Sartorius Stedim Biotech Q1 Profit Declines, Sales Revenue Down 18.4% Organically; Confirms Outlook

(RTTNews) - Sartorius Stedim Biotech Group (SDMHF) said demand normalization at the company continued throughout the first quarter of 2023, as expected, and led to a decline in sales revenue and earnings in the first three months of the year. For the full year, company management continues to expect moderate growth in sales revenue and a profit margin around the high prior-year level.

First quarter net profit was 111.1 million euros, down 58.9 percent. Relevant net profit was 131 million euros, compared with 203 million euros, a year ago. Underlying earnings per share was 1.43 euros compared to 2.21 euros. Underlying EBITDA decreased by 27.5 percent to 220 million euros as a result of the sales revenue drop and a higher cost base. Underlying EBITDA margin was 30.3 percent, compared with 35.2 percent in prior-year period.

First quarter sales revenue was 726 million euros, which corresponds to a decrease of 17.2 percent in constant currencies or down 18.4 percent organic. Excluding the Covid 19-related business, the decline was in the upper single-digit percentage range. Order intake reached 601 million euros, down 37.5 percent in constant currencies, mainly due to the reduction of inventories that customers had built up during the pandemic.

The management confirmed its outlook for the current fiscal year. Consolidated sales revenue is expected to increase by an amount in the low single-digit percentage range. Excluding the Covid-19- related business, the increase would be in the mid to high single-digit percentage range, the company said. The Group's underlying EBITDA margin is projected to be around the level of the prior year.

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