Avantor® Reports Fourth Quarter and Full Year 2024 Results
Avantor (AVTR) reported Q4 2024 results with net sales of $1.69 billion, showing a 2% decrease but 1% organic growth. Q4 net income reached $500.4 million with adjusted EBITDA of $307.7 million. Diluted GAAP EPS was $0.73 and adjusted EPS $0.27.
For full year 2024, net sales were $6.78 billion, declining 3% with a 2% organic decrease. Annual net income was $711.5 million with adjusted EBITDA of $1,198.8 million. The company achieved operating cash flow of $840.8 million and free cash flow of $768.3 million.
By segment, Laboratory Solutions reported Q4 sales of $1.13 billion, down 5%, while Bioscience Production showed Q4 sales of $560.8 million, up 4%. The company's bioprocessing platform grew high-single-digits, with management expressing confidence in achieving near-term and long-term financial goals.
Avantor (AVTR) ha riportato i risultati del Q4 2024 con vendite nette di 1,69 miliardi di dollari, mostrando una diminuzione del 2%, ma una crescita organica dell'1%. Il reddito netto del Q4 ha raggiunto i 500,4 milioni di dollari con un EBITDA rettificato di 307,7 milioni di dollari. L'EPS GAAP diluito era di 0,73 dollari e l'EPS rettificato era di 0,27 dollari.
Per l'intero anno 2024, le vendite nette sono state di 6,78 miliardi di dollari, in calo del 3% con una diminuzione organica del 2%. Il reddito netto annuale è stato di 711,5 milioni di dollari con un EBITDA rettificato di 1.198,8 milioni di dollari. L'azienda ha ottenuto un flusso di cassa operativo di 840,8 milioni di dollari e un flusso di cassa libero di 768,3 milioni di dollari.
Per segmento, Soluzioni di Laboratorio ha riportato vendite del Q4 di 1,13 miliardi di dollari, in calo del 5%, mentre Produzione Bioscientifica ha mostrato vendite del Q4 di 560,8 milioni di dollari, in aumento del 4%. La piattaforma di bioprocessing dell'azienda è cresciuta a una cifra alta a singolo, con la direzione che esprime fiducia nel raggiungere obiettivi finanziari a breve e lungo termine.
Avantor (AVTR) reportó los resultados del Q4 2024 con ventas netas de 1.69 mil millones de dólares, mostrando una disminución del 2%, pero un crecimiento orgánico del 1%. La renta neta del Q4 alcanzó los 500.4 millones de dólares con un EBITDA ajustado de 307.7 millones de dólares. El EPS diluido GAAP fue de 0.73 dólares y el EPS ajustado fue de 0.27 dólares.
Para el año completo 2024, las ventas netas fueron de 6.78 mil millones de dólares, disminuyendo un 3% con una disminución orgánica del 2%. La renta neta anual fue de 711.5 millones de dólares con un EBITDA ajustado de 1,198.8 millones de dólares. La compañía logró un flujo de efectivo operativo de 840.8 millones de dólares y un flujo de efectivo libre de 768.3 millones de dólares.
Por segmento, Soluciones de Laboratorio reportó ventas del Q4 de 1.13 mil millones de dólares, una caída del 5%, mientras que Producción Bioscientífica mostró ventas del Q4 de 560.8 millones de dólares, un aumento del 4%. La plataforma de bioprocesos de la compañía creció en dígitos altos, con la dirección expresando confianza en alcanzar objetivos financieros a corto y largo plazo.
Avantor (AVTR)는 2024년 4분기 결과를 보고하며 순매출이 16억 9천만 달러로 2% 감소했지만, 1%의 유기적 성장을 보였습니다. 4분기 순이익은 5억 4백만 달러에 이르렀고, 조정된 EBITDA는 3억 770만 달러였습니다. 희석 GAAP EPS는 0.73달러, 조정된 EPS는 0.27달러였습니다.
2024년 전체 연도에 대해, 순매출은 67억 8천만 달러로 3% 감소했으며, 유기적 감소율은 2%였습니다. 연간 순이익은 7억 1천 15억 달러, 조정된 EBITDA는 11억 9천 88만 달러였습니다. 이 회사는 8억 4천 8백만 달러의 운영 현금 흐름과 7억 6천 83만 달러의 자유 현금 흐름을 달성했습니다.
