First-quarter results 2022 of Sartorius Stedim Biotech

Rhea-AI Summary

Sartorius Stedim Biotech reported a strong start to 2022, achieving 27.6% sales revenue growth in constant currencies, reaching approximately 862 million euros. The underlying EBITDA margin remained robust at 35.2%, with net profit rising 34.4% to 203 million euros. The company confirmed its 2022 outlook, predicting revenue growth between 15% and 19%. However, rising global uncertainties, particularly due to the Ukraine crisis, may impact supply chains and inflation rates.

Positive

• Sales revenue increased by 27.6% in constant currencies.
• Underlying EBITDA margin held steady at 35.2%.
• Net profit rose by 34.4% to 203 million euros.
• Acquisition of Novasep's chromatography business strengthened market position.
• Outlook for 2022 confirmed, expecting 15-19% revenue growth.

Negative

• Global political and economic uncertainties increased significantly.

• Sales revenue up 27.6 percent in constant currencies, underlying EBITDA margin 35.2 percent
• Healthy demand situation; normalization of pandemic-related effects and development of order intake, as expected; extensive investment program on schedule
• Positioning strengthened by acquisition of chromatography business from Novasep
• Outlook for 2022 confirmed: Sales revenue expected to rise by 15 to 19 percent and underlying EBITDA margin projected to be more than 35 percent
• Global political and economic uncertainties substantially increased

AUBAGNE, France, April 21, 2022 /PRNewswire/ -- Sartorius Stedim Biotech, a leading partner of the biopharma industry, recorded a dynamic start to fiscal 2022, with sales revenue and earnings posting strong double-digit growth rates in the first quarter compared with the prior-year period. Based on its performance in the first three months, Sartorius Stedim Biotech confirms its outlook for fiscal 2022.

"Sartorius Stedim Biotech had a good start to 2022. We continued to grow, and our margin remained at a high level despite rising logistics and material costs as well as negative influences from currencies. The pandemic-related effects and the development of order intake are normalizing, as expected. Demand for our products is high in all segments and our investments in the expansion of production capacities are making good progress. In addition, the acquisition of the chromatography business of Novasep further strengthened our positioning in downstream processing. In light of the positive performance in the first three months and the healthy demand situation, we are confirming our outlook for the current fiscal year. However, the global political and economic uncertainties have increased substantially with the outbreak of war in Ukraine, further increasing the strain on supply chains and the risks arising from significantly higher inflation rates," said Joachim Kreuzburg, Chairman of the Board of Directors and CEO.

Business development of the Group¹

In the first quarter, Group sales revenue rose by 27.6 percent year-over-year in constant currencies (reported: +31.6 percent) to around 862 million euros. The performance was driven by strong organic growth across the portfolio, while acquisitions² contributed almost 2 percentage points to the increase. All three business regions – EMEA³, Americas, and Asia | Pacific – posted double-digit percentage growth in constant currencies.

Order intake was in line with expectations compared with the exceptionally strong prior-year quarter, reaching 950 million euros (- 8.6 percent in constant currencies; reported: - 5.5 percent). The first quarters of 2021 were influenced by extraordinarily high demand related to the coronavirus pandemic and changed ordering patterns by some customers, who placed their orders further in advance than usual.

As a result from the growth in sales revenue, underlying EBITDA rose by 31.1 percent to 304 million euros in the first quarter. The corresponding margin remained largely stable at 35.2 percent (prior-year quarter: 35.4 percent) despite being impacted by negative currency effects. Relevant net profit rose 34.4 percent to 203 million euros, and underlying earnings per share were 2.21 euros (prior-year quarter: 1.64 euros).

Key financial indicators

The Sartorius Stedim Biotech Group continues to have a very sound balance sheet and financial base. As of March 31, 2022, its equity ratio stood at 48.1 percent (December 31, 2021: 43.9 percent). Net debt to underlying EBITDA remained at 0.4 percent, as at year-end 2021. Cash flow from investing activities stood at –77 million euros as planned, compared to –62 million euros in the first quarter of 2021. The ratio of capital expenditures (CAPEX) to sales revenue reached 8.9 percent, compared with 9.5 percent in the prior-year period.

