- Group revenue up 13.4%, order intake
up 13.3%; earnings margin1) 25.5%
- Strong growth in sales and order
intake for the Bioprocess Solutions Division
- Growth dynamics of the Lab Products
& Services Division in the third quarter impacted by softer
European demand
- Group full-year guidance
confirmed
Sartorius, a leading international partner of biopharmaceutical
research and the industry, continued on the growth track, with
double-digit gains in sales revenue and earnings.
“In the first nine months of 2018, Sartorius achieved excellent
organic growth,” said Dr. Joachim Kreuzburg, Chief Executive
Officer. “This applies particularly to the Bioprocess Solutions
Division, which grew dynamically across all product categories and
geographies. For the Lab Products & Services Division, growth
in the third quarter was below our expectations due to softer
demand in Europe. At the Group level, however, this effect will be
largely compensated for by the strong development of our bioprocess
business so that we confirm our ambitious full-year forecast.”
Business development of the Sartorius Group
In the first nine months of 2018, Sartorius increased its sales
revenue by 13.4% in constant currencies to 1,153.7 million euros
(reported: +10.9%). The majority of growth was achieved
organically, while acquisitions contributed close to 1.5 percentage
points. In the same period, order intake also increased
significantly, up 13.3% to 1,215.2 million euros.
Geographically, all regions contributed to consolidated growth.
Especially in the Americas, sales revenue rose significantly by
20.1% to 387.9 million euros against a moderate prior-year base,
and Asia|Pacific again saw double-digit growth of 13.4% to 281.7
million euros, despite strong performance in the previous year.
EMEA2) recorded a solid gain of 8.6% to 484.1 million euros (all
growth rates for the regions and order intake in constant
currencies).
The Sartorius Group also substantially increased its earnings in
the first nine months of 2018. Underlying EBITDA rose
overproportionately relative to sales by 15.0% to 294.2 million
euros; the respective margin was 25.5% compared with 24.6% a year
ago. Relevant net profit3) for the Group grew significantly by
21.8% to 126.3 million euros. Earnings per ordinary share
totaled 1.84 euros (9M 2017: 1.51 euros) and earnings per
preference share 1.85 euros (9M 2017: 1.52 euros).
The Group's key financial indicators continued to remain at
robust levels. At the end of the reporting period, the company's
equity ratio was 35.6%, and its ratio of net debt to underlying
EBITDA stood at 2.4 (Dec. 31, 2017: 35.1% and 2.5, resp.). The
capex ratio was 13.0%, slightly below the year-earlier figure of
13.6%. Investment activities continued to focus on expansion of the
plant for manufacturing single-use bags and filters in Puerto Rico,
as well as on the consolidation and expansion of Group headquarters
in G�ttingen, Germany.
Business development of the divisions
The Bioprocess Solutions Division, which offers a wide array of
innovative technologies for the manufacture of biopharmaceuticals,
recorded double-digit growth in sales revenue and order intake in
the first nine months of 2018. After the previous year’s comparably
moderate performance, momentum considerably picked up in the
reporting period. The division’s sales revenue rose in constant
currencies by 14.8% to 843.0 million euros (reported: +12.2%) and
was driven by strong demand for equipment and single-use products.
The increase in sales revenue was achieved almost completely
organically, whereas the software company Umetrics acquired in
April 2017 contributed around half a percentage point of
non-organic growth. Order intake also rose at a very dynamic rate
by 15.0% to 901.8 million euros.
Despite negative currency effects, and driven by economies of
scale and positive product mix effects, underlying EBITDA of the
Bioprocess Solutions Division rose overproportionately relative to
sales, by 16.5% to 239.1 million euros. The Group's respective
margin increased significantly year over year from 27.3% to
28.4%.
The Lab Products & Services Division, which offers
laboratory technologies primarily for the pharma sector and life
science research, recorded an increase in sales revenue in constant
currencies by 9.7% to 310.7 million euros (reported +7.4%),
following high growth in the prior-year period. After a strong
first half, development was dampened in the third quarter as a
result of softer demand in Europe. Finalized in March 2017, the
acquisition of Essen BioScience, a specialist in cell analysis,
contributed non-organic growth of close to 3.5 percentage points in
line with expectations. The division’s nine-month order intake grew
in constant currencies by 8.7% to 313.4 million euros.
Underlying earnings for Lab Products & Services rose 9.0% to
55.0 million euros. Despite negative currency effects, the
division's earnings margin increased slightly from 17.5% to 17.7%,
which was driven by economies of scale and product mix effects.
Full-year guidance confirmed; division forecasts
adjusted
In view of the company’s performance in the first nine months of
2018, management confirms its full-year projections, substantially
raised at mid-year, that consolidated sales will grow by about 12%
to 15%. The Group’s underlying EBITDA margin remains forecasted to
increase by about 0.5 percentage points compared with the
year-earlier figure of 25.1%.
Based on the dynamic growth recorded for the Bioprocess
Solutions Division in the reporting period, management now projects
that the division’s sales revenue will increase at the upper range
of the previously targeted bandwidth of about 12% to 15%. This
figure includes a non-organic growth contribution of slightly less
than 0.5 percentage points. The division's underlying EBITDA margin
is forecasted to further gain about half a percentage point over
the prior-year figure of 28.0%.
