- Reiterates Full Year 2023 Guidance
-
Stevanato Group S.p.A. (NYSE: STVN), a leading global provider
of drug containment, drug delivery, and diagnostic solutions to the
pharmaceutical, biotechnology, and life sciences industries, today
announced its financial results for the first quarter of 2023, and
maintained its fiscal 2023 guidance.
First Quarter 2023 Highlights (compared with the same period
last year)
- First quarter revenue increased 12% to €238 million.
- Revenue from high value solutions increased to 32% of total
revenue.
- Diluted earnings per share of €0.11 and adjusted diluted
earnings per share of €0.11.
- Adjusted EBITDA margin increased 50 basis points to 26%.
- The Company is reiterating its full year 2023 guidance of
revenue in the range of €1.085 billion to €1.115 billion, adjusted
diluted EPS between €0.58 and €0.62, and adjusted EBITDA in the
range of €290.5 million to €302.5 million.
First Quarter Results
Revenue for the first quarter of 2023 increased 12% to €238
million (approximately 11% on constant currency basis), compared
with the same period last year, mainly driven by growth in both of
the Company's business segments, and the continuing shift to high
value solutions. For the first quarter of 2023, revenue from high
value solutions increased to 32% of total revenue, compared with
29% in the same period last year, driven by increased customer
demand. For the first quarter of 2023, revenue related to Covid-19
decreased 57% and represented approximately 4% of revenue compared
with approximately 10% of revenue in the first quarter of 2022.
For the first quarter of 2023, gross profit margin increased 20
basis points to 32%, compared with the same period last year,
driven principally by the mix shift towards more accretive high
value solutions, and to a lesser extent, improved gross profit
margin in the Engineering Segment. As expected, this was offset by
the increase in industrial costs and higher depreciation as the
Company's new plants come into service.
Operating profit margin for the first quarter of 2023 decreased
80 basis points to 17.1% mostly due to higher selling, general and
administrative expenses to support growth initiatives. Excluding
start-up expenses related to the Company's new manufacturing
plants, adjusted operating profit margin for the first quarter of
2023 was 18.3% and was consistent with the same period last
year.
Franco Moro, Chief Executive Officer, stated, “We are investing
in growth platforms to expand our capacity for more accretive high
value solutions in order to satisfy customer demand. With the
expected growth in biologics, we see ample opportunities in
treatment classes such as GLP1s, monoclonal antibodies, mRNA
applications as well as biosimilars, and we are well positioned to
capitalize on favorable industry trends which we expect will drive
durable, organic growth."
Biopharmaceutical and Diagnostic Solutions Segment
(BDS)
For the first quarter of 2023, revenue grew 13% to €195.5
million (approximately 12% on a constant currency basis), compared
with the prior-year period, driven primarily by growth in the
Company's core drug containment business. For the first quarter of
2023, revenue from high value solutions increased 25% to €76.7
million, while revenue from other containment and delivery
solutions increased 7% to €118.8 million.
Year-over-year gross profit margin expansion was principally
driven by the mix shift to more accretive high value solutions,
which resulted in a gross profit margin of 33.7%. For the first
quarter of 2023, operating profit margin was 19.8% and lower
compared with last year due to higher SG&A expenses to support
growth initiatives.
Engineering Segment
Revenue increased 7% to €42.4 million for the first quarter of
2023, compared with the same period last year, driven by higher
sales from pharmaceutical visual inspection lines, and assembly and
packaging lines.
For the first quarter of 2023, gross profit margin increased 30
basis points to 21.7% driven by margin expansion in all product
families and continued business optimization efforts. Operating
profit margin in the first quarter of 2023 increased 140 basis
points to 15.2%, compared with the prior-year period, due to higher
gross profit and better absorption of SG&A costs.
Balance Sheet and Cash Flow
As of March 31, 2023, the Company had net debt of €46.5 million,
cash and cash equivalents of €158.8 million, and €130 million
available under its loan agreements. The Company believes that it
has adequate liquidity to fund near-term growth. As expected,
capital expenditures for the first quarter totaled €113.2 million,
as the Company continues its strategic investments in capacity
expansion for high value solutions to meet customer demand.
For the first quarter 2023, cash generated from operating
activities was €37.1 million, which reflects our current working
capital needs to support growth in the business. Cash used for
investing activities was €128.8 million which resulted in negative
free cash flow of €91.0 million.
New Order Intake and Backlog
For the first quarter of 2023, new order intake decreased to
approximately €236 million, compared with €324 million in the same
period last year, due to the expected decrease in Covid-19 orders
and the normalization of customer ordering patterns as global
supply chains continue to stabilize. For the first quarter of 2023,
committed backlog totaled approximately €955 million.
