Stevanato Group Delivers Double-Digit Revenue Growth in Fiscal Year 2023

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The Stevanato Group's financial results for the fourth quarter and full year of 2023, with a reported 10% revenue growth and an increase in high-value solutions to 34% of total revenue, reflect a strategic pivot towards more specialized and profitable offerings. This shift is indicative of a broader industry trend where companies are enhancing their product mix to improve margins. The company's focus on high-value solutions, such as syringes and other drug delivery systems, is particularly pertinent as the pharmaceutical industry evolves towards biologics and personalized medicine, which often require more sophisticated containment and delivery systems.

However, the reported decrease in gross profit margin, attributed to factors such as lower EZ-fill® vial volumes and currency translation, suggests short-term challenges. These challenges include the start-up inefficiencies of new manufacturing facilities, which could impact the stock's performance if investors perceive these issues as indicative of longer-term operational difficulties. It is crucial for the company to manage these inefficiencies swiftly to maintain investor confidence. Additionally, the decrease in Covid-19 related revenue indicates a normalization post-pandemic, which could lead to a reevaluation of growth expectations in the near term.

The establishment of the 2024 guidance with expected revenue between €1,180 million to €1,210 million and adjusted EBITDA between €314.1 million to €329.5 million suggests confidence in the company's growth trajectory. The projected increase in adjusted diluted EPS to €0.62-€0.66 reflects an optimistic outlook on profitability. Stakeholders should consider the company's ability to achieve these targets against the backdrop of a dynamic healthcare market and potential macroeconomic shifts affecting currency and supply chain dynamics.

Investors should also note the 160 basis point decrease in operating profit margin for the fourth quarter of 2023, which could be a point of concern if the trend persists. Operating profit margin is a critical indicator of a company's operational efficiency and profitability. It is essential to monitor how the company plans to address the factors contributing to this decline, such as lower gross profit and other income, to assess the potential long-term impact on the company's financial health.

Stevanato Group's performance in the Biopharmaceutical and Diagnostic Solutions (BDS) Segment is aligned with industry growth in biopharmaceuticals and diagnostics. The increased demand for high-value solutions such as advanced syringes and diagnostic tools is a response to the rising complexity of new drug therapies and the ongoing need for efficient diagnostic solutions. The company's ability to capture this market segment demonstrates its strategic alignment with industry needs.

The reported decrease in gross profit margin, while a concern, may be partially mitigated by the company's strategic investments in new manufacturing facilities. These facilities, once fully operational and efficient, could significantly enhance production capabilities and meet the growing demand for sophisticated drug delivery systems. It is important for investors to understand the long-term value proposition of these capital expenditures, despite the short-term margin pressures they may cause.

03/07/2024 - 06:30 AM

- Establishes 2024 Guidance-

PIOMBINO DESE, Italy--(BUSINESS WIRE)-- Stevanato Group S.p.A. (NYSE: STVN), a leading global provider of drug containment, drug delivery, and diagnostic solutions to the pharmaceutical, biotechnology, and life sciences industries, today announced its financial results for the fourth quarter and full year 2023.

Fourth Quarter and FY 2023 Highlights (compared with the same period last year)

Revenue for the fourth quarter of 2023 increased 10% to €320.6 million, and high-value solutions represented 37% of total revenue.
For the fourth quarter, diluted earnings per share were €0.17 and adjusted diluted earnings per share were €0.18.
Adjusted EBITDA margin for the fourth quarter was 27%.
For fiscal year 2023, revenue increased 10% to €1,085.4 million, and high-value solutions represented 34% of total revenue.
For fiscal year 2023, diluted earnings per share were €0.55 and adjusted diluted earnings per share were €0.58.
Adjusted EBITDA margin for fiscal year 2023 was 26.9%.
The Company is establishing fiscal year 2024 guidance and expects revenue in the range of €1,180 million to €1,210 million, adjusted EBITDA in the range of €314.1 million to €329.5 million, and adjusted diluted EPS between €0.62 and €0.66.