부문별로 실험실 솔루션은 4분기 매출이 11억 3천만 달러로 5% 감소했으며, 생명과학 생산은 4분기 매출이 5억 6천 8백만 달러로 4% 증가했습니다. 회사의 바이오 프로세싱 플랫폼은 높은 한 자릿수 성장률을 기록했으며, 경영진은 단기 및 장기 재무 목표 달성에 대한 자신감을 표명했습니다.
Avantor (AVTR) a annoncé les résultats du T4 2024 avec des ventes nettes de 1,69 milliard de dollars, montrant une diminution de 2 %, mais une croissance organique de 1 %. Le revenu net du T4 a atteint 500,4 millions de dollars avec un EBITDA ajusté de 307,7 millions de dollars. Le BPA GAAP dilué était de 0,73 dollar et le BPA ajusté de 0,27 dollar.
Pour l'année complète 2024, les ventes nettes étaient de 6,78 milliards de dollars, une baisse de 3 % avec une diminution organique de 2 %. Le revenu net annuel s'élevait à 711,5 millions de dollars avec un EBITDA ajusté de 1,198.8 millions de dollars. L'entreprise a réalisé un flux de trésorerie opérationnel de 840,8 millions de dollars et un flux de trésorerie disponible de 768,3 millions de dollars.
Par segment, Solutions de laboratoire a réalisé des ventes au T4 de 1,13 milliard de dollars, en baisse de 5 %, tandis que Production bio-scientifique a enregistré des ventes de 560,8 millions de dollars, en hausse de 4 %. La plateforme de bioprocédés de l'entreprise a enregistré une croissance à un seul chiffre élevé, avec la direction exprimant sa confiance dans l'atteinte des objectifs financiers à court et à long terme.
Avantor (AVTR) berichtete über die Ergebnisse des Q4 2024 mit Nettoumsätzen von 1,69 Milliarden Dollar, was einem Rückgang von 2 % entspricht, jedoch einem organischen Wachstum von 1 %. Der Nettogewinn im Q4 erreichte 500,4 Millionen Dollar mit einem bereinigten EBITDA von 307,7 Millionen Dollar. Der verwässerte GAAP EPS betrug 0,73 Dollar und der bereinigte EPS 0,27 Dollar.
Für das gesamte Jahr 2024 lagen die Nettoumsätze bei 6,78 Milliarden Dollar, was einem Rückgang von 3 % mit einem organischen Rückgang von 2 % entspricht. Der jährliche Nettogewinn betrug 711,5 Millionen Dollar mit einem bereinigten EBITDA von 1.198,8 Millionen Dollar. Das Unternehmen erzielte einen operativen Cashflow von 840,8 Millionen Dollar und einen freien Cashflow von 768,3 Millionen Dollar.
Nach Segmenten berichtete Labordienstleistungen im Q4 über Umsätze von 1,13 Milliarden Dollar, ein Rückgang von 5 %, während Bioscience-Produktion im Q4 einen Umsatz von 560,8 Millionen Dollar erzielte, ein Anstieg von 4 %. Die Bioprozess-Plattform des Unternehmens wuchs im hohen einstelligen Bereich, wobei das Management Vertrauen in die Erreichung der kurzfristigen und langfristigen finanziellen Ziele äußerte.
- Q4 organic growth returned to positive at 1%
- Q4 net income increased significantly to $500.4M from $98.5M YoY
- Bioprocessing platform grew high-single-digits
- Strong free cash flow conversion with $768.3M for full year
- Bioscience Production segment showed 4% growth in Q4
- Full year net sales declined 3% to $6.78B
- 2% organic sales decline for full year 2024
- Laboratory Solutions segment Q4 sales decreased 5%
- Adjusted net leverage at 3.2x as of December 31, 2024
- Full year adjusted net income decreased to $677.7M from $720.1M
Insights
Avantor's Q4 results reveal a company navigating through market challenges while maintaining operational discipline. The return to organic growth in Q4 (
The standout performance comes from the Bioscience Production segment, posting
Operational efficiency initiatives are yielding results, evidenced by sequential margin improvement and robust cash flow generation. The free cash flow conversion remains best-in-class, with full-year free cash flow of
Two key metrics deserve attention:
- The significant jump in Q4 net income to
$500.4M from$98.5M indicates potential one-time gains or accounting adjustments, as adjusted figures show more modest improvement - The divergence between segments, with Laboratory Solutions declining
1% organically while Bioscience Production grows4% , suggests a strategic opportunity to rebalance the portfolio
The company's cost transformation program running ahead of schedule, combined with the new operating model, positions Avantor well for margin expansion in 2025. However, the sustained pressure in Laboratory Solutions segment warrants monitoring as it represents approximately
Fourth Quarter 2024
- Net sales of
$1.69 billion 2% ; organic growth of1% - Net income of
$500.4 million $307.7 million - Diluted GAAP EPS of
$0.73 $0.27 - Operating cash flow of
$173.3 million $222.1 million
Full Year 2024
- Net sales of
$6.78 billion 3% ; organic decline of2% - Net income of
$711.5 million $1,198.8 million - Diluted GAAP EPS of
$1.04 $0.99 - Operating cash flow of
$840.8 million $768.3 million
"Our fourth quarter results highlight our team's commitment to commercial intensity, operational discipline, and enabling breakthrough therapies. As anticipated, we returned to growth in the fourth quarter and delivered sequential and year-over-year growth in adjusted EBITDA margin, adjusted EPS, and best-in-class free cash flow conversion. We grew our bioprocessing platform high-single-digits and expect continued strength driven by our focused execution and improving end market conditions," said Michael Stubblefield, President and Chief Executive Officer.
