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Stevanato Group Reports Financial Results for the Second Quarter of 2024

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Stevanato Group (NYSE: STVN) reported its Q2 2024 financial results, with revenue increasing 2% to €259.6 million. The Biopharmaceutical and Diagnostic Solutions (BDS) Segment grew 9%, offsetting a 26% decline in the Engineering Segment. High-value solutions represented 40% of total revenue. Diluted EPS was €0.08, and adjusted diluted EPS was €0.09. The company updated its FY 2024 guidance, now expecting revenue between €1,090-1,110 million, adjusted EBITDA of €264-272 million, and adjusted diluted EPS of €0.48-0.50.

Challenges in the Engineering Segment, including project delays and higher costs, led to the guidance revision. The BDS Segment faced temporary inefficiencies due to new facility start-ups and customer vial destocking. Despite these challenges, the company remains focused on executing its strategic priorities and capitalizing on favorable long-term trends in biologics and high-value solutions.

Stevanato Group (NYSE: STVN) ha riportato i risultati finanziari del Q2 2024, con un aumento dei ricavi del 2% a €259,6 milioni. Il segmento Soluzioni Biopharmaceutical e Diagnostiche (BDS) è cresciuto del 9%, compensando un calo del 26% nel segmento Ingegneria. Le soluzioni ad alto valore hanno rappresentato il 40% dei ricavi totali. L'EPS diluito è stato di €0,08, mentre l'EPS diluito rettificato è stato di €0,09. L'azienda ha aggiornato le sue previsioni per l'FY 2024, aspettandosi ora ricavi tra €1.090-1.110 milioni, un EBITDA rettificato di €264-272 milioni e un EPS diluito rettificato di €0,48-0,50.

Le sfide nel segmento Ingegneria, inclusi ritardi nei progetti e costi superiori, hanno portato alla revisione delle previsioni. Il segmento BDS ha affrontato inefficienze temporanee a causa dell'avvio di nuove strutture e dello svuotamento delle fiale da parte dei clienti. Nonostante queste sfide, l'azienda rimane concentrata sull'esecuzione delle sue priorità strategiche e sul capitalizzare le tendenze a lungo termine favorevoli nel settore dei biologici e delle soluzioni ad alto valore.

Stevanato Group (NYSE: STVN) informó sus resultados financieros del Q2 2024, con un aumento de ingresos del 2% a €259,6 millones. El segmento de Soluciones Biofarmacéuticas y Diagnósticas (BDS) creció un 9%, compensando una caída del 26% en el segmento de Ingeniería. Las soluciones de alto valor representaron el 40% de los ingresos totales. El EPS diluido fue de €0,08, y el EPS diluido ajustado fue de €0,09. La empresa actualizó sus previsiones para el FY 2024, esperando ahora ingresos entre €1.090-1.110 millones, un EBITDA ajustado de €264-272 millones, y un EPS diluido ajustado de €0,48-0,50.

Los desafíos en el segmento de Ingeniería, incluidos retrasos en proyectos y mayores costos, llevaron a la revisión de las previsiones. El segmento BDS enfrentó ineficiencias temporales debido a la puesta en marcha de nuevas instalaciones y el desabastecimiento de viales por parte de los clientes. A pesar de estos desafíos, la empresa sigue enfocada en ejecutar sus prioridades estratégicas y capitalizar las tendencias a largo plazo favorables en biológicos y soluciones de alto valor.

Stevanato Group (NYSE: STVN)는 2024년 2분기 재무 결과를 보고했으며, 매출이 2% 증가하여 €259.6백만에 도달했습니다. 생물 의약품 및 진단 솔루션(BDS) 부문은 9% 성장했으며, 엔지니어링 부문은 26% 감소했습니다. 고부가가치 솔루션은 총 매출의 40%를 차지했습니다. 희석된 EPS는 €0.08, 조정된 희석 EPS는 €0.09였습니다. 회사는 2024 회계연도의 가이던스를 업데이트하며, 매출이 €1,090-1,110백만 사이일 것으로 예상하고 조정된 EBITDA는 €264-272백만, 조정된 희석 EPS는 €0.48-0.50으로 예상하고 있습니다.

엔지니어링 부문에서의 프로젝트 지연 및 높은 비용 등의 문제로 인해 가이던스가 수정되었습니다. BDS 부문은 새로운 시설의 가동 시작과 고객의 바이알 재고 감소로 인해 일시적인 비효율성에 직면했습니다. 이러한 도전에도 불구하고, 회사는 전략적 우선사항을 실행하고 생물학 및 고부가가치 솔루션에서 유리한 장기 트렌드를 활용하는 데 집중하고 있습니다.

