward-looking statements, including, but not limited to, statements with respect to outlook and the related assumption. Management will also discuss alternative performance measures such as organic growth, adjusted EBITDA and free cash flow to the firm, which are defined in the footnotes of our press releases. Actual results may differ materially from objectives discussed. Risks and uncertainties that may affect Eurofins' future results include, but are not limited to, those described in the Risk Factors section of the Eurofins annual report. Please also read the disclaimer on Page 2 of this presentation, subject to which this call and Q&A session are made. Today, I'm pleased to present that Dr. Gilles Martin, Eurofins' CEO. Please begin.

Thank you. Hello, everybody, and thank you for joining our interim Q call. We normally don't announce intermediate results. But in view of all the uncertainty caused by the pandemic and the fact that when we presented the Q3 results, we had not updated the objective for this year, we decided that it was our duty to update the market. The consensus was very broad for this year. So we thought that since we now have 2 more months of actual data, let's try to clarify what the objectives could be. So what we published this morning, first of all, were rounded numbers. So we have rounded numbers up to the closest EUR 100 million. So obviously, it's not a precise objective. It's not a guidance. But I think it gave you an indication of where we think the company is headed towards and what could be achieved or, with a high level of certainty, could be achieved this year. That should help you all to maybe -- out with the numbers. Now if you look at the ratios of those different numbers and so on, the actual ratios might differ a bit because of the rounding that we have done in presenting those numbers. Overall, what the main message is actually that our core business has recovered as a whole. Obviously, there are differences. We still have some activities which are affected by the lockdowns. But this is more than compensated by significantly higher growth in other areas. And I think that underlines very well that this objective of organic growth of 5% that Eurofins has set almost 10 years ago now at the exit of the big world financial crisis, is a conservative objective because even with several of our businesses still affected by lockdown, we are definitely not firing by all cylinders, we still can achieve 5% organic growth. So that's a good news, that in spite of some disruption, our business is a high-growth business. And on top of that, as you've seen yesterday, we continue to develop a lot of tools to support health authorities fight the COVID pandemic. The 2 that we announced yesterday are very interesting, at least one, which is the ability of people to sample themselves. One of the biggest bottleneck to testing has been laboratory capacity, but it has been also, in many countries, the teams to basically put the nasopharyngeal swabs in people's noses and get the samples. And now we have validated a number of other modalities where people can do that themselves highly reliably and still access a very reliable PCR test -- a very sensitive PCR test. And we think this can go a long way if it is used, of course, to making tests more accessible and helping authorities control the pandemic. This is typically something that people could have at home. And if they think the next day or the day after, they want to visit their family, they can test themselves, put it in the post or in UPS or a drop box, drop it at the lab and get the result extremely quickly because we're also working to make our labs provide this very fast PCR -- high -- very sensitive PCR in under 6 hours. This can be done, and we have different modalities where we can organize with laboratories for governments or big clients. So altogether, we are really proud and happy that we are doing our share to try to combat this pandemic. Another important aspect will be the vaccines. We've just talked about the rollout of the vaccine and there's very little experience about that. But in many geographies, governments are talking to us about monitoring of the status of patients prior to the vaccine. For example, do they have an active infection, for example, which would mean they would get a double source of immune reaction. Or post-vaccination, how much antibodies do they have and which -- or maybe do they have antibodies caused by the vaccine or is it antibodies caused by a prior infection. So there are a number of things we are working on that are very interesting. Also, there are different sources of immunity, not only antibodies. It can be T-cell-mediated immunity. So we're still working on a lot of very interesting aspects that we will try to provide to the health authorities and vaccine providers to support them in this initiative of vaccinating potentially multiple times the whole population for a number of years. On SAFER@WORK, the demand continues to grow. Obviously, the large number of testing linked to SAFER@WORK will arise when the lockdown ends. In Europe, at the moment, a lot of people are still working from home. There is very little travel. There is very little entertainment, hospitality. All those sectors are -- events are pretty much shut down, but if they want to restart, even if partial population vaccination, several measures will have to be taken, and we are getting ready to participate to that. And that could also last a number of years or quarter. So that's a bit the situation. So we're happy that, thanks to all those efforts, we have more than compensated the impact on lockdown on the company that occurred in quarter 2, that were the strongest in quarter 2. And overall, we're quite bullish about our industry. Those of you that follow the funding of biotech and pharma see that, that continues to increase. So there will be a lot of investments. And we are really at the beginning of a new era. If those vaccines -- the mRNA vaccine turn out to be effective and have no long-term side effects, that open the door to -- for a lot of applications for mRNA. Just to cite this example, in oncology, for example, and potentially for rare disease, other aspects. So a lot of research will be done. And I think a lot of companies will be funded and will do research and work with our laboratories to develop fantastic new pharmaceutical products in the decades to come. So food testing obviously probably, there'll be more testing for viruses. And in the environment, new possibilities to monitor the environment for various viruses, including COVID will probably be there for a while. So that's a bit of an update of the situation. And I think we'll be happy to take some questions.