"Looking ahead, we're entering the year with strong momentum and a clear focus on innovation-driven revenue growth, margin expansion, and continued deleveraging. Our new operating model is driving greater efficiency, and our cost transformation program is ahead of schedule. With our industry-leading portfolio, resilient supply chain, and relentless efficiency, we are confident in achieving both our near-term and long-term financial goals," Stubblefield concluded.
Fourth Quarter 2024
For the three months ended December 31, 2024, net sales were
Net income increased to
Diluted earnings per share on a GAAP basis was
Operating cash flow was
Full Year 2024
For the full year ended December 31, 2024, net sales were
Net income increased to
Diluted earnings per share on a GAAP basis was
Operating cash flow was
Fourth Quarter 2024 – Segment Results
Laboratory Solutions
- Net sales were
$1,125.8 million 5% , as compared to$1,182.4 million 1% on an organic basis. - Adjusted Operating Income was
$147.4 million $157.3 million 13.1% .
Bioscience Production
- Net sales were
$560.8 million 4% , as compared to$540.4 million 4% on an organic basis. - Adjusted Operating Income was
$149.2 million $132.0 million 26.6% .
Full Year 2024 – Segment Results
Laboratory Solutions
- Net sales were
$4,610.1 million 3% , as compared to$4,738.3 million 2% on an organic basis. - Adjusted Operating Income was
$598.0 million $668.3 million 13.0% .
Bioscience Production
- Net sales were
$2,173.5 million 3% , as compared to$2,228.9 million 3% on an organic basis. - Adjusted Operating Income was
$558.2 million $601.9 million 25.7% .
Adjusted Operating Income is Avantor's segment reporting profitability measure under generally accepted accounting principles and is used by management to measure and evaluate the performance of our Company's business segments.
Conference Call
We will host a conference call to discuss our results today, February 7, 2025, at 8:00 a.m. Eastern Time. The live webcast and presentation, as well as a replay, will be available on the investor section of Avantor's website.
About Avantor
Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit avantorsciences.com and find us on LinkedIn, X (Twitter) and Facebook.
Use of Non-GAAP Financial Measures
To evaluate our performance, we monitor a number of key indicators. As appropriate, we supplement our results of operations determined in accordance with
The non-GAAP financial measures used in this press release are sales growth (decline) on an organic basis, Adjusted Operating Income, Adjusted Operating Income margin, Adjusted EBITDA, Adjusted EBITDA margin, adjusted net income, adjusted EPS, adjusted net leverage, free cash flow and free cash flow conversion.
- Organic net sales growth (decline) eliminates from our reported net sales change the impacts of revenues from acquisitions and divestitures that occurred in the last year and changes in foreign currency exchange rates. We believe that this measurement is useful to investors as a way to measure and evaluate our underlying commercial operating performance consistently across our segments and the periods presented. This measure is used by our management for the same reason.
- Adjusted Operating Income is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) losses on extinguishment of debt, (v) charges associated with the impairment of certain assets, (vi) gain on sale of business, (vii) and certain other adjustments. Adjusted Operating Income margin is Adjusted Operating Income divided by net sales as determined under GAAP. We believe that these measures are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measures are used by our management for the same reason. Additionally, Adjusted Operating Income is our segment reporting profitability measure under GAAP.
