EQS-News: Sartorius: First quarter results in line with expectations; recurring business with significant order growth; demand from China remains weak; outlook for full year confirmed
Source: EQS
Göttingen, Sartorius: First quarter results in line with expectations; recurring business with significant order growth; demand from
In a continuously challenging market environment, the life science group Sartorius closed its first quarter within the bandwidth of expectations recording an increase in order intake and a decline in sales revenue compared with a strong prior-year quarter. For the full year, the company continues to anticipate business momentum to gradually pick up from quarter to quarter and forecasts sales revenue growth in the mid to high single-digit percentage range. "In the first quarter we largely saw the projected muted start to the fiscal year and a mixed picture overall: Orders in our core business with consumables are picking up noticeably, signaling an advanced stage of inventory reduction on the customer side. Business with customers working on cell and gene therapies, which is a major strategic focus for us, is also developing well, although this still very young field generally shows somewhat higher volatility. In contrast, customers, particularly in Business development of the Group1 In the first three months of 2024, the Sales revenue amounted to From a regional perspective, the demand recovery was visible in all business regions except for Underlying EBITDA decreased by 13.8 percent to The relevant net profit reached Key financial indicators The Group's key financial indicators remain at a sound level. The equity ratio as of Mainly due to lower earnings, net operating cash flow totaled Business development of the Bioprocess Solutions division In the Bioprocess Solutions division, which offers a wide array of innovative technologies for the manufacture of biopharmaceuticals, vaccines, and cell and gene therapeutics, demand in the recurring core business with consumables continued to normalize as expected. Sales revenue and order intake further recovered in this key product category, while the equipment and systems business remained soft due to customers’ muted investment activity. The division's order intake increased by 15.0 percent in constant currencies (reported: 13.4 percent) to The division's underlying EBITDA decreased to Business development of the Lab Products & Services division In the Lab Products & Services division, which specializes in life science research and pharmaceutical laboratories, the upturn in business momentum recorded since the end of 2023 continued in the first quarter. However, in particular due to the very weak Chinese market and the still subdued investment activity on the part of customers, order intake and sales revenue were down on the strong prior-year quarter. Order intake was on a par with the sales revenue level in the first three months of the financial year at The division's sales revenue reached Due to volume and product mix effects, the division's underlying EBITDA stood at Outlook for 2024 Management confirms its expectations for the current fiscal year and continues to anticipate a moderate first half of 2024 and increasing business momentum in the course of the year. In addition, business performance could also be affected by increasing geopolitical tensions and economic slowdowns. The company forecasts an increase in Group sales revenue in the mid to high single-digit percentage range with a contribution of around 1.5 percentage points from acquisitions. The underlying EBITDA margin is projected to rise to slightly more than 30 percent (prior year: 28.3 percent). The ratio of capital expenditure to sales revenue is expected to be around 13 percent and the ratio of net debt to underlying EBITDA, excluding potential acquisitions, slightly above 3. For the Bioprocess Solutions division, management anticipates an increase in sales revenue in the mid to high single-digit percentage range, including a contribution of around 2 percentage points from acquired businesses. The division's underlying EBITDA margin is projected to be over 31 percent (prior year: 29.2 percent), positively impacted by the above-average profitability of the Forecasts have been prepared based on historical information and are consistent with accounting policies. All forecast figures are based on constant currencies, as in the past years. Management points out that the dynamics and volatilities in the industry have increased significantly in recent years. In addition, uncertainties due to the changed geopolitical situation, such as the emerging decoupling tendencies of various countries, are playing a greater role. This results in higher uncertainty when forecasting business figures. 1 Sartorius publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.
3 EMEA = This press release contains forward-looking statements about the future development of the Conference call The Executive Board Chairman and CEO Dr. Financial calendar Key Performance Indicators for the First Quarter of 2024
2 All customer orders contractually concluded and booked during the respective reporting period. 3 According to the customer's location 4 Earnings before interest, taxes, depreciation, and amortization and adjusted for extraordinary items. 5 Profit for the period after non-controlling interest, adjusted for extraordinary items and amortization, as well as based on the normalized financial result and the normalized tax rate. 6 After non-controlling interest A profile of Sartorius Sartorius (XETRA: SRT3 | STR) is a leading international partner of life sciences research and the biopharmaceutical industry. With innovative laboratory instruments and consumables, the Group’s Lab Products & Services division focuses on laboratories performing research and quality control at pharmaceutical and biopharmaceutical companies as well as academic research institutes. The Bioprocess Solutions division, with its broad product portfolio focusing on single-use solutions, helps customers manufacture biotech medications, vaccines, and cell and gene therapies safely, rapidly, and economically. The company, based in Göttingen, Visit our newsroom and follow Sartorius on LinkedIn. Contact Head of +49 (0)551.308.1686 petra.kirchhoff@sartorius.com Additional features: File: Media Release_SAG_Q1_2024_en
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Language: | English |
Company: | |
Otto-Brenner-Straße 20 | |
37079 Göttingen | |
Phone: | +49.(0)551-308.0 |
Fax: | +49.(0)551-308.3289 |
E-mail: | info@sartorius.com |
Internet: | www.sartorius.com |
ISIN: | DE0007165607, DE0007165631 |
WKN: | 716560 , 716563 |
Indices: | DAX, TecDAX |
Listed: | Regulated Market in |
EQS News ID: | 1883113 |
End of News |
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1883113 18.04.2024 CET/CEST