For the Lab Products & Services Division, management reduces
growth projections for sales due to softer demand in Europe, to 8%
to 10% (previous guidance: about 12% to 15%). Essen BioScience
consolidated since March 2017 is forecasted to contribute a good
2.5 percentage points of non-organic growth, as expected so
far. The division’s underlying EBITDA margin is projected to
further rise; due to the division’s lower sales growth, however,
this increase will now be around half a percentage point over the
prior-year figure of 18.0% (previous forecast: one percentage
point).
All forecasts are based on constant currencies. As a result of
changes in the currency exchange rates, reported figures in actual
currencies may differ from constant currency guidance.
1) Sartorius uses underlying EBITDA (earnings before interest,
taxes, depreciation and amortization and adjusted for extraordinary
items) as the key profitability indicator
2) EMEA = Europe | Middle East | Africa
3) After non-controlling interest, adjusted for extraordinary
items and non-cash amortization, as well as based on the normalized
financial result and corresponding tax effects.
This earnings release contains statements about the future
development of the Sartorius Group. The content of these statements
cannot be guaranteed as they are based on assumptions and estimates
that harbor certain risks and uncertainties. This is a translation
of the original German-language press release. Sartorius shall not
assume any liability for the correctness of this translation. The
original German press release is the legally binding version.
Furthermore, Sartorius reserves the right not to be responsible for
the topicality, correctness, completeness or quality of the
information provided. Liability claims regarding damage caused by
the use of any information provided, including any kind of
information which is incomplete or incorrect, will therefore be
rejected.
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fileshttps://www.sartorius.com/en/company/newsroom/downloads-publications
Conference call
Dr. Joachim Kreuzburg, CEO, and Rainer Lehmann, CFO, will
discuss the company's business results with analysts and investors
on Tuesday, October 23, 2018, at 3:00 p.m. Central European Time
(CET) in a teleconference. You may register by clicking on the
following
link:http://services.choruscall.de/DiamondPassRegistration/register?confirmationNumber=6785779&linkSecurityString=2c6a4a5c7
Alternatively, you can dial into the teleconference, without
registering, at:+49 (0) 69 566 03 6000
To view the presentation, log onto:
https://www.sartorius.com/en/company/investor-relations/sartorius-ag-investor-relations
Upcoming financial dates
January 29, 2019 Publication of preliminary figures for 2018
A profile of Sartorius
The Sartorius Group is a leading international partner of
biopharmaceutical research and the industry. With innovative
laboratory instruments and consumables, the Group’s Lab Products
& Services Division concentrates on serving the needs of
laboratories performing research and quality control at pharma and
biopharma companies and those of academic research institutes. The
Bioprocess Solutions Division with its broad product portfolio
focusing on single-use solutions helps customers to manufacture
biotech medications and vaccines safely and efficiently. The Group
has been annually growing by double digits on average and has been
regularly expanding its portfolio by acquisitions of complementary
technologies. In fiscal 2017, Sartorius earned sales revenue of
more than 1.4 billion euros. Currently, more than 8,000 people work
at the Group’s approximately 60 manufacturing and sales sites,
serving customers around the globe.
Key Performance Indicators for the 9-Month Period of
2018
Sartorius Group Bioprocess Solutions
Lab Products & Services In millions of € (unless
otherwise specified)
9M 2018
9M20171)
Δ in%Reported
Δ in% cc2)
9M 2018
9M20171)
Δ in%Reported
Δ in% cc2)
9M 2018
9M20171)
Δ in%Reported
Δ in% cc2)
Sales Revenue and Order Intake Sales revenue
1,153.7 1,040.4 10.9 13.4
843.0 751.1 12.2 14.8
310.7 289.3 7.4 9.7
- EMEA3)
484.1 448.9 7.8 8.6
342.5 308.6 11.0 11.5
141.6 140.3 0.9 2.1 - Americas3)
387.9 335.1 15.8 20.1
306.6 263.7 16.3 20.8
81.3 71.5 13.8 17.3 - Asia | Pacific3)
281.7 256.5 9.8 13.4
193.9 178.9 8.4 11.9
87.8
77.5 13.2 16.9 Order intake
1,215.2 1,096.4 10.8 13.3
901.8 802.0 12.5 15.0
313.4 294.4 6.4 8.7
Earnings
EBITDA4)
294.2 255.8 15.0
239.1 205.3 16.5
55.0 50.5 9.0 EBITDA margin4) in
%
25.5 24.6
28.4 27.3
17.7 17.5 Net profit for
the period5)
126.3 103.7 21.8
Financial Data per Share Earnings per ordinary share5) in €
1.84 1.51 21.9
Earnings per preference
share5) in €
1.85 1.52 21.7
1) The previous year's figures have been
restated due to finalization of the purchase price allocations for
the acquisitions of 2017.
2) In constant currencies; abbreviated as
"cc"
3) Acc. to the customer’s location 4) Adjusted for extraordinary
items (underlying) 5) After non-controlling interest, adjusted for
extraordinary items and non-cash amortization, as well as based on
the normalized financial result and corresponding tax effects
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181022006008/en/
SartoriusPetra KirchhoffHead of Corporate Communications+49
(0)551.308.1686petra.kirchhoff@sartorius.comwww.sartorius.com