SCHOTT Pharma (1SXP) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record revenues of EUR 268 million, up 21% year-over-year at constant currencies, and EBITDA of EUR 76 million, up 37% year-over-year, with an EBITDA margin of 28.2%, despite ramp-up costs for expansion projects.

• HVS (High-Value Solutions) revenue share reached 53% for the first nine months, on track for a midterm goal of over 60%.

• Management raised full-year 2024 revenue growth guidance to 11%-13% at constant currencies, reflecting strong demand and execution of growth strategy.

• Innovation, operational efficiency, and new product launches, such as cartriQ and SCHOTT TOPPAC nest 160, remain key growth drivers.

• EBITDA margin for the first nine months reached 27.7% at constant currencies, reflecting robust operational performance.

Financial highlights

• Q3 revenue grew 21% year-over-year to EUR 268 million at constant currencies; reported revenue for the first nine months was EUR 720 million, up 7.5%.

• Q3 EBITDA increased 37% year-over-year to EUR 76 million; nine-month EBITDA was EUR 191.4 million, with a margin of 27.7%.

• EPS for Q3 was EUR 0.31, up 52% year-over-year; nine-month EPS was EUR 0.77.

• Free cash flow for the first nine months was EUR 68 million; Q3 free cash flow was EUR 34 million.

• Capital expenditures in Q3 were EUR 24 million; total investments for the first nine months reached EUR 81 million.

Outlook and guidance

• Full-year 2024 revenue growth guidance raised to 11%-13% at constant currencies; EBITDA margin guidance confirmed at approximately prior year's level (26.6%).

• HVS revenue share expected to be above 50% for fiscal year 2024, with a midterm target above 60%.

• CAPEX for FY 2024 guided at EUR 165–185 million; dividend payout ratio set at 10–20%.

• Q4 expected to be seasonally weaker due to annual summer break, with lower revenue growth and margin.

• Forecast assumes stable exchange rates, no major geopolitical or supply chain disruptions, and no new pandemic restrictions.