[Operator Instructions] Our first question comes from the line of Neil Tyler from Redburn.

Two questions, please, Gilles. Firstly, the updated guidance or really the development since the Q3 update, can you share with us whether it has been perhaps better momentum in the core business or sustained strength in the COVID-related aspects that has been the greater contributor to your decision to raise guidance? And then the second question, understanding that these are rounded numbers, that the difference between the increase in EBITDA guidance and the increase in free cash flow guidance, that EUR 100 million, do we assume that, that's the additional CapEx that's being required? Or is there also some working capital build to net off against that?

Yes. Thank you very much, Neil. One thing also I should have mentioned in introduction is that we haven't changed our objective since March of this year -- early March. So those objectives were made without any impact of COVID on anything. They were made assuming the year will be fine. China has a little bit of a hit in March or in February, but not so much. And so therefore, it was more or less business as usual. And a lot of things happened during the year, and we didn't update those objectives during the year because simply, there was not enough visibility to know. We knew we would compensate or it was very likely we would compensate the missed revenues during the year with additional testing revenues, but where and how much was not clear also. And so the main reason for this update is the certainty because now, with 2 months of the last quarter behind us, we have, of course, certainty about the past and some visibility about December to be able to update investors. If we compare to Q3, why did we not change the objectives in Q3? Well, because of the uncertainty that remained on both our core business and COVID. I think we have had a good surprise of both compared to the end of September. So the core business recovered faster than we thought, which was a significant difference in growth, between 5% and where we were in Q3 or even at the exit of Q3. And we did a bit more COVID testing also in October, November that potentially we thought that then. And yes, the difference between EBITDA and free cash flow. Again, those are rounded numbers, and we don't know exactly how the cutoffs will fall at the end of the year. One element is we have a lot of stock for COVID testing. And this stock is, of course, consuming net working capital. We feel it is our duty to take some risk on the stock so we are able to respond if there is another big peak of COVID in February or March. During the winter, before the winter is over, we need to have enough stock, so this is an element. Of course, we did quite a bit of CapEx for COVID that we will write off over the duration of the pandemic. And that is also accounted for in the plans that we have for free cash flow. So -- but the good thing is all the CapEx for COVID will have been paid in 2020. So it won't affect 2021. So it's a bit of a net free cash flow. But here, again, there are still some elements of uncertainty on how fast we will be paid at the end of the year and what level of stocks we will have exactly at the end of December.

And the next question comes from the line of Tom Burlton from Berenberg.

Yes, first one is just a point of clarification, I guess. In Q2 and, to an extent, in Q3, you very helpfully gave us some sort of -- a bit more sort of quantified numbers around the COVID revenues. I wonder if you have the numbers for October and November, you can tell us maybe what the COVID-19 testing and sort of reagent revenue contribution was. And also an update, please, on the margin that you're making on that work because I think you -- in the past, I think you talked about 30% or so. It seems like the implications from the numbers might be that's even a little bit higher now still. I don't know whether that's due to anything, any action you've taken on the cost base or sort of -- or anything in that regard. The second question I had is on the antigen test that you have sort of released and updated us on yesterday. Just curious as to your sort of updated view on the role of these rapid-action flow tests. I mean there's been a fair share of doubt raised over their sensitivity, some of these tests missing quite a lot of infection, there's quite a damning article in The Lancet just yesterday. And I think you, yourself, had expressed some doubts, certainly, in the past. So sort of how do you see the use case of these tests, your capacity to produce them, if you can, because I know there are guys like Roche have got quite big capacity to produce sort of quite sizable monthly numbers on these antigen tests. And I know you've only just launched them, but sort of whether you have any sort of initial interest from sort of any large orders you might have already secured or be in discussions of for those tests would also be helpful. If you could have any color, please.