- Adjusted EBITDA is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) depreciation expense, (v) losses on extinguishment of debt, (vi) charges associated with the impairment of certain assets, (vii) gain on sale of business, (viii) and certain other adjustments. Adjusted EBITDA margin is Adjusted EBITDA divided by net sales as determined under GAAP. We believe that these measures are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measures are used by our management for the same reason.
- Adjusted net income is our net income or loss first adjusted for the following items: (i) amortization of acquired intangible assets, (ii) losses on extinguishment of debt, (iii) charges associated with the impairment of certain assets, (iv) gain on sale of business, (v) and certain other adjustments. From this amount, we then add or subtract an assumed incremental income tax impact on the above-noted pre-tax adjustments, using estimated tax rates, to arrive at Adjusted Net Income. We believe that this measure is useful to investors as a way to analyze the business consistently across the periods presented. This measure is used by our management for the same reason.
- Adjusted EPS is our adjusted net income divided by our diluted GAAP weighted average share count adjusted for anti-dilutive instruments. We believe that this measure is useful to investors as an additional way to analyze the underlying trends in our business consistently across the periods presented. This measure is used by our management for the same reason.
- Adjusted net leverage is equal to our gross debt, reduced by our cash and cash equivalents, divided by our trailing 12-month Adjusted EBITDA (excluding stock-based compensation expense and including the expected run-rate effect of cost synergies and the incremental results of completed acquisitions and divestitures as if those acquisitions and divestitures had occurred on the first day of the trailing 12-month period). We believe that this measure is useful to investors as a way to evaluate and measure the Company's capital allocation strategies and the underlying trends in the business. This measure is used by our management for the same reason.
- Free cash flow is equal to our cash flows from operating activities, less capital expenditures, plus direct transaction costs and income taxes paid related to acquisitions and divestitures (as applicable) in the period. Free cash flow conversion is free cash flow divided by adjusted net income. We believe that these measures are useful to investors as they provide a view on the Company's ability to generate cash for use in financing or investing activities. These measures are used by our management for the same reason.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, including our cost transformation initiative, objectives, future performance and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "assumption," "believe," "continue," "estimate," "expect," "forecast," "goal," "guidance," "intend," "likely," "long-term," "near-term," "objective," "opportunity," "outlook," "plan," "potential," "project," "projection," "prospects," "seek," "target," "trend," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.
Forward-looking statements are inherently subject to risks, uncertainties and assumptions; they are not guarantees of performance. You should not place undue reliance on these statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that our assumptions made in connection with the forward-looking statements are reasonable, we cannot assure you that the assumptions and expectations will prove to be correct. Factors that could contribute to these risks, uncertainties and assumptions include, but are not limited to, the factors described in "Risk Factors" in our most recent Annual Report on Form 10-K, and subsequent quarterly reports on Form 10-Q, as such risk factors may be updated from time to time in our periodic filings with the SEC.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this press release. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.