Stevanato Group (NYSE: STVN) a rapporté ses résultats financiers du 2ème trimestre 2024, avec une augmentation de 2 % de son chiffre d'affaires à 259,6 millions d'euros. Le segment des Solutions Biopharmaceutiques et Diagnostiques (BDS) a connu une croissance de 9 %, compensant une baisse de 26 % dans le segment Ingénierie. Les solutions à haute valeur ajoutée représentaient 40 % du chiffre d'affaires total. Le BPA dilué était de 0,08 €, et le BPA dilué ajusté était de 0,09 €. L'entreprise a mis à jour ses prévisions pour l'exercice 2024, s'attendant désormais à un chiffre d'affaires compris entre 1.090-1.110 millions d'euros, un EBITDA ajusté de 264-272 millions d'euros et un BPA dilué ajusté de 0,48-0,50 €.

Les défis rencontrés dans le segment Ingénierie, notamment des retards de projets et des coûts plus élevés, ont conduit à la révision des prévisions. Le segment BDS a fait face à des inefficacités temporaires dues aux démarrages de nouvelles installations et à la diminution des stocks de flacons chez les clients. Malgré ces défis, l'entreprise reste concentrée sur l'exécution de ses priorités stratégiques et sur l'exploitation des tendances à long terme favorables dans le domaine des biologiques et des solutions à haute valeur ajoutée.

Stevanato Group (NYSE: STVN) hat die finanziellen Ergebnisse für das Q2 2024 veröffentlicht, wobei die Einnahmen um 2 % auf €259,6 Millionen gestiegen sind. Das Segment Biopharmazeutische und Diagnostische Lösungen (BDS) wuchs um 9 %, wodurch ein Rückgang von 26 % im Ingenieursektor ausgeglichen wurde. Hochwertige Lösungen machten 40 % des Gesamtumsatzes aus. Der verwässerte EPS betrug €0,08, der bereinigte verwässerte EPS lag bei €0,09. Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 aktualisiert und erwartet jetzt Einnahmen zwischen €1.090-1.110 Millionen, einen bereinigten EBITDA von €264-272 Millionen und einen bereinigten verwässerten EPS von €0,48-0,50.

Herausforderungen im Ingenieursektor, darunter Projektverzögerungen und höhere Kosten, führten zur Anpassung der Prognose. Das BDS-Segment hatte aufgrund der Inbetriebnahme neuer Anlagen und der Reduzierung der Kundenlagerbestände vorübergehende Ineffizienzen. Trotz dieser Herausforderungen bleibt das Unternehmen entschlossen, seine strategischen Prioritäten umzusetzen und von den günstigen langfristigen Trends im Bereich Biologika und hochwertigen Lösungen zu profitieren.

Positive
  • Revenue increased 2% to €259.6 million in Q2 2024
  • Biopharmaceutical and Diagnostic Solutions Segment grew 9%
  • High-value solutions revenue increased 23% to €103.4 million
  • High-value solutions represented 40% of total revenue, up from 33% last year
Negative
  • Engineering Segment revenue decreased 26% to €37.2 million
  • Gross profit margin decreased to 26% from 30.9% in Q2 2023
  • Operating profit margin decreased to 10.8% from 17.6% in Q2 2023
  • Negative free cash flow of €46.1 million in Q2 2024
  • Lowered full-year 2024 guidance due to challenges in the Engineering Segment

Insights

Stevanato Group's Q2 2024 results present a mixed picture. While revenue increased by 2% to €259.6 million, the company faced challenges, particularly in its Engineering Segment. The revised guidance for FY2024 indicates caution, with revenue now expected between €1,090 million and €1,110 million.

The Biopharmaceutical and Diagnostic Solutions (BDS) Segment showed strength with 9% growth, driven by high-value solutions. However, the Engineering Segment's 26% decline is concerning. The gross profit margin decrease to 26% from 30.9% last year signals operational challenges.

Investors should monitor the company's efforts to address Engineering Segment issues and the impact of temporary inefficiencies in new facilities. The shift towards high-value solutions is positive, but vial destocking and underutilization of vial lines need attention.

Stevanato's Q2 results reflect broader industry trends in the pharmaceutical and biotechnology sectors. The 23% increase in high-value solutions revenue aligns with the growing demand for advanced drug delivery systems, particularly in biologics. This shift towards high-value products, now representing 40% of total revenue, is a positive indicator for long-term growth.

However, the vial destocking observed suggests potential inventory adjustments in the pharmaceutical supply chain. This could be a short-term headwind but may stabilize as market dynamics evolve. The challenges in the Engineering Segment, particularly with electronic component delays, highlight the ongoing global supply chain issues affecting specialized manufacturing equipment.

The company's focus on expanding capacity for high-value solutions in strategic locations like Fishers, Indiana and Latina, Italy, positions it well to capitalize on future market growth, especially in biologics and advanced drug delivery systems.

The challenges faced by Stevanato's Engineering Segment, particularly in Denmark, highlight the complexities of scaling up operations for highly customized, complex manufacturing lines. The persistent delays due to electronic component shortages reflect ongoing global supply chain issues in the tech sector.

The company's response, including consolidating operations, streamlining processes and deploying technical experts from Italy to Denmark, demonstrates a proactive approach to addressing these challenges. However, the effectiveness of these measures remains to be seen in the coming quarters.

