- Group sales revenue up 12.2%;
earnings1 up 17.0%
- Lab Products & Services shows
very dynamic performance driven by organic growth and
acquisitions
- Significant growth of Bioprocess
Solutions in view of normalized market growth, as expected
- Recently upgraded guidance for the
full year of 2017 confirmed
Sartorius (FWB:SRT), a leading international partner of the
biopharmaceutical industry and research laboratories, increased its
sales revenue and earnings in the first quarter of 2017 by double
digits.
"Both divisions successfully started off the current year. Lab
Products & Services achieved considerable organic growth, and
with the acquisition of Essen BioScience, it added another
innovative product family to its bioanalytics portfolio and further
growth potential,” said CEO and Executive Board Chairman Dr.
Joachim Kreuzburg.
The substantially above-average market growth for Bioprocess
Solutions over the past two years has returned to normal rates, as
expected. "In particular, business development in the Americas
region was somewhat more moderate in the first quarter; however, we
expect demand to pick up over the year," emphasized Kreuzburg.
Management confirms its guidance raised at the beginning of April
due to consolidation of its acquisitions: sales for the full year
are projected to grow by about 12% to 16% and the company's
earnings margin1 is forecasted to increase by slightly more than
0.5 percentage points.
Business development of the Sartorius Group
In the first three months of 2017, Sartorius increased its sales
revenue in constant currencies by 12.2% (reported +13.6%) from
301.9 million euros in the year-earlier period to 343.1 million
euros. The Asia|Pacific region recorded the strongest growth, with
sales up 33.3% to 80.0 million euros. Both Group divisions
contributed double-digit gains to this development. In the EMEA2
region, Sartorius generated sales of 151.2 million euros, 8.9% more
than in the comparable year-earlier period. First-quarter sales
revenue for the Americas region was 111.9 million euros, up 4.9%
from a year ago. (All regional figures in constant currencies)
Earnings in the reporting period rose overproportionately again
relative to sales. Sartorius thus increased its underlying EBITDA
by 17.0% to 84.6 million euros, and its respective margin from
24.0% to 24.7%. Relevant net profit3 for the Group grew by 17.7%
from 29.3 million euros to 34.4 million euros. Earnings per
ordinary share totaled 0.50 euros (Q1 2016: 0.42 euros4) and
earnings per preference share 0.51 euros (Q1 2016: 0.43
euros4).
The Group's key financial indicators remained at very robust
levels following its most recent acquisition of Essen BioScience.
At the end of the reporting period, the ratio of net debt to
underlying EBITDA stood at 2.4 and company's equity ratio was 34.2%
(Dec. 31, 2016: 1.5 and 42.0%, resp.). At 12.8%, the capex ratio in
the first quarter was within the range expected.
Business development of the divisions
The Bioprocess Solutions Division, which offers a broad range of
innovative technologies for the manufacture of biopharmaceuticals,
recorded first-quarter sales growth of 9.4% in constant currencies
to 251.1 million euros. Following two years of strong above-average
dynamics, market growth in this segment returned to normal rates,
as expected. In particular, the development in the Americas region
was influenced at the beginning of the year by softer customer
demand as well as by temporarily limited delivery capacities for
cell culture media. The division increased its underlying EBITDA
overproportionately again with respect to sales, by 12.1% to 68.4
million euros; its margin reached 27.2% relative to 26.9% in the
comparable year-earlier period. The acquisition of the software
company Umetrics closed at the beginning of April 2017 did not have
any effect in the first quarter.
The Lab Products & Services Division, which offers
technologies for laboratories, primarily for the pharma sector and
public research, significantly increased sales revenue in the first
three months of the current year by 21.0% to 92.0 million euros
(reported +22.7%). Based on strong demand in all regions and for
all product segments, the division reported organic growth of
around 10%. Altogether, around 11 percentage points of the
division’s growth were contributed by portfolio expansion in the
area of bioanalytics due to the acquisitions of IntelliCyt and
ViroCyt in mid-2016, as well as Essen BioScience at the end of
March 2017. Driven by economies of scale related to strong organic
growth and acquisitions, the division's underlying EBITDA rose
sharply by 43.1% to 16.3 million euros; its respective earnings
margin improved from 15.2% to 17.7%.
Forecast for the full year confirmed
The Sartorius Group confirms its guidance for the current year,
which it raised on April 3, 2017, due to its most recent
acquisitions of Essen BioScience and Umetrics.
Management thus projects that Group sales revenue for the full
year will grow by about 12% to 16% and underlying EBITDA margin
will increase slightly more than by half a percentage point over
the prior-year figure of 25.0%.
Regarding the two divisions, management anticipates that sales
for Bioprocess Solutions will grow by about 9% to 13% and that the
division's underlying EBITDA margin will rise by around half a
percentage point (prior-year figure: 28.0%). For the Lab Products
& Services Division, Group management projects that, assuming
an overall stable economic environment, sales will increase by
about 20% to 24% and the division's underlying EBITDA margin will
rise by nearly two percentage points compared with the prior-year
figure of 16.0%. (All forecasts are based on constant
currencies)
The capex ratio for the current fiscal year is projected to
remain at around 12% to 15%.
