Sartorius (SRT) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 sales revenue nearly matched prior-year levels, down 2.0% in constant currencies, with significant order intake growth and robust profitability; recurring business in both divisions showed positive momentum.

• Bioprocess Solutions (BPS) revenue was stable, with soft equipment sales offset by consumables growth; Lab Products & Services (LPS) saw revenue decline due to weak end markets, especially in China.

• Efficiency program delivered increasing benefits, with the largest impact expected in Q4; free cash flow rose due to reduced working capital and capex.

• Guidance for full-year 2024 was confirmed, expecting sales revenue at or near prior-year levels and continued robust margins.

Financial highlights

• Group sales revenue for nine months: €2,474 million, down 2.8% reported or 2.0% FX-adjusted; order intake: €2,326 million, up 6.6%.

• Underlying EBITDA: €686 million, margin at 27.7% (down 1.1pp); Q3 margin was 27.1%, above prior year Q3's 26.7%.

• Underlying EPS (ord.): €3.01, down 24.6%; reported net profit: €75 million, down 63%.

• Free cash flow increased to €280 million for the nine months, with Q3 contributing €180 million; operating cash flow up 13% to €613 million.

• Capex as a percentage of sales is down to 12.9% after three quarters.

Outlook and guidance

• Full-year 2024 guidance confirmed: flat to low single-digit change in sales revenue for the group and both divisions, with acquisitions to contribute up to ~2%.

• Underlying EBITDA margin guidance: 27–29% for Group, 28–30% for BPS, 22–24% for LPS; efficiency program to deliver over €100 million in benefits.

• Capex ratio forecasted around 12% for the year; net debt/EBITDA anticipated around 4 at year-end.