The focus on advancing the large volume of work in progress is crucial. The success of these projects could significantly impact the segment's performance and the company's overall financial health. Investors should closely monitor the progress of these initiatives and their impact on the Engineering Segment's profitability in future quarters.

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 second quarter of 2024.

Second Quarter 2024 Highlights

  • Revenue for the second quarter of 2024 increased 2% to €259.6 million, compared with the same period last year, and high-value solutions represented 40% of total revenue.
  • For the second quarter, diluted earnings per share were €0.08 and adjusted diluted earnings per share were €0.09.
  • Adjusted EBITDA margin for the second quarter was 20.8%.
  • The Company is updating its fiscal year 2024 guidance to reflect a revised outlook primarily in the Engineering Segment. The Company now expects revenue in the range of €1,090 million to €1,110 million, adjusted EBITDA in the range of €264 million to €272 million, and adjusted diluted EPS between €0.48 and €0.50.

Second Quarter 2024 Results

For the second quarter of 2024, revenue increased 2% (2% on a constant currency basis), compared with the same period last year, to €259.6 million, driven by a 9% increase in the Biopharmaceutical and Diagnostic Solutions (BDS) Segment, which offset a 26% decline in the Engineering Segment.

Revenue from high-value solutions increased to 40% of total revenue in the second quarter of 2024, compared with 33% for the same period last year, driven primarily by strong demand in high-performance syringes. As expected, lower revenue from EZ-fill® vials unfavorably impacted the mix within high-value solutions in the second quarter of 2024.

Gross profit margin for the second quarter of 2024 decreased to 26%, compared with 30.9% for the same period last year, primarily due to (i) higher-than-expected costs in the Engineering Segment due to ongoing project delays, (ii) customers' vial destocking resulting in lower revenue from more accretive EZ-fill® vials and the underutilization of vial lines, and (iii) the expected temporary inefficiencies related to the start-up of the Company's new manufacturing facilities in Italy and the United States.

For the second quarter of 2024, operating profit margin decreased to 10.8%, compared with 17.6% for the same period last year, driven primarily by lower gross profit.

Franco Stevanato, Executive Chairman and Chief Executive Officer, stated, "Our guidance revision is principally due to the ongoing challenges in the Engineering Segment. Over the last four years, the Engineering Segment has experienced significant growth, more than doubling its revenue. We scaled up operations to support this large volume of work, but persistent delays in electronic components hindered our ability to advance projects, many of which were highly customized, complex manufacturing lines. The challenges within the segment are mostly limited to our Denmark operations, and we have taken many actions that we believe will help the segment achieve a more optimized operational structure to maximize efficiencies and secure the success of projects going forward. Our number one priority today is to advance this large volume of work in progress and bring these projects to completion."

Biopharmaceutical and Diagnostic Solutions Segment (BDS)

In the second quarter of 2024, revenue from the BDS Segment grew 9% to €222.4 million (9% on a constant currency basis), compared with the same period last year. Revenue from high-value solutions increased 23% to €103.4 million, while revenue from other containment and delivery solutions declined 1% to €119.0 million, compared with the same period last year.

As expected, gross profit margin for the BDS Segment decreased to 27.7% in the second quarter of 2024. While the Segment benefited from the favorable mix shift to high-value solutions, the growth was offset by (i) customers' vial destocking, resulting in lower revenue from more accretive EZ-fill® vials and the underutilization of vial lines, and (ii) the expected temporary inefficiencies tied to the start-up phase of the Company's new manufacturing facilities in Italy and the United States.

Engineering Segment

For the second quarter of 2024, revenue from the Engineering Segment decreased 26% to €37.2 million, compared with the same period last year.

The Company remains focused on executing a large volume of work currently in progress. During the second quarter of 2024, delays on highly customized projects, coupled with immediate actions that were launched in the quarter, led to higher-than-expected costs. The Company has increased resources, consolidated operations in Denmark, streamlined processes, and assigned technical experts from Italy to support the team in Denmark.

As a result of these challenges, gross profit margin decreased to 10.3% in the second quarter of 2024, compared with 22.5% in the same period last year.

Balance Sheet and Cash Flow

As of June 30, 2024, the Company had cash and cash equivalents of €78.1 million and net debt of €238.2 million. The Company believes that it has adequate liquidity to fund its strategic priorities over the next twelve months through a combination of cash on hand, available credit, cash generated from operations, and the ability to access additional financing.

As expected, capital expenditures for the second quarter of 2024 totaled €75.9 million, as the Company continues to ramp-up capacity in response to customer demand for high-value solutions in Fishers, Indiana and Latina, Italy.

For the second quarter of 2024, cash flow from operating activities was €22.3 million. During the second quarter, the Company received proceeds of €3 million from the sale of a building in Denmark. This sale was part of the Company's ongoing initiatives to optimize its industrial footprint, and gain efficiencies in its global operations. Cash flow used for the purchase of property, plant, and equipment, and intangible assets totaled €72.1 million, driven primarily by capital expenditures supporting strategic initiatives. This resulted in negative free cash flow of €46.1 million in the second quarter of 2024.

