Stevanato Group Reports First Quarter 2023 Financial Results
- Reiterates Full Year 2023 Guidance -
PIOMBINO DESE,
First Quarter 2023 Highlights (compared with the same period last year)
-
First quarter revenue increased
12% to€238 million . -
Revenue from high value solutions increased to
32% of total revenue. -
Diluted earnings per share of
€0.11 and adjusted diluted earnings per share of€0.11 . -
Adjusted EBITDA margin increased 50 basis points to
26% . -
The Company is reiterating its full year 2023 guidance of revenue in the range of
€1.08 5 billion to€1.11 5 billion, adjusted diluted EPS between€0.58 and€0.62 , and adjusted EBITDA in the range of€290.5 million to€302.5 million .
First Quarter Results
Revenue for the first quarter of 2023 increased
For the first quarter of 2023, gross profit margin increased 20 basis points to
Operating profit margin for the first quarter of 2023 decreased 80 basis points to
Franco Moro, Chief Executive Officer, stated, “We are investing in growth platforms to expand our capacity for more accretive high value solutions in order to satisfy customer demand. With the expected growth in biologics, we see ample opportunities in treatment classes such as GLP1s, monoclonal antibodies, mRNA applications as well as biosimilars, and we are well positioned to capitalize on favorable industry trends which we expect will drive durable, organic growth."
Biopharmaceutical and Diagnostic Solutions Segment (BDS)
For the first quarter of 2023, revenue grew
Year-over-year gross profit margin expansion was principally driven by the mix shift to more accretive high value solutions, which resulted in a gross profit margin of
Engineering Segment
Revenue increased
For the first quarter of 2023, gross profit margin increased 30 basis points to
Balance Sheet and Cash Flow
As of March 31, 2023, the Company had net debt of
For the first quarter 2023, cash generated from operating activities was
New Order Intake and Backlog
For the first quarter of 2023, new order intake decreased to approximately
Reiterating 2023 Guidance
The Company is reiterating its fiscal year 2023 guidance and still expects:
-
Revenue in the range of
€1.08 5 billion to€1.11 5 billion, -
Adjusted diluted EPS in the range of
€0.58 t o€0.62 , -
Adjusted EBITDA in the range of
€290.5 million to€302.5 million .
Executive Chairman, Franco Stevanato, concluded, "Our decades of experience in delivering high quality, high performing products makes us a partner of choice with customers. Our long history of embedding science and technology to drive continuous advancements has led to a highly differentiated product portfolio. Together with our global footprint, and our integrated end-to-end products, we offer customers a unique value proposition which provides us with sustainable, competitive advantages in an environment of robust customer demand and favorable secular tailwinds."
Conference Call
The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, May 4, 2023 to discuss financial results. During the call, management will refer to a slide presentation which will be available at 6:30 a.m. (ET) on the day 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 call using the following link: http://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/stevanato230504.html
| Dial in: | Those who are unable to pre-register may dial in by calling: Italy: + 39 02 802 09 11 UK: + 44 1 212 818004 USA: +1 718 705 8796
|
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 "expect,” "expects," "see," “is reiterating,” “rising,” "drive," "continues," "continuing," "believes," "continuous," “increased,” “well positioned,” “favorable,” "growth," "durable," 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 investments the Company expects to receive, the expansion of manufacturing capacity, the Company’s plans regarding its presence in the
