Business Wire

Nine-Month Figures for 2017: Sartorius Continues to Grow Profitably in a Challenging Environment

Del

Sartorius, a leading international partner of the biopharmaceutical industry and research, recorded further growth in the first nine months of 2017 despite a partly challenging business environment.

"This year, different influences shaped the business development of our divisions," commented Group CEO Dr. Joachim Kreuzburg on the results. "While our Lab Products & Services Division has continued to grow highly dynamically through organic growth and the expansion of its portfolio in the area of bioanalytics, growth of the Bioprocess Solutions Division, compared to a very high previous-year base, was somewhat lower than expected due to a few concurrent, temporary effects. However, the basic growth drivers of the global biopharma market remain intact, so that we continue to see high growth potential for our bioprocess business and confirm our mid-term targets."

Business development of the Sartorius Group

In the first nine months of 2017, Sartorius increased its sales revenue by 8.6% in constant currencies (reported: +8.1%) to 1,043.6 million euros. The Asia|Pacific region recorded the highest gain, with sales up 24.7% to 256.5 million euros. In EMEA2, Sartorius generated revenue of 451.0 million euros, 6.3% more than in the comparable year-earlier period. Especially in the Americas, transient manufacturing and supply bottlenecks in Bioprocess Solutions, as well as substantially softer customer demand for this Division after two very strong years, temporarily dampened growth dynamics. Accordingly, Group revenue in the region rose only moderately by 1.0% to 336.1 million euros. Order intake of the Sartorius Group rose at strong double-digit rates in both divisions in the third quarter and thus was up by 11.4% after nine months (all regional and order intake figures in constant currencies).

Despite unfavorable currency effects, underlying EBITDA increased by 7.3% compared with a strong prior-year base and reached 259.0 million euros. The Group's respective margin was 24.8% relative to 25.0% in the first nine months of the previous year; if exchange rates had remained constant, the prior-year figure would have been slightly exceeded. The relevant net profit3 for the Group grew by 6.9% from 98.9 million euros to 105.7 million euros. Earnings per ordinary share totaled 1.54 euros (9M 2016: 1.44 euros) and earnings per preference share 1.55 euros (9M 2016: 1.45 euros).

The Group's key financial indicators continued to remain at robust levels even after the most recent acquisitions of Essen BioScience in March 2017 and Umetrics in April 2017. At the end of the reporting period, the company's equity ratio was 33.6% and its ratio of net debt to underlying EBITDA stood at 2.7 (Dec. 31, 2016: 42.0%% and 1.5, respectively). The capex ratio in the first nine months was 13.6%, as expected, due to the comprehensive expansion of the Group's worldwide infrastructure.

Business development of the divisions

The Bioprocess Solutions Division, which offers a wide array of innovative technologies for the manufacture of biopharmaceuticals, recorded nine-month sales growth of 4.1% in constant currencies to 752.9 million euros, relative to a very high prior-year revenue base. Development in the first nine months of 2017 was somewhat lower than expected due to some temporary effects. Demand, which was relatively soft in North America and parts of Europe after two very dynamic years in 2015 and 2016, was additionally affected in the third quarter in particular by inventory destocking by a few customers. Moreover, no deliveries were meanwhile possible from the company’s production facility in Puerto Rico due to Hurricane Maria, and ongoing bottlenecks in a partner's delivery capacity that lasted longer than expected impacted business performance in the area of cell culture media. Consolidation of the acquisitions of kSep and Umetrics contributed around one percentage point to sales growth in the first nine months of 2017. Order intake grew more strongly than sales in the reporting period, by 7.1% in constant currencies due to strong double-digit growth in the third quarter.

Underlying EBITDA of Bioprocess Solutions rose by 2.2% to 207.0 million euros; the respective margin reached 27.5% relative to 27.9% for the year-earlier period and would have reached the prior-year level if currency exchange rates would have remained constant.

The Lab Products & Services Division, which offers products and technologies for laboratories primarily in the pharma sector and in public research, recorded a significant gain in revenue, up 21.8% in constant currencies (reported: +22.0%) to 290.7 million euros. Driven by strong demand in all regions and all product areas, organic growth was at a good 7%. Expansion of the division's portfolio into bioanalytics as a result of the acquisition of Essen BioScience at the end of March 2017 contributed close to 15 percentage points to growth. Order intake in the first nine months of 2017 grew by 24.9% in constant currencies.

The division's underlying EBITDA rose sharply by 34.2% to 51.9 million euros; its respective earnings margin increased, despite unfavorable currency effects, from 16.2% to 17.9%. This was due to economies of scale related to strong organic growth and to profits contributed by acquisitions.

