Nine-month results 2022 of Sartorius Stedim Biotech

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• Sales revenue up 17.0 percent in constant currencies, underlying EBITDA margin at 35.0 percent
• Overall market situation characterized by innovations and strong growth drivers; current development as expected influenced by swift normalization of demand
• Outlook for 2022 specified: Sales revenue growth now expected to be in the lower half of the previous range of 15 to 19 percent; projection for underlying EBITDA margin unchanged at more than 35 percent
• Uncertainties due to the global political and economic situation currently remain high

AUBAGNE, France, Oct. 19, 2022 /PRNewswire/ -- Sartorius Stedim Biotech, a leading partner of the biopharma industry, closed the first nine months of 2022 with double-digit sales revenue and earnings growth and specified its outlook for the current fiscal year.

"In the first nine months, Sartorius Stedim Biotech achieved significant growth in a challenging environment. We recorded a double-digit increase in sales revenue and, despite unfavorable trends on the cost and currency side, a very good profit margin. As expected, the development was also characterized by a swift normalization of demand following two years influenced by strong special effects due to the pandemic. We expanded our portfolio with the acquisition of Albumedix, adding an important component for the manufacture of innovative biopharmaceuticals, particularly regarding modalities such as cell therapies, viral therapies and vaccines. We are specifying our full-year outlook for 2022 within the range projected so far, but the global political and economic uncertainties remain high," said Joachim Kreuzburg, Chairman of the Board of Directors and CEO.

Business development of the Group¹
In the first nine months, Group sales revenue recorded a year-over-year increase of 17.0 percent in constant currencies (reported: +23.4 percent) to 2,603 million euros. This performance was driven by organic growth, while acquisitions,² as expected, contributed around 2 percentage points to growth. All major product segments contributed to the sales revenue development, while coronavirus-related business declined significantly from the prior-year period. All three business regions – EMEA,³ the Americas, and Asia | Pacific – recorded significant growth, with the Americas region posting the strongest gain. The restrictions in China caused by the pandemic as well as business limitations in Russia dampened growth to a limited extend.

Following an exceptionally strong prior-year figure due to the pandemic, order intake, as expected, declined in the first nine months and reached 2,601 million euros (in constant currencies: -12.8 percent, reported: -8.8 percent). The first nine months of 2021 had been influenced by high demand from vaccine manufacturers and changed ordering patterns by some customers, who had placed orders larger in size and further in advance than usual.

Underlying EBITDA increased by 19.1 percent to 912 million euros in the first nine months. The corresponding margin reached 35.0 percent (prior-year period: 36.3 percent). This development was positively influenced by economies of scale from sales revenue growth, but diluted by currency effects and, as planned, higher costs resulting from the recruitment of new employees as well as other normalized cost positions. Price effects on the procurement and customer sides largely offset each other.

Relevant net profit reached 607 million euros, representing a significant increase of 19.2 percent from the first nine months of 2021. Underlying earnings per share were 6.58 euros (prior-year period: 5.52 euros).

Key financial indicators
The Sartorius Stedim Biotech Group continues to have a very sound balance sheet and financial base. Its equity ratio stood at a very robust level of 46.1 percent as of September 30, 2022 (December 31, 2021: 43.9 percent), despite the acquisition of Albumedix, which was completed at the end of September 2022. The ratio of net debt to underlying EBITDA was 0.9 as of the reporting date, compared with 0.4 at the end of 2021. Cash flow from investing activities stood at -289 million euros, compared with -186 million euros in the first nine months of 2021. The ratio of capital expenditures (CAPEX) to sales revenue reached 11.1 percent (prior-year period: 8.8 percent).

Increase in the number of employees
As of September 30, 2022, Sartorius Stedim Biotech had a total of 12,120 employees worldwide, representing a rise in headcount of 1,711 from the end of 2021. Following a significant increase in the first six months of the year, the number of new hires slowed down considerably with the beginning of the second half of 2022, as planned.

Outlook for fiscal 2022 specified
Based on the results of the first nine months, management specifies its outlook for the current fiscal year. Consolidated sales revenue growth is now expected to be in the lower half of the range of around 15 percent to 19 percent projected so far, with non-organic growth from acquisitions anticipated to contribute about 2 percentage points. Regarding profitability, Sartorius Stedim Biotech continues to expect its underlying EBITDA margin to reach more than 35 percent.

