Sartorius continues on its dynamic growth track
Sartorius performed dynamically in the third quarter as well, achieving double-digit growth rates in sales revenue, order intake and earnings in the first nine months.
“Sartorius achieved significant double-digit growth rates in sales revenue and earnings for the first nine months of the year as well,” said Executive Board Chairman and CEO Dr. Joachim Kreuzburg. “In a challenging global economic environment, our Lab Products & Services Division showed a very robust third-quarter performance. At the same time, in the Bioprocess Solutions Division we have been benefiting from ongoing high demand and, beyond this, have continued to grow faster than the market. In view of our positive results, we now expect that Bioprocess Solutions and, therefore, the entire Group will reach the upper end of their respective sales forecasts.”
The Group increased its sales revenue in the first nine months by 15.5% in constant currencies (reported: +17.5%) to 1,355.8 million euros; order intake grew 16.1% (reported: +18.1%) to 1,435.0 million euros.
Underlying EBITDA rose overproportionately relative to sales by 22.7% to 361.1 million euros. The respective margin was 26.6% after 25.5% in the year-earlier period, with slightly less than one percentage point of this increase attributable, as expected, to the IFRS 16 Standard to be applied for the first time in 2019. Relevant net profit for the first nine months of 2019 totaled 153.2 million euros, which equates to a year-over-year increase of 21.2%. This yielded earnings per ordinary share of 2.23 euros (9M 2018: 1.84 euros) and earnings per preference share of 2.24 euros (9M 2018: 1.85 euros).
Business development in the regions
In the reporting period, Sartorius grew in all regions, with Asia | Pacific showing the highest dynamics, recording a sales gain of 21.5% to 348.1 million euros. The Americas region achieved a 14.7% increase in sales revenue to 461.7 million euros against high prior-year comparables. EMEA (Europe, Middle East and Africa), which continues to account for the largest share of Group sales, also developed positively, increasing its revenue by 12.7% to 546.1 million euros.
(All growth rates for the regions are in constant currencies.)
Key financial indicators
The Sartorius Group has a very sound balance sheet and financial base. Its ratio of net debt to underlying EBITDA was 2.1 relative to 2.4 at year-end 2018. Sartorius’ equity ratio increased slightly from 38.5% as of December 31, 2018, to 38.7% due to the company’s strong earnings position, despite the dampening effects resulting from a change in an accounting rule. The ratio of capital expenditures (CAPEX) to sales revenue further decreased, as projected, to 12.5% (9M 2018: 13.3%) after several large expansion projects had been completed.
Business development of the divisions
The Bioprocess Solutions Division that offers a wide array of innovative technologies for the manufacture of biopharmaceuticals sustained its high momentum seen in the first half, increasing its sales by 19.4% (reported: +21.6%) to 1,025.0 million euros. This gain was fueled by ongoing strong demand across all product categories, particularly in project business in Asia. Order intake for Bioprocess Solutions rose to 1,100.0 million euros, which also equates to a substantial increase of 19.9% (reported: +22.0%) against strong comparables.
The division’s underlying EBITDA was up 25.7% from the previous year’s level, attaining 300.6 million euros. Its earnings margin rose from 28.4% to 29.3% due to economies of scale and as a result of the change in an accounting rule.
The Lab Products & Services Division that specializes in technologies and products for laboratories in the pharma sector and in life science research, as well as in a few other segments, achieved sales growth of 4.9% (reported: +6.5%) to 330.8 million euros in a partly challenging economic environment. Order intake for the division was robust, up 5.3% (reported: +6.9%) to 335.0 million euros.
The division’s underlying EBITDA rose year over year by 9.9% to 60.5 million euros. The corresponding margin was 18.3%, up from the previous year’s level of 17.7%, and was positively affected by the change in an accounting rule.
(All growth rates for sales revenue and order intake are given in constant currencies.)
