Nine-month figures for 2019: Sartorius Stedim Biotech reports double-digit sales growth

Sartorius Stedim Biotech (SSB), a leading partner of the biopharma industry, has continued on its growth track, and reported a double-digit increase in sales revenue, order intake and earnings for the first nine months of 2019.

“After a stronger-than-expected first half, growth momentum remained high in the third quarter. We have been benefiting from ongoing high demand across all regions and product categories and, beyond this, have continued to grow faster than the market,” said Dr. Joachim Kreuzburg, Chairman of the Board and CEO. “Against the backdrop of continued healthy end-market dynamics, we now expect that the upper end of our sales growth forecast of about 12% to 16% will be reached.”

In the first nine months of 2019, sales revenue came in at 1,076.7 million euros, equating to a currency-adjusted increase of 18.1% (reported: +20.2%). Order intake¹⁾ rose 18.0% (reported: +20.0%) to 1,147.1 million euros.

Fueled by strong project business in particular, the Asia|Pacific region achieved the highest growth rates, with sales revenue rising 28.4% (reported: +30.3%) to 265.5 million euros. The EMEA region (Europe | Middle East | Africa), which accounts for the largest share of Group sales, posted revenue growth of 15.7% (reported: +15.8%) to 435.9 million euros, whereas in the Americas, sales increased by 14.3% (reported: +18.8%) to 375.3 million euros against high comparables.

(All changes in sales revenue and order intake are given in constant exchange rates, unless otherwise stated.)

Underlying EBITDA¹⁾ rose overproportionately to sales by 24.2% to 312.3 million euros, driven by economies of scale and due to a change in an accounting rule.²⁾ The respective margin climbed from 28.1% to 29.0%, with around half of a percentage point attributable to the above-mentioned change in accounting rules, as expected.

Underlying net profit¹⁾ for the period amounted to 198.1 million euros, a 23.3% increase year over year, resulting in underlying earnings per share¹⁾ of €2.15 compared with €1.74 in the prior-year period.

Key financial indicators

The SSB Group continues to have a very solid balance sheet and financial position. Equity was strengthened by robust earnings, rising from 1,044.9 million euros as at year-end 2018 to 1,176.6 million euros as of the balance sheet date. The equity ratio of 66.4% remained at a comfortable level (Dec 31, 2018: 66.5%) while the ratio of net debt to underlying EBITDA declined from 0.4 at year-end 2018 to 0.3. As expected, the CAPEX ratio¹⁾ in the reporting period decreased considerably from 13.9% a year ago to 9.1%.

Guidance 2019 specified at upper end of bandwidth

In view of the positive business development in the first nine months of 2019 and continued high demand, Sartorius Stedim Biotech specified its financial guidance for the full year.

For sales revenue growth management now anticipates that the upper end of the forecasted range of about 12% to 16% will be reached. The company’s underlying EBITDA margin remains projected to rise by slightly more than one percentage point over the prior-year figure of 28.2%. Approximately half a percentage point of this increase is forecasted to be an operational gain, whereas the remainder will result from a change to the accounting rules.¹⁾

All guidance figures are given in constant currencies. A disorderly exit of the United Kingdom from the EU and an exacerbation of international trade disputes could impact SSB’s supply chain to a certain extent, despite the measures already taken to counteract these developments. A reliable prognosis concerning possible effects cannot be made at the present time.

_{¹⁾ Sartorius Stedim Biotech 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.}

<sub>- 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
- Underlying net profit: profit for the period after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and tax rate
- Underlying earnings per share: relevant net profit for the period divided by the number of shares outstanding (92,180,190)
- CAPEX ratio: investment payments in relation to sales revenue for the same period. Since 2019 and as a result of the change in IFRS 16 accounting principles, CAPEX has been based on cash flow instead of balance sheet computation; CAPEX ratio restated: 14.1% for 9M 2019; 14.6% for FY 2018</sub>

_{²⁾ IFRS 16 is required to be applied as of 2019 and regulates accounting of lease contracts. This has led to a somewhat extended balance sheet and thus to a slightly lower equity ratio. Further, this has resulted in reporting longer-term lease payments as depreciation and, accordingly, in a somewhat higher EBITDA, but does not entail any material changes concerning the Group’s relevant net profit or earnings per share.}

_{This press release contains forward-looking statements about the future development of the Sartorius Stedim Biotech Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such statements. Sartorius Stedim Biotech assumes no liability for updating such statements in light of new information or future events.}

_{This is a translation of the original French-language press release. Sartorius Stedim Biotech shall not assume any liability for the correctness of this translation. The original French press release is the legally binding version.}

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