Sartorius AG Investor Relations
A Trusted Partner for the Biopharmaceutical Industry and Laboratories
Sartorius is a leading international partner for the biopharma sector. Our solutions are supporting our customers to develop and produce drugs safely, timely and economically. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies.
Seven reasons to invest
- Clear focus on the attractive biopharma sector
- Long-term growth drivers and significant market entrance barriers
- Market leading position in key technologies and recognized brand
- High share of recurring revenue as well as diversified earnings base
- Strong presence in growth regions
- Proven track record with alliances and acquisitions
- High continuity with respect to customer base, employees and management
Sartorius Group | Nine-month 2020 Results
- Nine-month results: Order intake up 37.8 percent; sales revenue up 25.2 percent; underlying EBITDA margin climbs to 29.1 percent
- Bioprocess Solutions Division expands dynamically; positive development of the Lab Products & Services Division
- Management specifies financial guidance at the upper end of or slightly above the ranges indicated so far
Strategy and Targets for 2025
Sartorius’ goal is to continue its profitable growth and systematically expand its position as a leading international partner for biopharmaceutical research and the industry. We are pursuing various strategic initiatives to grow sustainably up to 2025 – and beyond.
- Achieve consolidated sales revenue of around 4 billion euros with about two-thirds of this growth to be generated organically and about one third by acquisitions
- Increase underlying EBITDA margin1) to around 28%
- Expand sales in the Bioprocess Solutions Division to about 2.8 billion euros; increase the division’s underlying EBITDA margin to around 30%
- Grow sales in the Lab Products & Services Division to about 1.2 billion euros; increase the division’s underlying EBITDA margin to around 25%
1) Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization; adjusted for extraordinary items) as the key profitability indicator.
We focus in both divisions on the attractive biopharmaceutical market characterized by long‑term and stable growth trends.
Key Growth Drivers
- Growing world population
- Increasing incomes and better access to healthcare services in emerging economies
- Aging population and rise in age-related diseases in industrialized countries
Medical progress is also fueling growth, resulting in the ongoing development and approval of new biopharmaceuticals and in the improvement or expansion of indications for already existing active pharmaceutical ingredients. Therefore, a growing number of biotech medications are being approved for treatment of rare diseases considered incurable until now, and innovative cell and gene therapies are projected to further drive growth in the biopharma sector.
Sartorius has leading market positions in core technologies and is continuously expanding its portfolio by new, complementary technologies that help our biopharma customers develop and manufacture medications faster and more easily. Our strength in selecting suitable partners or acquisition candidates is based upon our in-depth understanding of applications. We are thoroughly familiar with our customers’ requirements and their entire value-added chains, and particularly understand the interactivity of the systems they use. Our innovation strategy is based on three pillars:
- Integration of innovations through acquisitions
- Alliances with partners
- Own product development
North America and selected countries in Asia are at the focus of our growth strategy.
North America is the world’s largest market for both the development and the manufacture of biopharmaceuticals. Because North America is home to the main competitors for both company divisions, Sartorius has historically lower market shares in this region than in Europe and Asia. Accordingly, the company is striving to gain market share, primarily by strengthening its sales and service capacities.
Our second regional focus is on Asia, especially on China, South Korea and India. These markets have tremendous growth potential due to their increased healthcare spending by private households and governments. In these regions, Sartorius has invested in its sales infrastructure and is planning to expand its production capacities.
Moreover, Sartorius is investing in the digitalization of its processes. In addition, it has substantially expanded its production capacities, above all for filter and bag products.
Group management specifies outlook for 2020
Based on its strong nine-month performance, Sartorius now expects consolidated sales revenue to increase at the upper end of, or slightly above, the range of 22 percent to 26 percent forecasted to date. As projected so far, the non-organic contribution to this growth by Biological Industries and the portfolio acquired from Danaher should amount to a good 1.5 percentage points and around 5 percentage points, respectively. The Group’s underlying EBITDA margin1 is now forecasted to be around 29.5 percent (previously about 28.5 percent). The planned acquisition of purification specialist BIA Separations that was announced in early October and can be expected to close by late 2020 is not expected to have any material impact on Sartorius’ sales revenue or underlying EBITDA1 for the full year of 2020.
The ratio of capital expenditures (CAPEX) to sales revenue continues to remain at around 10 percent (previous year: 12.3 percent). Due to strong cash flow, net debt to underlying EBITDA1 is likely to be slightly below 2.75 by year-end 2020, as projected so far, even after the acquisition of BIA Separations is completed in the fourth quarter (previous year: 2.0).
Outlook for the divisions
For the Bioprocess Solutions Division, management expects sales to grow at the upper end of, or slightly above, the range of 26 percent to 30 percent projected so far. The division’s underlying EBITDA1 margin is forecasted to reach approximately 32 percent (previously around 31 percent).
The outlook for Lab Products & Services also predicts that the division’s sales revenue will grow at the upper end of, or slightly above, the range of 10 percent to 14 percent forecasted so far; the division’s underlying EBITDA1 margin is expected to be about 21 percent (previously around 20 percent).
Due to the ongoing pandemic, this guidance continues to be subject to greater uncertainty than usual. In particular, these projections are based on the assumptions that logistics chains will continue to be stable and the relevant laboratories and production lines will remain continuously in operation. All forecasts are based on constant currencies, as in the past years.
Mid-range forecasts are also subject to particularly high uncertainty at present. For the time being Sartorius therefore has not changed its defined ambition for 2025 of achieving sales revenue of around 4 billion euros and an underlying EBITDA1 margin of about 28 percent for the full year of 20252. With publication of preliminary full-year 2020 results, management will provide a forecast for the next financial year and explain its 2025 targets in detail.
1 Sartorius publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.
- Order intake: all customer orders contractually concluded during the respective reporting period
- Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
- Relevant net profit: profit for the period 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
2 Further information is provided on page 28 of the Sartorius 2019 Annual Report
Sartorius is a globally operating company with two separately listed entities: Sartorius AG and Sartorius Stedim Biotech S.A.
Sartorius AG is the parent company of the Sartorius Group. It is headquartered in Göttingen, Germany, and listed on the Frankfurt Stock Exchange with preference and ordinary shares.
Sartorius AG holds approximately 74% of the share capital and around 85% of the voting rights of Sartorius Stedim Biotech S.A. Sartorius Stedim Biotech S.A is headquartered in Aubagne, France, and listed on the Euronext Paris. It is the parent company of the Group’s bioprocessing business.
In addition, Sartorius AG holds a 100% stake in Sartorius Lab Holding GmbH, which is the parent corporation of the subgroup comprising the Group’s lab Business.
Nine-Month Results January to September 2020
October 20, 2020
Half-Year Report January to June 2020
July 21, 2020
First-Quarter Results January to March 2020
April 21, 2020