Biogroup - comment

BioGroup’s Q2 results are modestly positive for the bonds, although we maintain there is limited upside in the short term. The A&E announced in May has extended the maturity profile and removed the near-term refinancing risk. We do not expect any update on the French testing pricing regime on the call, which remains the key catalyst for the bonds over the coming months.

BioGroup’s Q2 results are broadly supportive of the credit, with revenue up 4.2% in H1 and Management EBITDA increasing 11% to €239m, reflecting continued volume growth and cost savings. Operating cash flow was broadly unchanged at €164m, while capex fell to €34m, although €42m was spent acquiring minority interests. The call is at 1 pm today.