GOETTINGEN, Germany--(BUSINESS WIRE)--Sartorius (FWB:SRT), a leading international laboratory and pharmaceutical equipment supplier, successfully closed the first half of 2014 with significant gains. Consolidated order intake grew 8.9% in constant currencies; Group sales revenue rose 7.8%. Operating profit1) for the Group also climbed 4.8%; its respective margin after six months was 19.1%. Based on these solid first-half results, Sartorius confirms its Group forecast for the full year of 2014, which projects currency-adjusted growth in sales of 8% to 10% and an increase in its EBITDA margin to approximately 20.0%.
"We are on track in the Group as a whole after six months," commented CEO Joachim Kreuzburg. "Our largest division, Bioprocess Solutions, is operating at the upper end of our expectations, also because our most recent acquisitions are showing excellent development. In the lab division, the phase-out of a few non-strategic product lines had a dampening effect on first-half business as forecasted, and we expect stronger momentum for this division in the second half. Following a weak start into the year, business for the Industrial Technologies Division has noticeably accelerated."
Dynamic Growth of Sales Revenue and Order Intake
Sartorius increased its order intake in the first half by 8.9% (reported: +6.7%) to 488.6 million euros. Sales revenue also grew significantly at 7.8% (reported: +5.7%), attaining 466.3 million euros compared with 441.3 million euros in the year-earlier period.
In view of the divisions, Bioprocess Solutions continued to show high growth momentum. Order intake for this division rose, despite the high comparative base resulting from the strong first half in 2013, by 11.5% (reported: +9.4%) to 304.9 million euros. The division's sales revenue climbed 15.8% (reported: +13.7%) and was 291.1 million euros. In addition to strong business with single-use products, the most recent acquisitions in cell culture media and mini-bioreactors primarily contributed to these gains.
For the Lab Products & Services Division, order intake rose 4.0% (reported: +1.4%) to 132.3 million euros. At 128.5 million euros, sales revenue for the division was still slightly below the prior-year figure (-2.7%; reported: -5.1%). As projected, the phase-out of a few non-strategic products impacted sales; moreover, the market environment, particularly in Asia, proved to be softer than expected.
Following a weak start into the year, business for the smallest Group division, Industrial Technologies, noticeably picked up in the second quarter. Order intake thus rose 6.9% (reported: +4.9%) to 51.4 million euros. At 46.7 million euros, the division's first-half sales revenue in 2014 was still below the year-earlier figure by -4.8% (reported: -6.4%).
Regionally, the strongest growth impulses were again generated by North America, where a gain of 22.4% was recorded and growth contributed by acquisitions played a substantial role. Sales with customers in Asia were up 6.9%, and sales in Europe rose 4.5%. (All regional figures currency-adjusted.)
Further Increase in Consolidated Profit
Unfavorable foreign exchange rates compared with the previous year slightly dampened the expansion of earnings. Yet the Sartorius Group increased its underlying EBITDA by 4.8% to 88.8 million euros. The corresponding earnings margin was 19.1% and therefore approximately at the prior-year level of 19.2%. Earnings contributed by the Bioprocess Solutions Division climbed 15.1% to 66.9 million euros; its respective margin rose from 22.7% in the year-earlier period to 23.0% as of the reporting date. The Lab Products & Services Division reported an underlying EBITDA of 18.1 million euros relative to 22.7 million euros a year ago and a margin of 14.1%, compared with 16.8% in the previous year. Underlying EBITDA for the Industrial Technologies Division stood at 3.9 million euros relative to
4.0 million euros a year earlier; its respective margin rose year over year from 8.0% to 8.3%.
Group EBIT, including extraordinary items of -3.4 million euros (H1 2013: -3.2 million euros), depreciation and amortization, amounted to 59.6 million euros (+0.8%). The Group's corresponding margin was 12.8% relative to 13.4% a year ago. Relevant net profit2) for the Group totaled 31.3 million euros (H1 2013: 32.3 million euros). Its respective earnings per ordinary share were 1.82 euros (H1 2013: 1.88 euros), and per preference share, 1.84 euros (H1 2013: 1.90 euros).
