Sartorius AG Investor Relations

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

With around 60 production and sales locations worldwide, Sartorius is represented in all major biopharma markets. As part of a long-term investment program that is now well advanced, the company has been investing in the expansion of its research and production infrastructure for several years. In addition to expanding capacity, these investments are aimed at further diversifying and increasing the flexibility of the production network, Sartorius is well positioned to capture strong organic growth.

North America and Asia are the key focal areas of the regional growth strategy. The USA is the world's largest market for bioprocess equipment and laboratory products. Yet because it is home to the company’s main competitors for both company divisions, Sartorius formerly had a lower market share in this region than in Europe and Asia. By systematically strengthening its sales and service capacities, Sartorius has gained market share in North America in recent years and intends to expand this further.

The Asian market also offers significant growth potential for Sartorius. The drivers here are demographic change, increasing prosperity, rising government spending on healthcare and the expansion of the regional biopharmaceutical industry. To benefit from this dynamic development, Sartorius has significantly strengthened its presence in this region.

Recurring business with sterile single-use products accounts for about 75% percent of the Group´s sales revenue. These offer customers cost advantages, flexibility, and less resource usage, and thus a better ecological footprint compared with conventional processes employing reusable stainless-steel components.

The high share of recurring revenues is also bolstered by the strict regulatory requirements on the part of the customers. Because health authorities validate production processes as an integral part of an application for approval of a new medical drug, the components initially validated can be replaced only at considerable expense once they have been approved.

Beyond this, the company’s broad and stable customer base that is primarily addressed directly through a specialized sales force also contributes to this favorable risk profile.
The bioprocess technology market is characterized by relatively high entry barriers arising in part from the biopharmaceutical industry’s strong degree of regulation and its technological complexity.

Acquisitions that are complementary to or extend the company’s strengths appropriately have been and will remain part of the portfolio strategy for both divisions. Due to high innovation dynamics, the company considers further additions to be possible on an ongoing basis across the entire breadth of the product portfolio.

Acquisition Criteria

• Complementarity of technologies to our existing portfolio
• Strong market positioning, for example, through innovative products with unique selling propositions
• Integration capability
• Appropriate valuation
• Growth and profitability profile

For many years, we have firmly embedded sustainability at many levels in our business. To us, it means operating responsibly and nurturing long term relationships – with respect to customers, employees, investors, business partners and society as a whole.

Based on the results of the first half of the year and the expected continued positive market development, management confirms its guidance for the full year 2025 and projects organic sales revenue growth of around 6 percent for the Group, around 7 percent in the Bioprocess Solutions Division and around 1 percent for Lab Products & Services. Due to the continued above-average volatility, the company currently anticipates a forecast range of about plus/minus two percentage points respectively. 

For earnings, the company expects an underlying EBITDA margin at Group level of around 29 to 30 percent (PY: 28.0 percent), with the margin for the Bioprocess Solutions Division rising to around 31 to 32 percent (PY: 29.3 percent) and the margin for the lab division reaching around 22 to 23 percent (PY: 22.9 percent).  

The sales revenue and margin forecast does not include possible effects of tariffs or related mitigating and corrective measures, which, depending on their design, scope, and duration, could impact sales revenue and margin development temporarily to a certain extent. Management does not expect any influence on the strong market position and competitiveness of Sartorius. 

The ratio of capital expenditure to sales revenue should be on par with the previous year at around 12.5 percent and the ratio of net debt to underlying EBITDA should decrease to around 3.5. 

Sartorius intends to continue its profitable growth path in the long term and expects to grow faster than the market. According to the new medium-term targets, the Group plans to achieve average annual growth in the lower double-digit percentage range over the five-year period to 2028 of which acquisitions are anticipated to contribute around a fifth. The underlying EBITDA margin is also expected to increase and reach around 34 percent in 2028. The margin targets include expenses of around 1 percent of Group sales revenue for measures to reduce the company’s CO2 emission intensity.

In terms of its two segments, Sartorius expects the Bioprocess Solutions division to grow on average in the low to mid-teens percentage range per year between now and 2028 with an underlying profit margin of around 36 percent. The Lab Products & Services division is projected to expand at an average annual rate by a mid to high single-digit percentage with a margin of 28 percent in 2028.

All forecasts are based on constant currencies, as in the past years. Management points out that the industry has become increasingly dynamic and volatile in recent years. In addition, uncertainties due to the shifting geopolitical situation, such as various countries’ nascent decoupling tendencies, are playing an increasing role. This results in increased uncertainty when forecasting business figures.

Sartorius is a globally operating company with subsidiaries in more than 30 countries. The holding company Sartorius AG is the parent company of the Sartorius Group. The corporation is headquartered in Göttingen, Germany, and listed on the German Stock Exchange with preference and ordinary shares.

Sartorius manages its bioprocess business as a legally independent subgroup whose parent corporation is Sartorius Stedim Biotech S.A., which is listed on Euronext Paris. As of February 09, 2024, Sartorius AG held around 71.5% of the shares of Sartorius Stedim Biotech S.A. The Group’s lab business is legally combined in a further subgroup whose parent company is Sartorius Lab Holding GmbH, in which Sartorius AG holds a 100% stake.