Nine-month figures for 2018: Sartorius Stedim Biotech continues to grow by double digits

With double-digit increases in sales revenue and earnings, Sartorius Stedim Biotech (SSB), a leading partner of the biopharma industry, continues on the growth track.

“In the first nine months of 2018, Sartorius achieved excellent organic growth,” said Dr. Joachim Kreuzburg, Chief Executive Officer. “This applies particularly to the Bioprocess Solutions Division, which grew dynamically across all product categories and geographies. For the Lab Products & Services Division, growth in the third quarter was below our expectations due to softer demand in Europe. At the Group level, however, this effect will be largely compensated for by the strong development of our bioprocess business so that we confirm our ambitious full-year forecast.”

Business development of the Group
In the first nine months of 2018, Sartorius Stedim Biotech increased its sales revenue in constant currencies by 13.8% to 896.1 million euros (reported +11.4%). Growth was driven both by strong demand for equipment and single-use products. Almost all of the increase in sales revenue was achieved organically, whereas the acquisition of the software company Umetrics contributed around 0.5 percentage points of non-organic growth. Order intake also rose significantly by 14.5% in constant currencies to 955.6 million euros (reported +12.0%).

In view of the regions, the Americas led growth, reporting a gain of 20.3% to 315.8 million euros relative to a moderate previous-year base (reported +15.9%). Compared to high growth in the year-earlier period, sales revenue in Asia|Pacific also showed positive development, increasing by 11.9% to 203.8 million euros. The EMEA²⁾ region recorded a solid gain of 9.8% to 376.5 million euros (reported +9.4%). (All regional growth in constant currencies.)

In the first nine months of 2018, Sartorius Stedim Biotech increased its underlying EBITDA¹⁾ overproportionately relative to sales, by 17.2% to 251.4 million euros. Driven by economies of scale and positive product mix effects, the Group's respective margin improved significantly year over year from 26.7% to 28.1%. Relevant net profit³⁾ for the Group grew even more strongly by 22.9% from 130.8 million euros to 160.7 million euros thus earnings per share were 1.74 euros (9M 2017: 1.42 euros).

The Group's key financial indicators remained at very robust levels. At the end of the reporting period, the ratio of net debt to underlying EBITDA stood at 0.4, and company's equity ratio was 61.6% (Dec. 31, 2017: 0.4 and 62.6%, resp.). The CAPEX ratio in the first nine months of 2018 was 13.9%, in-line with expectations (9M 2017: 11.3%). Investment activities focused on the expansion of the plant for manufacturing single-use bags and filters in Puerto Rico, IT and digitalization projects, and on the consolidation and expansion of sites and production capacity levels in Göttingen, Germany.

2018 guidance confirmed and specified
In view of positive business development in the first nine months of 2018, management specified its full-year guidance as follows: Sales revenue growth is now projected to be in the upper range of the previously targeted bandwidth of 11% to 14% while the underlying EBITDA margin continues to be expected at around 28.0%, up from the prior-year figure of 27.3.

All forecasts are based on constant currencies. As a result of changes in the currency exchange rates, reported figures in actual currencies may differ from constant currency guidance.

_{¹⁾ Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items) as the key profitability indicator

²⁾ EMEA = Europe | Middle East | Africa

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.}