- Group sales revenue up 5.2%; order intake up 7.7%; underlying
EBITDA up 6.3%
- High growth dynamics for Bioprocess Solutions; uneven market
environment for Lab Products & Services
- Earnings target for the full year of 2013 confirmed
GOETTINGEN, Germany--(BUSINESS WIRE)--
Sartorius, a leading international laboratory and pharmaceutical
equipment provider, closed the first nine months of 2013 with
substantial gains in order intake, sales revenue and earnings. At the
same time, the three Group divisions reported different levels of
dynamics. Bioprocess Solutions, the largest division that primarily
specializes in single-use products for pharmaceutical drug manufacture,
performed especially well yet again. Business for the divisions of Lab
Products & Services and Industrial Weighing also picked up during the
first nine months, yet third-quarter development of lab business
remained below expectations due to a difficult market environment in
some areas. Based on the Group's nine-month figures, management
confirmed its full-year earnings target.
Growth in Sales Revenue and Order Intake
Sartorius increased its order intake in the first nine months of 2013 by
7.7% in constant currencies (cc) to 669.9 million euros (reported: 5.2%;
9-mo. 2012: 636.6 million euros). In the same period, sales revenue in
cc rose 5.2% to 657.3 million euros (reported: 2.8%; 9-mo. 2012: 639.4
The Bioprocess Solutions Division primarily contributed to the Group's
strong business performance. Order intake for this division in cc rose
sharply by 15.9% to 404.9 million euros (reported: 13.5%; 9-mo. 2012:
356.6 million euros). This increase was driven by strong demand for
single-use products utilized in biopharmaceutical manufacture as well as
by special growth impulses from large equipment orders primarily in the
first quarter. The division's sales revenue in cc also rose
significantly by 8.4% to 382.4 million euros (reported: +6.1%; 9-mo.
2012: 360.3 million euros). The acquisition that closed in January 2013
in the field of cell culture media contributed approximately one
percentage point to revenue expansion. Regionally, the Bioprocess
Division reported the highest growth in Asia.
For the Lab Products & Services Division, order intake at 191.4 million
euros remained below the prior-year figure (cc: -3.6%; reported: -6.1%;
9-mo. 2012: 203.9 million euros). This was due to the sluggish recovery
of the market environment in North America and Asia and to adjustments
in the division's product portfolio. Without the phase-out of a few
non-strategic product lines, the division's order intake in cc would
have been approximately at the previous year's level. While the North
American and Asian regions for Lab Products & Services developed less
dynamically than expected, its European business development was robust.
At 199.1 million euros, the division's revenue for the first nine months
was at the year-earlier level (cc: +0.9%; reported: -1.7%; 9-mo. 2012:
202.5 million euros).
After starting off in a challenging market environment at the beginning
of the year, Industrial Weighing, the smallest Group division, continued
to show positive performance. Thus, its order intake and sales revenue
at 73.6 million euros and 75.8 million euros, respectively, roughly
attained the prior-year levels (order intake in cc: -0.5%; reported:
-3.2%; 9-mo. 2012: 76.1 million euros. Revenue in cc: +1.5%; reported:
-1.1%; 9-mo. 2012: 76.7 million euros).
From a regional perspective, Sartorius recorded the highest sales growth
in Asia, at 8.0% in cc, followed by Europe, which gained 6.6% in cc.
Sales revenue in cc for North America was slightly down 1.8% from its
exceptionally strong year-earlier base. However, order intake for this
region also climbed significantly.
Further Increase in Profit
In the first nine months of 2013, the Sartorius Group further expanded
its profitability. Its underlying EBITDA1) increased
overproportionately by 6.3% to 126.0 million euros, and its respective
margin rose from 18.5% to 19.2%. Driven by economies of scale, earnings
contributed by the Bioprocess Solutions Division increased 12.4% to 86.8
million euros. The division's underlying EBITDA margin rose
significantly from 21.4% to 22.7%. At 32.4 million euros, underlying
EBITDA for the Lab Products & Services Division approximately reached
the year-earlier level of 33.1 million euros at an unchanged margin of
16.3%. Earnings for the Industrial Weighing Division were at 6.7 million
euros, down from the year-earlier figure. Its underlying EBITDA margin
was 8.9% relative to 10.6% in the comparable period.