2024 Guidance

The Company is updating its full year 2024 guidance and now expects:

  • Revenue in the range of €1,090 million to €1,110 million,
  • Adjusted EBITDA in the range of €264 million to €272 million, and
  • Adjusted diluted EPS in the range of €0.48 to €0.50.

Executive Chairman and Chief Executive Officer, Franco Stevanato, concluded, "We are focused on solid execution across our main priorities, including the ongoing expansion in Latina, our ramp-up activities in Fishers and improving our overall performance in the Engineering Segment. The core fundamentals of our business have not changed. The end-markets we serve are healthy and growing. Demand for our products remains strong, our integrated solutions resonate with our customers, and we are operating in an environment with favorable secular tailwinds. We continue to see a durable, profitable growth path ahead of us, with biologics driving strong demand, especially in high-value solutions. We remain well positioned to capitalize on favorable long-term trends to drive growth, expand margins and create shareholder value."

Conference call: The Company will host a conference call and webcast at 8:30 a.m. (ET) on Tuesday, August 6, 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 Investor Relations section of the Company's 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: STVN conference call pre-registration.

Webcast: A live, listen-only webcast of the call will be available at the following link: STVN webcast.

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

Questions during the call: Participants who wish to ask questions during the call should use the 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.

Forward-Looking Statements

This press release may include forward-looking statements. The words "temporary," "expects," "ongoing," "are," "believe," "will," "drive," "driving," "achieve," "growth," "progress," "remains," "continues," "expected," "improving," "growing," "favorable," "continue," "see," "durable," "strong," "remain," "well positioned," "expand," "create," 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, the Company's future financial performance, including revenue, operating expenses and ability to maintain profitability and operational and commercial capabilities; the Company's expectations regarding the development of the industry and the competitive environment in which it operates; the expansion of the Company's plants and its expectations to increase production capacity; the global supply chain and the Company's committed orders; customer demand and customers' ability to destock higher inventories accumulated during the COVID-19 pandemic; the success of the Company's initiatives to optimize the industrial footprint, harmonize processes and enhance supply chain and logistics strategies; the Company's geographical and industrial footprint; and the Company's goals, strategies and investment plans. 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 conditions in the U.S. capital markets, negative global economic conditions, inflation, the impact of the conflict between Russia and the Ukraine, the evolving events in Israel and Gaza, supply chain and logistical challenges 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 six months

 

 

ended June 30,

 

ended June 30,

 

 

 

 

 

 

 

 

 

2024

 

%

 

2023

 

%

 

2024

 

%

 

2023

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

259.6

 

 

 

100.0

%

 

 

255.3

 

 

 

100.0

%

 

 

495.6

 

 

 

100.0

%

 

 

493.3

 

 

 

100.0

%

Costs of sales

 

 

192.1

 

 

 

74.0

%

 

 

176.4

 

 

 

69.1

%

 

 

365.9

 

 

 

73.8

%

 

 

338.1

 

 

 

68.5

%

Gross Profit

 

 

67.5

 

 

 

26.0

%

 

 

78.9

 

 

 

30.9

%

 

 

129.7

 

 

 

26.2

%

 

 

155.2

 

 

 

31.5

%

Other operating Income

 

 

1.0

 

 

 

0.4

%

 

 

4.0

 

 

 

1.6

%

 

 

2.3

 

 

 

0.5

%

 

 

5.2

 

 

 

1.1

%

Selling and Marketing Expenses

 

 

7.4

 

 

 

2.8

%

 

 

6.8

 

 

 

2.7

%

 

 

13.2

 

 

 

2.7

%

 

 

12.8

 

 

 

2.6

%

Research and Development Expenses

 

 

8.8

 

 

 

3.4

%

 

 

8.4

 

 

 

3.3

%

 

 

19.5

 

 

 

3.9

%

 

 

16.9

 

 

 

3.4

%

General and Administrative Expenses

 

 

24.4

 

 

 

9.4

%

 

 

22.9

 

 

 

9.0

%

 

 

46.1

 

 

 

9.3

%

 

 

45.1

 

 

 

9.1

%

Operating Profit

 

 

28.0

 

 

 

10.8

%

 

 

44.9

 

 

 

17.6

%

 

 

53.3

 

 

 

10.7

%

 

 

85.5

 

 

 

17.3

%

Finance Income

 

 

2.7

 

 

 

1.0

%

 

 

6.7

 

 

 

2.6

%

 

 

6.8

 

 

 

1.4

%

 

 

11.1

 

 

 

2.3

%

Finance Expense

 

 

1.5

 

 

 

0.6

%

 

 

7.3

 

 

 

2.9

%

 

 

5.3

 

 

 

1.1

%

 

 

16.3

 

 