Fourth Quarter 2023 Results

For the fourth quarter of 2023, revenue increased 10% to €320.6 million (11% on a constant currency basis), compared with the same period last year, driven by growth in the Company's Biopharmaceutical and Diagnostic Solutions (BDS) Segment from higher volumes and an increased mix of high-value solutions. Revenue in the fourth quarter was slightly below the Company's expectations for both segments.

Revenue from high-value solutions increased to 37% of total revenue in the fourth quarter of 2023, compared with 30% for the same period last year. For the fourth quarter of 2023, revenue related to Covid-19 decreased by approximately €33.8 million, compared with the same period last year, and represented less than 1% of total revenue. Excluding revenue contributions from Covid-19, revenue grew approximately 24% in the fourth quarter of 2023, compared with the same period in 2022.

As expected, gross profit margin for the fourth quarter of 2023 decreased to 31.8% from 34.3% in the same period last year. While high-value solutions were a favorable contributor in the fourth quarter of 2023, the prior-year period included two benefits that did not repeat and led to the decline in gross profit margin, including: 1) higher revenue and profit from EZ-fill^® vials, which led to a more favorable mix within high-value solutions, and 2) incremental price adjustments to recover inflationary costs from prior periods. In addition, gross profit margin for the fourth quarter of 2023 was unfavorably impacted by currency translation, and continued to be tempered by short-term inefficiencies tied to the start-up of the Company's new manufacturing facilities and higher depreciation.

For the fourth quarter of 2023, operating profit margin decreased 160 basis points to 20.0%, compared with the same period last year, driven by lower gross profit and other income.

Full Year 2023 Results

For fiscal year 2023, revenue increased 10% to €1,085.4 million (11% on a constant currency basis), compared with the same period last year, driven by growth in both segments. Revenue from high-value solutions increased to 34% of total revenue for fiscal year 2023, compared with 30% last year. Revenue related to Covid-19 decreased to approximately 2% of total revenue, compared with 11% in fiscal year 2022.

As expected, gross profit margin for fiscal 2023 decreased to 31.3%, from 32.5% in 2022, mainly due to lower EZ-fill^® vial volumes, short-term inefficiencies tied to the start-up of the Company's new manufacturing facilities, higher depreciation, and currency translation.

For fiscal 2023, operating profit margin was 18.5% reflecting lower gross profit and other income.

Throughout fiscal year 2023, the Company experienced lower volumes and revenue attributable to glass vials, and to a lesser extent, in-vitro diagnostics, as customers continued to work down higher inventories resulting from Covid-19. This decrease was offset by higher demand and revenue related to other products, such as syringes, within the Biopharmaceutical and Diagnostic Solutions Segment.

Franco Moro, Chief Executive Officer, stated, “Fiscal year 2023 was a positive year for Stevanato Group. Despite the near-term headwinds from destocking, revenue grew 10% compared with fiscal 2022 and we increased our mix of high-value solutions. We remain optimistic about our 2027 mid-term targets, and our confidence is underpinned by strong secular tailwinds, continued growth in biologics, and an increasingly strong competitive moat. We believe we are well positioned to fully capitalize on our investments to drive durable organic growth, grow our mix of high-value solutions and expand margins."

Biopharmaceutical and Diagnostic Solutions Segment (BDS)

Despite a decline in revenue related to Covid-19, revenue in the BDS Segment grew 12% to €260.0 million (14% on a constant currency basis) for the fourth quarter of 2023 and 10% to €879.3 million for the full year (11% on a constant currency basis), compared with the same periods last year, driven by growth in the Company's core Drug Containment Solutions (DCS) business. Revenue from high-value solutions increased to 46% and 42% of Segment revenue for the fourth quarter and full year 2023, respectively.