Including extraordinary items of -4.8 million euros (9-mo. 2012: -9.7
million euros), depreciation and amortization, Group EBIT rose year over
year from 79.3 million euros to 86.3 million euros. The respective EBIT
margin was at 13.1% relative to 12.4% a year ago. Relevant net profit2)
of 47.0 million euros for the Group remained nearly unchanged from the
prior-year period (9-mo. 2012: 46.8 million euros). Earnings per
ordinary share were at 2.75 euros, up from 2.74 euros a year ago;
earnings per preference share at 2.77 euros were also up, from 2.76
euros in the year before.
Full-year Earnings Forecast Confirmed
Based on the Group's business performance in the first nine months,
management confirmed its earnings forecast for the current year. This
forecast projects an increase in the Group's underlying EBITDA margin to
around 19.5% based on constant currencies (cc). Consolidated sales
revenue is expected to increase approx. 7% in constant currencies,
within the growth corridor of 6% to 9% communicated at the beginning of
the year, but not quite reach the upper half of this corridor as
forecasted at mid-year.
In view of the three divisions, the company continues to anticipate that
Bioprocess Solutions will reach, or slightly exceed, the upper end of
the range of 9% to 12% in sales growth. The division's underlying EBITDA
margin is projected to rise to 22.5% to 23.0% (unchanged guidance).
Due to the uneven market environment for Lab Products & Services, the
company now forecasts that this division will reach its previous year's
sales level (former guidance: lower limit of the growth corridor of 3%
to 6%). The division's underlying EBITDA margin for fiscal 2013 is
expected to be at around 16.0% (former guidance: 17.0% to 17.5%).
For the Industrial Weighing Division, revenue guidance remains
unchanged: its sales in constant currencies are projected to attain the
lower end of the growth range of 0% to 3%. Its underlying EBITDA margin
is expected to attain around 10.0% (unchanged guidance).
1) Sartorius uses underlying EBITDA (earnings before interest, taxes,
depreciation and amortization and adjusted for extraordinary items) as
the key profitability measure.
2) Relevant net profit for the Group is calculated by adjusting for
extraordinary items, eliminating non-cash amortization and fair value
adjustments of hedging instruments, including the corresponding tax
effects for each of these items, as well as by taking non-controlling
interest into account.
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.
Key Figures of the First Nine Months of 2013
Current Image Files
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
Conference Call and Webcast
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius,
will discuss the first nine-month figures for 2013 with analysts and
investors on Monday, October 21, 2013, at 3:30 p.m. Central European
Time (CET), in a webcast teleconference. You may dial into the
teleconference starting at 3:15 p.m. CET at the following numbers:
Germany: +49 (0)69 2222 10636
France: +33 (0)1 76 77 22 40
+44 (0)20 3427 1924
USA: +1 646 254 3387
The dial-in code is as follows: 5276267; to view the webcast, log onto:
Upcoming Financial Dates
January 28, 2014
Publication of the preliminary key figures for 2013
March 3, 2014
Annual press conference in Goettingen, Germany
April 10, 2014
Annual Shareholders' Meeting in Goettingen, Germany
A Profile of Sartorius
The Sartorius Group is a leading international laboratory and process
technology provider covering the segments of Bioprocess Solutions, Lab
Products & Services and Industrial Weighing. In 2012, the technology
group earned sales revenue of 845.7 million euros. Founded in 1870, the
Goettingen-based company currently employs around 5,500 persons. The
major areas of activity of its Bioprocess Solutions segment cover
filtration, fluid management, fermentation, cell cultivation and
purification, and focus on production processes in the biopharmaceutical
industry. The Lab Products & Services segment primarily manufactures
laboratory instruments and lab consumables. Industrial Weighing
concentrates on weighing, monitoring and control applications in the
manufacturing processes of the food, chemical and pharma sectors.
Sartorius has its own production facilities in Europe, Asia and America
as well as sales subsidiaries and local commercial agencies in more than