Investor Relations Contact
Allison Hosak
Senior Vice President, Global Communications
Avantor
908.329.7281
Allison.Hosak@avantorsciences.com
Global Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
Eric.VanZanten@avantorsciences.com
Avantor, Inc. and subsidiaries Consolidated statements of operations | |||||||
(in millions, except per share data) | Three months ended | Year ended December 31, | |||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 1,686.6 | $ 1,722.8 | $ 6,783.6 | $ 6,967.2 | |||
Cost of sales | 1,123.7 | 1,152.4 | 4,504.3 | 4,603.4 | |||
Gross profit | 562.9 | 570.4 | 2,279.3 | 2,363.8 | |||
Selling, general and administrative expenses | 371.4 | 387.1 | 1,641.1 | 1,506.6 | |||
Impairment charges | — | — | — | 160.8 | |||
Gain on sale of business | (446.6) | — | (446.6) | — | |||
Operating income | 638.1 | 183.3 | 1,084.8 | 696.4 | |||
Interest expense, net | (44.9) | (65.3) | (218.8) | (284.8) | |||
Loss on extinguishment of debt | (4.4) | (1.0) | (10.9) | (6.9) | |||
Other (expense) income, net | (4.6) | 2.5 | (1.2) | 5.8 | |||
Income before income taxes | 584.2 | 119.5 | 853.9 | 410.5 | |||
Income tax expense | (83.8) | (21.0) | (142.4) | (89.4) | |||
Net income | $ 500.4 | $ 98.5 | $ 711.5 | $ 321.1 | |||
Earnings per share: | |||||||
Basic | $ 0.74 | $ 0.15 | $ 1.05 | $ 0.48 | |||
Diluted | $ 0.73 | $ 0.15 | $ 1.04 | $ 0.47 | |||
Weighted average shares outstanding: | |||||||
Basic | 680.7 | 676.4 | 679.6 | 675.6 | |||
Diluted | 682.7 | 679.2 | 681.9 | 678.4 | |||
Avantor, Inc. and subsidiaries Consolidated balance sheets | |||
(in millions) | December 31, | December 31, | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 261.9 | $ 262.9 | |
Accounts receivable, net | 1,034.5 | 1,150.2 | |
Inventory | 731.5 | 828.1 | |
Other current assets | 118.7 | 143.7 | |
Total current assets | 2,146.6 | 2,384.9 | |
Property, plant and equipment, net | 708.1 | 737.5 | |
Other intangible assets, net | 3,360.2 | 3,775.3 | |
Goodwill, net | 5,539.2 | 5,716.7 | |
Other assets | 360.4 | 358.3 | |
Total assets | $ 12,114.5 | $ 12,972.7 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Current portion of debt | $ 821.1 | $ 259.9 | |
Accounts payable | 662.8 | 625.9 | |
Employee-related liabilities | 168.2 | 133.1 | |
Accrued interest | 48.6 | 50.2 | |
Other current liabilities | 306.8 | 411.2 | |
Total current liabilities | 2,007.5 | 1,480.3 | |
Debt, net of current portion | 3,234.7 | 5,276.7 | |
Deferred income tax liabilities | 557.3 | 612.8 | |
Other liabilities | 358.3 | 350.3 | |
Total liabilities | 6,157.8 | 7,720.1 | |
Stockholders' equity: | |||
Common stock including paid-in capital | 3,937.7 | 3,830.1 | |
Accumulated earnings | 2,203.0 | 1,491.5 | |
Accumulated other comprehensive loss | (184.0) | (69.0) | |
Total stockholders' equity | 5,956.7 | 5,252.6 | |
Total liabilities and stockholders' equity | $ 12,114.5 | $ 12,972.7 | |
Avantor, Inc. and subsidiaries Consolidated statements of cash flows | |||||||
(in millions) | Three months ended | Year ended December 31, | |||||
2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities: | |||||||
Net income | $ 500.4 | $ 98.5 | $ 711.5 | $ 321.1 | |||
Reconciling adjustments: | |||||||
Depreciation and amortization | 100.9 | 100.6 | 405.5 | 402.3 | |||
Impairment charges | — | — | — | 160.8 | |||
Gain on sale of business | (446.6) | — | (446.6) | — | |||
Stock-based compensation expense | 11.1 | 8.8 | 46.8 | 40.5 | |||
Non-cash restructuring charges | 0.5 | — | 16.9 | — | |||
Provision for accounts receivable and | 19.3 | 22.0 | 75.1 | 84.5 | |||
Deferred income tax expense (benefit) | 28.4 | (78.3) | (46.9) | (172.4) | |||
Amortization of deferred financing costs | 2.6 | 3.1 | 11.2 | 13.0 | |||
Loss on extinguishment of debt | 4.4 | 1.0 | 10.9 | 6.9 | |||