As expected, gross profit margin decreased to 33.6% for the fourth quarter and 32.9% for the full year 2023 compared with the same periods last year. Decreases in both periods were mainly due to lower EZ-fill^® vial volumes, short-term inefficiencies tied to the start-up of the Company's new manufacturing plants, higher depreciation, and currency translation.

Engineering Segment

Revenue (from external customers) from the Engineering Segment was €60.6 million for the fourth quarter of 2023, and increased 12% to €206.1 million for the full year, compared with fiscal year 2022.

Gross profit margin was 21.1% for the fourth quarter of 2023, compared with 21.2% for the same period last year, and for fiscal 2023 was 21.0%, compared with 21.6% last year. The decrease in gross profit margin for both periods was mainly driven by lower marginality on specific projects in process. In the second half of 2023, the combination of strong demand and supply chain volatility resulted in some short-term delays on certain projects.

Balance Sheet and Cash Flow

As of December 31, 2023, the Company had cash and cash equivalents of €69.6 million and net debt of €324.4 million. As expected, capital expenditures for the fourth quarter of 2023 increased to €94.7 million, as the Company continues to advance its strategic growth investments in capacity expansion for high-value solutions to meet customer demand.

For the fourth quarter of 2023, cash flow from operating activities was €10.2 million. Cash flow used for the purchase of property, plant, and equipment, and intangible assets totaled €87.1 million, which resulted in negative free cash flow of €76.0 million in the fourth quarter of 2023.

New Order Intake and Backlog

For the fourth quarter of 2023, new order intake increased 44% to approximately €342 million, compared with €237.4 million in the same period last year. As of December 31, 2023, committed backlog totaled approximately €945 million, compared with approximately €944 million last year.

2024 Guidance and Mid-Term Objectives

The Company is establishing full year 2024 guidance and expects:

Revenue in the range of €1,180 million to €1,210 million,
Adjusted EBITDA in the range of €314.1 million to €329.5 million, and
Adjusted diluted EPS in the range of €0.62 to €0.66.

The Company estimates that capital expenditures in 2024 will range between 25% and 28% of total revenue based on the midpoint of its 2024 revenue guidance range.

The Company is maintaining its mid-term targets for fiscal years 2025 to 2027 of low double-digit revenue growth; and in 2027 a share of high-value solutions between 40% and 45% of total revenue and an adjusted EBITDA margin of approximately 30%.

Executive Chairman, Franco Stevanato, concluded, "We expect that favorable secular tailwinds will continue to drive robust demand for our high-value solutions, and we have been investing in expanding capacity to meet market demand. We expect these investments will fuel organic growth in the mid-term as we efficiently leverage our invested capital to exploit the opportunities in front of us. We are focused on driving future growth through solid execution, and we believe we have the right strategy, the right product portfolio, and the right team to succeed as we work toward creating and driving long-term shareholder value."

Conference call: The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, March 7, 2024, to discuss financial results. During the call, management will refer to a slide presentation which will be available on the morning of the call on the “Financial Results” page under the Company's Investor Relations section of its website.

Pre-registration: Participants who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. We encourage participants to pre-register for the conference call using the following link: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=4544003&linkSecurityString=514976446

Webcast: A live, listen-only webcast of the call will be available at the following link: https://87399.choruscall.eu/links/stevanato240307.html

Dial in: Those who are unable to pre-register may dial in by calling:
Italy: +39 02 802 09 11
United Kingdom: +44 1 212 818004
United States: +1 718 705 8796
United States Toll Free: +1 855 265 6958

Participants who wish to ask questions during the call are encouraged to use an HD webphone link: https://hditalia.choruscall.com/?$Y2FsbHR5cGU9MiZpbmZvPWNvbXBhbnk=

Replay: The webcast will be archived for three months on the Company’s Investor Relations section of its website at: https://ir.stevanatogroup.com/financial-results

