SCHOTT Pharma (1SXP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were stable at EUR 230 million, up 4% at constant currencies, with HVS contributing 55% of total revenues and a midterm goal to exceed 60%.

• EBITDA margin was 26.3% at constant currencies, reflecting strong profitability despite FX and product mix headwinds.

• Strong order intake in vials and specialty products, especially in EMEA and North America, signals recovery and normalization of demand.

• Destocking and safety stock reductions are largely over, with increased sales expected in coming months.

• Profit for the period fell to EUR 29.0 million, and EPS declined to EUR 0.19 due to lower EBITDA and higher depreciation.

Financial highlights

• Q1 revenues stable at EUR 230 million, up 4% at constant currencies, with reported revenue nearly flat year-over-year.

• EBITDA at EUR 58 million, margin at 25.1% (26.3% at constant currencies), down from 31.3% in Q1 2024.

• CapEx was EUR 21 million (9% of revenues), with higher spending expected in the second half.

• Free cash flow at EUR 3 million, with cash flow from operations impacted by lower EBITDA and higher working capital.

• Gross profit margin declined to 33.3% from 36.1% year-over-year, mainly due to product mix and ramp-up costs.

Outlook and guidance

• Full-year targets confirmed: high single-digit organic revenue growth and EBITDA margin around prior year's 26.9%.

• Midterm outlook: organic revenue growth above 10% CAGR and EBITDA margin in the low 30% range.

• CapEx for FY25 expected between EUR 160 million and EUR 190 million.

• Q2 expected to be similar or slightly better than Q1, with stronger performance anticipated in H2 as new capacities come online.

• Assumptions include stable exchange rates, no major geopolitical or pandemic disruptions, and steady global supply chains.