GOETTINGEN, Germany--(BUSINESS WIRE)--The Sartorius Group (FWB:SRT), a leading international laboratory and pharmaceutical equipment supplier, closed fiscal 2016 with dynamic double-digit growth in sales revenue and earnings.
"The year 2016 was highly successful for Sartorius, both operationally and strategically," commented CEO Dr. Joachim Kreuzburg at the annual press conference. "Our Bioprocess Solutions Division is continuing to expand strongly. As a supplier for the biopharmaceutical industry, the division addresses a very dynamic market and is additionally gaining market share in the important North American market. Also, our Lab Products & Services Division achieved its targets, reporting profitable organic growth, and has considerably sharpened its strategic positioning, especially with biopharmaceutical lab customers, due to our two recent acquisitions."
For the current fiscal year as well, Sartorius expects significant growth and a further increase in profitability. In constant currencies, Group sales revenue for the full year is projected to grow by about 8% to 12%, and the underlying EBITDA margin is forecasted to gain around half a percentage point over the prior-year figure of 25.0%. Kreuzburg also confirmed the mid-term targets for Sartorius with sales revenue projected to increase to around 2 billion euros at an underlying EBITDA margin of about 26% to 27% in 2020. "As a partner to the biopharmaceutical industry, Sartorius is better positioned than ever before. Especially through our acquisitions over the past years, we today offer our customers solutions ranging from molecule discovery to process development, to efficient production of biopharmaceuticals."
The Group is continuing with its multi-year investment program, expanding its international production capacities and its IT systems. For 2017, Sartorius projects a capex ratio of around 12% to 15%. At headquarters in Goettingen, the company's two largest facilities will have been combined, modernized and extended by the end of 2018. In view of continued strong growth in North America, the company started to expand its filter and bag production plant in Yauco, Puerto Rico, earlier and to a greater extent than initially planned.
Business Development of the Sartorius Group
Sartorius increased its sales revenue by 18.2% in constant currencies to 1,300.3 million euros in fiscal 2016, up from 1,114.8 million euros a year ago (reported +16.6%). All regions recorded double-digit growth rates, contributing to the company's excellent business performance. Regionally, Asia|Pacific and the Americas expanded at the strongest rates, with sales up 21.2% to 285.8 million euros and up 21.0% to 445.4 million euros, respectively. This significant expansion was driven in part by some large equipment projects in Asia, while, in the Americas, it was fueled by further market gains with single-use products and overproportionate growth contributed by the most recent acquisitions. In the EMEA region2, Sartorius recorded an increase in sales by 14.7% to 569.1 million euros. (All regional figures in constant currencies)
Earnings in the reporting period rose overproportionately again relative to sales. Sartorius thus increased its underlying EBITDA1 by 23.6% to 325.4 million euros, and its respective margin rose from 23.6% to 25.0%. Relevant net profit3 for the Group grew by 23.5% from 107.4 million euros to 132.6 million euros. Earnings per ordinary share totaled 1.93 euros (2015: 1.57 euros4) and earnings per preference share 1.94 euros (2015: 1.58 euros4).
The Group's key financial indicators continued to remain at a strong level, despite three acquisitions executed in 2016. At the end of the reporting period, the company's equity ratio was 42.0%, and the ratio of net debt to underlying EBITDA stood at 1.5 (Dec. 31, 2015: 44.9% and 1.3, respectively).
In view of its continued strong organic growth, Sartorius accelerated the implementation of its investment program. Capital expenditures rose in the reporting year from 113.1 million euros to 152.1 million euros; the respective ratio of capital expenditures to sales revenue was 11.7% following on 10.1% a year ago.
Sartorius employed 6,911 people worldwide at year-end 2016, thus 11.7% or 726 more people than a year earlier. Of this number, 77 people joined the company due to acquisitions. In Germany, 2,624 people work for Sartorius, 2,275 of whom are based at Group headquarters in Goettingen.
Business Development of the Divisions
The Bioprocess Solutions Division, which focuses on single-use products for the manufacture of biopharmaceuticals, proved to be the growth engine in the reporting year yet again. Within a continued dynamic market environment, the division increased its sales by 22.1% in constant currencies to 975.0 million euros (reported +20.5%). Organic growth was around 20%; acquisitions contributed around 2 percentage points. Driven by economies of scale, underlying EBITDA of the Bioprocess Solutions Division rose overproportionately relative to sales by 27.5% to 273.5 million euros. The division's margin reached 28.0% compared with 26.5% a year ago.
The Lab Products & Services Division, which offers instruments and consumables primarily for the pharmaceutical sector and public research, also continued its positive business development in the reporting year. Its sales revenue increased 7.9% in constant currencies to 325.3 million euros (reported +6.5%). The companies acquired at mid-2016, IntelliCyt and ViroCyt, contributed about 3 percentage points to this gain. Underlying EBITDA for the division rose 6.5% to 51.9 million euros. Its margin of 16.0% was at the previous year's level as expected because the positive effects of economies of scale were temporarily diluted by the recent acquisitions.
1 Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for
extraordinary items) as the key profitability indicator
2 EMEA = Europe | Middle East | Africa
3 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; for continued operations in 2015
4 Continued operations; FY 2015 adjusted for stock split; rounded values
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.
Current Image Files
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG
Sartorius products used in the manufacture of medications
Sartorius products used in laboratory research
Upcoming Financial Dates
|April 6, 2017||Annual Shareholders' Meeting|
|April 24, 2017||Publication of first-quarter figures (January to March 2017)|
|July 25, 2017||Publication of the first-half figures (January to June 2017)|
A Profile of Sartorius
The Sartorius Group is a leading international pharmaceutical and laboratory equipment provider with two divisions: Bioprocess Solutions and Lab Products & Services. Bioprocess Solutions with its broad product portfolio focusing on single-use solutions helps customers produce biotech medications and vaccines safely and efficiently. Lab Products & Services, with its premium laboratory instruments, consumables and services, concentrates on serving the needs of laboratories performing research and quality assurance at pharma and biopharma companies and on those of academic research institutes. Founded in 1870, the company earned sales revenue of more than 1.3 billion euros in 2016. More than 6,900 people work at the Group's approximately 50 manufacturing and sales sites, serving customers around the globe.