 

3.3

%

Profit Before Tax

 

 

29.2

 

 

 

11.2

%

 

 

44.3

 

 

 

17.4

%

 

 

54.8

 

 

 

11.1

%

 

 

80.4

 

 

 

16.3

%

Income Taxes

 

 

8.5

 

 

 

3.3

%

 

 

10.0

 

 

 

3.9

%

 

 

15.4

 

 

 

3.1

%

 

 

17.8

 

 

 

3.6

%

Net Profit

 

 

20.6

 

 

 

7.9

%

 

 

34.3

 

 

 

13.4

%

 

 

39.4

 

 

 

8.0

%

 

 

62.6

 

 

 

12.7

%

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per ordinary share

 

 

0.08

 

 

 

 

 

 

0.13

 

 

 

 

 

 

0.15

 

 

 

 

 

 

0.24

 

 

 

 

Diluted earnings per ordinary share

 

 

0.08

 

 

 

 

 

 

0.13

 

 

 

 

 

 

0.15

 

 

 

 

 

 

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding

 

 

272.8

 

 

 

 

 

 

264.7

 

 

 

 

 

 

269.4

 

 

 

 

 

 

264.7

 

 

 

 

Average shares assuming dilution

 

 

272.8

 

 

 

 

 

 

265.4

 

 

 

 

 

 

269.4

 

 

 

 

 

 

265.4

 

 

 

 

 

Reported Segment Information

(Amounts in € millions)

 

 

 

For the three months ended June 30, 2024

 

 

 

 

Biopharmaceutical and Diagnostic Solutions

 

Engineering

 

Adjustments, eliminations and unallocated items

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

External Customers

 

 

222.4

 

 

 

37.2

 

 

 

 

 

 

259.6

 

Inter-Segment

 

 

0.6

 

 

 

42.4

 

 

 

(43.0

)

 

 

 

Revenue

 

 

223.0

 

 

 

79.6

 

 

 

(43.0

)

 

 

259.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

61.7

 

 

 

8.2

 

 

 

(2.4

)

 

 

67.5

 

Gross Profit Margin

 

 

27.7

%

 

 

10.3

%

 

 

 

 

 

26.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

32.3

 

 

 

2.1

 

 

 

(6.4

)

 

 

28.0

 

Operating Profit Margin

 

 

14.5

%

 

 

2.6

%

 

 

 

 

 

10.8

%

 

 

 

For the three months ended June 30, 2023

 

 

 

 

Biopharmaceutical and Diagnostic Solutions

 

Engineering

 

Adjustments, eliminations and unallocated items

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

External Customers

 

 

204.8

 

 

 

50.5

 

 

 

 

 

 

255.3

 

Inter-Segment

 

 

0.4

 

 

 

43.0

 

 

 

(43.4

)

 

 

 

Revenue

 

 

205.2

 

 

 

93.5

 

 

 

(43.4

)

 

 

255.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

64.9

 

 

 

21.0

 

 

 

(7.0

)

 

 

78.9

 

Gross Profit Margin

 

 

31.6

%

 

 

22.5

%

 

 

 

 

 

30.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

40.6

 

 

 

14.5

 

 

 

(10.2

)

 

 

44.9

 

Operating Profit Margin

 

 

19.8

%

 

 

15.5

%

 

 

 

 

 

17.6

%

 

 

 

For the six months ended June 30, 2024

 

 

 

 

Biopharmaceutical and Diagnostic Solutions

 

Engineering

 

Adjustments, eliminations and unallocated items

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

External Customers

 

 

421.3

 

 

 

74.3

 

 

 

 

 

 

495.6

 

Inter-Segment

 

 

1.2

 

 

 

82.6

 

 

 

(83.8

)

 

 

 

Revenue

 

 

422.5

 

 

 

156.9

 

 

 

(83.8

)

 

 

495.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

115.8

 

 

 

21.6

 

 

 

(7.6

)

 

 

129.7

 

Gross Profit Margin

 

 

27.4

%

 

 

13.8

%

 

 

 

 

 

26.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

60.5

 

 

 

7.3

 

 

 

(14.5

)

 

 

53.3

 

Operating Profit Margin

 

 

14.3

%

 

 

4.6

%

 

 

 

 

 

10.7

%

 

 

 

For the six months ended June 30, 2023

 

 

 

 

Biopharmaceutical and Diagnostic Solutions

 

Engineering

 

Adjustments, eliminations and unallocated items

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

External Customers

 

 

400.4

 

 

 

92.9

 

 

 

 

 

 

493.3

 

Inter-Segment

 

 

0.8

 

 

 

92.3

 

 

 

(93.2

)

 

 

 

Revenue

 

 

401.2

 

 

 

185.3

 

 

 

(93.2

)

 

 

493.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

130.9

 

 

 

40.9

 

 

 

(16.6

)

 

 

155.2

 

Gross Profit Margin

 

 

32.6

%

 

 

22.1

%

 

 

 

 