Foreign currency remeasurement (gain) | (3.3) | 0.5 | (0.3) | (2.6) | |||
Pension termination charges | 9.3 | — | 9.3 | — | |||
Changes in assets and liabilities: | |||||||
Accounts receivable | 11.7 | 21.9 | 45.9 | 77.0 | |||
Inventory | 3.0 | 21.2 | (18.5) | 30.3 | |||
Accounts payable | 17.7 | (43.8) | 59.6 | (139.6) | |||
Accrued interest | 14.9 | 10.6 | (1.6) | 0.3 | |||
Other assets and liabilities | (100.7) | 87.1 | (37.7) | 48.6 | |||
Other | (0.3) | (1.6) | (0.3) | (0.7) | |||
Net cash provided by operating | 173.3 | 251.6 | 840.8 | 870.0 | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (27.5) | (50.6) | (148.8) | (146.4) | |||
Proceeds from sale of disposal group, net of | 585.2 | — | 585.2 | — | |||
Other | 0.8 | 0.6 | 2.5 | 2.7 | |||
Net cash provided by (used in) | 558.5 | (50.0) | 438.9 | (143.7) | |||
Cash flows from financing activities: | |||||||
Debt repayments | (756.8) | (188.1) | (1,341.8) | (846.0) | |||
Payments of debt refinancing fees and | — | — | — | (2.3) | |||
Proceeds received from exercise of stock | 1.9 | 4.2 | 69.2 | 18.3 | |||
Shares repurchased to satisfy employee tax | (0.4) | (0.2) | (8.6) | (13.7) | |||
Net cash used in financing activities | (755.3) | (184.1) | (1,281.2) | (843.7) | |||
Effect of currency rate changes on cash and cash | (22.1) | 9.5 | (21.5) | 8.2 | |||
Net change in cash, cash equivalents and restricted | (45.6) | 27.0 | (23.0) | (109.2) | |||
Cash, cash equivalents and restricted cash, | 310.3 | 260.7 | 287.7 | 396.9 | |||
Cash, cash equivalents and restricted cash, end of | $ 264.7 | $ 287.7 | $ 264.7 | $ 287.7 | |||
Avantor, Inc. and subsidiaries Reconciliations of non-GAAP measures | |||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin | |||||||||||||||
(dollars in millions, % | Three months ended December 31, | Year ended December 31, | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||
Net income | 29.7 % | $ 98.5 | 5.7 % | 10.5 % | 4.6 % | ||||||||||
Amortization | 74.2 | 4.4 % | 75.0 | 4.4 % | 299.8 | 4.4 % | 307.7 | 4.4 % | |||||||
Loss on extinguishment | 4.4 | 0.3 % | 1.0 | — % | 10.9 | 0.2 % | 6.9 | 0.1 % | |||||||
Integration-related | — | — % | (0.7) | — % | — | — % | 7.6 | 0.1 % | |||||||
Restructuring and | 0.5 | — % | 8.5 | 0.5 % | 82.8 | 1.2 % | 26.5 | 0.4 % | |||||||
Transformation | 12.3 | 0.8 % | 5.4 | 0.3 % | 58.9 | 0.9 % | 5.4 | 0.1 % | |||||||
Reserve for certain legal | 1.3 | 0.1 % | 3.1 | 0.2 % | 9.2 | 0.2 % | 7.1 | 0.1 % | |||||||
Other5 | (3.5) | (0.3) % | (0.6) | — % | (3.9) | (0.2) % | (2.8) | — % | |||||||
Impairment charges6 | — | — % | — | — % | — | — % | 160.8 | 2.3 % | |||||||
Gain on sale of | (446.6) | (26.5) % | — | — % | (446.6) | (6.6) % | — | — % | |||||||
Pension termination | 9.3 | 0.6 % | — | — % | 9.3 | 0.2 % | — | — % | |||||||
Income tax expense | 31.6 | 1.8 % | (23.5) | (1.4) % | (54.2) | (0.8) % | (120.2) | (1.8) % | |||||||
Adjusted net income | 183.9 | 10.9 % | 166.7 | 9.7 % | 677.7 | 10.0 % | 720.1 | 10.3 % | |||||||
Interest expense, net | 44.9 | 2.7 % | 65.3 | 3.8 % | 218.8 | 3.2 % | 284.8 | 4.1 % | |||||||
Depreciation | 26.7 | 1.6 % | 25.6 | 1.4 % | 105.7 | 1.6 % | 94.6 | 1.3 % | |||||||
Income tax | 52.2 | 3.0 % | $ 44.5 | 2.6 % | 2.9 % | 3.1 % | |||||||||
Adjusted EBITDA | 18.2 % | 17.5 % | $ 1,198.8 | 17.7 % | $ 1,309.1 | 18.8 % | |||||||||
1. | Represents direct costs incurred with third parties and the accrual of a long-term retention incentive to integrate acquired companies. These expenses represent incremental costs and are unrelated to normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition. |
2. | Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. The expenses recognized in 2024 represent costs incurred to achieve the Company's publicly-announced cost transformation initiative. |
3. | Represents incremental expenses directly associated with the Company's publicly-announced cost transformation initiative, primarily related to the cost of external advisors. |