Yes, thank you very much, Thomas. A lot of very interesting questions. Yes, the COVID was not quantified. It's -- and what you can assume is, in Q4, we probably will be above EUR 100 million revenues per month on COVID on each of those 3 months on average. And how much more, we'll know at the end of December. It's really hard to know what governments will do for Christmas, whether they will stop COVID testing, whether they will push people to test. Well, they should. So that gives you an order of magnitude. And the margin. Yes, the margin depends on the volume. Of course, the more we do, the higher the volume. So if we do high volumes, the margin can be above 30%. On that level, though, we might not be able to quantify the margin properly because we will use staff that was doing other things to do COVID testing. They are either doing other tests. We have an issue of how much of our fixed overhead do we allocate to COVID and not to COVID. So there are a number of hypotheses that could be made to calculating COVID margin, which we have not done so far. But it's -- if we continue at that rate, probably the COVID contribution would be higher than 30%, especially where we can use our own reagents, and we don't have too much shipping and other things. As to the antigen test, it's also a very good question. Our view is still, if you have no other option, it's a good test. It will take the most -- the highest viral concentration. So it's much better than doing nothing. It takes time to do, and it has to be done properly. Otherwise, the result could be wrong. And -- but if you have the possibility to do PCR, it's always better to do PCR. And our view is that, in most situations, it is possible to organize -- to have enough PCR capacity now. The companies producing PCR kits can produce enough, there are enough systems. And Eurofins has always had, through the pandemic, extra capacity somewhere. So we can -- let's say France was full, we could ship our samples to Germany or vice versa. So I think it is possible to have enough capacity. So I think going forward, ideally, there would be more used -- more modalities to sample people, like the one we just announced yesterday, where people can sample themselves or even if it's under supervision of a doctor, it is done by using simpler modalities. We have enough labs now, more than 50 labs and enough labs around the world that the samples can be brought very fast to the labs. We are working on modalities to make PCR even faster on the standard PCR so that for most use cases, PCR could be used. Now, of course, governments will continue to use antigen test, and those antigen tests doing a lot. In some use cases, maybe like events or mass screening. The only reason to use it is to say, okay, we would do nothing. But we can -- we really -- we antigen test 1 million people, and we have no other way to test 1 million people than antigen test. It's still better to do it. It will catch some positive that are asymptomatic. And when we do our test campaign, we do find a lot of asymptomatic people who would otherwise infect other people. But if the same government has access to PCR, it's probably better to do PCR because they will catch many more positives. And more importantly, it would not give a sense of being not contaminated to people who will then go on and visit all their relative while they are symptomatic at a low level and a few hours later, maybe at a higher level. But we cannot control what the demand will be. And therefore, we have also developed this antigen. We can also run to millions of tests per month. Now we don't have the largest distribution channel. So I don't think we'll be the largest or even a large supplier of antigen test. Well, we need it is also for our own programs because as part of SAFER@WORK, we provide complete turnkey solutions to our clients. Let's say, they are running an airport and then we have different types of PCR tests. We have different sample kits at home for people to pretest themselves. We have a lab in a container at the airport where we can carry out tests within 6 hours, where people can come the day before and get tested or in the morning. We have fast PCR that can be done in an hour. And in some countries, they would -- the government is happy to accept only an antigen test. So we just then do an antigen test if that is required. And the fact that we have our own supply chain is very important because when we -- we are not dependent on supply chain problems at other suppliers. Also, we can provide global uniformity. If we have some global clients, it's good because we can then get them to approve our test, and then we can use our tests for people flying into their country from anywhere in the world. And they can audit it, they can test it in their country. So the fact that we have our supply chain on all the test modalities, we think is a strategic advantage in this fight against COVID, which might be with us for a few years. If you look at how many people want to be vaccined in France, for example, less than half of the population. So unless this population mentality changes drastically, there won't be enough vaccination for herd immunities. Therefore, testing might still be required. And so for certain circumstances, it doesn't matter, but there will be environments where people don't want to catch COVID or shouldn't catch COVID and testing should continue. So that's why we keep on refining our offering to provide safe environment for those of our clients who want it, be it the government, be they airlines, be they other types of organization events and some want to be quite thorough in what they will do. So it's part of an arsenal of tools that can be implemented.