Full-year guidance adjusted and specified; mid-term outlook confirmed

Management assumes that the previously mentioned temporary effects will influence growth of the Bioprocess Solutions Division and, along with it, that of the Sartorius Group for the full year of 2017 as well. In view of these effects, the Sartorius Group now expects that sales revenue in constant currencies will increase by approx. 9% (previous guidance: approx. 12% to 16%). Due to adverse exchange rate effects, the underlying EBITDA margin is now projected to reach approx. the prior-year level of 25.0% (previous guidance in constant currencies: slightly more than 0.5 percentage points vs. 2016).

In view of the divisions, management now expects that sales growth for Bioprocess Solutions will reach approx. 4% (previous guidance: approx. 9% to 13%) and, the underlying EBITDA margin, including adverse exchange rate effects, will be approx. at the prior-year level of 28.0% (previous guidance in constant currencies: approx. +0.5 percentage points). For Lab Products & Services, management's projections remain basically unchanged, with sales expected to grow by about 22% (previous bandwidth 20% to 24%) and the division's underlying EBITDA margin forecasted to increase by nearly two percentage points relative to 16.0% a year ago, despite unfavorable currency effects.

The capex ratio for the current year is projected to be at the upper end of the bandwidth of around 12% to 15% of sales.

Sartorius confirms its mid-term targets.

1 Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items) as the key profitability indicator

2 EMEA = Europe | Middle East | Africa

3 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

This earnings 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. The content of these statements cannot be guaranteed as they are based on assumptions and estimates that harbor certain risks and uncertainties.

Current image files

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG

www.sartorius.com/fileadmin/media/global/company/Sartorius_Kreuzburg.jpg

Sartorius products used in the manufacture of medications

www.sartorius.com/mediafile/corp/Sartorius_0232_PG9_01_RGB.jpg

Sartorius products used in pharmaceutical research

www.sartorius.com/mediafile/corp/Sartorius_0424_PG14.jpg

Conference call

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the company's results with analysts and investors on Wednesday, October 25, 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=8481620&linkSecurityString=2746420dc

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.com/com/group/investor-relations/sartorius-ag/

Upcoming financial dates

February 6, 2018 Publication of preliminary figures for 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. Currently more than 7,400 people work at the Group's 50 manufacturing and sales sites, serving customers around the globe.

Key Performance Indicators for the 9-Month Period of 2017

 

Sartorius Group

  Bioprocess Solutions   Lab Products & Services

€ in millions

                         
(unless

Δ in

Δ in

Δ in

otherwise

9M

9M

%

Δ in

9M 9M

%

Δ in

9M 9M

%

Δ in

specified)  

2017

 

2016

 

reported

 

% cc(1)

 

2017

      2016   reported  

% cc(1)

  2017       2016   reported  

% cc(1)

Sales Revenue and Order Intake                                                        
Sales revenue   1043.6   965.1   8.1   8.6   752.9       726.7   3.6   4.1   290.7       238.4   22.0   21.8
- EMEA2   451.0   427.1   5.6   6.3   310.3       306.9   1.1   2.1   140.7       120.2   17.1   16.9
- Americas2   336.1   331.4   1.4   1.0   263.7       279.5   -5.7   -6.0   72.5       51.9   39.6   38.2
- Asia | Pacific2   256.5   206.6   24.2   24.7   178.9       140.3   27.5   27.8   77.6       66.3   17.1   18.2
Order intake   1096.4   988.2   11.0   11.4   802.0       752.5   6.6   7.1   294.4       235.6   24.9   24.9
Earnings                                                        
EBITDA3   259.0   241.4   7.3       207.0       202.6   2.2       51.9       38.7   34.2    
EBITDA margin3 in %   24.8   25.0           27.5       27.9           17.9       16.2        
Net profit for the period4   105.7   98.9   6.9                                            
Financial Data per Share                                                        
Earnings per ordinary share4 in €   1.54   1.44   6.9                                            
Earnings per preference share4 in €   1.55   1.45   6.8                                            
1 In constant currencies abbreviated as "cc"
2 Acc. to the customer's location
3 Underlying
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

Contact information

Sartorius AG
Petra Kirchhoff
Vice President of Corporate Communications
+49 (0)551.308.1686
petra.kirchhoff@sartorius.com
or
Andreas Theisen
Director of Investor Relations
+49 (0)551.308.1668
andreas.theisen@sartorius.com

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

HCL 2030 Ecosystem Platform to Explore Societal Implications of Emerging Technology at the World Economic Forum21.1.2019 07:26Pressemelding

HCL Technologies (HCL), a leading global technology company and the World Economic Forum’s Strategic Partner, today announced its largest presence to date at the side-lines of World Economic Forum’s Annual Meeting in Davos scheduled from 21st January 2019 to 25th January 2019. The company will host a three-day event in a special Pavilion that will feature a technology showcase, thought-leadership programs, as well as a number of high-level networking and social events throughout the tenure of the conference. The overarching theme of the HCL and Fast Company programs will explore how humanity’s relationship with technology will evolve through the next decade of rapid innovation. HCL has partnered with Fast Company to develop a thought-leadership track that includes three panel discussion breakfasts. As part of the theme of Human-Machine Harmony, HCL is launching the HCL 2030 Platform, together with its ecosystem of partners and stakeholders, that will conduct in-depth explorations and d