4. | Represents charges and legal costs, net of recoveries, in connection with certain litigation and other contingencies that are unrelated to our core operations and not reflective of on-going business and operating results. |
5. | Represents net foreign currency (gain) loss from financing activities and other stock-based compensation expense (benefit). |
6. | Related to impairment of Ritter. |
7. | Related to gain on sale of our Clinical Services business. |
8. | Represents pension termination charges related to termination of our |
Avantor, Inc. and subsidiaries Reconciliations of non-GAAP measures (continued)
| |||||||||||||||
Adjusted Operating Income and Adjusted Operating Income Margin | |||||||||||||||
(dollars in millions, % | Three months ended December 31, | Year ended December 31, | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||
Net income | 29.7 % | $ 98.5 | 5.7 % | 10.5 % | 4.6 % | ||||||||||
Interest expense, net | 44.9 | 2.7 % | 65.3 | 3.8 % | 218.8 | 3.2 % | 284.8 | 4.1 % | |||||||
Income tax expense | 83.8 | 4.8 % | 21.0 | 1.2 % | 142.4 | 2.1 % | 89.4 | 1.3 % | |||||||
Loss on extinguishment | 4.4 | 0.3 % | 1.0 | — % | 10.9 | 0.2 % | 6.9 | 0.1 % | |||||||
Other (expense) income, | 4.6 | 0.3 % | (2.5) | (0.1) % | 1.2 | — % | (5.8) | (0.1) % | |||||||
Operating income | 638.1 | 37.8 % | 183.3 | 10.6 % | 1,084.8 | 16.0 % | 696.4 | 10.0 % | |||||||
Amortization | 74.2 | 4.4 % | 75.0 | 4.4 % | 299.8 | 4.4 % | 307.7 | 4.4 % | |||||||
Integration-related | — | — % | (0.7) | — % | — | — % | 7.6 | 0.1 % | |||||||
Restructuring and | 0.5 | — % | 8.5 | 0.5 % | 82.8 | 1.2 % | 26.5 | 0.4 % | |||||||
Transformation | 12.3 | 0.8 % | 5.4 | 0.3 % | 58.9 | 0.9 % | 5.4 | 0.1 % | |||||||
Reserve for certain legal | 1.3 | 0.1 % | 3.1 | 0.2 % | 9.2 | 0.2 % | 7.1 | 0.1 % | |||||||
Other5 | (0.4) | — % | 0.2 | — % | 0.9 | — % | 0.3 | — % | |||||||
Impairment charges6 | — | — % | — | — % | — | — % | 160.8 | 2.3 % | |||||||
Gain on sale of | (446.6) | (26.5) % | — | — % | (446.6) | (6.6) % | — | — % | |||||||
Adjusted Operating | 16.6 % | 16.0 % | 16.1 % | 17.4 % | |||||||||||
1. | Represents direct costs incurred with third parties and the accrual of a long-term retention incentive to integrate acquired companies. These expenses represent incremental costs and are unrelated to normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition. |
2. | Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. The expenses recognized in 2024 represent costs incurred to achieve the Company's publicly-announced cost transformation initiative. |
3. | Represents incremental expenses directly associated with the Company's publicly-announced cost transformation initiative, primarily related to the cost of external advisors. |
4. | Represents charges and legal costs, net of recoveries, in connection with certain litigation and other contingencies that are unrelated to our core operations and not reflective of on-going business and operating results. |
5. | Represents other stock-based compensation expense (benefit). |
6. | Related to impairment of Ritter. |
7. | Related to gain on sale of our Clinical Services business. |
Avantor, Inc. and subsidiaries Reconciliations of non-GAAP measures (continued) | |||||||
Adjusted earnings per share | |||||||
(shares in millions) | Three months ended | Year ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
Diluted earnings per share (GAAP) | $ 0.73 | $ 0.15 | $ 1.04 | $ 0.47 | |||
Amortization | 0.11 | 0.11 | 0.44 | 0.45 | |||
Loss on extinguishment of debt | 0.01 | — | 0.02 | 0.01 | |||
Integration-related expenses | — | — | — | 0.01 | |||
Restructuring and severance charges | — | 0.01 | 0.12 | 0.04 | |||
Transformation expenses | 0.02 | 0.01 | 0.09 | 0.01 | |||
Reserve for certain legal matters, net | — | — | 0.01 | 0.01 | |||
Other | — | — | (0.01) | — | |||