And the next question comes from the line of Andy Grobler from Credit Suisse.

Are you on mute, Andy?

Can you hear me now?

Now we hear you.

Okay. Sorry about that. Yes, I've got lots but I'll just ask 2, if I may. You talked about improvements within the core business and a return to about 5% organic. Can you just talk through which segments of that are doing relatively well and relatively better? And what's kind of improved through the last couple of months? And then secondly, on COVID testing. Large pharma is talking about the expectation that there will be a consolidation of PCR tests to those with very large automated throughput machines to 3 or 4 suppliers over a period of time. Do you think that's likely? And if so, where does that leave Eurofins within the PCR testing world for COVID?

Well, the segments -- a lot of our businesses recovered. The change compared to Q3, I think, was more notable in food testing, environmental testing in Europe. Our clinical testing business also seems to have recovered well. We still have some areas of softness in environmental testing in North America, at least in the last couple of months. We still have our central lab, which has patient recruitment issues for clinical studies, the areas where we use volunteers and our food service testing and audit and IgM-related business are still a bit challenged. So that gives you a bit of color on the spread. Our BioPharma business is doing very well, not only the COVID programs. Generally, BioPharma is very active. And COVID testing consolidation, I'm not sure. I think it's already done. The large suppliers of automated machine like Roche and others have anyway their installed park and their labs will run the test if they have the machines. But then you have all the open systems that have been installed and -- by companies as the like of Thermo Fisher, et cetera, and the systems are there. And if the labs have good quality supplies at a competitive price, they will use the supplies that are -- that they consider appropriate. So I don't exactly know what consolidation was for. We also have a number of different suppliers, depending on the countries and the local approvals. So it's also a question of which kits are approved in which country. And so we've made sure that in all our labs, we can use our own kits, and they have the proper approval. But, of course, time will tell what -- how the market evolves and what happens. There could also be breakthroughs -- sorry, excuse me, there could be breakthroughs or there could be new ways of testing PCR faster, better and more cost-effectively that emerge because so much investment has been done around the world that I don't think that we've seen the end of the story in terms of innovation. I think it will, like for vaccines, this will trigger new ways of testing. For example, we've developed a test that we can use in central platform. And if there was a need, you can create millions of test per day capacity with that by reusing machines that were used in other parts of the biotech industry.

Can I ask just a follow-up? You mentioned vaccines again there. What -- and you talked about it earlier. What do you expect your role to be in vaccines as those roll out? And when will we have a clearer view of how that's going to develop through next year and potentially for the foreseeable future?

Thank you. Yes, this is a question that's definitely not settled yet. And it will be up to each government to decide what the health policy should be. What I raised is a number of questions that were asked by various governments. The first one is should a vaccine be administered to someone who's already infected with COVID, will it potentially increase in the immune response? And I think some countries will decide it's no problem. Others will decide they want to screen people before or they want to screen people to see their level of immunity to decide on priority. If somebody has already high antigen levels or existing T-cell immunity, maybe they should not be in the list of priorities. And so far, again, I'm not saying any government will -- all governments will choose to do that. Then you have, of course, the monitoring of the effectiveness of vaccines and when it comes to vaccinating a second time people potentially, deciding when is the right time to vaccine people the second time. So it could be monitoring of -- at the antibodies level, finding out whether these antibodies come from vaccines or come from a preexisting infection, and how that evolves over time and deciding when to vaccinate again people. And that, of course, split between the antibodies, which are relatively easy to measure and the T-cell immunity, for example. These are some of the topics that will have to be decided over the next, I guess, few quarters, depending on -- or each of those vaccines actually work and what is important in each case.

And the next question comes from the line of Ed Steele from Citi.

Gilles, just one question for me, please. Looking at some of the data on testing volumes across Europe, it looks like a number of key countries like France, Germany, Spain saw a peak in the first half of November. And okay. I mean it's a very fluid situation, but it feels like pieces come off a bit since then. Does that data kind of chime with your experience, please?