Reiterating 2023 Guidance
The Company is reiterating its fiscal year 2023 guidance and
still expects:
- Revenue in the range of €1.085 billion to €1.115 billion,
- Adjusted diluted EPS in the range of €0.58 to €0.62,
- Adjusted EBITDA in the range of €290.5 million to €302.5
million.
Executive Chairman, Franco Stevanato, concluded, "Our decades of
experience in delivering high quality, high performing products
makes us a partner of choice with customers. Our long history of
embedding science and technology to drive continuous advancements
has led to a highly differentiated product portfolio. Together with
our global footprint, and our integrated end-to-end products, we
offer customers a unique value proposition which provides us with
sustainable, competitive advantages in an environment of robust
customer demand and favorable secular tailwinds."
Conference Call
The Company will host a conference call and webcast at 8:30 a.m.
(ET) on Thursday, May 4, 2023 to discuss financial results. During
the call, management will refer to a slide presentation which will
be available at 6:30 a.m. (ET) on the day of the call on the
“Financial Results” page under the Company's Investor Relations
section of its website.
Pre-registration: Participants who pre-register will be
given a conference passcode and unique PIN to gain immediate access
to the call and bypass the live operator. We encourage participants
to pre-register for the call using the following link:
http://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=4544003&linkSecurityString=514976446
Webcast: A live, listen-only webcast of the call will be
available at the following
link:https://87399.choruscall.eu/links/stevanato230504.html
Dial in:
Those who are unable to pre-register may
dial in by calling:
Italy:
+ 39 02 802 09 11
UK:
+ 44 1 212 818004
USA:
+1 718 705 8796
USA Toll Free:
+1 855 265 6958
Replay: The webcast will be archived for three months on
the Company’s Investor Relations section of its website at:
https://ir.stevanatogroup.com/financial-results.
Forward-Looking Statements
This press release may include forward-looking statements. The
words "expect,” "expects," "see," “is reiterating,” “rising,”
"drive," "continues," "continuing," "believes," "continuous,"
“increased,” “well positioned,” “favorable,” "growth," "durable,"
and similar expressions (or their negative) identify certain of
these forward-looking statements. These forward-looking statements
are statements regarding the Company's intentions, beliefs or
current expectations concerning, among other things, the
investments the Company expects to receive, the expansion of
manufacturing capacity, the Company’s plans regarding its presence
in the U.S., business strategies, the Company’s capacity to meet
future market demands and support preparedness for future public
health emergencies, and results of operations. The forward-looking
statements in this press release are based on numerous assumptions
regarding the Company’s present and future business strategies and
the environment in which the Company will operate in the future.
Forward-looking statements involve inherent known and unknown
risks, uncertainties and contingencies because they relate to
events and depend on circumstances that may or may not occur in the
future and may cause the actual results, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward looking statements. Many of
these risks and uncertainties relate to factors that are beyond the
Company's ability to control or estimate precisely, such as future
market conditions, currency fluctuations, the behavior of other
market participants, the actions of regulators and other factors
such as the Company's ability to continue to obtain financing to
meet its liquidity needs, changes in the political, social and
regulatory framework in which the Company operates or in economic
or technological trends or conditions. For a description of the
risks that could cause the Company’s future results to differ from
those expressed in any such forward looking statements, refer to
the risk factors discussed in our most recent annual report on Form
20-F filed with the U.S. Securities and Exchange Commission.
Readers should therefore not place undue reliance on these
statements, particularly not in connection with any contract or
investment decision. Except as required by law, the company assumes
no obligation to update any such forward-looking statements.
Non-GAAP Financial Information
This press release contains non-GAAP financial measures. Please
refer to the tables included in this press release for a
reconciliation of non-GAAP financial measures.
Management monitors and evaluates our operating and financial
performance using several non-GAAP financial measures, including
Constant Currency Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Operating Profit, Adjusted Operating Profit
Margin, Adjusted Net Profit, Adjusted Diluted EPS, Capital
Employed, Net Cash, Free Cash Flow, and CAPEX. We believe that
these non-GAAP financial measures provide useful and relevant
information regarding our performance and improve our ability to
assess our financial condition. While similar measures are widely
used in the industry in which we operate, the financial measures we
use may not be comparable to other similarly titled measures used
by other companies, nor are they intended to be substitutes for
measures of financial performance or financial position as prepared
in accordance with IFRS.