Impairment charges | — | — | — | 0.24 | |||
Gain on sale of business | (0.66) | — | (0.65) | — | |||
Pension termination charges | 0.01 | — | 0.01 | — | |||
Income tax expense (benefit) applicable to pretax | 0.05 | (0.03) | (0.08) | (0.18) | |||
Adjusted EPS (non-GAAP) | $ 0.27 | $ 0.25 | $ 0.99 | $ 1.06 | |||
Weighted average diluted shares outstanding: | |||||||
Share count for Adjusted EPS (non-GAAP) | 682.7 | 679.2 | 681.9 | 678.4 | |||
Avantor, Inc. and subsidiaries Reconciliations of non-GAAP measures (continued) | |||||||
Free cash flow | |||||||
(in millions) | Three months ended | Year ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
Net cash provided by operating activities | $ 173.3 | $ 251.6 | $ 840.8 | $ 870.0 | |||
Capital expenditures | (27.5) | (50.6) | (148.8) | (146.4) | |||
Divestiture-related transaction expenses and taxes paid | 76.3 | — | 76.3 | — | |||
Free cash flow (non-GAAP) | $ 222.1 | $ 201.0 | $ 768.3 | $ 723.6 | |||
Adjusted net leverage | |
(dollars in millions) | December 31, |
Total debt, gross | $ 4,077.8 |
Less cash and cash equivalents | (261.9) |
$ 3,815.9 | |
Trailing twelve months Adjusted EBITDA(1) | $ 1,149.7 |
Trailing twelve months ongoing stock-based compensation expense | 47.0 |
$ 1,196.7 | |
Adjusted net leverage (non-GAAP) | 3.2 x |
1. | Represents the Adjusted EBITDA of Avantor for the trailing twelve-month period minus the results attributable to the divested business as if such divestiture had been completed on the 1st day of such trailing twelve-month period, as contemplated by our debt covenants. |
Avantor, Inc. and subsidiaries Reconciliations of non-GAAP measures (continued) | |||||||||||
Net sales by segment | |||||||||||
(in millions) | December 31 | Reconciliation of net sales growth (decline) to | |||||||||
Net sales growth (decline) | Foreign | Divestiture | Organic sales (decline) | ||||||||
2024 | 2023 | ||||||||||
Three months ended: | |||||||||||
Laboratory Solutions | $ 1,125.8 | $ (56.6) | $ (3.4) | $ (42.4) | $ (10.8) | ||||||
Bioscience Production | 560.8 | 540.4 | 20.4 | (1.8) | — | 22.2 | |||||
Total | $ 1,686.6 | $ (36.2) | $ (5.2) | $ (42.4) | $ 11.4 | ||||||
Year ended: | |||||||||||
Laboratory Solutions | $ 4,610.1 | $ (128.2) | $ 5.5 | $ (42.4) | $ (91.3) | ||||||
Bioscience Production | 2,173.5 | 2,228.9 | (55.4) | 1.8 | — | (57.2) | |||||
Total | $ 6,783.6 | $ (183.6) | $ 7.3 | $ (42.4) | $ (148.5) | ||||||
(dollars in millions, % | December 31 | Reconciliation of net sales growth (decline) to | |||||||||
Net sales growth (decline) | Foreign | Divestiture | Organic sales (decline) | ||||||||
2024 | 2023 | ||||||||||
Three months ended: | |||||||||||
Laboratory Solutions | $ 1,125.8 | (4.8) % | (0.3) % | (3.6) % | (0.9) % | ||||||
Bioscience Production | 560.8 | 540.4 | 3.8 % | (0.3) % | — % | 4.1 % | |||||
Total | $ 1,686.6 | (2.1) % | (0.3) % | (2.5) % | 0.7 % | ||||||
Year ended: | |||||||||||
Laboratory Solutions | $ 4,610.1 | (2.7) % | 0.1 % | (0.9) % | (1.9) % | ||||||
Bioscience Production | 2,173.5 | 2,228.9 | (2.5) % | 0.1 % | — % | (2.6) % | |||||
Total | $ 6,783.6 | (2.6) % | 0.1 % | (0.6) % | (2.1) % | ||||||
Adjusted Operating Income by segment | |||||||||||||||
(dollars in millions, % | Three months ended December 31, | Year ended December 31, | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||
Laboratory Solutions | 13.1 % | 13.3 % | 13.0 % | 14.1 % | |||||||||||
Bioscience Production | 149.2 | 26.6 % | 132.0 | 24.4 % | 558.2 | 25.7 % | 601.9 | 27.0 % | |||||||
Corporate | (17.2) | — % | (14.5) | — % | (66.4) | — % | (58.4) | — % | |||||||
Total | 16.6 % | 16.0 % | 16.1 % | 17.4 % | |||||||||||
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SOURCE Avantor and Financial News
FAQ
What was Avantor's (AVTR) Q4 2024 revenue and how did it compare to previous year?
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What was Avantor's adjusted EBITDA margin in Q4 2024?