Forward-Looking Statements

This press release may include forward-looking statements. The words "expects," “strong,” "continue," "continued," "estimates," "will," "leverage," "establishing," "believe," "well positioned," "expand," "meet," "maintaining," "fuel," "exploit," "driving," "durable," “remain”, “expect”, “drive”, “increasingly”, “grow”, and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, investments the Company expects to make, the expansion of manufacturing capacity, the Company’s plans regarding its presence in the U.S. and in other markets, business strategies, the Company’s capacity to meet and adjust to future market demand and results of operations. The forward-looking statements in this press release are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its liquidity needs, changes in the geopolitical, social and regulatory framework in which the Company operates or in economic or technological trends or conditions. For a description of the risks that could cause the Company’s future results to differ from those expressed in any such forward looking statements, refer to the risk factors discussed in our most recent annual report on Form 20-F filed and our most recent filings with the U.S. Securities and Exchange Commission. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. Except as required by law, the company assumes no obligation to update any such forward-looking statements.

Non-GAAP Financial Information

This press release contains non-GAAP financial measures. Please refer to the tables included in this press release for a reconciliation of non-GAAP financial measures.

Management monitors and evaluates our operating and financial performance using several non-GAAP financial measures, including Constant Currency Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Income Taxes, Adjusted Net Profit, Adjusted Diluted EPS, Capital Employed, Net Cash/Net Debt, Free Cash Flow, and CAPEX. We believe that these non-GAAP financial measures provide useful and relevant information regarding our performance and improve our ability to assess our financial condition. While similar measures are widely used in the industry in which we operate, the financial measures we use may not be comparable to other similarly titled measures used by other companies, nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.

About Stevanato Group

Founded in 1949, Stevanato Group is a leading global provider of drug containment, drug delivery and diagnostic solutions to the pharmaceutical, biotechnology and life sciences industries. The Group delivers an integrated, end-to-end portfolio of products, processes, and services that address customer needs across the entire drug life cycle at each of the development, clinical and commercial stages. Stevanato Group’s core capabilities in scientific research and development, its commitment to technical innovation, and its engineering excellence are central to its ability to offer value added solutions to clients. To learn more, visit: www.stevanatogroup.com.

Consolidated Income Statement (Amounts in € millions, except per share data)

	For the three months										For the years
	ended December 31,										ended December 31,

	2023		%			2022		%			2023		%			2022		%

Revenue		320.6		100.0	%		292.1		100.0	%		1,085.4		100.0	%		983.7		100.0	%
Costs of Sales		218.8		68.2	%		191.9		65.7	%		745.5		68.7	%		663.9		67.5	%
Gross Profit		101.8		31.8	%		100.2		34.3	%		339.9		31.3	%		319.8		32.5	%
Other Operating Income		3.0		0.9	%		6.7		2.3	%		10.4		1.0	%		18.8		1.9	%
Selling and Marketing Expenses		7.1		2.2	%		8.3		2.8	%		25.0		2.3	%		26.1		2.7	%
Research and Development Expenses		10.1		3.1	%		10.6		3.6	%		35.7		3.3	%		34.4		3.5	%
General and Administrative Expenses		23.6		7.4	%		24.9		8.5	%		88.9		8.2	%		85.7		8.7	%
Operating Profit		64.0		20.0	%		63.1		21.6	%		200.7		18.5	%		192.4		19.6	%
Finance Income		4.3		1.4	%		7.8		2.7	%		20.3		1.9	%		25.0		2.5	%
Finance Expense		9.5		3.0	%		7.1		2.4	%		31.4		2.9	%		29.8		3.0	%
Profit Before Tax		58.8		18.3	%		63.8		21.9	%		189.6		17.5	%		187.6		19.1	%
Income Taxes		13.6		4.2	%		15.5		5.3	%		43.9		4.0	%		44.6		4.5	%
Net Profit		45.2		14.1	%		48.3		16.5	%		145.7		13.4	%		143.0		14.5	%
Earnings per share
Basic earnings per common share		0.17					0.18					0.55					0.54
Diluted earnings per common share		0.17					0.18					0.55					0.54


