EQS-News: Sartorius closes fiscal 2024 with very good fourth quarter and positive trend; full-year guidance achieved
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EQS-News: SARTORIUS AG
/ Key word(s): Annual Results/Quarter Results
Göttingen, Germany | January 28, 2025
Sartorius closes fiscal 2024 with very good fourth quarter and positive trend; full-year guidance achieved
The life science group Sartorius has, according to preliminary figures, maintained its strong market position and high profitability in 2024, and generated sales revenue at the previous year’s level despite the difficult industry environment that lasted longer than expected. The company fully met its growth and profitability targets, as adjusted at mid-year. For 2025, management expects profitable, moderate growth above market level. “For the entire life science industry, 2024 was characterized by a challenging market situation: the pandemic-related destocking at customers, which lasted much longer than expected, the reluctance to invest, and the Chinese market, which remained very weak. Not only, but also in view of these conditions, we are satisfied with the results we achieved. The trend is increasingly positive,” said Sartorius CEO Joachim Kreuzburg. ”Business development in the second half of the year, and especially in the final quarter, confirms our estimate that the temporary weakness in demand is coming to an end and that the industry will gradually return to its robust, structurally underlying growth trend. In general, however, we should not over-interpret individual quarters. For the current year, we are thus cautious with our forecast for the time being and project that demand will continue to recover, although market growth is still likely to be below the long-term average initially. In this environment, we expect Sartorius to achieve moderate sales revenue growth above market level and an increase in profitability.” Business development of the Group1 In the reporting year, the Sartorius Group generated sales revenue of 3,381 million euros, reaching the level of the previous year (in constant currencies: + 0.1 percent, reported: - 0.4 percent), with a non-organic2 contribution of 2 percent. Development in the consumables business was particularly positive, as most customers are reaching their target inventory levels and are gradually returning to an order level that corresponds to their production activities. Sales revenue from products for advanced therapies also continued to grow at an above-average rate, while business with bioprocessing equipment and lab instruments remained muted due to customers’ reluctance to invest. Order intake developed even better than revenue, increasing by a double-digit 10.8 percent in constant currencies (reported: + 10.1 percent). As expected, business performance was particularly pronounced in the final quarter: between October and December, Sartorius achieved sales revenue of 907 million euros, an uptick of 6.5 percent in constant currencies on the previous year, while order intake rose significantly by 21.5 percent in constant currencies. Regional business performance varied in fiscal 2024. The EMEA3 region, which accounts for around 41 percent of the Group’s business, recorded a 5.5 percent increase in sales revenue. Despite the continued weakness of the Chinese market, the Asia | Pacific region also achieved a slight uptick of 1.4 percent, bringing its share of Group revenue to 23 percent. In the Americas region, on the other hand, sales revenue was down 6.1 percent due to the continued subdued investment activity by customers; the region accounts for around 36 percent of total business. The Group’s earnings, measured as underlying EBITDA, amounted to 945 million euros, almost on par with the previous year’s figure of 963 million euros. The resulting margin was 28.0 percent (PY: 28.3 percent), and thus remained at a high level. Underlying net profit amounted to 280 million euros, as against 339 million euros in 2023. Underlying earnings per ordinary share totaled 4.05 euros (PY: 4.94 euros), and underlying earnings per preference share 4.06 euros (PY: 4.95 euros). As of December 31, 2024, Sartorius employed 13,528 people worldwide, compared with 14,614 at the end of 2023. Key financial indicators The Group’s balance sheet and financial indicators remain at robust levels. The equity ratio as of December 31, 2024 was 38.6 percent (December 31, 2023: 28.3 percent), mainly as a result of the capital increase successfully completed at the beginning of February 2024. Net operating cash flow increased significantly by 14.4 percent to 976 million euros, compared with 854 million euros in 2023, in particular due to the planned reduction in working capital. The ratio of net debt to underlying EBITDA was further reduced as projected, and stood at 4.0 at the end of the year (December 31, 2023: 5.0). Investments in research and the company’s global production infrastructure amounted to 410 million euros (PY: 560 million euros), with the ratio of capital expenditures (capex) to sales revenue in line with the forecast at 12.1 percent, compared with 16.5 percent in 2023. Business development of the Bioprocess Solutions Division The Bioprocess Solutions Division, which offers a wide range of innovative technologies for the efficient and sustainable manufacture of biopharmaceuticals, achieved a slight increase in sales revenue of 0.9 percent in constant currencies (reported: + 0.5 percent, Q4 2024 in cc1: + 6.0 percent) to 2,690 million euros, with a non-organic2 contribution of around 2.5 percent to sales revenue. The main drivers were the significant upturn in business with consumables and the above-average development of products for advanced therapies, which overcompensated for customers’ continued reluctance to invest in bioprocess equipment. Order intake developed even more positively than sales revenue, increasing by 12.7 percent in constant currencies (reported: + 12.0 percent, Q4 2024 in cc1: + 23.1 percent). The division’s underlying EBITDA grew by 0.6 percent to 787 million euros, compared with 782 million euros in the previous year; the resulting margin reached 29.3 percent (PY: 29.2 percent). In the reporting year, the bioprocessing division expanded its portfolio for the process development and production of biologics, with a number of market launches. In addition to new products for customers working on cell and gene therapies, new offerings were marketed in the high-revenue product groups of fluid management and filtration. Furthermore, in collaboration with a major customer, the development of a platform for continuous bioprocesses advanced over the course of the year, and