Nine-Month Figures for 2011: Dynamic, Profitable Growth at Sartorius
Consolidated sales revenue rises 12.2% to 541.4 million euros
Sartorius successfully closed the first nine months of 2011, with double-digit growth rates in sales revenue and earnings. Group CEO Dr. Joachim Kreuzburg, satisfied with good business development shown by the company’s quarterly figures released, stated, “Both divisions and all regions have delivered growth and significant profit gains. Asia, in particular, has continued to show outstanding development.”
Looking ahead to the final quarter of the year, Dr. Kreuzburg anticipates that the exceptionally high growth rates in the more cyclical Mechatronics Division will continue to return to normal. The reason is that the catch-up effects resulting from economic recovery are expected to tail off as the year progresses. By contrast, for the Biotechnology Division that generates a good two-thirds of consolidated sales, Dr. Kreuzburg projects dynamic growth.
Full-year 2011 sales guidance, which had already been raised at the end of first half, was increased by management yet again. Consolidated sales revenue is thus expected to grow on the basis of constant currencies from 6.4% in 2010 to 10% to 11% (former guidance: 8% to 10%). The company’s outlook for the operating margin remains unchanged for 2011: This figure is projected to increase from 13.0% in 2010 to 14.5% to 15.5%.
Development of Order Intake and Sales Revenue
Sartorius increased its order intake over the year-earlier period by 8.5% (in constant currencies: +10.0%) to 551.3 million euros. In the same period, sales revenue rose 12.2% (in constant currencies: +13.8%) to 541.4 million euros.
Strong growth was fueled by both Group divisions: The larger Biotechnology Division increased its order volume by 10.5% (in constant currencies: +12.4%) to 365.7 million euros and its sales revenue by 10.9% (in constant currencies: +12.6%) to 353.5 million euros. Especially in demand were single-use products that pharma customers use in their production processes, such as special filters and bags, for instance. The Mechatronics Division, which generates around a third of consolidated revenue, also experienced dynamic development. Its order intake was up 4.6% (in constant currencies: +5.6%), to 185.7 million euros; sales revenue climbed 14.9% (in constant currencies: +16.0%) to 188.0 million euros. Both of the division's businesses with laboratory instruments and industrial weighing and control equipment, respectively, contributed to this positive development.
The regional pattern shows that Sartorius posted the highest gains in Asia/Pacific, as it had in the previous quarters. There, sales revenue jumped by nearly one-third (+30.6%) to 126.6 million euros as a result and was thus the highest growth region for both Group divisions. For the Biotechnology Division, revenue in Asia/Pacific was up 37.8%; the Mechatronics Division expanded sales there by 22.6%. In Europe as well, business developed dynamically, with sales up 10.8%. The Biotechnology Division contributed 8.2% and the Mechatronics Division 15.7% to this figure. In North America, growth was at 6.6% (Biotechnology Division: 7.4%; Mechatronics Division: 4.0%; all regional growth rates given in constant currencies).
Earnings Development
The gain in profit was even stronger than in sales revenue: Operating earnings rose overproportionately in the first nine months and, at 81.5 million euros, were 38.3% higher than the year-earlier figure. The respective EBITA margin improved from 12.2% to 15.0%.
The Biotechnology Division contributed to this increase in earnings, reporting 60.9 million euros, which were up 21.7%. Its margin rose from 15.7% to 17.2%. The Mechatronics Division achieved especially vigorous growth in profitability: its earnings surged 132.8% to 20.6 million euros. Accordingly, the division's EBITA margin improved significantly, jumping from 5.4% a year ago to 10.9%. This considerable jump in earnings was due to the optimized cost structures of the Mechatronics Division, besides its increase in sales revenue.
Relevant net profit for the period was 38.0 million euros, up from 26.4 million euros a year ago, which represents a gain of 43.8%. The corresponding earnings per share were at 2.23 euros, up from 1.55 euros a year earlier.
Outlook
Based on the Group’s strong business performance, management has again revised its full-year 2011 guidance slightly upward: Sales in constant currencies are projected to grow for both divisions and thus also for the Group between 10% and 11% (former guidance: 8% to 10%). Earnings guidance is confirmed both for the two divisions and for the Group. Management therefore continues to expect that the Biotechnology Division and the Mechatronics Division will achieve an underlying EBITA margin of 17% to 18% and of 10% to 11% in constant currencies, respectively. At Group level, guidance remains unchanged for the operating EBITA margin, which is forecasted to improve to between 14.5% and 15.5%. Moreover, management continues to expect that operating cash flow will be significantly positive in 2011.
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