Stevanato Group (STVN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 2% year-over-year to €277.9 million, driven by strong high-value solutions demand, which comprised 36% of total revenue, offset by a 15% decline in the Engineering segment.

• Margins were below expectations due to higher costs in Engineering, ramp-up activities in new facilities, and increased validation activities in the U.S.

• Adjusted EBITDA and adjusted diluted EPS guidance for FY 2024 were lowered, while revenue guidance was maintained.

• Capacity expansions in Fishers (US) and Latina (Italy) are progressing, with Latina achieving profitability at the gross profit level in Q3.

• Vial destocking continues to impact results, but gradual recovery and stabilization are expected into 2025.

Financial highlights

• Q3 2024 revenue: €277.9 million (+2% year-over-year, +3% constant currency).

• Gross profit margin: 26.8%, down from 30.5% year-over-year, due to underutilization, vial destocking, and ramp-up costs.

• Operating profit margin: 14.8% (16.3% adjusted), down from 18.8% year-over-year.

• Net profit: €30.0 million; adjusted net profit: €33.1 million; adjusted diluted EPS: €0.12.

• Adjusted EBITDA: €63.7 million (22.9% margin), down from 27.5% in Q3 2023.

Outlook and guidance

• FY 2024 revenue guidance maintained at €1,090–1,110 million.

• Adjusted EBITDA guidance lowered to €257–263 million; adjusted diluted EPS to €0.47–0.49.

• Cautious near-term outlook for 2025, with vial recovery as the main swing factor; formal 2025 guidance to be provided in March.

• High-value solutions expected to represent 37–39% of 2024 revenue.

• Long-term growth outlook remains positive, supported by strong fundamentals and secular tailwinds.