will enable significantly higher efficiency and thus reduced resource consumption. Business development of the Lab Products & Services Division The Lab Products & Services Division, which specializes in life science research and pharmaceutical laboratories, continued to be impacted by soft end markets, particularly in China, and a pronounced reluctance to invest on the customer side. Sales revenue amounted to 691 million euros, which corresponds to a decline of 3.0 percent in constant currencies (reported: - 3.8 percent, Q4 2024 in cc1: + 8.6 percent) compared with the previous year. By contrast, order intake increased, ending the year at 684 million euros, up 4.1 percent in constant currencies (reported: + 3.3 percent, Q4 2024 in cc1: + 14.9 percent). The division’s underlying EBITDA decreased by 12.3 percent to 158 million euros, mainly due to volume and product mix effects; the corresponding margin was 22.9 percent (PY: 25.1 percent). The lab division launched several innovative instruments for drug development in 2024. Organoids, which are considered a key technology for life science research, were a priority. In the field of bioanalytics, a solution was developed to create and analyze these 3D cultures. Together with a partner, the division is also working on an offering to replace animal-based research models with organoids. In the laboratory instruments portfolio, a focus was on reducing plastic and packaging waste. Deliberately cautious outlook for fiscal 2025: profitable growth in both divisions For fiscal 2025, the Group’s management expects a continuous demand recovery and growth in the life science market, albeit at a rate that is still below its long-term average. In this environment, the company intends to grow profitably above market level, and to achieve a moderate increase in sales revenue, which is likely to be driven primarily by recurring business with consumables. Due to the varying dynamics in their respective submarkets, the Bioprocess Solutions Division is expected to contribute more strongly to growth than the Lab Products & Services Division. Based on the expected volume development, positive product mix effects and supported by the effects of the previous year’s efficiency program, the company forecasts that underlying EBITDA, should increase over-proportionately compared to sales revenue. In 2025, Sartorius will continue its organic debt reduction course with a focus on working capital and managing investments. The company will provide a quantitative forecast after the first quarter of 2025. 1 Sartorius publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.
3 EMEA = Europe, Middle East, Africa This press release contains forward-looking statements about the future development of the Sartorius Group. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements. Sartorius assumes no liability for updating such statements in light of new information or future events. 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. Management points out that dynamics and volatilities in the industry have increased significantly in recent years. In addition, uncertainties due to the changed geopolitical situation, such as the emerging decoupling tendencies of various countries, are playing a greater role. This results in higher uncertainty when forecasting business figures. Conference call CEO Dr. Joachim Kreuzburg and CFO Dr. Florian Funck will discuss the company’s 2024 results with analysts and investors in a conference call on January 28, 2025, at 1.00 p.m. CET. Register here: Conference Call on the Preliminary Results 2024 Financial calendar February 17, 2025 Publication of Annual Report March 27, 2025 Annual Shareholders’ Meeting April 16, 2025 Publication of the first quarter results January to March 2025 July 22, 2025 Publication of the half-year results January to June 2025 October 16, 2025 Publication of the nine-month results January to September 2025 Preliminary key performance indicators for fiscal year 2024
1 cc = Constant currencies: Figures given in constant currencies eliminate the impact of changes in exchange rates by applying the same exchange rate for the current and the previous period 2 All customer orders contractually concluded and booked during the respective reporting period. 3 Acc. to the customer's location 4 Earnings before interest, taxes, depreciation, and amortization and adjusted for extraordinary items. 5 Profit for the period after non-controlling interest, adjusted for extraordinary items and amortization, as well as based on the normalized financial result and the normalized tax rate. 6 After non-controlling interest 7 The previous year’s figures have been revised due to finalization of the purchase price allocation for the acquisition of Polyplus A profile of Sartorius Sartorius is a leading international partner of life sciences research and the biopharmaceutical industry. With innovative laboratory instruments and consumables, the Group’s Lab Products & Services Division focuses on laboratories performing research and quality control at pharmaceutical and biopharmaceutical companies as well as academic research institutes. The Bioprocess Solutions Division, with its broad product portfolio focusing on single-use solutions, helps customers manufacture biotech medications, vaccines, and cell and gene therapies safely, rapidly, and sustainably. The company, based in Göttingen, Germany, has a strong global reach with around 60 production and sales sites worldwide. Sartorius regularly expands its portfolio through the acquisition of complementary technologies. In 2024, the company generated sales revenue of around 3.4 billion euros according to preliminary figures. Around 13,500 employees are working for customers around the globe. Visit our newsroom and follow Sartorius on LinkedIn. Contact Petra Kirchhoff Head of Corporate Communications & Investor Relations +49 (0)551.308.1686 petra.kirchhoff@sartorius.com Additional features: File: Media Release Sartorius Preliminary Results 2024
28.01.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
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| Language: | English |
| Company: | SARTORIUS AG |
| Otto-Brenner-Straße 20 | |
| 37079 Göttingen | |
| Germany | |
| Phone: | +49.(0)551-308.0 |
| Fax: | +49.(0)551-308.3289 |
| E-mail: | info@sartorius.com |
| Internet: | www.sartorius.com |
| ISIN: | DE0007165631, DE0007165607 |
| WKN: | 716563, 716560 |
| Indices: | DAX, TecDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 2075645 |
| End of News | EQS News Service |
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2075645 28.01.2025 CET/CEST
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