 

31.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

79.3

 

 

 

28.5

 

 

 

(22.3

)

 

 

85.5

 

Operating Profit Margin

 

 

19.8

%

 

 

15.4

%

 

 

 

 

 

17.3

%

 

(Amounts in € millions)

Cash Flow

 

 

 

For the three months
ended June 30,

 

For the six months
ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cash flow from operating activities

 

 

22.3

 

 

 

24.4

 

 

 

93.8

 

 

 

61.5

 

Cash flow used in investing activities

 

 

(69.5

)

 

 

(81.9

)

 

 

(171.6

)

 

 

(196.8

)

Cash flow (used in)/ from financing activities

 

 

(59.4

)

 

 

(39.3

)

 

 

87.5

 

 

 

(31.3

)

Net change in cash and cash equivalents

 

 

(106.6

)

 

 

(96.9

)

 

 

9.7

 

 

 

(166.5

)

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 June 30, 2024

 

Biopharmaceutical and Diagnostic Solutions

 

Engineering

Reported Revenue (IFRS GAAP)

 

 

222.4

 

 

 

37.2

 

Effect of changes in currency translation rates

 

 

(0.1

)

 

 

 

Organic Revenue (Non-IFRS GAAP)

 

 

222.3

 

 

 

37.2

 

Six months ended June 30, 2024

 

Biopharmaceutical and Diagnostic Solutions

 

 

Engineering

 

Reported Revenue (IFRS GAAP)

 

 

421.3

 

 

 

74.3

 

Effect of changes in currency translation rates

 

 

1.0

 

 

 

 

Organic Revenue (Non-IFRS GAAP)

 

 

422.3

 

 

 

74.3

 

 

Reconciliation of EBITDA

(Amounts in € millions)

 

 

 

For the three months
ended June 30,

 

Change

 

For the six months
ended June 30,

 

Change

 

 

2024

 

2023

 

%

 

2024

 

2023

 

%

Net Profit

 

 

20.6

 

 

 

34.3

 

 

 

(39.8

)%

 

 

39.4

 

 

 

62.6

 

 

 

(37.0

)%

Income Taxes

 

 

8.5

 

 

 

10.0

 

 

 

(14.8

)%

 

 

15.4

 

 

 

17.8

 

 

 

(13.4

)%

Finance Income

 

 

(2.7

)

 

 

(6.7

)

 

 

(59.9

)%

 

 

(6.8

)

 

 

(11.1

)

 

 

(38.5

)%

Finance Expenses

 

 

1.5

 

 

 

7.3

 

 

 

(79.5

)%

 

 

5.3

 

 

 

16.3

 

 

 

(67.7

)%

Operating Profit

 

 

28.0

 

 

 

44.9

 

 

 

(37.7

)%

 

 

53.3

 

 

 

85.5

 

 

 

(37.7

)%

Depreciation and Amortization and Impairment of PPE

 

 

20.8

 

 

 

19.5

 

 

 

6.8

%

 

 

42.5

 

 

 

37.9

 

 

 

12.2

%

EBITDA

 

 

48.8

 

 

 

64.4

 

 

 

(24.2

)%

 

 

95.8

 

 

 

123.4

 

 

 

(22.4

)%

 

Calculation of Net Profit margin, Operating Profit Margin, Adjusted EBITDA Margin and Adjusted Operating Profit Margin

(Amounts in € millions)

 

 

 

For the three months
ended June 30,

 

For the six months
ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

259.6

 

 

 

255.3

 

 

 

495.6

 

 

 

493.3

 

Net Profit Margin (Net Profit/ Revenue)

 

 

7.9

%

 

 

13.4

%

 

 

8.0

%

 

 

12.7

%

Operating Profit Margin (Operating Profit/ Revenue)

 

 

10.8

%

 

 

17.6

%

 

 

10.7

%

 

 

17.3

%

Adjusted EBITDA Margin (Adjusted EBITDA/ Revenue)

 

 

20.8

%

 

 

26.7

%

 

 

21.1

%

 

 

26.4

%

Adjusted Operating Profit Margin (Adjusted Operating Profit/ Revenue)

 

 

12.8

%

 

 

19.1

%

 

 

12.5

%

 

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30, 2024

 

EBITDA

 

Operating Profit

 

Income Taxes(3)

 

Net Profit

 

Diluted EPS

 

Reported

 

 

48.8

 

 

 

28.0

 

 

 

8.5

 

 

 

20.6

 

 

 

0.08

 

Adjusting items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Start-up costs new plants (1)

 

 

3.0

 

 

 

3.0

 

 

 

0.8

 

 

 

2.2

 

 

 

0.01

 

Restructuring and related charges (2)

 

 

2.2

 

 

 

2.2

 

 

 

0.5

 

 

 

1.7

 

 

 

0.00

 

Adjusted

 

 

54.0

 

 

 

33.2

 

 

 

9.9

 

 

 

24.5

 

 

 

0.09

 

Adjusted Margin

 

