(Reuters) – French laboratory testing company Eurofins Scientific said on Tuesday an independent audit by Ernst & Young Paris had found no material misstatements in its cash statements, refuting earlier allegations by short seller Muddy Waters.
WHY IT’S IMPORTANT
On June 24, the Eurofins shares fell more than 16% after Muddy Waters questioned its financial statements and specific real estate transactions in a report. Eurofins denied the allegations at the time.
The shares have regained their losses since then, and the results from the audit could help further stabilize Eurofins’ market position.
BY THE NUMBERS
The audit identified two individual exceptions of above 100,000 euros ($108,220), resulting in an overstatement of 1.2 million euros, but those were considered immaterial and had been corrected in Eurofins’ half-year 2024 statement.
The company also slightly trimmed its revenue guidance for the full year on Tuesday, expecting it to be close to 7 billion euros versus the previous forecast of between 7.075 billion and 7.175 billion euros.
($1 = 0.9240 euros)
(Reporting by Leo Marchandon in Gdansk; editing by Milla Nissi)