Average common shares outstanding		265.5					264.7					265.0					264.7
Average shares assuming dilution		265.5					264.7					265.0					264.7

Reported Segment Information

(Amounts in € millions)

For the three months ended December 31, 2023

Biopharmaceutical
and Diagnostic
Solutions

Engineering

Adjustments,
eliminations and unallocated items

Consolidated

External Customers

260.0

60.6

—

320.6

Inter-Segment

0.6

40.6

(41.2

)

—

Revenue

260.6

101.2

(41.2

)

320.6

Gross Profit

87.5

21.4

(7.1

)

101.8

Gross Profit Margin

33.6

21.1

31.8

Operating Profit

61.7

15.5

(13.2

)

64.0

Operating Profit Margin

23.7

15.3

20.0

For the three months ended December 31, 2022

Biopharmaceutical
and Diagnostic
Solutions

Engineering

Adjustments,
eliminations and unallocated items

Consolidated

External Customers

231.5

60.6

—

292.1

Inter-Segment

0.6

31.8

(32.4

)

—

Revenue

232.1

92.4

(32.4

)

292.1

Gross Profit

86.7

19.6

(6.1

)

100.2

Gross Profit Margin

37.3

21.2

34.3

Operating Profit

55.0

11.3

(3.2

)

63.1

Operating Profit Margin

23.7

12.2

21.6

Reported Segment Information

(Amounts in € millions)

For the year ended December 31, 2023

Biopharmaceutical
and Diagnostic
Solutions

Engineering

Adjustments,
eliminations and unallocated items

Consolidated

External Customers

879.3

206.1

—

1,085.4

Inter-Segment

2.0

166.7

(168.7

)

—

Revenue

881.3

372.8

(168.7

)

1,085.4

Gross Profit

290.2

78.3

(28.6

)

339.9

Gross Profit Margin

32.9

21.0

31.3

Operating Profit

187.6

53.6

(40.5

)

200.7

Operating Profit Margin

21.3

14.4

18.5

For the year ended December 31, 2022

Biopharmaceutical
and Diagnostic
Solutions

Engineering

Adjustments,
eliminations and unallocated items

Consolidated

External Customers

799.7

184.0

—

983.7

Inter-Segment

1.5

115.5

(117.0

)

—

Revenue

801.2

299.5

(117.0

)

983.7

Gross Profit

274.9

64.7

(19.7

)

319.9

Gross Profit Margin

34.3

21.6

32.5

Operating Profit

182.6

41.3

(31.4

)

192.5

Operating Profit Margin

22.8

13.8

19.6

Cash Flow (Amounts in € millions)

	For the three months ended December 31,						For the years ended December 31,
	2023			2022			2023			2022
Cash flow from operating activities		10.2			59.7			105.2			103.3
Cash flow used in investing activities		(92.3	)		(68.9	)		(421.2	)		(243.0	)
Cash flow from/ (used in) financing activities		87.7			(18.6	)		158.0			(44.5	)
Net change in cash and cash equivalents		5.6			(27.8	)		(158.0	)		(184.2	)

Non GAAP Financial Information

This press release contains non-GAAP financial measures. Please refer to "Non-GAAP Financial Information" on page 4 and the tables included in this press release for a reconciliation of non-GAAP financial measures.

Reconciliation of Revenue to Constant Currency Revenue (Amounts in € millions)

Three months ended December 31, 2023	Biopharmaceutical and Diagnostic Solutions		Engineering
Reported Revenue (IFRS GAAP)		260.0		60.6
Effect of changes in currency translation rates		3.8		0.1
Organic Revenue (Non-IFRS GAAP)		263.8		60.7

Year ended December 31, 2023	Biopharmaceutical and Diagnostic Solutions		Engineering
Reported Revenue (IFRS GAAP)		879.3		206.1
Effect of changes in currency translation rates		8.2		0.2
Organic Revenue (Non-IFRS GAAP)		887.5		206.3