Full-year guidance for 2019 specified
Based on the Sartorius Group’s business performance in the first nine months and ongoing high demand for Bioprocess Solutions, management specifies its financial guidance for the full year of 2019 as follows:
The Group’s sales revenue growth in constant currencies for the full year is now expected to reach the upper end of the bandwidth of about 10% to 14%. Regarding profitability, management continues to forecast that the company's underlying EBITDA margin will rise to slightly more than 27.0%, with the operating gain projected to amount to about half a percentage point and the remaining increase expected to result from changes in an accounting rule.
The ratio of capital expenditures (CAPEX) to sales revenue remains projected to be around 12%, down from the year-earlier figure of 15.2%.
For the Bioprocess Solutions Division, management now expects that the upper end of its sales guidance of about 13% to 17% will be reached. Management’s forecast for the division’s underlying EBITDA margin remains unchanged, which is projected to increase to slightly more than 29.5% compared with the prior-year figure of 28.6%. The operating gain of this increase is expected to account for around half a percentage point.
For the Lab Products & Services Division, Sartorius continues to anticipate that due to the softer economic environment, the lower range of the division's sales forecast of about 5% to 9% will be reached. The division's underlying EBITDA margin is still expected to be slightly below 20%, with the operating increase accounting for about half a percentage point.
All forecasts are based on constant currencies, as in the past years. A disorderly exit of the United Kingdom from the EU and an exacerbation of international trade disputes could impact supply chains in both divisions to a certain degree in spite of the measures already taken to counteract these developments. A reliable prognosis concerning possible effects cannot be made at the current time.
Other news from the department business & finance
Net-zero chemicals industry initiative relaunches as the Global Impact Coalition
The CEO-led chemical industry initiative, incubated by the World Economic Forum, has been relaunched
Eppendorf and Neste forge strategic partnership to develop new line of renewable lab plastics
A sustainable choice for labs
Vulcan officially opened its Lithium Extraction Optimisation Plant
Europe’s first plant for fully domestic lithium chemicals production, to secure Europe’s lithium supply chain for Battery Electric Vehicle manufacturers
Spacetek Technology announces the successful closing of its Seed Financing Round
Time-of-flight mass spectrometers (TOF-MS) inspired by space technology
Start-up Better Basics Laborbedarf Wins First Place at the "Wiley Analytical Science Award 2024"
SmartRack® wins in the Separation, Laboratory Automation & Equipment Category
Hy2gen and Amogy Forge Strategic Partnership to Propel Ammonia-Powered Energy Solutions
Accelerate decarbonisation in the maritime sector
analytica 2024: Food analysis for sustainable nutrition
From PFAS to microplastics: focus on new harmful substances
BASF and SK On entered into an agreement to evaluate collaboration opportunities in the global lithium-ion battery market
Targeted collaboration around cathode active materials
Merck Confirms Forecast for Fiscal 2023 Despite Difficult Market Environment in Q3
Return to organic sales growth expected in 2024
Bayer: Third quarter below prior year as expected
Group outlook confirmed - By the end of next year, Bayer will remove multiple layers of management and coordination
Start-ups become changemakers – apply now!
ISC3 is looking for innovative solutions in the field of Sustainable Chemistry for textiles - Innovation Challenge 2024 endowed with 25,000 euros
HunterLab Spreads Its Vibrant Colors to Europe: Introducing 'HunterLab Europe'
Steering HunterLab Europe is none other than the Christian Jansen, who literally grew up in the color spectrophotometry world
Technology Group STRABAG invests € 100 million into battery and energy storage company CMBlu Energy
The ideal combination of technological and construction industry expertise to advance energy transition
Huber Kältemaschinenbau receives highest award at the "Großer Preis des Mittelstandes" (Grand Prix of Medium-Sized Businesses)
MAN Energy Solutions and Energy Dome Collaborate on CO2 Battery Technology
New strategic partnership to provide long-duration energy storage solution to facilitate the transition to net-zero
Merck to Return to Growth during Fiscal 2024
Transitional year 2023 managed well so far thanks to resilient business model
Startups with patents and trade marks are 10 times more successful in securing funding
Biotechnology sector leads in the use of patents and trade marks, with nearly half of the sector’s startups seeking these essential rights
Most read news
Plastic-eating bacteria turn waste into useful starting materials for other products
Microbial Upcycling of Waste PET
Microbes could help reduce the need for chemical fertilizers
A coating protects nitrogen-fixing bacteria: Start-up to commercialise coated bacteria for large-scale use in regenerative agriculture
New designs for solid-state electrolytes may soon revolutionize the battery industry
Scientists achieve monumental improvements in lithium-metal-chloride solid-state electrolytes
Dow and Evonik announce startup of hydrogen peroxide to propylene glycol (HPPG) pilot plant
Innovative technology offer flexibility, lower costs, and a smaller environmental footprint
Inauguration of the world’s first pilot plant for the cost-efficient production of green methanol
Start-up C1 Green Chemicals AG and research partners develop fundamentally new production process
This is a battery
Two colored liquids bubbling through tubes: Is this what the battery of the future looks like?
