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 | Conference Call Half-year 2020 Results
The Sartorius Group will publish its Half-year 2020 results on July 21, 2020, at 7 a.m. CEST. Dr. Joachim Kreuzburg, CEO, and Rainer Lehmann, CFO, will discuss the results with analysts and investors at 3.30 p.m. CEST.
To register for the teleconference, please use the following link:
Alternatively, you can dial into the teleconference, without registering, at:
+49 (0) 69 566 03 7000
The presentation will be accessible through our website that day, 2.30 p.m. CEST, at:
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.
Based on the company’s first-quarter 2020 results and in connection with the pending completion of the acquisition of selected Danaher life science businesses, Sartorius has adjusted its guidance for the full year of 2020. This forecast is based on the scenario that the Danaher portfolio acquired will be included as of May 2020.
Due to the ongoing coronavirus pandemic, this guidance is subject to greater uncertainty than usual concerning both the development of existing businesses and the integration of the acquisitions. In this context it is assumed that China will continue ramping up its economy after the pandemic there has largely been overcome and that Europe and the USA will soon have reached the peak of the pandemic and will ease economic restrictions.
Under these prerequisites, management now expects that Group sales will increase by 15% to 19% (former guidance: 10% to 13%). Initial consolidation of Biological Industries remains projected to contribute close to 1.5 percentage points to sales growth. Consolidation of the portfolio acquired from Danaher is currently forecasted to contribute a good 5 percentage points to growth. Regarding profitability, Sartorius continues to project that its underlying EBITDA margin1 will increase year over year from 27.1% to about 27.5%. The ratio of capital expenditures (CAPEX) to sales revenue1 is expected to be around 10% (PY: 12.3%), as projected so far. Net debt to underlying EBITDA, including the acquisition of the Danaher portfolio, is forecasted to be about 2.75 by year-end 2020 (former guidance without including this acquisition: slightly below 2.0).
For the Bioprocess Solutions Division, Sartorius now projects sales revenue to increase by 17% to 21% (former guidance: 11% to 14%), with consolidation of Biological Industries expected to contribute around 1 percentage point and that of the Danaher portfolio around 3.5 percentage points. Due to high demand on the whole, organic growth is thus anticipated to be about 3 percentage points higher than the company’s former guidance. With respect to the division’s underlying EBITDA margin1, management continues to project that it will increase to around 30.0% (PY: 29.1%), which includes slightly dilutive effects due to consolidation of Biological Industries and the Danaher portfolio.
The Lab Products & Services Division is expected to increase its sales revenue in 2020 by 10% to 14% (former guidance: 7% to 10%), with consolidation of Biological Industries continuing to be forecasted to contribute 2.5 percentage points and that of the Danaher portfolio around 10 percentage points to growth. As negative impacts of the coronavirus pandemic are also expected to persist for the remainder of the year on parts of the division’s business, the forecast for organic growth contribution has thus been reduced by around 6 percentage points. The division’s underlying EBITDA margin remains projected at about 20.0% (PY: 21.6%), which includes an increase of around 1.5 percentage points based on consolidation of the Danaher portfolio and a slight dilution due Biological Industries.
All forecasts are based on constant currencies, as in the past years.
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.
- Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
- Order intake: all customer orders contractually concluded during the respective reporting period
- 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
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.
First-Quarter Results January to March 2020
April 21, 2020
Full-Year 2019 Results
February 18, 2020