 

20.8

%

 

 

12.8

%

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2023

 

EBITDA

 

Operating Profit

 

Income Taxes(3)

 

Net Profit

 

Diluted EPS

 

Reported

 

 

64.4

 

 

 

44.9

 

 

 

10.0

 

 

 

34.3

 

 

 

0.13

 

Adjusting items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Start-up costs new plants (1)

 

 

3.7

 

 

 

3.7

 

 

 

1.0

 

 

 

2.8

 

 

 

0.01

 

Restructuring and related charges (2)

 

 

0.1

 

 

 

0.1

 

 

 

0.0

 

 

 

0.1

 

 

 

0.00

 

Adjusted

 

 

68.2

 

 

 

48.7

 

 

 

11.0

 

 

 

37.0

 

 

 

0.14

 

Adjusted Margin

 

 

26.7

%

 

 

19.1

%

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2024

 

EBITDA

 

Operating Profit

 

Income Taxes(3)

 

Net Profit

 

Diluted EPS

 

Reported

 

 

95.8

 

 

 

53.3

 

 

 

15.4

 

 

 

39.4

 

 

 

0.15

 

Adjusting items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Start-up costs new plants (1)

 

 

5.7

 

 

 

5.7

 

 

 

1.5

 

 

 

4.2

 

 

 

0.02

 

Restructuring and related charges (2)

 

 

3.1

 

 

 

3.1

 

 

 

0.8

 

 

 

2.4

 

 

 

0.01

 

Adjusted

 

 

104.6

 

 

 

62.1

 

 

 

17.7

 

 

 

46.0

 

 

 

0.17

 

Adjusted Margin

 

 

21.1

%

 

 

12.5

%

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

EBITDA

 

Operating Profit

 

Income Taxes(3)

 

Net Profit

 

 

Diluted EPS

 

Reported

 

 

123.4

 

 

 

85.5

 

 

 

17.8

 

 

 

62.6

 

 

 

0.24

 

Adjusting items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Start-up costs new plants (1)

 

 

6.6

 

 

 

6.6

 

 

 

1.8

 

 

 

4.8

 

 

 

0.01

 

Restructuring and related charges (2)

 

 

0.1

 

 

 

0.1

 

 

 

0.0

 

 

 

0.1

 

 

 

0.00

 

Adjusted

 

 

130.1

 

 

 

92.2

 

 

 

19.6

 

 

 

67.4

 

 

 

0.25

 

Adjusted Margin

 

 

26.4

%

 

 

18.7

%

 

 

 

 

 

 

 

 

 

(1) During the three and six months ended June 30, 2024, the Group recorded € 3.0 million and € 5.7 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, and in Latina, Italy. During the three and six months ended June 30, 2023, the Group recorded € 3.7 million and € 6.6 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 commencement of commercial operations that are associated with recruiting, hiring, training and travel expenses of personnel.

(2) During the three and six months ended June 30, 2024, the Group recorded € 2.2 million and € 3.1 million, respectively, of restructuring and related charges among general and administrative expenses and research and development expenses. During the three and six months ended June 30, 2023, the Group recorded € 0.1 million of restructuring and related charges among general and administrative expenses. These charges are mainly employee costs related to the reorganization of certain business functions.

(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 June 30,
2024

 

As of December 31,
2023

 

 

 

 

 

 

 

- Goodwill and intangible assets

 

 

82.2

 

 

 

81.0

 

- Right of Use assets

 

 

16.9

 

 

 

18.2

 

- Property, plant and equipment

 

 

1,139.5

 

 

 

1,028.5

 

- Financial assets - investments FVTPL

 

 

0.4

 

 

 

0.7

 

- Other non-current financial assets

 

 

5.4

 

 

 

4.5

 

- Deferred tax assets

 

 

82.8

 

 

 

76.3

 

Non-current assets excluding FV of derivative financial instruments

 

 

1,327.1

 

 

 

1,209.2

 

 

 

 

 

 

 

 

- Inventories

 

 

302.8

 

 

 

255.3

 

- Contract Assets

 

 

176.0

 

 

 

172.6

 

- Trade receivables

 

 

237.0

 

 

 

301.8

 

- Trade payables

 

 

(256.9

)

 

 

(277.8

)

- Advances from customers

 

 

(11.1

)

 

 

(22.9

)

- Non-current advances from customers

 

 

(47.7

)

 

 

(39.4

)

- Contract Liabilities

 

 

(23.5

)

 

 

(22.3

)

Trade working capital

 

 

376.6

 

 

 

367.2

 

 

 

 

 

 

 

 

- Tax receivables and Other receivables

 

 

73.5

 

 

 

58.2

 

- Tax payables and Other current liabilities

 

 

(140.0

)

 

 

(107.0

)

- Current provisions

 

 

(1.5

)

 

 

(1.1

)

Net working capital

 

 

308.6

 

 

 

317.4

 

 

 

 

 

 

 

 

- Deferred tax liabilities

 