The CAPEX ratio is anticipated to be about 14.5 percent and net debt to underlying EBITDA is now anticipated to be about 0.8 at year end (previously about 0.2) following the closing of the Albumedix acquisition. Possible further acquisitions are not included in this projection.

All forecasts are based on constant currencies, as in the past years. In addition, management points out that the dynamics and volatilities in the life science and biopharma sectors have increased over the past years and the coronavirus pandemic has further amplified these trends. Moreover, the forecasts are based on the assumption of no further deterioration in the geopolitical and global economic situation, supply chains, inflation and energy supply, and no new relevant restrictions in connection with the coronavirus pandemic. Accordingly, current forecasts show higher uncertainties than usual.

¹ Sartorius Stedim Biotech 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.

• Order intake: all customer orders contractually concluded and booked during the respective reporting period
• Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
• Relevant net profit: profit for the period after non-controlling interest, adjusted for extraordinary items and non-cash amortization, as well as based on the normalized financial result and the normalized tax rate
• Ratio of net debt to underlying EBITDA: quotient of net debt and underlying EBITDA over the past 12 months, including the pro forma amount contributed by acquisitions for this period

² Acquisition of CellGenix, Xell, the Novasep chromatography division
³ EMEA = Europe, Middle East, Africa

This press release contains forward-looking statements about the future development of the Sartorius Stedim Biotech 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 Stedim Biotech assumes no liability for updating such statements in light of new information or future events. Sartorius Stedim Biotech shall not assume any liability for the correctness of this release. The original French press release is the legally binding version.

Conference call
Joachim Kreuzburg, Chairman of the Board of Directors and CEO of the Sartorius Stedim Biotech Group, will discuss the company's business results with analysts and investors in a conference call at 3.30 p.m. CEST on October 19, 2022.You may register by clicking on the following link: 

https://media.choruscall.eu/mediaframe/webcast.html?webcastid=z5CKkF4u

Further information
https://www.sartorius.com/en/company/newsroom

Financial calendar
January 26, 2023            Publication of preliminary figures (January to December 2022)
April 20, 2023                 Publication of the first-quarter figures (January to March 2023)
July 21, 2023                  Publication of the first-half figures (January to June 2023)
October 19, 2023            Publication of nine-month figures (January to September 2023)

Key figures for the first nine months of 2022

¹ The figures for the reporting period 2021 were restated due to the finalization of the purchase price allocation for the acquisition of BIA Separations
² In constant currencies
³ Underlying EBITDA = earnings before interest, taxes, depreciation and amortization, and adjusted for extraordinary items
⁴ Relevant / underlying net profit = net profit after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and normalized tax rate
⁵ After non-controlling interest

Reconciliation 

¹ The figures for the reporting period 2021 were restated due to the finalization of the purchase price allocation for the acquisition of BIA Separations
² Financial result excluding fair value adjustments of hedging instruments and currency effects relating to financing activities and change in valuation of earn-out liability
³ Normalized income tax based on the underlying profit before taxes and non-cash amortization 

¹ The figures for the reporting period 2021 were restated due to the finalization of the purchase price allocation for the acquisition of BIA Separations

A profile of Sartorius Stedim Biotech
Sartorius Stedim Biotech is a leading international partner of the biopharmaceutical industry. As a total solutions provider, the company helps its customers to manufacture biotech medications safely, rapidly and economically. Headquartered in Aubagne, France, the shares of Sartorius Stedim Biotech S.A. are quoted on the Euronext Paris. With its own manufacturing and R&D sites in Europe, North America and Asia and an international network of sales companies, Sartorius Stedim Biotech has a global reach. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies. In 2021, the company employed more than 10,400 people, and earned sales revenue of around 2.89 billion euros.

Contact
Petra Kirchhoff                                                                                    
Head of Corporate Communications & Investor Relations
+49 (0)551 308 1686                                                         
[email protected]                                                        

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SOURCE Sartorius Stedim Biotech

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