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Sartorius Stedim Biotech SA: Sartorius Stedim Biotech: Growth dynamics
temporarily dampened; continued strong mid-term perspectives
25-Oct-2017 / 08:50 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
2017 Nine-Month Figures
Sartorius Stedim Biotech: Growth dynamics temporarily dampened; continued
strong mid-term perspectives
EUR in millions 9 months 9 months Growth in % Growth in %
unless 2017 2016 const. fx
otherwise
specified
Sales revenue 806.5 785.1 2.7 3.3
EMEA1 345.9 342.7 1.0 2.0
Americas1 272.6 290.2 -6.1 -6.3
Asia | Pacific1 187.9 152.2 23.4 23.5
Order intake 853.0 806.6 5.8 6.3
EBITDA2 216.2 214.1 1.0
EBITDA margin2 26.8 27.3
in %
Net profit3 132.1 131.3 0.6
Earnings per 1.43 1.42 0.6
share3 in EUR
1 According to customers' location
2 Underlying EBITDA = earnings before interest, taxes, depreciation and
amortization, and adjusted for extraordinary items
3 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 tax rate
Revenue growth rate influenced by high comps and temporary effects
Sartorius Stedim Biotech, a leading supplier for the biopharmaceutical
industry, increased its sales revenue in the first nine months of 2017
compared to a very high previous-year base by 3.3%. While business in Asia
performed very dynamically, demand was soft in the Americas and parts of
Europe. This was a result of customer inventory destocking, the temporary
interruption of deliveries from the company's facility in Puerto Rico after
Hurricane Maria, and ongoing restrictions of a partner's capacity to supply
cell culture media in North America. The acquisitions of kSep and Umetrics
contributed close to 1 percentage point to sales growth. Driven by
double-digit growth in Q3, order intake was up by 6.3% in the reporting
period.
Slight increase in underlying EBITDA
Influenced by unfavorable currency effects, SSB's underlying EBITDA increased
by 1.0% to EUR216.2 million; the respective margin reached 26.8% (9M 2016:
27.3%) and would have been approx. at previous year's level in constant
currencies. Underlying earnings per share were EUR1.43 (9M 2016: EUR1.42).
Financial position remains strong
In the reporting period, the financial position of Sartorius Stedim Biotech
has remained very robust. Net debt at the end of September 2017 stood at
EUR149.5 million. The equity ratio amounted to 61.4%, and the ratio of net
debt to underlying EBITDA was 0.5.
Full-year 2017 guidance adjusted, mid-term outlook confirmed
Management assumes that the previously mentioned temporary factors will
influence the financial results for the full year of 2017 as well. Therefore,
SSB now expects that sales revenue growth will reach approx. 4% in constant
currencies (previous guidance: approx. 8% to 12%) and due to adverse exchange
rate effects the underlying EBITDA margin will be approx. at the prior-year
level of 27.5% (previous guidance: approx. +0.5 percentage points in cc vs. FY
2016). Capital expenditures are expected to be at the upper end of the
bandwidth of around 10% to 13% of sales. As the fundamental market drivers are
considered to be unchanged, management confirms its positive mid-term outlook
for revenue growth and profitability.
Including the acquisition of Umetrics and excluding any further potential
acquisitions, the ratio of net debt to underlying EBITDA at the end of 2017
remains to be expected slightly above the level of 0.2 reported for year-end
2016.
This news contains statements about the future development of the Sartorius
Stedim Biotech Group. We cannot guarantee that the content of these statements
will actually apply because these statements are based upon assumptions and
estimates that harbor certain risks and uncertainties.