About Stevanato Group
Founded in 1949, Stevanato Group is a leading global provider of
drug containment, drug delivery and diagnostic solutions to the
pharmaceutical, biotechnology and life sciences industries. The
Group delivers an integrated, end-to-end portfolio of products,
processes, and services that address customer needs across the
entire drug life cycle at each of the development, clinical and
commercial stages. Stevanato Group’s core capabilities in
scientific research and development, its commitment to technical
innovation, and its engineering excellence are central to its
ability to offer value added solutions to clients. To learn more,
visit: www.stevanatogroup.com.
Consolidated Income
Statement
(Amounts in € millions, except
per share data)
(Unaudited)
For the three months
ended March 31,
2023
%
2022
%
Revenue
238.0
100.0
%
212.1
100.0
%
Costs of sales
161.7
68.0
%
144.6
68.2
%
Gross Profit
76.3
32.0
%
67.5
31.8
%
Other operating Income
1.2
0.5
%
1.5
0.7
%
Selling and Marketing Expenses
6.1
2.5
%
4.9
2.3
%
Research and Development Expenses
8.6
3.6
%
7.7
3.6
%
General and Administrative Expenses
22.2
9.3
%
18.5
8.7
%
Operating Profit
40.6
17.1
%
37.9
17.9
%
Finance Income
4.4
1.8
%
3.0
1.4
%
Finance Expense
9.0
3.8
%
4.6
2.2
%
Profit Before Tax
36.0
15.1
%
36.3
17.1
%
Income Taxes
7.8
3.3
%
8.5
4.0
%
Net Profit
28.3
11.9
%
27.8
13.1
%
Earnings per share
Basic earnings per common share
0.11
0.10
Diluted earnings per common share
0.11
0.10
Average common shares outstanding
264.7
264.7
Average shares assuming dilution
265.4
264.7
Reported Segment
Information
(Amounts in €
millions)
(Unaudited)
For the three months ended
March 31, 2023
Biopharmaceutical and
Diagnostic Solutions
Engineering
Adjustments, eliminations and
unallocated items
Consolidated
External Customers
195.5
42.4
—
238.0
Inter-Segment
0.4
49.4
(49.8
)
—
Revenue
196.0
91.8
(49.8
)
238.0
Gross Profit
66.0
19.9
(9.6
)
76.3
Gross Profit Margin
33.7
%
21.7
%
32.0
%
Operating Profit
38.7
14.0
(12.1
)
40.6
Operating Profit Margin
19.8
%
15.2
%
17.1
%
For the three months
ended March 31, 2022
Biopharmaceutical and
Diagnostic Solutions
Engineering
Adjustments, eliminations and
unallocated items
Consolidated
External Customers
172.4
39.6
—
212.1
Inter-Segment
0.3
23.5
(23.8
)
—
Revenue
172.7
63.1
(23.8
)
212.1
Gross Profit
56.8
13.5
(2.8
)
67.5
Gross Profit Margin
32.9
%
21.4
%
31.8
%
Operating Profit
35.7
8.7
(6.5
)
37.9
Operating Profit Margin
20.7
%
13.8
%
17.9
%
Cash Flow
(Amounts in €
millions)
(Unaudited)
For the three months ended
March 31,
2023
2022
Cash flow from operating activities
37.1
5.2
Cash flow used in investing activities
(128.8
)
(54.7
)
Cash flow from/ (used in) financing
activities
22.0
3.1
Net change in cash and cash
equivalents
(69.7
)
(46.4
)
Non-U.S. GAAP Financial Information
This press release contains non-U.S. GAAP financial measures.
Please refer to "Non-U.S. GAAP Financial Information" and the
tables included in this press release for a reconciliation of
non-U.S. GAAP financial measures.