Reconciliation of EBITDA (Amounts in € millions)

	For the three months ended December 31,						Change			For the years ended December 31,						Change
	2023			2022			%			2023			2022			%
Net Profit		45.2			48.3			(6.4	)%		145.7			143.0			1.9	%
Income Taxes		13.6			15.5			(12.5	)%		43.9			44.6			(1.7	)%
Finance Income		(4.3	)		(7.8	)		(44.8	)%		(20.3	)		(25.0	)		(19.2	)%
Finance Expenses		9.5			7.1			34.6	%		31.4			29.8			5.3	%
Operating Profit		64.0			63.1			1.5	%		200.7			192.4			4.3	%
Depreciation and Amortization		20.1			17.0			18.0	%		78.5			64.8			21.1	%
EBITDA		84.1			80.2			4.9	%		279.2			257.3			8.5	%

Calculation of Net Profit margin, Operating Profit Margin, Adjusted EBITDA Margin and Adjusted Operating Profit Margin (Amounts in € millions)

	For the three months ended December 31,						For the year ended December 31,
	2023			2022			2023			2022
Revenue		320.6			292.1			1,085.4			983.7
Net Profit Margin (Net Profit/ Revenue)		14.1	%		16.5	%		13.4	%		14.5	%
Operating Profit Margin (Operating Profit/ Revenue)		20.0	%		21.6	%		18.5	%		19.6	%
Adjusted EBITDA Margin (Adjusted EBITDA/ Revenue)		27.0	%		28.0	%		26.9	%		26.8	%
Adjusted Operating Profit Margin (Adjusted Operating Profit/ Revenue)		20.8	%		22.2	%		19.6	%		20.2	%

Reconciliation of Reported and Adjusted EBITDA, Operating Profit, Income Taxes, Net Profit, and Diluted EPS

(Amounts in € millions, except per share data)

Three months ended December 31, 2023	EBITDA			Operating Profit			Income Taxes ⁽³⁾		Net Profit		Diluted EPS
Reported		84.1			64.0			13.6		45.2		0.17
Adjusting items:
Start-up costs new plants ⁽¹⁾		2.6			2.6			0.7		1.9		0.01
Adjusted		86.7			66.6			14.3		47.1		0.18
*Adjusted Margin*		27.0	%		20.8	%		—		—		—

Three months ended December 31, 2022	EBITDA			Operating Profit			Income Taxes ⁽³⁾		Net Profit		Diluted EPS
Reported		80.2			63.1			15.5		48.3		0.18
Adjusting items:
Start-up costs U.S. plant ⁽¹⁾		1.6			1.6			0.4		1.2		0.01
Restructuring and related charges ⁽²⁾		0.1			0.1			—		0.1		0.00
Adjusted		81.9			64.8			15.9		49.6		0.19
*Adjusted Margin*		28.0	%		22.2	%		—		—		—

Year ended December 31, 2023	EBITDA			Operating Profit			Income Taxes ⁽³⁾		Net Profit		Diluted EPS
Reported		279.2			200.7			43.9		145.7		0.55
Adjusting items:
Start-up costs new plants ⁽¹⁾		12.0			12.0			3.2		8.8		0.03
Restructuring and related charges ⁽²⁾		0.3			0.3			0.1		0.2		0.00
Adjusted		291.5			213.0			47.2		154.7		0.58
*Adjusted Margin*		26.9	%		19.6	%		—		—		—

Year ended December 31, 2022	EBITDA			Operating Profit			Income Taxes ⁽³⁾		Net Profit		Diluted EPS
Reported		257.3			192.4			44.6		143.0		0.54
Adjusting items:		—			—			—		—		—
Start-up costs U.S. plant ⁽¹⁾		6.2			6.2			1.6		4.6		0.02
Restructuring and related charges ⁽²⁾		0.1			0.1			—		0.1		0.00
Adjusted		263.6			198.7			46.2		147.7		0.56
*Adjusted Margin*		26.8	%		20.2	%		—		—		—

