Sartorius Stedim Biotech H1 Profit, Orders Down; Backs Weak FY23 Outlook

(RTTNews) - Sartorius Stedim Biotech SA (SDMHF), a biopharmaceutical solutions provider, reported Friday that its first-half net profit attributable to shareholders fell 49.6 percent to 244.2 million euros from 484.9 million euros a year ago.

Sartorius Stedim Biotech said it experienced temporary soft demand throughout the first half, as expected, after pandemic-related business and inventory buildup by customers had triggered extraordinary growth in previous years.

Underlying net profit was 241.5 million euros, compared to 405.2 million euros in the prior-year period. Underlying earnings per share were 2.62 euros, compared to 4.40 euros a year ago.

Underlying EBITDA was at 415.7 million euros, down 31.5 percent from last year's 607 million euros. EBITDA margin fell to 29.7 percent from 35.2 pence a year ago.

Sales revenue also dropped 18.7 percent to 1.40 billion euros from prior year's 1.72 billion euros. Sales revenue declined 18.5 percent at constant currencies, and was down 19.6 percent organically.

Excluding the Covid-19-related business, the decrease was slightly above 10 percent in constant currencies.

Order intake declined 37.5 percent on a reported basis and 37.2 percent in constant currencies to 1.14 billion euros.

Further, the company confirmed its fiscal 2023 forecast, amid uncertainties that remain high due to global political and economic situation.

Group sales revenue is still expected to decline in the low to mid-teens percentage range in the full year. Excluding Covid-19-related business, revenue would decline in the high single-digit to low teens percentage range.

The underlying EBITDA margin is still anticipated at around 30 percent, compared to previous year's 35.0 percent.

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