Increase in the number of employees

As of March 31, 2022, Sartorius Stedim Biotech employed a total of 11,400 people worldwide, representing a headcount increase of 991 from the end of December 2021.

Outlook for fiscal 2022 confirmed

The management confirms the outlook for the current fiscal year. Consolidated sales revenue is expected to increase by about 15 percent to 19 percent, with non-organic growth from acquisitions projected to contribute about 2 percentage points. The company's underlying EBITDA margin is expected to reach more than 35 percent this year.

The CAPEX ratio is anticipated to be about 14.5 percent and net debt to underlying EBITDA to be about 0.2 at year-end. Possible further acquisitions are not included in this projection.

All forecasts are based on constant currencies, as in the past years. In addition, management points out that the dynamics and volatilities in the life science and biopharma sectors have increased over the past years and the coronavirus pandemic has further amplified these trends. Accordingly, current forecasts show even higher uncertainties than usual. Furthermore, the forecasts are based on the assumption of no further deterioration in the geopolitical and global economic situation, supply chains and inflation, and no new large-scale restrictions in connection with the coronavirus pandemic.

1 Sartorius Stedim Biotech 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.

• Order intake: all customer orders contractually concluded and booked during the respective reporting period
• Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
• Relevant net profit: profit for the period after non-controlling interest, adjusted for extraordinary items and non-cash amortization, as well as based on the normalized financial result and the normalized tax rate
• Ratio of net debt to underlying EBITDA: quotient of net debt and underlying EBITDA over the past 12 months, including the pro forma amount contributed by acquisitions for this period

2 Acquisition of CellGenix, Xell and the Novasep chromatography division

3 EMEA = Europe, Middle East, Africa

This press release contains forward-looking statements about the future development of the Sartorius Stedim Biotech Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such statements. Sartorius Stedim Biotech assumes no liability for updating such statements in light of new information or future events. Sartorius Stedim Biotech shall not assume any liability for the correctness of this release. The original French press release is the legally binding version.

Conference call

Joachim Kreuzburg, Chairman of the Board of Directors and CEO of the Sartorius Stedim Biotech Group, will discuss the company's business results with analysts and investors in a conference call at 3.30 p.m. CEST on April 21, 2022.You may register by clicking on the following link:

https://services.choruscall.com/mediaframe/webcast.html?webcastid=sG0DnuJJ

More information

https://www.sartorius.com/en/company/newsroom

Financial calendar

July 21, 2022                        Publication of the first-half figures (January to June 2022)

October 19, 2022                Publication of nine-month figures (January to September 2022)

 

Key figures for the first quarter of 2022
In millions of € unless otherwise specified	Q1 2022	Q1 20211	∆ in % Reported	∆ in % cc2
Order Intake and Sales Revenue
Order intake	949.7	1,004.4	-5.5	-8.6
Sales revenue	862.5	655.2	31.6	27.6
- EMEA	348.6	284.1	22.7	22.9
- Americas	293.7	204.0	44.0	34.7
- Asia | Pacific	220.2	167.1	31.8	26.9
Results
EBITDA3	303.7	231.6	31.1
EBITDA margin3 in %	35.2	35.4
Underlying net profit4	203.4	151.3	34.4
Earnings per share4 in €	2.21	1.64	34.5
Net profit5	270.1	125.8	114.7
1 The figures for the first quarter 2021 were restated due to the finalization of the purchase price allocation for the acquisitions of BIA Separations and WaterSep BioSeparations
2 In constant currencies
3 Underlying EBITDA = earnings before interest, taxes, depreciation and amortization, and adjusted for extraordinary items
4 Relevant / underlying net profit = net profit after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and normalized tax rate
5 After non-controlling interest

