GOETTINGEN, Germany--(BUSINESS WIRE)--Sartorius (FWB:SRT), a leading international laboratory and pharmaceutical equipment supplier, successfully closed the first nine months of 2014 with substantial gains. Consolidated order intake grew 10.1% in constant currencies; Group sales revenue rose 9.6%. Operating profit1) for the Group also climbed 10.7%; its respective margin after nine months was 19.6%. Based on the strong results of the past three quarters, Sartorius confirms its 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 around 20%.
"The Group and its divisions are on track to achieve our full-year targets," said CEO Joachim Kreuzburg. "Our largest division, Bioprocess Solutions, continues to show the highest growth momentum. Besides its core product segments, the most recent acquisitions in this division have shown excellent performance. Business in Lab Products & Services has picked up, while its figures are still impacted by the phase-out of a few non-strategic product lines from its portfolio. The positive development trend of the second quarter has also continued on into the reporting period for our third division, Industrial Technologies."
Significant Gains in Order Intake and Sales Revenue
Sartorius increased its order intake in the first nine months by 10.1% (reported: +9.0%) to 730.0 million euros. Sales revenue also grew significantly at 9.6% (reported: +8.4%), attaining 712.7 million euros compared with 657.3 million euros in the year-earlier period.
The Bioprocess Solutions Division primarily contributed to the Group's strong business performance, recording double-digit growth rates. Its order intake rose 14.6% (reported: +13.7%) to 460.3 million euros. The division's sales revenue surged 17.2% (reported: +16.3%) and was 444.7 million euros. Excellent development of the most recent company acquisitions in cell culture media and mini-bioreactors and strong business with single-use products fueled the division's growth.
For the Lab Products & Services Division, order intake rose 2.3% (reported: +0.7%) to 192.7 million euros. At 195.7 million euros, its sales revenue approximately reached the prior-year level (cc: -0.1%; reported: -1.7%). As expected, the phase-out of a few non-strategic products continued to have a noticeable impact on sales.
Following a weak start into the year, business for the smallest Group division, Industrial Technologies, was robust on the whole. Its order intake thus rose 5.9% (reported: +4.7%) to 77.0 million euros. At 72.4 million euros, the division's nine-month sales revenue in 2014 was still below the year-earlier figure, down 3.5% (reported: -4.6%).
Regionally, North America again showed the highest growth, reporting a sharp increase of 28.2%. Here, the consolidation of acquisitions played a substantial role. Sales with customers in Asia were up 5.8%, and sales in Europe rose 5.7%. (All regional figures currency-adjusted)
Further Increase in Consolidated Profit
The Sartorius Group increased its underlying EBITDA by 10.7% to 139.5 million euros. Its corresponding margin was 19.6% relative to 19.2% a year ago. Earnings contributed by the Bioprocess Solutions Division climbed 19.4% to 103.6 million euros; its respective margin rose from 22.7% in the year-earlier period to 23.3% as of the reporting date. The Lab Products & Services Division reported an underlying EBITDA of 28.5 million euros relative to 32.4 million euros a year ago, which equates to a margin of 14.6% (9M 2013: 16.3%). Underlying EBITDA for the Industrial Technologies Division rose from 6.7 million euros a year earlier to 7.3 million euros; its respective margin was up year over year, from 8.9% to 10.1%.
Group EBIT, including extraordinary items of -5.6 million euros (9M 2013: -4.8 million euros), depreciation and amortization, was 94.4 million euros, up 9.5%. The Group's corresponding margin was 13.2% compared with 13.1% a year ago. Relevant net profit2) for the Group totaled 50.5 million euros (9M 2013: 47.0 million euros). Its respective earnings per ordinary share were 2.96 euros (9M 2013: 2.75) and per preference share, 2.98 euros (9M 2013: 2.77 euros).
Full-year Outlook Confirmed for the Group and Its Divisions
Based on the results of the first nine months of 2014, management confirmed its sales and earnings forecast for the Group and its divisions. Sartorius therefore continues to project that in constant currencies, sales will grow from 8% to 10% and its underlying EBITDA margin will increase year over year from 19.5% to around 20.0% for the full year.
In view of the three divisions, the company continues to expect that Bioprocess Solutions will reach the upper end of the 12% to 15% range in sales growth. Regarding profitability, Bioprocess Solutions' underlying EBITDA margin is 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% and that the division's underlying EBITDA margin will be around 15.0%. Industrial Technologies also projects that its sales revenue will attain the lower end of the 1% to 4% growth range and that its underlying EBITDA margin will increase to around 10.5%, up from 10.1% a year ago.
(All forecasted figures currency-adjusted)
1) Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items) as the key profitability indicator.
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 Nine Months of 2014
www.sartorius.com/fileadmin/media/global/company/pr_20141021_9m_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 nine-month figures with analysts and investors on Tuesday, October 21, 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 10641
France: +33(0)1 76 77 22 38
UK:
+44(0)20 3427 1923
USA: +1646 254 3373
The dial-in code is as follows: 5588258; to view the webcast, log onto:
http://www.sartorius.de/de/konzern/investor-relations/sartorius-ag/
Upcoming Financial Dates
January 27, 2015 Publication of the preliminary figures for fiscal 2014
February
25, 2015 Annual press conference
April 9, 2015 Annual Shareholders'
Meeting
A Profile of Sartorius
The Sartorius Group is a leading international laboratory and process technology provider 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.