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 Net Profit, Adjusted Diluted EPS, Capital Employed, Net Cash, 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) (Unaudited) |
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For the three months |
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ended March 31, |
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2023 |
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% |
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2022 |
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% |
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|
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|
|
|
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Revenue |
|
|
238.0 |
|
|
|
100.0 |
% |
|
|
212.1 |
|
|
|
100.0 |
% |
Costs of sales |
|
|
161.7 |
|
|
|
68.0 |
% |
|
|
144.6 |
|
|
|
68.2 |
% |
Gross Profit |
|
|
76.3 |
|
|
|
32.0 |
% |
|
|
67.5 |
|
|
|
31.8 |
% |
Other operating Income |
|
|
1.2 |
|
|
|
0.5 |
% |
|
|
1.5 |
|
|
|
0.7 |
% |
Selling and Marketing Expenses |
|
|
6.1 |
|
|
|
2.5 |
% |
|
|
4.9 |
|
|
|
2.3 |
% |
Research and Development Expenses |
|
|
8.6 |
|
|
|
3.6 |
% |
|
|
7.7 |
|
|
|
3.6 |
% |
General and Administrative Expenses |
|
|
22.2 |
|
|
|
9.3 |
% |
|
|
18.5 |
|
|
|
8.7 |
% |
Operating Profit |
|
|
40.6 |
|
|
|
17.1 |
% |
|
|
37.9 |
|
|
|
17.9 |
% |
Finance Income |
|
|
4.4 |
|
|
|
1.8 |
% |
|
|
3.0 |
|
|
|
1.4 |
% |
Finance Expense |
|
|
9.0 |
|
|
|
3.8 |
% |
|
|
4.6 |
|
|
|
2.2 |
% |
Profit Before Tax |
|
|
36.0 |
|
|
|
15.1 |
% |
|
|
36.3 |
|
|
|
17.1 |
% |
Income Taxes |
|
|
7.8 |
|
|
|
3.3 |
% |
|
|
8.5 |
|
|
|
4.0 |
% |
Net Profit |
|
|
28.3 |
|
|
|
11.9 |
% |
|
|
27.8 |
|
|
|
13.1 |
% |
Earnings per share |
|
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|
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|
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||||
Basic earnings per common share |
|
|
0.11 |
|
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|
|
|
|
0.10 |
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Diluted earnings per common share |
|
|
0.11 |
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|
|
|
|
0.10 |
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Average common shares outstanding |
|
|
264.7 |
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|
|
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|
264.7 |
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|
|
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||
Average shares assuming dilution |
|
|
265.4 |
|
|
|
|
|
|
264.7 |
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Reported Segment Information (Amounts in € millions) (Unaudited) |
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For the three months ended March 31, 2023
|
|
|||||||||||||
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|
Biopharmaceutical
|
|
|
Engineering |
|
|
Adjustments,
|
|
|
Consolidated |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
External Customers |
|
|
195.5 |
|
|
|
42.4 |
|
|
|
— |
|
|
|
238.0 |
|
Inter-Segment |
|
|
0.4 |
|
|
|
49.4 |
|
|
|
(49.8 |
) |
|
|
— |
|
Revenue |
|
|
196.0 |
|
|
|
91.8 |
|
|
|
(49.8 |
) |
|
|
238.0 |
|
|
|
|
|
|
|
|
|
|
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|
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Gross Profit |
|
|
66.0 |
|
|
|
19.9 |
|
|
|
(9.6 |
) |
|
|
76.3 |
|
Gross Profit Margin |
|
|
33.7 |
% |
|
|
21.7 |
% |
|
|
|
|
|
32.0 |
% |
|
|
|
|
|
|
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|
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Operating Profit |
|
|
38.7 |
|
|
|
14.0 |
|
|
|
(12.1 |
) |
|
|
40.6 |
|
Operating Profit Margin |
|
|
19.8 |
% |
|
|
15.2 |
% |
|
|
|
|
|
17.1 |
% |
|
|
|
For the three months ended March 31, 2022
|
|
|||||||||||||
|
|
Biopharmaceutical
|
|
|
Engineering |
|
|
Adjustments,
|
|
|
Consolidated |
|
||||
|
|
|
|
|
|
|
|
|
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|