 

 

Reconciliation
In millions of € unless otherwise specified	Q1 2022	Q1 20211
EBIT (operating result)	261.3	198.3
Extraordinary items	1.8	1.7
Depreciation and amortization	40.7	31.6
Underlying EBITDA	303.7	231.6
In millions of € unless otherwise specified	Q1 2022	Q1 20211
EBIT (operating result)	261.3	198.3
Extraordinary items	1.8	1.7
Amortization | IFRS 3	14.9	10.0
Normalized financial result2	-2.7	-2.5
Normalized income tax (26%)3	-71.6	-54.0
Underlying net result	203.7	153.6
Non-controlling interest	-0.3	-2.3
Underlying net result after non-controlling interest	203.4	151.3
Underlying earnings per share (in €)	2.21	1.64
1 The figures for the first quarter 2021 were restated due to the finalization of the purchase price allocation for the acquisitions of BIA Separations and WaterSep BioSeparations
2 Financial result excluding fair value adjustments of hedging instruments and currency effects relating to financing activities and change in valuation of earn-out liability
3 Normalized income tax based on the underlying profit before taxes and non-cash amortization

 

 

in millions of € unless otherwise specified	Q1 2022	Q1 20211
Gross debt	630.8	609.2
-  Cash & cash equivalents	165.1	149.4
Net debt	465.7	459.8
Underlying EBITDA (12 months)	1,105.5	709.6
+ Pro forma EBITDA from acquisitions (12 months)	10.9	8.3
Pro forma underlying EBITDA	1,116.4	717.9
Net debt to underlying EBITDA	0.4	0.6
in millions of € unless otherwise specified	Q1 2022	Q1 20211
Sales revenue	862.5	655.2
Capital expenditures	77.2	62.0
Capital expenditures as % of sales revenue	8.9	9.5
1 The figures for the first quarter 2021 were restated due to the finalization of the purchase price allocation for the acquisitions of BIA Separations and WaterSep BioSeparations

 

A profile of Sartorius Stedim Biotech

Sartorius Stedim Biotech is a leading international partner of the biopharmaceutical industry. As a total solutions provider, the company helps its customers to manufacture biotech medications safely, rapidly and economically. Headquartered in Aubagne, France, Sartorius Stedim Biotech is quoted on the Eurolist of Euronext Paris. With its own manufacturing and R&D sites in Europe, North America and Asia and an international network of sales companies, Sartorius Stedim Biotech has a global reach. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies. In 2021, the company employed more than 10,400 people, and earned sales revenue of around 2.89 billion euros.

Contact

Petra Kirchhoff                                                                                    
Head of Corporate Communications & Investor Relations
+49 (0)551 308 1686                                                                          
petra.kirchhoff@sartorius.com                                                        

Follow Sartorius on Twitter @Sartorius_Group and on LinkedIn.

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SOURCE Sartorius Stedim Biotech S.A.

FAQ

What were Sartorius Stedim Biotech's revenue results for Q1 2022?

Sartorius Stedim Biotech reported a sales revenue of approximately 862 million euros for Q1 2022, reflecting a 27.6% increase in constant currencies.

How did the underlying EBITDA margin change in Q1 2022 for SDMHF?

The underlying EBITDA margin for Sartorius Stedim Biotech was 35.2% in Q1 2022, slightly down from 35.4% in the prior year.

What is the outlook for Sartorius Stedim Biotech in 2022?

Sartorius Stedim Biotech confirmed its outlook for 2022, expecting sales growth of 15% to 19% and an underlying EBITDA margin exceeding 35%.

Did Sartorius Stedim Biotech make any acquisitions recently?

Yes, Sartorius Stedim Biotech strengthened its positioning by acquiring the chromatography business from Novasep.

What risks did Sartorius Stedim Biotech highlight in their Q1 2022 report?

The company noted increased global political and economic uncertainties, particularly due to the Ukraine crisis, which could impact supply chains and inflation.