(1)	During the three months and year ended December 31, 2023, the Group recorded €2.6 million and €12.0 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, and in Latina, Italy. These costs are primarily related to labor costs incurred prior to the start-up of commercial operations that are associated with the training and travel of personnel who are employed in the production of our products which require specialized knowledge. During the three months and year ended December 31, 2022, the Group recorded €1.6 million and €6.2 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, in Zhangjiagang, China, and in Latina, Italy.
(2)	During the year ended December 31, 2023, the Group recorded €0.3 million of restructuring and related charges among general and administrative expenses. These are mainly employee costs related to the reorganization of some business functions. During the three months and year ended December 31, 2022, the Group recorded €0.1 million in restructuring and related charges for the merger of Innoscan A/S into SVM Automatik A/S.
(3)	The income tax adjustment is calculated by multiplying the applicable nominal tax rate to the adjusting items.

Capital Employed (Amounts in € millions)

	As of December 31, 2023			As of December 31, 2022

- Goodwill and Other intangible assets		81.0			79.4
- Right of Use assets		18.2			19.3
- Property, plant and equipment		1,028.5			641.4
- Financial assets - investments FVTPL		0.7			0.8
- Other non-current financial assets		4.5			1.0
- Deferred tax assets		76.3			69.2
Non-current assets excluding FV of derivative financial instruments		1,209.2			811.1

- Inventories		255.3			213.3
- Contract Assets		172.6			103.4
- Trade receivables		301.8			212.7
- Trade payables		(277.8	)		(239.2	)
- Advances from customers		(22.9	)		(26.6	)
- Non-current advances from customers		(39.4	)		—
- Contract Liabilities		(22.3	)		(14.8	)
Trade working capital		367.2			248.8

- Tax receivables and Other receivables		58.2			54.0
- Tax payables and Other liabilities		(107.0	)		(111.2	)
- Current Provisions		(1.1	)		—
Net working capital		317.4			191.7

- Deferred tax liabilities		(9.6	)		(21.0	)
- Employees benefits		(7.4	)		(8.3	)
- Non-Current Provisions		(4.0	)		(5.5	)
- Other non-current liabilities		(48.5	)		(18.1	)
Total non-current liabilities and provisions		(69.5	)		(52.9	)

Capital employed		1,457.1			949.9

Net (debt)/ net cash		(324.4	)		46.0

Equity		(1,132.6	)		(995.9	)

Total equity and net debt		(1,457.1	)		(949.9	)

Free Cash Flow (Amounts in € millions)

	For the three months ended December 31,						For the years ended December 31,
	2023			2022			2023			2022
Cash Flow from Operating Activities		10.2			59.7			105.2			103.3
Interest paid		0.7			1.0			3.1			3.5
Interest received		(0.3	)		(0.3	)		(0.9	)		(0.8	)
Purchase of property, plant and equipment		(82.0	)		(67.9	)		(433.2	)		(235.0	)
Proceeds from sale of property, plant and equipment		0.5			(0.4	)		0.6			0.1
Purchase of intangible assets		(5.1	)		(0.3	)		(8.7	)		(8.1	)
Free Cash Flow		(76.0	)		(8.2	)		(333.9	)		(137.0	)

(Net Debt) / Net Cash (Amounts in € millions)

	As of December 31,			As of December 31,
	2023			2022
Non-current financial liabilities		(255.6	)		(148.4	)
Current financial liabilities		(143.3	)		(70.7	)
Other non-current financial assets - Derivatives		0.6			2.8
Other current financial assets		4.4			33.6
Cash and cash equivalents		69.6			228.7
Net (Debt)/ Net Cash		(324.4	)		46.0

CAPEX (Amounts in € millions)

	For the three months ended December 31,				Change			For the year ended December 31,				Change
	2023		2022		€			2023		2022		€
Addition to Property, plants and equipment ⁽¹⁾		89.6		99.9		(10.3	)		444.6		294.5		150.1
Addition to Intangible Assets		5.1		0.3		4.8			8.7		8.1		0.6
CAPEX		94.7		100.2		(5.5	)		453.3		302.6		150.7

(1) Addition related to the grant of land by the city of Fishers amounting to €8.3 million is excluded.