A little bit, yes. I think probably the first half of November was the highest or the second half, I'm not sure anyway. But we have now more than 50 labs testing for COVID around the world and so we also transfer samples across countries. So when one country is full, we can use the capacity we have in another country. So that tends to blur a bit those peaks, makes them maybe less big for us than they are in one country or less, very small. And yes, it's very hard to predict what will happen with the testing regimes and with the pandemic over the next few months. Some governments are asking us to prepare advance capacity for January because they're quite worried of what will happen after Christmas. And maybe there won't be a peak after January. So it's really very hard to predict.

[Operator Instructions] The next question comes from the line of Nicolas Tabor from Stifel.

Yes. So the first question would be could we have more color on what should drive the organic growth, especially the core organic growth over the next year, in the next 2 years. How much of that is just higher lab utilization versus your comparison base? And how much could be lab expansion or even pricing, if you have new more sophisticated demand, let's say, in BioPharma? And then in the same way, how should we think about the core margin expansion compensating for lower PCR testing through 2021? How much of that is coming from M&A integration? How much is coming from maybe the no investment into the LIMS deployment?

Thank you. Yes. At our Q3 results, we had tried to give some objectives for that. So we still stand by that. Assuming 2022 has 0 COVID revenues, we gave an objective for EBITDA and revenues and margin. The main contribution to margin is the end of all the reorganization programs that we have been carrying out during the last 3 to 4 years. We will have our lab footprint ready sometime in 2021. And indeed, as you mentioned, our digitization program should have made massive progress by then. And so we have less cost, less time where people spent in redeploying new IT solutions, et cetera, or moving activities from lab A to lab B and hence, they can focus more on their clients, and they can focus more on growing the sales and optimizing what they do in their own lab. I think that's the main effect. Some level of utilization, obviously. Pricing, we haven't figured out so much, although we see some inflation -- inflationary potential, there is basically not enough capacity for some of the things we do. And we even -- we struggled to find staff for some activities. So we have to prioritize, of course, who we serve. We are working for a lot of the vaccine companies very closely for very important programs. But we can't even take all of them, although we are the market leader, because of capacity. So of course, we have to recover the cost of the people who pay to do that. So those are the some of the reasons for the margin expansion that we plan for 2022 for just our core business. And again, I think we can compare that to a pre-COVID situation. I think there will be elements of comparison. If we compare H2 2019, which was not affected by the cyberattack at Eurofins and H2 2022, this will give a good indication. I mean if COVID really stops this summer, and there is no COVID effect in H2 2021, we already will have some comparison of the evolution. But we're satisfied about the progress we are making to basically streamline our business in a very efficient hub-and-spoke model. M&A, of course, we know what we bought. We don't know what we will buy in the next 18 months. And typically, it's slightly dilutive to our margins. But if we had only EUR 150 million or EUR 200 million each year on a EUR 5 billion business, the impact on margin should not be too big in terms of potential dilutive effect. And sometimes we buy companies with higher margins than group as a whole. So it really depends what we buy.

And we have one more question from the line of Tom Burlton from Berenberg.

Yes, just had a couple of follow-up questions. First one sort of relates to the last question, I think. It's just I was wondering how much pent-up demand do you think there is in sort of areas of your core business as we go into 2021. Just wondered if there's any areas that you'd highlight perhaps a little bit more subdued or areas where you see a bit more build or pent-up demand that you think might come through into 2021. And the second question was around the vaccine-related -- the vaccine-development-related work you've talked about and you've sort of alluded to in relation to vaccine development. Could you talk about a bit more about that, sort of what kind of work you're doing, who you're working with, if you're able to say, what exactly needs testing? And also maybe how material that is, kind of what kind of magnitude of sort of revenue or EBITDA contribution? And to how long you're expecting that to earnings stream to persist? Or any follow-on work that it might lead to from those clients you're working with, please?

