Sartorius 9M Profit, Orders Down; Sees Sales Drop In FY23, Profitable Growth In FY24

(RTTNews) - German biopharmaceutical firm Sartorius AG (SARTF) reported Thursday that its nine-month net profit totaled 274 million euros, down from 501 million euros in the prior-year period.

Underlying earnings per ordinary share stood at 4.00 euros, compared to 7.32 euros a year ago.

Underlying EBITDA decreased 30.3 percent from last year to 733 million euros in the first nine months, mainly due to volume and product mix effects. Underlying EBITDA margin was 28.8 percent, compared with 33.8 percent in the prior-year period. Sartorius Group's sales revenue fell 18.2 percent from the prior year to 2.55 billion euros, mainly due to the ongoing normalization of demand in all regions. Also, last year was benefited by pandemic-related business.

Sales revenue fell 16.4 percent in constant currencies. Excluding the pandemic-related business, the decline in constant currencies stood at slightly above 10 percent.

Order intake fell 29.5 percent to 2.20 billion euros, and the drop was 27.9 percent in constant currencies.

Looking ahead for fiscal 2023, Sartorius, as revised on October 12, expects a decline in sales revenue by approximately 17 percent. Excluding the Covid-19-related business, sales revenue would decline by around 12 percent

Due to the lower volume expectation and product mix effects, Sartorius expects an underlying EBITDA margin of slightly above 28 percent.

Further, the company confirmed its fundamentally positive medium- and long-term market outlook and continues to see itself in a strong competitive position.

For 2024, the firm expects profitable growth and will issue quantitative guidance with the release of the 2023 full-year figures next January.

Sartorius CEO Joachim Kreuzburg, said, "We expect orders to continue to increase slightly in the fourth quarter, especially in the Bioprocess Solutions division, and anticipate profitable growth in 2024 and beyond."

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