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 2019 Results
- Group sales revenue up 15.5%; order intake up 16.1%; underlying EBITDA margin 26.6%
- Double-digit growth rates in the Bioprocess Solutions Division; robust development of the Lab Products & Services Division
- Management specifies guidance for revenue growth at upper end of bandwidth
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 Sartorius Group’s business performance in the first nine months and ongoing high demand for Bioprocess Solutions, management specifies its financial guidance for the full year of 2019 as follows:
The Group’s sales revenue growth in constant currencies for the full year is now expected to reach the upper end of the bandwidth of about 10% to 14%. Regarding profitability, management continues to forecast that the company's underlying EBITDA margin will rise to slightly more than 27.0%, with the operating gain projected to amount to about half a percentage point and the remaining increase expected to result from changes in an accounting rule.2)
The ratio of capital expenditures (CAPEX) to sales revenue remains projected to be around 12%, down from the year-earlier figure of 15.2%.1)
For the Bioprocess Solutions Division, management now expects that the upper end of its sales guidance of about 13% to 17% will be reached. Management’s forecast for the division’s underlying EBITDA margin remains unchanged, which is projected to increase to slightly more than 29.5% compared with the prior-year figure of 28.6%. The operating gain of this increase is expected to account for around half a percentage point.2)
For the Lab Products & Services Division, Sartorius continues to anticipate that due to the softer economic environment, the lower range of the division's sales forecast of about 5% to 9% will be reached. The division's underlying EBITDA margin is still expected to be slightly below 20%, with the operating increase accounting for about half a percentage point.2)
All forecasts are based on constant currencies, as in the past years. A disorderly exit of the United Kingdom from the EU and an exacerbation of international trade disputes could impact supply chains in both divisions to a certain degree in spite of the measures already taken to counteract these developments. A reliable prognosis concerning possible effects cannot be made at the current time.
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
- 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: 13.3% for 9M 2018; 14.9% for FY 2018
2) IFRS 16 required to be applied as of 2019 regulates accounting of lease contracts. Ultimately, 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.
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 2019
October 21, 2019
Half-Year Report January to June 2019
July 19, 2019
First-Quarter Results January to March 2019
April 18, 2019
Annual Report 2018
February 19, 2019