Reconciliation of Revenue to
Constant Currency Revenue
(Amounts in €
millions)
(Unaudited)
Three months ended March 31,
2023
Biopharmaceutical and
Diagnostic Solutions
Engineering
Reported Revenue (IFRS GAAP)
195.5
42.4
Effect of changes in currency translation
rates
(2.2
)
0.0
Organic Revenue (Non-IFRS GAAP)
193.3
42.5
Reconciliation of
EBITDA
(Amounts in €
millions)
(Unaudited)
For the three months ended
March 31,
Change
2023
2022
%
Net Profit
28.3
27.8
1.8
%
Income Taxes
7.8
8.5
-8.2
%
Finance Income
(4.4
)
(3.0
)
46.7
%
Finance Expenses
9.0
4.6
95.7
%
Operating Profit
40.6
37.9
7.1
%
Depreciation and Amortization
18.4
15.2
21.1
%
EBITDA
59.0
53.1
11.1
%
Reconciliation of Reported and
Adjusted EBITDA, Operating Profit, Income Taxes,
Net Profit, and Diluted
EPS
(Amounts in € millions, except
per share data)
(Unaudited)
Three months ended March 31,
2023
EBITDA
Operating Profit
Income Taxes
Net Profit
Diluted EPS
Reported
59.0
40.6
7.8
28.3
0.11
Adjusting items:
Start-up costs new plants (1)
2.9
2.9
0.8
2.1
0.01
Adjusted
61.9
43.6
8.5
30.4
0.11
Adjusted Margin
26.0
%
18.3
%
—
—
—
Three months ended March 31,
2022
EBITDA
Operating Profit
Income Taxes
Net Profit
Diluted EPS
Reported
53.1
37.9
8.5
27.8
0.10
Adjusting items:
—
—
—
—
—
Start-up costs new plants (1)
0.9
0.9
0.1
0.8
0.01
Adjusted
54.0
38.8
8.6
28.6
0.11
Adjusted Margin
25.5
%
18.3
%
- During the three months ended March 31, 2023 and 2022, the
Group recorded €2.9 million and €0.9 million, respectively, of
start-up costs for the new plants in Fishers, Indiana, United
States, and in Latina, Italy.
Capital Employed
(Amounts in €
millions)
(Unaudited)
As of March 31, 2023
As of December 31, 2022
- Goodwill and Other intangible assets
78.0
79.4
- Right of Use assets
18.0
19.3
- Property, plant and equipment
738.7
641.4
- Financial assets - investments FVTPL
0.7
0.8
- Other non-current financial assets
1.0
1.0
- Deferred tax assets
72.6
69.2
Non-current assets
909.2
811.1
- Inventories
245.5
213.3
- Contract Assets
110.5
103.4
- Trade receivables
240.9
212.7
- Trade payables
(235.6
)
(239.2
)
- Advances from customers
(54.7
)
(26.6
)
- Contract Liabilities
(10.4
)
(14.8
)
Trade working capital
296.2
248.8
- Tax receivables and Other
receivables
55.7
54.0
- Tax payables and Other liabilities
(130.7
)
(111.1
)
Net working capital
221.2
191.7
- Deferred tax liabilities
(20.3
)
(21.0
)
- Employees benefits
(6.8
)
(8.3
)
- Provisions
(5.6
)
(5.5
)
- Other non-current liabilities
(20.7
)
(18.1
)
Total non-current liabilities and
provisions
(53.4
)
(52.9
)
Capital employed
1,077.0
949.9
Net cash/ (debt)
(46.5
)
46.0
Equity
(1,030.5
)
(995.9
)
Total equity and net debt
(1,077.0
)
(949.9
)
Free Cash Flow
(Amounts in €
millions)
(Unaudited)
For the three months ended
March 31,
2023
2022
Cash Flow from Operating Activities
37.1
5.2
Interest paid
0.9
0.8
Interest received
(0.2
)
(0.2
)
Purchase of property, plant and
equipment
(127.7
)
(52.7
)
Purchase of intangible assets
(1.1
)
(1.9
)
Free Cash Flow
(91.0
)
(48.8
)
Net Cash / (Net Debt)
(Amounts in €
millions)
(Unaudited)
As of March 31,
As of December 31,
2023
2022
Non-current financial liabilities
(143.3
)
(148.4
)
Current financial liabilities
(84.7
)
(70.7
)
Other non-current financial assets -
Derivatives
2.7
2.8
Other current financial assets
20.1
33.6
Cash and cash equivalents
158.8
228.7
Net Cash/ (Debt)
(46.5
)
46.0
CAPEX
(Amounts in €
millions)
(Unaudited)
For the three months ended
March 31,
Change
2023
2022
€
Addition to Property, plants and
equipment
112.1
51.9
60.2
Addition to Intangible Assets
1.1
1.9
(0.8
)
CAPEX
113.2
53.8
59.4
Reconciliation of 2023
Guidance
Reported and Adjusted EBITDA,
Operating Profit, Net Profit, Diluted EPS
(Amounts in € millions, except
per share data)
(Unaudited)
Revenue
EBITDA
Operating Profit
Net Profit
Diluted EPS*
Reported
1,085.0 - 1,115.0
281.3 - 293.3
199.9 - 211.9
147.8 - 156.9
0.56 - 0.59
Adjusting items:
Start-up costs new plants
9.1
9.1
6.8
0.03
Adjusted
1,085.0 - 1,115.0
290.5 - 302.5
209.0 - 221.0
154.6 - 163.7
0.58 - 0.62
*May not add due to rounding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504005561/en/
Media Stevanato Group media@stevanatogroup.com
Investor Relations Lisa Miles
lisa.miles@stevanatogroup.com
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