Reconciliation of 2024 Guidance (Updated) Reported and Adjusted EBITDA, Operating Profit, Net Profit, Diluted EPS (Amounts in € millions, except per share data)

	Revenue	EBITDA	Operating Profit	Net Profit	Diluted EPS
Reported	1,180.0 - 1,210.0	302.8 - 318.2	217.7 - 233.0	155.0 - 166.6	0.58 - 0.63
Adjusting items:
Start-up costs new plants		11.3	11.3	8.5	0.03
Adjusted	1,180.0 - 1,210.0	314.1 - 329.5	228.9 - 244.3	163.5 - 175.1	0.62 - 0.66

View source version on businesswire.com: https://www.businesswire.com/news/home/20240307991047/en/

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Stevanato Group

media@stevanatogroup.com

Investor Relations

Lisa Miles

lisa.miles@stevanatogroup.com

Source: Stevanato Group S.p.A.

FAQ

What was the revenue increase in Q4 2023 for Stevanato Group (STVN)?

The revenue increased by 10% in Q4 2023 to €320.6 million compared to the same period last year.

What percentage of total revenue did high-value solutions represent in Q4 2023 for Stevanato Group (STVN)?

High-value solutions accounted for 37% of total revenue in Q4 2023.

What was the adjusted EBITDA margin for Q4 2023 for Stevanato Group (STVN)?

The adjusted EBITDA margin for Q4 was 27%.

What is the revenue growth percentage for FY 2023 for Stevanato Group (STVN)?

For FY 2023, revenue grew by 10% to €1,085.4 million.

What is the revenue guidance for FY 2024 for Stevanato Group (STVN)?

The company expects revenue between €1,180 million to €1,210 million for FY 2024.

What is the projected adjusted EBITDA range for FY 2024 for Stevanato Group (STVN)?

Adjusted EBITDA for FY 2024 is projected to be between €314.1 million to €329.5 million.

What is the estimated range for adjusted diluted EPS for FY 2024 for Stevanato Group (STVN)?

Adjusted diluted EPS for FY 2024 is estimated to range from €0.62 to €0.66.

Stevanato Group Delivers Double-Digit Revenue Growth in Fiscal Year 2023

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What was the revenue increase in Q4 2023 for Stevanato Group (STVN)?

What percentage of total revenue did high-value solutions represent in Q4 2023 for Stevanato Group (STVN)?

What was the adjusted EBITDA margin for Q4 2023 for Stevanato Group (STVN)?

What is the revenue growth percentage for FY 2023 for Stevanato Group (STVN)?

What is the revenue guidance for FY 2024 for Stevanato Group (STVN)?

What is the projected adjusted EBITDA range for FY 2024 for Stevanato Group (STVN)?

What is the estimated range for adjusted diluted EPS for FY 2024 for Stevanato Group (STVN)?

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Stevanato Group Delivers Double-Digit Revenue Growth in Fiscal Year 2023

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FAQ

What was the revenue increase in Q4 2023 for Stevanato Group (STVN)?

What percentage of total revenue did high-value solutions represent in Q4 2023 for Stevanato Group (STVN)?

What was the adjusted EBITDA margin for Q4 2023 for Stevanato Group (STVN)?

What is the revenue growth percentage for FY 2023 for Stevanato Group (STVN)?

What is the revenue guidance for FY 2024 for Stevanato Group (STVN)?

What is the projected adjusted EBITDA range for FY 2024 for Stevanato Group (STVN)?

What is the estimated range for adjusted diluted EPS for FY 2024 for Stevanato Group (STVN)?

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