Thank you. Yes. So of course, we have -- one thing I didn't mention is in October and November, we -- I did mention it actually, we grew 5%, but we have some of our businesses that are still idle. So -- and that has an impact on revenues and, of course, our margin. So when those business start again, when people start going to restaurants again or start traveling again or we can have volunteers come to our labs to evaluate cosmetics or when the testing of certain clinical trials will start, when the hospitals are no longer focused only on COVID, that work will restart, and we'll get the margin from there also. And we should recover relatively quickly. And there is indeed pent-up demand there. There are studies that are just parked that they could not be started or to be opposed or slowed down during the pandemic. And the sponsors are really keen to complete them ASAP. So that's clear. In food testing, I mean, it is being done as we go. There are some programs of product development that may be a bit slower because of the pandemic. We saw it in some of our other activities in the Silicon Valley that, during the lockdown, we had some work that was just paused, but they really want to catch up. So I think we will have probably, across the board, at some level, some catch-up of the work that -- mostly R&D work that our clients didn't do during the pandemic, but they will want to catch up with because they want to reach new products, et cetera. So for vaccines, I can't cite names, really, but all the names you hear about in the news, in one way or another, we work with them in -- or pretty much, let's say, I'd say 80% to leave room for not saying who that is. And we work to help them develop the products. And we work to help them develop the testing modalities to release those products. We work to help them during the clinical trials, to do the testing, testing the immunity before or after the impact of the vaccines during those clinical trials, and we continue to do so also in monitoring. And then the bigger work that is starting now is the release testing because those products have to be -- every batch has to be tested. And release testing for the vaccines that are currently in production, but also for those which, hopefully, will be approved in the next few days, weeks or months. So that's -- and that's what potentially can continue indefinitely. And it can be substantial. It's -- I mean, we're building labs just for that at the moment. We're expanding labs just to be able to carry out the volume of testing that will be required. Of course, we don't know yet exactly which vaccine will be sold in which quantity this year, next year. There will be maybe cheaper vaccines coming to the market over the second half of this year or next year and 2022. And so we are already working with a number of the vaccine producers in addition to those 2 that are -- have or are very close to have an approval. And whether this work will be EUR 50 million per year, EUR 100 million, EUR 20 million, I don't know. It's really will be time on the success of the respective vaccines and which one is sold where. And this work is important. Of course, it's part of what we do anyway, but that's a whole new market, basically, those COVID testing -- COVID vaccines because we already did that for other types of vaccines and products. So it is part of our core business.

And as there are no further questions, I will hand it back to Gilles for closing remarks.

Thank you very much, and thanks to all of you for joining our call. We're sorry that we cannot give you advanced warnings and when we have something like that, but we thought it is going to be 2.5 months until we announce our results for this year and considering the wide range of estimates and the consensus, we thought it was our duty to set some new objectives now that we have more certainty about how this year will end. I wish I could give you more certainty about next year. What we are convinced about is workings will do well next year, and we'll do very well also going forward, even once the COVID PCR testing stops, assuming it stops. We still don't know and there is still the possibility that we -- that 3 or 4 years from now, we still do a lot of PCR testing for COVID. We are really conservative. And we always prefer to surprise you with positive news than negative news, but this is one of the scenario, hopefully, not the most likely, but it is a possibility that 2022 or '23, we'll still do some COVID testing. Personally, I hope not. And I hope we can go back to our normalize lives and do our business, which is very exciting. We're very excited about all the new possibilities that research in this pandemic time has brought because they will bring a lot of growth for our business and a lot of positive contribution to health of everybody. So -- and the pandemic will have a silver lining. Not only will it teach us that we can do a lot of things online and that will change the way we live and work, to some extent, both in health care and also in food choices, combined with the more environmental awareness, there will be massive changes. We work a lot with food companies, we develop alternative foods, alternative proteins. That will also require a lot of testing to replace maybe the meat-based regimes that a lot of countries have had for a long time or to mitigate the quantity of meat, more natural sources, more organic products, shorter -- smaller batches, shorter supply chains. And all of these changes are basically for the better. And we'll be happy to support them. So overall, we are, as you can see, very excited about all the things we do, and we're proud of our contribution. And it has been a difficult year for us, for our staff. We had to work a lot more than usual in more difficult circumstances, but it's a -- I think it's a sign that we have -- our decentral model, as have with many entrepreneurial companies, enabled us to move faster, to have a contribution to fighting this pandemic that is significantly over-proportional to our representation in the chemical testing business. And I think we can be happy about that. And overall, it points to many, many areas that we'll pursue in the next few quarters where we can contribute. So it's all very exciting. This being said, lives are not normal and I really, really are sad not to meet in person. I wish the new year will be better. I hope we can all have our meetings and talk about all those things together. And so I'd like to conclude by wishing us all that, that Eurofins does very little COVID testing next year, that we go back to our normal lives, and we'll do everything to achieve that. So wish you all a happy holiday and a happy new year. And I hope to see you in person soon in the new year. Goodbye.

This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.