Converting PFAS “forever chemicals” into valuable compounds
Scientists develop a new method to incorporate harmful perfluoroalkenes into N-heterocyclic carbene ligands
Not so silver lining: Microplastics found in clouds could affect the weather
Low-altitude and denser clouds contained greater amounts of microplastics
Graphene's proton permeability: A switch for future energy technologies
This discovery could lead to the development of more efficient hydrogen fuel cells and solar water-splitting devices
Lithium-ion batteries are no longer the gold standard in battery tech
On the way to safer and more powerful energy sources
CO2-free hydrogen: BASF receives funding approval for 54-megawatt water electrolysis plant
Proton exchange membrane (PEM) electrolyzer expected to produce up to 8,000 metric tons of hydrogen per year
More news from our other portals
Bowel cancer: aspirin activates protective genes
Researchers have identified a signaling pathway by which aspirin can inhibit colorectal cancer.
Dunning-Kruger effect with muesli bars
Those who know the least consider themselves highly competent
Autonomous measuring instruments systematically detect new materials
A new algorithm measures materials libraries up to four times faster than before: It’s based on machine learning
New drug delivery system could reduce daily diabetes shots to just three a year
Dietary management drugs have transformed Type 2 diabetes care, but daily injection routines are challenging for some patients
Naked Clams: The New Superfood Sensation Emerging from the Depths
Researchers found Naked Clams contain almost twice the amount of Vitamin B12 as blue mussels and have developed an efficient way to farm them
Researchers discover new ultra strong material for microchip sensors
A material that doesn't just rival the strength of diamonds and graphene, but boasts a yield strength 10 times greater than Kevlar
Pushers, overcrowded trains and phone zombies
Sprite presents the world's first vending machine that responds to the things that bother Generation Z the most
Aston University technology to combat the not-so sweet practice of honey fraud
Light technology to be used to detect if honey is blended with cheap additions
How stem cells and immune cells communicate
Lisec Artz Award for Simon Haas: Groundbreaking discovery of an unknown protective mechanism against blood cancer from stem cells
Scientists use quantum biology, AI to sharpen genome editing tool
"This study represents an exciting advancement toward, understanding how we can avoid making costly ‘typos’ in an organism’s genetic code"
From the trough to the plate - digitally calculated
Computer program "ConTrans" estimates how much of an undesirable substance is transferred from animal feed to food
Viral Impostors: Breakthrough for Virus Research
The penetration of viruses into cells can now be tracked with unprecedented accuracy thanks to innovative design for pseudoviruses
Fatty acid factory filmed at work
High-resolution images provide new insights into cellular fatty acid production: Potential for medicine and biotechnology
Textbook knowledge turned on its head: 3-in-1 microorganism discovered
Newly multifunctional bacterial species
Tönnies Group launches first nationwide "Meat Climate Platform"
100 guests at the Future Forum for Agriculture
Tracking down Environmental Toxins
Detection of per- and polyfluoroalkyl substances (PFAS) by interrupted energy transfer
Could eating turkey ease colitis?
According to data in mice, extra tryptophan could reduce the risk of future colitis flares
The weight of pollution: exposure linked to obesity
Chronic exposure to environmental pollutants found to increase risk of cardiovascular disease
Are healthy foods automatically sustainable, too?
Perceptions about sustainability and healthy food choices are closely linked