Conference Call
Joachim Kreuzburg, CEO and Chairman of the Board of the Sartorius Stedim
Biotech Group, 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 for the teleconference at:
http://services.choruscall.de/DiamondPassRegistration/register?confirmationNum
ber=8481620&linkSecurityString=2746420dc [1]
Alternatively, you can dial into the teleconference, without registering, at:
+49 (0) 69 566 03 6000
To view the presentation, log onto: www.sartorius-stedim.com [2]
Upcoming financial dates
February 6, 2018 Publication of preliminary figures for 2017
A profile of Sartorius Stedim Biotech
Sartorius Stedim Biotech is a leading international supplier of products and
services that enable the biopharmaceutical industry to develop and manufacture
drugs safely and efficiently. As a total solutions provider, Sartorius Stedim
Biotech offers a portfolio covering nearly all steps of biopharmaceutical
manufacture. The company focuses on single-use technologies and value-added
services to meet the rapidly changing technology requirements of the industry
it serves. Headquartered in Aubagne, France, Sartorius Stedim Biotech is
quoted on the Eurolist of 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. In 2016, the company
employed approx. 4,700 people, and earned sales revenue of 1,052 million
euros.
______________________________________________________________________________
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Contact
Petra Kirchhoff, Vice President of Corporate Communications
Phone: +49(0)551.308.1686 | petra.kirchhoff@sartorius.com
Statement of Profit or Loss
3rd quarter 3rd 9 months 9 months
2017 quarter 2017 2016
EUR in mn 2016 EUR in mn EUR in mn
EUR in mn
Sales revenue 259.7 276.3 806.5 785.1
Cost of sales -125.1 -135.1 -395.4 -387.1
Gross profit on 134.6 141.2 411.1 398.0
sales
Selling and -45.2 -46.6 -143.9 -139.4
distribution
costs
Research and -15.1 -12.5 -41.7 -36.5
development costs
General -14.4 -15.7 -45.9 -42.5
administrative
expenses
Other operating -8.4 -3.3 -12.3 -6.1
income and
expenses
Earnings before 51.6 63.2 167.3 173.5
interest & taxes
(EBIT)
Financial income 4.6 0.5 6.9 5.5
Financial -3.4 -1.3 -8.2 -8.4
expenses
Financial result 1.2 -0.7 -1.3 -2.8
Profit before tax 52.8 62.4 165.9 170.7
Income taxes -14.8 -18.1 -46.5 -49.5
Net profit for 38.0 44.3 119.5 121.2
the period
Attributable to:
Shareholders of 37.8 43.6 117.1 119.3
Sartorius Stedim
Biotech
Non-controlling 0.3 0.7 2.3 1.8
interest
Earnings per 0.41 0.47 1.27 1.29
share (EUR)
Diluted earnings 0.41 0.47 1.27 1.29
per share (EUR)
Statement of Comprehensive Income
3rd 3rd 9 months 9 months
quarter quarter 2017 2016
2017 2016 EUR in mn EUR in mn
EUR in mn EUR in mn
Net profit for the 38.0 44.3 119.5 121.2
period
Cash flow hedges 5.1 1.9 24.4 2.9
of which effective 5.6 1.6 23.1 0.7
portion of changes
in fair value
of which -0.5 0.3 1.3 2.2
reclassified to
profit or loss
Income tax on cash -1.5 -0.6 -7.3 -0.9
flow hedges
Net investment in a 0.0 0.3 0.0 1.6
foreign operation
Income tax on net 0.0 -0.1 0.0 -0.5
investment in a
foreign operation
Foreign currency -7.2 -3.9 -23.5 -17.4
translation
differences
Items that are or -3.6 -2.3 -6.5 -14.2
may be reclassified
subsequently to
profit or loss
Remeasurements of 0.0 0.0 1.1 -3.9
the net defined
benefit liabilities
Income tax on 0.0 0.0 -0.3 1.0
remeasurements of
the net defined
benefit liability
Items that will not 0.0 0.0 0.8 -2.9
be reclassified in
profit or loss
Other comprehensive -3.6 -2.4 -5.6 -17.1
income for the
period
Total comprehensive 34.4 42.0 113.8 104.1
income for the
period
Attributable to:
Shareholders of 34.4 41.0 111.9 102.0
Sartorius Stedim
Biotech
Non-controlling 0.0 0.9 1.9 2.1
interest
Statement of Cash Flows
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October 25, 2017 02:51 ET (06:51 GMT)