Former Commander of the Estonian Defence Forces, Gen Riho Terras Joins Milrem Robotics’ Team21.1.2019 07:00Pressemelding

Gen (ret) Riho Terras who served as the Commander of the Estonian Defence Forces for 7 years and retired in December 2018 joins the team of one of the leading unmanned warfare systems developers Milrem Robotics to head up its Defence Division. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190120005004/en/ The CEO and owner of Milrem Robotics Kuldar Vaarsi (left) and the new Director of the Defence Division Gen (ret) Riho Terras. (Photo: Business Wire) General Terras’ main responsibilities will be establishing Milrem Robotics’ international business development and program support teams, leading the process of gaining a strong foothold in the defence market and bringing end-user specific know-how to company’s strategic R&D activities. “General Terras’ strong background and experience put him in a good position to grow the company’s international presence and build up our teams worldwide,” explained Kuldar Väärsi, CEO and own

MagicStay Launches a New Loyalty Program21.1.2019 07:00Pressemelding

MagicStay, the first apartment booking site dedicated to business travel and mobility, is launching its new Magic Loyalty Card program to reward traveler loyalty. MagicStay is the first French alternative accommodation booking site, created to meet the requirements of business travel (duty of care, date protection, travel policy…) and available for all those who wish to travel peacefully. The platform provides over 200 000 studios, apartments and houses in more than 90 countries. Collect points for every euro spent: When booking on MagicStay, for every euro spent, customers will receive one loyalty point. Put forward to simplify and personalize customer experience, the program allows travelers to spend the collected points as they wish: discount on future reservations, gifts or donations to charitable organizations. Each customer will be able to consult their loyalty points on their personal space on www.magicstay.com and transform them at any time. This loyalty program is intended for

inRiver Expands Executive Bench and Growth Initiatives for 201921.1.2019 07:00Pressemelding

inRiver, the leading provider of SaaS-based product information management (PIM) solutions, today elevated veteran sales executive Jimmy Jeppsson Bäckström to chief revenue officer, and promoted Johan Eriksson to chief financial officer, rounding out the executive team additions that included Thor Johnson, chief executive officer, Eric Waller, chief technology officer and executive vice president of product, Maria Bolmstedt, vice president of services, and Steve Gershik, chief marketing officer in 2018. The past year yielded tremendous growth for inRiver as the organization continued to strengthen its presence in North America and expand operations in Europe with 40% increase in new customer logos and more than 50% increase in recurring revenue. New customers in retail and branded manufacturing within the fashion, construction, accessories, medical devices, food and beverage, and furniture verticals have grown the inRiver community to over 1,500 brands and 500 customers globally. “Cust

US FDA Approves ONTRUZANT® (trastuzumab-dttb), Samsung Bioepis’ First Oncology Medicine in the United States20.1.2019 23:38Pressemelding

Samsung Bioepis Co., Ltd. today announced that the U.S. Food and Drug Administration (FDA) has approved ONTRUZANT® (trastuzumab-dttb), a biosimilar referencing HERCEPTIN® 1 (trastuzumab), across all eligible indications, namely adjuvant treatment of HER2-overexpressing breast cancer, metastatic breast cancer and metastatic gastric cancer or gastroesophageal junction adenocarcinoma in patients who have not received prior treatment for metastatic disease. Please see Boxed Warnings and Important Safety Information for ONTRUZANT® below. ONTRUZANT® is Samsung Bioepis’ first oncology biosimilar to receive FDA approval, and will be marketed and distributed in the United States (US) by Merck, which is known as MSD outside of the US and Canada. “For many cancer patients in the US, battling cancer has not only been a health issue, but a considerable financial burden brought on by cancer treatment. Biosimilars are intended to be lower cost, high-quality treatment options that have the potential t

More4Apps to Join the Cloud20.1.2019 22:53Pressemelding

More4Apps, the NZ-based software integration specialist known for its Excel based Oracle EBS integration tools, has confirmed it will be building product for Cloud ERP. “We're overwhelmed by the number of customers asking for our solutions to be migrated to the new ERP system, and that’s driven our strategic commitment to developing Cloud-based data entry tools,” said Bruce Doig, co-founder and Head of Innovation at More4Apps. “Already we have a large team working closely with a well known US fast food restaurant chain to deliver several loaders integrated with Oracle ERP Cloud.” As a Gold Partner with Oracle, More4Apps is well positioned to develop a range of integration tools for the new platform, with an intimate knowledge of the existing EBS and a close working relationship with a customer with whom they are collaborating to develop data loaders for the new SaaS platform. And whilst the capabilities of Cloud ERP are yet to be fully proven, More4Apps are confident there will be a pl