Full-year Outlook Confirmed for the Group; Division Guidance Updated
Based on the results of the first half of 2014, management confirmed its sales and earnings forecast for the Group. Sartorius therefore continues to project that in constant currencies, sales will grow from 8% to 10% and the underlying EBITDA margin will increase year over year from 19.5% to around 20.0% for the full year.
Looking at the three divisions, Sartorius updated its targets announced at the beginning of the year. For Bioprocess Solutions, the company now expects sales growth to reach the upper end of the 12% to 15% range communicated so far. With respect to profitability, the Bioprocess Solutions' underlying EBITDA margin is still forecasted to rise to about 23.5% (previous year: 23.0%). For Lab Products & Services, Sartorius projects that sales revenue will increase at the lower end of its growth corridor of 1% to 4% communicated earlier. The division's underlying EBITDA margin is expected to be around 15.0% (previous guidance: around 16.5%). Industrial Technologies also projects that its sales revenue will attain the lower end of the 1% to 4% growth range and continues to anticipate that its underlying EBITDA margin will increase to around 10.5% forecasted so far, up from 10.1% a year ago. (All forecast figures currency-adjusted)
1) Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items) as the key profitability measure.
2) Relevant net profit for the Group is calculated by adjusting for extraordinary items, eliminating non-cash amortization and fair value adjustments of hedging instruments, including the corresponding tax effects for each of these items, as well as by taking non-controlling interest into account.
This press release contains statements about the future development of the Sartorius Group. The content of these statements cannot be guaranteed as they are based on assumptions and estimates that harbor certain risks and uncertainties. This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.
Key Figures for the First Half of 2014
http://www.sartorius.com/fileadmin/media/global/company/pr_20140722_hy_figures_sag.pdf
Current Image Files
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:
http://www.sartorius.com/fileadmin/media/global/company/Sartorius_Kreuzburg.jpg
Sartorius products used in the manufacture of medications:
www.sartorius.com/fileadmin/media/global/company/pr_20140303_bioprocess_solutions.jpg
Sartorius products used in laboratory research:
www.sartorius.com/fileadmin/media/global/company/pr_20140303_lab_products_and_services.jpg
Conference Call and Webcast
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the first-quarter figures with analysts and investors on Tuesday, July 22, 2014, at 3:30 p.m. Central European Time (CET) in a teleconference. You may dial into the teleconference starting at 3:20 p.m. CET at the following numbers:
Germany: +49(0)69 2222 10638
France: +33(0)1 76 77 22 32
UK:
+44(0)20 3427 1933
USA: +1646 254 3376
The dial-in code is as follows: 6666926; to view the webcast, log onto:
http://www.sartorius.de/de/konzern/investor-relations/sartorius-ag/
Upcoming Financial Dates
October 21, 2014 Publication of nine-month figures (January – September 2014)
A Profile of Sartorius
The Sartorius Group is a leading international laboratory and pharmaceutical equipment supplier covering the segments of Bioprocess Solutions, Lab Products & Services and Industrial Technologies. In 2013, the technology group earned sales revenue of 887.3 million euros. Founded in 1870, the Goettingen-based company currently employs more than 6,000 persons. The major areas of activity of its Bioprocess Solutions segment cover filtration, fluid management, fermentation, cell cultivation and purification, and focus on production processes in the biopharmaceutical industry. The Lab Products & Services segment primarily manufactures laboratory instruments and lab consumables. Industrial Technologies concentrates on weighing, monitoring and control applications in the manufacturing processes of the food, chemical and pharma sectors. Sartorius has its own production facilities in Europe, Asia and America as well as sales subsidiaries and local commercial agencies in more than 110 countries.