||||
External Customers |
|
|
172.4 |
|
|
|
39.6 |
|
|
|
— |
|
|
|
212.1 |
|
Inter-Segment |
|
|
0.3 |
|
|
|
23.5 |
|
|
|
(23.8 |
) |
|
|
— |
|
Revenue |
|
|
172.7 |
|
|
|
63.1 |
|
|
|
(23.8 |
) |
|
|
212.1 |
|
|
|
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|
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|
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Gross Profit |
|
|
56.8 |
|
|
|
13.5 |
|
|
|
(2.8 |
) |
|
|
67.5 |
|
Gross Profit Margin |
|
|
32.9 |
% |
|
|
21.4 |
% |
|
|
|
|
|
31.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
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|
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Operating Profit |
|
|
35.7 |
|
|
|
8.7 |
|
|
|
(6.5 |
) |
|
|
37.9 |
|
Operating Profit Margin |
|
|
20.7 |
% |
|
|
13.8 |
% |
|
|
|
|
|
17.9 |
% |
|
Cash Flow (Amounts in € millions) (Unaudited) |
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For the three months
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|||||
|
|
2023 |
|
|
2022 |
|
||
Cash flow from operating activities |
|
|
37.1 |
|
|
|
5.2 |
|
Cash flow used in investing activities |
|
|
(128.8 |
) |
|
|
(54.7 |
) |
Cash flow from/ (used in) financing activities |
|
|
22.0 |
|
|
|
3.1 |
|
Net change in cash and cash equivalents |
|
|
(69.7 |
) |
|
|
(46.4 |
) |
Non-
This press release contains non-
Reconciliation of Revenue to Constant Currency Revenue (Amounts in € millions) (Unaudited) |
||||||||
Three months ended March 31, 2023 |
|
Biopharmaceutical and
|
|
|
Engineering |
|
||
Reported Revenue (IFRS GAAP) |
|
|
195.5 |
|
|
|
42.4 |
|
Effect of changes in currency translation rates |
|
|
(2.2 |
) |
|
|
0.0 |
|
Organic Revenue (Non-IFRS GAAP) |
|
|
193.3 |
|
|
|
42.5 |
|
Reconciliation of EBITDA (Amounts in € millions) (Unaudited) |
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|
|
For the three months
|
|
|
Change |
|
||||||
|
|
2023 |
|
|
2022 |
|
|
% |
|
|||
Net Profit |
|
|
28.3 |
|
|
|
27.8 |
|
|
|
1.8 |
% |
Income Taxes |
|
|
7.8 |
|
|
|
8.5 |
|
|
|
-8.2 |
% |
Finance Income |
|
|
(4.4 |
) |
|
|
(3.0 |
) |
|
|
46.7 |
% |
Finance Expenses |
|
|
9.0 |
|
|
|
4.6 |
|
|
|
95.7 |
% |
Operating Profit |
|
|
40.6 |
|
|
|
37.9 |
|
|
|
7.1 |
% |
Depreciation and Amortization |
|
|
18.4 |
|
|
|
15.2 |
|
|
|
21.1 |
% |
EBITDA |
|
|
59.0 |
|
|
|
53.1 |
|
|
|
11.1 |
% |
Reconciliation of Reported and Adjusted EBITDA, Operating Profit, Income Taxes, Net Profit, and Diluted EPS (Amounts in € millions, except per share data) (Unaudited) |
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Three months ended March 31, 2023 |
|
EBITDA |
|
|
Operating Profit |
|
|
Income Taxes |
|
|
Net Profit |
|
|
Diluted EPS |
|
|||||
Reported |
|
|
59.0 |
|
|
|
40.6 |
|
|
|
7.8 |
|
|
|
28.3 |
|
|
|
0.11 |
|
Adjusting items: |
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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Start-up costs new plants (1) |
|
|
2.9 |
|
|
|
2.9 |
|
|
|
0.8 |
|
|
|
2.1 |
|
|
|
0.01 |
|
Adjusted |
|
|
61.9 |
|
|
|
43.6 |
|
|
|
8.5 |
|
|
|
30.4 |
|
|
|
0.11 |
|
Adjusted Margin |
|
|
26.0 |
% |
|
|
18.3 |
% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Three months ended March 31, 2022 |
|
EBITDA |
|
|
Operating Profit |
|
|
Income Taxes |
|
|
Net Profit |
|
|
Diluted EPS |
|
|||||
Reported |
|
|
53.1 |
|
|
|
37.9 |
|
|
|
8.5 |
|
|
|
27.8 |
|
|
|
0.10 |
|
Adjusting items: |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Start-up costs new plants (1) |
|
|
0.9 |
|
|
|
0.9 |
|
|
|
0.1 |
|
|
|
0.8 |
|
|
|
0.01 |
|
Adjusted |
|
|
54.0 |
|
|
|
38.8 |
|
|
|
8.6 |
|
|
|
28.6 |
|
|
|
0.11 |
|
Adjusted Margin |
|
|
25.5 |
% |
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|||
-
During the three months ended March 31, 2023 and 2022, the Group recorded
€2.9 million and€0.9 million , respectively, of start-up costs for the new plants inFishers, Indiana ,United States , and inLatina, Italy .
