Sartorius Stedim Biotech increases its full-year 2021 guidance

Rhea-AI Summary

Sartorius Stedim Biotech has raised its growth forecast for fiscal 2021 due to strong order intake and increased demand, particularly related to coronavirus vaccine production. Consolidated sales growth is now projected at 38%, up from the previous 20-26%. The underlying EBITDA margin is expected to be about 33%. The CAPEX ratio is now projected at 14%, while net debt to underlying EBITDA is expected to be around 0.6 by year-end. The guidance remains uncertain due to potential supply chain disruptions but is not expected to affect mid-term targets updated in January 2021.

Positive

• Sales growth projection raised to 38% from 20-26%.
• Underlying EBITDA margin increased to about 33%.
• Net debt to underlying EBITDA expected at 0.6, improving financial stability.

Negative

• Guidance subject to higher uncertainty due to pandemic-related risks.
• Dependence on stable supply chains and production lines.

AUBAGNE, France, March 18, 2021 /PRNewswire/ -- Based on very strong order intake during the first 10 weeks of 2021 and high demand expected to continue in the further course of the year, Sartorius Stedim Biotech has raised its growth forecast for fiscal 2021. Against the backdrop of higher sales expectations and significant economies of scale, the company's earnings outlook has also been raised. Management now projects consolidated sales growth of around 38% (previously 20% to 26%) and an underlying EBITDA margin¹ of about 33% (previously at about 32.0%) for the Group. The major part of the expected additional business is related to the coronavirus pandemic as many products of Sartorius Stedim Biotech are used for manufacturing vaccines.

The CAPEX ratio¹ for the Group is now projected at about 14% (previously 15%) due to the higher revenue base. Net debt to underlying EBITDA¹ is currently expected to be around 0.6 at year-end (previously at around 0.75). Possible acquisitions are not included in these projections.

All figures are given in constant currencies as in the past.

Due to the pandemic, this guidance continues to be subject to higher uncertainty than usual and is particularly based on the assumptions that supply chains will remain stable and production lines will stay up and running. The mid-term targets up to 2025 that were updated in January 2021 are unaffected by these adjustments.

Sartorius Stedim Biotech will publish first quarter 2021 figures as scheduled on April 21, 2021.

Aubagne, France, March 18, 2021 – 6:03 am

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

• Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
• 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
• CAPEX ratio: investment payments in relation to sales revenue for the same period

This notification according to Article 17 MAR contains statements about the future development of the Sartorius Stedim Biotech 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 French-language announcement. Sartorius Stedim Biotech shall not assume any liability for the correctness of this translation. The original French announcement is the legally binding version. Furthermore, Sartorius Stedim Biotech 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.

Contact

Petra Kirchhoff
Head of Corporate Communications and Investor Relations
+49 (0)551.308.1686 
petra.kirchhoff@sartorius.com
sartorius.com 

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SOURCE Sartorius Stedim Biotech S.A.

FAQ

What is Sartorius Stedim Biotech's updated sales growth forecast for 2021?

Sartorius Stedim Biotech has raised its sales growth forecast for 2021 to 38%, up from the previous estimate of 20-26%.

What is the expected underlying EBITDA margin for Sartorius Stedim Biotech in 2021?

The underlying EBITDA margin for Sartorius Stedim Biotech is now projected to be about 33%.

How is the debt situation projected for Sartorius Stedim Biotech at year-end 2021?

Net debt to underlying EBITDA is expected to be around 0.6 at year-end 2021.

Why is the guidance for Sartorius Stedim Biotech considered uncertain?

The guidance remains uncertain due to potential supply chain disruptions and production stability concerns.

When will Sartorius Stedim Biotech publish its first quarter 2021 figures?

Sartorius Stedim Biotech will publish its first quarter 2021 figures on April 21, 2021.