Nine-month Figures for 2016: Sartorius Continues to Grow by Strong Double Digits
Business Development of the Sartorius Group
In the first nine months of 2016, Sartorius increased its sales revenue by 17.9% in constant currencies from 830.3 million euros in the year-earlier period to 965.1 million euros (reported: 16.2%). All regions recorded significant double-digit growth rates, thus contributing to the dynamic business development of the Group. Sales revenue in the Asia | Pacific region rose 21.3% to 206.6 million euros, due in part to the delivery of some larger equipment orders. The Americas and EMEA1 also recorded substantial sales increases of 20.3% to 331.4 million euros and of 14.6% to 427.1 million euros, respectively, relative to a strong prior-year revenue base, especially in the third quarter. (All regional figures currency-adjusted)
Earnings in the reporting period rose overproportionately relative to sales yet again. Sartorius thus increased its underlying EBITDA2 by 24.6% to 241.4 million euros, and its respective margin reached 25.0%, up from 23.3% in the year-earlier period. Relevant net profit3 for the Group rose 25.3% from 78.9 million euros to 98.9 million euros. Earnings per ordinary share totaled 1.44 euros (9M 2015: 1.15 euros4) and earnings per preference share 1.45 euros (9M 2015: 1.16 euros4).
The Group's key financial indicators remained at a strong level after its recent acquisitions. At the end of the reporting period, the company's equity ratio was 39.8% and the ratio of net debt to underlying EBITDA was 1.6 (Dec. 31, 2015: 44.9% and 1.3, respectively). In line with its strong organic growth, Sartorius is currently investing at an above-average level in the expansion of its capacity. The capex ratio was 11.8% for the nine-month period.
Business Development of the Divisions
The Bioprocess Solutions Division, which focuses on single-use products for the manufacture of biopharmaceuticals, again saw especially strong growth. All product segments reported double-digit growth rates within a continued dynamic market environment. Thus, revenue rose 21.9% to 726.7 million euros in constant currencies (reported: 20.3%). Besides excellent organic growth, the acquired companies BioOutsource, Cellca and kSep contributed a good 2 percentage points to the division's non-organic growth. Underlying EBITDA for Bioprocess Solutions grew overproportionately with respect to sales, by 27.7% to 202.6 million euros. The division's margin attained 27.9% relative to 26.3% in the comparable period.
The Lab Products & Services Division, which offers technologies and equipment for laboratories primarily for the pharmaceutical sector and public research, also continued its positive business development. Its sales revenue increased 7.1% in constant currencies to 238.4 million euros (reported: 5.5%). The companies acquired in mid-2016, IntelliCyt and ViroCyt, contributed about 2 percentage points to this gain. Underlying EBITDA for Lab Products & Services rose 10.4% to 38.7 million euros. The division's margin reached 16.2% relative to 15.5% in the prior-year period.
Forecast for the Full Year
Based on the company's performance in the first nine months, management confirmed its sales and earnings forecast for the full year of 2016: In constant currencies, Group sales revenue is projected to increase by about 15% to 18% and its underlying EBITDA margin from 23.6% a year earlier to 25.0%. In the current fiscal year, Sartorius now plans to invest around 11.5% of sales revenue, especially due to the substantial expansion of its production capacities (previous guidance: around 10%).
For the Bioprocess Solutions Division, management continues to expect that sales will grow by about 19% to 22%. This guidance includes a good 2 percentage points of non-organic growth expected to be contributed by the acquisitions of BioOutsource, CellCa and kSep. The division's underlying EBITDA margin is projected to increase year over year from 26.5% to around 28.0%.
Sartorius also continues to forecast that assuming an overall stable economic environment, sales for the Lab Products & Services Division will grow by about 6% to 9%. This projection includes a good 3 percentage points expected to be contributed by the acquisitions of IntelliCyt and ViroCyt. Due to the temporary dilutive effects related to the acquisitions previously mentioned, the division's underlying EBITDA margin is anticipated to remain approximately at the prior-year level of 16.0%.
All forecasts are based on constant currencies.
1 EMEA = Europe | Middle East | Africa
2 Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items) as the key profitability indicator
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; for continued operations in the 9-month period of 2015
4 Continued operations; adjusted for the stock split completed on June 13, 2016; rounded figures
This press 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. This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.
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Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG
Sartorius products used in the manufacture of medications
Sartorius products used in laboratory research
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the company's results with analysts and investors on Monday, October 24, 2016, at 3:30 p.m. Central European Time (CET) in a teleconference. You may dial into the teleconference starting at 3:20 p.m. CET at the following numbers:
Germany: +49 (0)69 2222 13420
France: +33 (0)1 76 77 22 74
UK: +44 (0)20 3043 2002
USA: +1 719 457 1036
The dial-in code is as follows: 8030273; to view the webcast, log onto:
Upcoming Financial Dates
January 30, 2017 Publication of the preliminary figures for fiscal 2016
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 1.1 billion euros in 2015. More than 6,200 people work at the Group's approx. 50 manufacturing and sales sites, serving customers around the globe.
Key Performance Indicators for the 9-Month Period of 2016Sartorius Group Bioprocess Solutions Lab Products & Services € in millions
(unless otherwise specified) 9M
corresponding tax effects; for continued operations in the 9-month period of 2015
5 9M 2015 adjusted for stock split; rounded values