Capital Employed (Amounts in € millions) (Unaudited) |
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|
|
As of March 31,
|
|
|
As of December 31,
|
|
||
|
|
|
|
|
|
|
||
- Goodwill and Other intangible assets |
|
|
78.0 |
|
|
|
79.4 |
|
- Right of Use assets |
|
|
18.0 |
|
|
|
19.3 |
|
- Property, plant and equipment |
|
|
738.7 |
|
|
|
641.4 |
|
- Financial assets - investments FVTPL |
|
|
0.7 |
|
|
|
0.8 |
|
- Other non-current financial assets |
|
|
1.0 |
|
|
|
1.0 |
|
- Deferred tax assets |
|
|
72.6 |
|
|
|
69.2 |
|
Non-current assets |
|
|
909.2 |
|
|
|
811.1 |
|
|
|
|
|
|
|
|
||
- Inventories |
|
|
245.5 |
|
|
|
213.3 |
|
- Contract Assets |
|
|
110.5 |
|
|
|
103.4 |
|
- Trade receivables |
|
|
240.9 |
|
|
|
212.7 |
|
- Trade payables |
|
|
(235.6 |
) |
|
|
(239.2 |
) |
- Advances from customers |
|
|
(54.7 |
) |
|
|
(26.6 |
) |
- Contract Liabilities |
|
|
(10.4 |
) |
|
|
(14.8 |
) |
Trade working capital |
|
|
296.2 |
|
|
|
248.8 |
|
|
|
|
|
|
|
|
||
- Tax receivables and Other receivables |
|
|
55.7 |
|
|
|
54.0 |
|
- Tax payables and Other liabilities |
|
|
(130.7 |
) |
|
|
(111.1 |
) |
Net working capital |
|
|
221.2 |
|
|
|
191.7 |
|
|
|
|
|
|
|
|
||
- Deferred tax liabilities |
|
|
(20.3 |
) |
|
|
(21.0 |
) |
- Employees benefits |
|
|
(6.8 |
) |
|
|
(8.3 |
) |
- Provisions |
|
|
(5.6 |
) |
|
|
(5.5 |
) |
- Other non-current liabilities |
|
|
(20.7 |
) |
|
|
(18.1 |
) |
Total non-current liabilities and provisions |
|
|
(53.4 |
) |
|
|
(52.9 |
) |
|
|
|
|
|
|
|
||
Capital employed |
|
|
1,077.0 |
|
|
|
949.9 |
|
|
|
|
|
|
|
|
||
Net cash/ (debt) |
|
|
(46.5 |
) |
|
|
46.0 |
|
|
|
|
|
|
|
|
||
Equity |
|
|
(1,030.5 |
) |
|
|
(995.9 |
) |
|
|
|
|
|
|
|
||
Total equity and net debt |
|
|
(1,077.0 |
) |
|
|
(949.9 |
) |
|
|
|
|
|
|
|
||
Free Cash Flow (Amounts in € millions) (Unaudited) |
||||||||
|
|
For the three months
|
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Cash Flow from Operating Activities |
|
|
37.1 |
|
|
|
5.2 |
|
Interest paid |
|
|
0.9 |
|
|
|
0.8 |
|
Interest received |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
Purchase of property, plant and equipment |
|
|
(127.7 |
) |
|
|
(52.7 |
) |
Purchase of intangible assets |
|
|
(1.1 |
) |
|
|
(1.9 |
) |
Free Cash Flow |
|
|
(91.0 |
) |
|
|
(48.8 |
) |
Net Cash / (Net Debt) (Amounts in € millions) (Unaudited) |
||||||||
|
|
As of March 31, |
|
|
As of December 31, |
|
||
|
|
2023 |
|
|
2022 |
|
||
Non-current financial liabilities |
|
|
(143.3 |
) |
|
|
(148.4 |
) |
Current financial liabilities |
|
|
(84.7 |
) |
|
|
(70.7 |
) |
Other non-current financial assets - Derivatives |
|
|
2.7 |
|
|
|
2.8 |
|
Other current financial assets |
|
|
20.1 |
|
|
|
33.6 |
|
Cash and cash equivalents |
|
|
158.8 |
|
|
|
228.7 |
|
Net Cash/ (Debt) |
|
|
(46.5 |
) |
|
|
46.0 |
|
CAPEX (Amounts in € millions) (Unaudited) |
||||||||||||
|
|
For the three months
|
|
|
Change |
|
||||||
|
|
2023 |
|
|
2022 |
|
|
€ |
|
|||
Addition to Property, plants and equipment |
|
|
112.1 |
|
|
|
51.9 |
|
|
|
60.2 |
|
Addition to Intangible Assets |
|
|
1.1 |
|
|
|
1.9 |
|
|
|
(0.8 |
) |
CAPEX |
|
|
113.2 |
|
|
|
53.8 |
|
|
|
59.4 |
|
Reconciliation of 2023 Guidance Reported and Adjusted EBITDA, Operating Profit, Net Profit, Diluted EPS (Amounts in € millions, except per share data) (Unaudited) |
||||||||||
|
|
Revenue |
|
EBITDA |
|
Operating Profit |
|
Net Profit |
|
Diluted EPS* |
Reported |
|
1,085.0 - 1,115.0 |
|
281.3 - 293.3 |
|
199.9 - 211.9 |
|
147.8 - 156.9 |
|
0.56 - 0.59 |
Adjusting items: |
|
|
|
|
|
|
|
|
|
|
Start-up costs new plants |
|
|
|
9.1 |
|
9.1 |
|
6.8 |
|
0.03 |
Adjusted |
|
1,085.0 - 1,115.0 |
|
290.5 - 302.5 |
|
209.0 - 221.0 |
|
154.6 - 163.7 |
|
0.58 - 0.62 |
| *May not add due to rounding | ||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005561/en/
Media
Stevanato Group
media@stevanatogroup.com
Investor Relations
Lisa Miles
lisa.miles@stevanatogroup.com
Source: Stevanato Group S.p.A.