 

(10.6

)

 

 

(9.6

)

- Employees benefits

 

 

(7.2

)

 

 

(7.4

)

- Non-current provisions

 

 

(4.1

)

 

 

(4.0

)

- Other non-current liabilities

 

 

(51.3

)

 

 

(48.5

)

Total non-current liabilities and provisions

 

 

(73.2

)

 

 

(69.5

)

 

 

 

 

 

 

 

Capital employed

 

 

1,562.4

 

 

 

1,457.1

 

 

 

 

 

 

 

 

Net (debt) /cash

 

 

(238.2

)

 

 

(324.4

)

 

 

 

 

 

 

 

Total Equity

 

 

(1,324.2

)

 

 

(1,132.6

)

 

 

 

 

 

 

 

Total equity and net (debt)/ cash

 

 

(1,562.4

)

 

 

(1,457.1

)

 

 

 

 

 

 

 

Free Cash Flow

(Amounts in € millions)

 

 

 

For the three months
ended June 30,

 

For the six months
ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net cash flow from operating activities

 

 

22.3

 

 

 

24.4

 

 

 

93.8

 

 

 

61.5

 

Interest paid

 

 

1.7

 

 

 

0.5

 

 

 

2.3

 

 

 

1.4

 

Interest received

 

 

(1.0

)

 

 

(0.3

)

 

 

(1.2

)

 

 

(0.5

)

Purchase of property, plant and equipment

 

 

(68.7

)

 

 

(92.2

)

 

 

(169.2

)

 

 

(219.9

)

Proceeds from sale of property, plant and equipment

 

 

3.0

 

 

 

 

 

 

3.0

 

 

 

 

Purchase of intangible assets

 

 

(3.4

)

 

 

(1.5

)

 

 

(5.5

)

 

 

(2.6

)

Free Cash Flow

 

 

(46.1

)

 

 

(69.1

)

 

 

(76.8

)

 

 

(160.1

)

 

(Net Debt) / Net Cash

(Amounts in € millions)

 

 

 

As of June 30,

 

As of December 31,

 

 

2024

 

2023

Non-current financial liabilities

 

 

(252.4

)

 

 

(255.6

)

Current financial liabilities

 

 

(66.5

)

 

 

(143.3

)

Other non-current financial assets - Fair value of derivatives financial instruments

 

 

0.3

 

 

 

0.6

 

Other current financial assets

 

 

2.3

 

 

 

4.4

 

Cash and cash equivalents

 

 

78.1

 

 

 

69.6

 

Net (Debt)/ Cash

 

 

(238.2

)

 

 

(324.4

)

 

CAPEX

(Amounts in € millions)

 

 

 

For the three months
ended June 30,

 

Change

 

For the six months
ended June 30,

 

Change

 

 

 

2024

 

2023

 

 

2024

 

2023

 

Addition to Property, plants and equipment

 

 

72.6

 

 

 

136.7

 

 

 

(64.1

)

 

 

142.3

 

 

 

248.8

 

 

 

(106.5

)

Addition to Intangible Assets

 

 

3.3

 

 

 

1.5

 

 

 

1.8

 

 

 

5.5

 

 

 

2.6

 

 

 

2.9

 

CAPEX

 

 

75.9

 

 

 

138.2

 

 

 

(62.3

)

 

 

147.8

 

 

 

251.4

 

 

 

(103.6

)

 

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

 

1,090.0 - 1,110.0

 

 

248.9 - 256.9

 

162.9 - 170.9

 

119.5 - 125.5

 

0.44 - 0.46

Adjusting items

 

 

 

15.1

 

15.1

 

11.3

 

0.04

Adjusted

 

1,090.0 - 1,110.0

 

 

264.0 - 272.0

 

178.0 - 186.0

 

130.8 - 136.8

 

0.48 - 0.50

*Amounts may not add due to rounding

Media

Stevanato Group

media@stevanatogroup.com

Investor Relations

Lisa Miles

lisa.miles@stevanatogroup.com

Source: Stevanato Group S.p.A.

FAQ

What was Stevanato Group's (STVN) revenue for Q2 2024?

Stevanato Group's revenue for Q2 2024 was €259.6 million, a 2% increase compared to the same period last year.

How did Stevanato Group's (STVN) segments perform in Q2 2024?

The Biopharmaceutical and Diagnostic Solutions Segment grew 9%, while the Engineering Segment declined 26% compared to Q2 2023.

What is Stevanato Group's (STVN) updated guidance for FY 2024?

Stevanato Group updated its FY 2024 guidance to revenue of €1,090-1,110 million, adjusted EBITDA of €264-272 million, and adjusted diluted EPS of €0.48-0.50.

What challenges did Stevanato Group (STVN) face in Q2 2024?

Stevanato Group faced challenges in the Engineering Segment, including project delays and higher costs, as well as temporary inefficiencies in new facility start-ups and customer vial destocking in the BDS Segment.

Stevanato Group S.p.A.

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