The ratio of net debt to underlying EBITDA at year-end is
expected to remain about at the current level of 2.4 (Dec. 31,
2016: 1.5) as a result of the company's most recent acquisitions.
Any further acquisitions have not been considered in these
projections.
1 Sartorius uses underlying EBITDA (earnings before interest,
taxes, depreciation and amortization; adjusted for extraordinary
items) as the key profitability indicator2 EMEA = Europe | Middle
East | Africa3 After non-controlling interest, adjusted for
extraordinary items and non-cash amortization, as well as based on
the normalized financial result and corresponding tax effects.4
Adjusted for stock split; rounded values
This press release contains statements about the future
development of the Sartorius Group. The content of these statements
cannot be guaranteed as they are based on assumptions and estimates
that harbor certain risks and uncertainties. This is a translation
of the original German-language press release. Sartorius shall not
assume any liability for the correctness of this translation. The
original German press release is the legally binding version.
Furthermore, Sartorius reserves the right not to be responsible for
the topicality, correctness, completeness or quality of the
information provided. Liability claims regarding damage caused by
the use of any information provided, including any kind of
information which is incomplete or incorrect, will therefore be
rejected.
Current image files
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of
Sartorius
AGwww.sartorius.com/fileadmin/media/global/company/Sartorius_Kreuzburg.jpg
Sartorius products used in the manufacture of
medicationswww.sartorius.com/mediafile/corp/Sartorius_0232_PG9_01_RGB.jpg
Sartorius products used in pharmaceutical
researchwww.sartorius.com/mediafile/corp/Sartorius_0232_PG9_01_RGB.jpg
Conference call
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of
Sartorius, will discuss the company's results with analysts and
investors on Monday, April 24, 2017, at 3:30 p.m. Central European
Time (CET) in a teleconference. You may register by clicking on the
following
link:http://services.choruscall.de/DiamondPassRegistration/register?confirmationNumber=2173934&linkSecurityString=8938b98a
Alternatively, you can dial into the teleconference, without
registering, at:+49 (0) 69 566 03 6000
To view the presentation, log
onto:http://www.sartorius.de/de/konzern/investor-relations/sartorius-ag/
Upcoming Financial Dates
July 25, 2017 Publication of the first-half figures (January to
June 2017)
October 24, 2017 Publication of nine-month figures (January to
September 2017)
A Profile of Sartorius
The Sartorius Group is a leading international pharmaceutical
and laboratory equipment provider with two divisions: Bioprocess
Solutions and Lab Products & Services. Bioprocess Solutions
with its broad product portfolio focusing on single-use solutions
helps customers produce biotech medications and vaccines safely and
efficiently. Lab Products & Services, with its premium
laboratory instruments, consumables and services, concentrates on
serving the needs of laboratories performing research and quality
assurance at pharma and biopharma companies and on those of
academic research institutes. Founded in 1870, the company earned
sales revenue of more than 1.3 billion euros in 2016. More than
6,900 people work at the Group's 50 manufacturing and sales sites,
serving customers around the globe.
Key Performance Indicators for the first quarter of 2017
Sartorius Group Bioprocess Solutions
Lab Products &
Services
in millions of €, unless otherwise specified
Q1
2017
Q1
2016
Δ Δin %reported
ΔΔin %cc1
Q12017 Q12016
Δ Δin %reported
ΔΔin %cc1
Q12017 Q12016
Δ Δin %reported
ΔΔ in %cc1
Sales Revenue and Order Intake Sales
revenue
343.1 301.9 13.6 12.2
251.1 226.9 10.7 9.4
92.0 75.0 22.7 21.0 - EMEA2
151.2 139.8 8.2 8.9
105.6
101.8 3.7 4.8
45.6 37.9
20.2 19.9 - Americas2
111.9
103.6 8.1 4.9
91.2 87.9
3.7 0.6
20.8 15.7 32.6
28.7 - Asia | Pacific2
80.0 58.6 36.5
33.3
54.4 37.2 46.1 42.5
25.6 21.3 19.9 17.2 Order intake
376.9 330.1 14.2 12.7
283.5 254.2 11.5 10.1
93.4 75.9 23.1 21.4
Earnings
EBITDA3
84.6 72.3 17.0
68.4 61.0 12.1
16.3 11.4 43.1 EBITDA margin3 in
%
24.7 24.0
27.2 26.9
17.7 15.2 Net profit for
the period4
34.4 29.3 17.7
Financial Data per Share Earnings perordinary share4,5 in €
0.50 0.42 17.9
Earnings per preference
share4,5 in €
0.51 0.43 17.5
1 In
constant currencies abbreviated as "cc" 2 Acc. to the customer's
location 3 Underlying = adjusted for extraordinary items
4 After non-controlling interest, adjusted
for extraordinary items and non-cash amortization, as well as based
on the normalized financial result and corresponding tax
effects
5 Q1 2016 adjusted for stock split;
rounded values
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170423005062/en/
SartoriusPetra Kirchhoff, +49 (0)551.308.1686Vice President of
Corporate Communications and IRpetra.kirchhoff@sartorius.com