Business Wire

Sartorius Grows Significantly Again in Sales Revenue and Earnings In 2017 – Positive Outlook For 2018

Jaa

Sartorius, a leading international technology partner of the biopharmaceutical industry and research laboratories, grew substantially according to its preliminary figures for fiscal 2017, with sales revenue up 9.3% to 1,404.6 million euros, and increased its underlying earnings to 353.2 million euros.

"In 2017, Sartorius continued on its profitable growth track, executed two strategically important acquisitions, moved forward on its extensive investment program and created a considerable number of new jobs," commented Group CEO Dr. Joachim Kreuzburg. "By entering the business field of bioanalytics in the Lab Products & Services Division, we opened a new chapter and reached a substantially higher level of growth and profit margin. Given the high revenue base after two years of exceptionally strong expansion and despite several dampening effects, our bioprocess business increased yet again. For 2018, we will continue to pursue our targets of achieving significant profitable growth, investing extensively in innovations and capacities and of creating additional jobs."

Business development of the Sartorius Group
Sartorius achieved an increase in sales revenue by 9.3% in constant currencies to 1,404.6 million euros in fiscal 2017, up from 1,300.3 million euros a year ago (reported: +8.0%), with organic growth and acquisitions contributing almost equally to growth.

All regions contributed to this strong performance. Asia/Pacific expanded the most, with sales up 22.5% to 344.6 million euros. EMEA2 grew by 6.8% to 604.5 million euros. In the Americas, the region in which Sartorius had recorded especially strong gains over the past years, sales revenue rose year over year by 3.5% to 455.5 million euros.

Order intake for the Sartorius Group was up 13.7% in 2017, increasing more strongly than sales. Demand in its bioprocess business picked up significantly, especially in the second half.

(All growth rates for the regions and order intake in constant currencies)

Underlying EBITDA rose by 8.5% in the reporting period, despite unfavorable currency effects, to 353.2 million, and the respective margin edged up slightly from 25.0% to 25.1%. Relevant net profit3 for the Group increased 8.6% from 132.6 million euros to 144.0 million euros. Consolidated earnings per ordinary share rose to 2.10 euros (prior-year period: 1.93 euros) and per preference share, 2.11 euros (prior-year period: 1.94 euros).

The Group's key financial indicators continued to remain at a strong level, even after the two acquisitions executed in 2017. At the end of the reporting period, the company's equity ratio was 35.1%, and the ratio of net debt to underlying EBITDA stood at 2.5 (Dec. 31, 2016: 42.0% and 1.5, respectively).

Capital expenditures rose in the reporting year from 152.1 million euros to 209.4 million euros due to considerable expansion of the Group's global infrastructure; the respective ratio of capital expenditures to sales revenue was 14.9% relative to 11.7% a year ago.

Sartorius employed 7,501 people worldwide at year-end 2017, thus 8.5% or 590 more people than a year earlier. Of this number, 214 employees joined the company due to acquisitions.

Business development of the divisions
The Bioprocess Solutions Division, which offers a wide array of innovative technologies for the manufacture of biopharmaceuticals, recorded full-year sales growth of 4.9% in constant currencies to 1,010.3 million euros in 2017, relative to a very high prior-year revenue base, with acquisitions accounting for around one percentage point of growth in this sales figure. The division's business development was dampened by several simultaneous and temporary effects, primarily impacting the Americas region. Thus, temporary bottlenecks in supply for its business with cell culture media, inventory destocking by a few large customers and an interruption in production at the plant in Puerto Rico following Hurricane Maria all had an impact. Order intake rose at a rate nearly twice as fast as sales revenue, reaching 9.7% in constant currencies after significant double-digit gains in the second half of the year.

The division's underlying EBITDA rose by 3.3% to 282.4 million euros. Despite unfavorable currency effects, the corresponding margin was 28.0%, at the prior-year level.

The Lab Products & Services Division, which offers products and technologies for laboratories primarily in the pharma sector and in life science research, recorded exceptionally dynamic growth due to its strong organic development and to a further acquisition in bioanalytics. The division's sales revenue rose by 22.0% to 394.2 million euros (reported: +21.2%), with around 14 percentage points of this expansion attributed to acquisitions. All regions and product areas contributed to this strong growth. In Lab Products & Services, order intake likewise increased at a faster pace than did sales, rising year over year by 25.8%.

Underlying EBITDA for the division also rose overproportionately with respect to sales, by 36.3% to 70.8 million euros. The division's margin climbed to 18.0% relative to 16.0% in the prior year.

Positive effects expected from U.S. tax reform
The U.S. tax reform approved in December 2017, which essentially lowers the U.S. corporate tax rate from 35% to 21%, resulted in the Sartorius Group in positive, non-cash extraordinary items of around 16 million euros during the reporting year, due to re-evaluation of deferred tax liabilities in the U.S. The corporate tax rate for the Group significantly decreased as a result of this effect from 29.0% a year earlier to 19.8% in the year under review.

A reduction in Sartorius' corporate tax rate by about 2 percentage points to around 27% is expected from 2018 onwards as a future effect. Since the changes in American tax legislation are very extensive, and further explanations and instructions for application by the U.S. tax authorities are still pending, this estimate is to be considered tentative.

Positive Outlook for Fiscal 2018
Sartorius again expects considerable profitable growth for the current year as well. Management thus projects that Group sales revenue for the full year will grow by about 9% to 12% and the company's underlying EBITDA margin will increase by about half a percentage point over the prior-year figure of 25.1%. The capex ratio will remain at the previous year's level of around 15%.

In view of the two divisions, management anticipates that sales for Bioprocess Solutions will grow by about 8% to 11% and that the division's underlying EBITDA margin will rise by around half a percentage point compared with the prior-year figure of 28.0%. For the Lab Products & Services Division, Sartorius projects that sales will grow approx. 12% to 15% and the division's underlying EBITDA margin will increase by about one percentage point (2017: 18.0%).

All forecasts are based on constant currencies, as in the past years. Due to the latest currency developments, especially in the exchange rate between the U.S. dollar and the euro, these figures may have to be reviewed as the year progresses.

1 Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and 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

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.

The numbers mentioned above are still subject to final review by the auditors.

Current image files
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG

Sartorius products used in the manufacture of medications

Sartorius bioanalytical systems used in pharmaceutical research

Conference call
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, and Rainer Lehmann, CFO and member of the Executive Board, will discuss the company's results with analysts and investors on Wednesday, January 31, 2018, at 4:00 p.m. Central European Time (CET) in a teleconference. You may register by clicking on the following link:
http://services.choruscall.de/DiamondPassRegistration/register?confirmationNumber=4999614&linkSecurityString=18dd48dd2

Alternatively, you can dial into the teleconference, without registering, at:
+49 (0) 69 566 03 6000

To view the presentation, log onto:
http://www.sartorius.com/com/group/investor-relations/sartorius-ag/

Upcoming financial dates

February 21, 2018   Annual press conference
April 5, 2018 Annual Shareholders' Meeting
April 24, 2018 Publication of first-quarter figures (January to March 2018)

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 1.4 billion euros in 2017 according to its preliminary figures. More than 7,500 people work at the Group's approximately 50 manufacturing and sales sites, serving customers around the globe.

Preliminary Key Performance Indicators for Fiscal 2017

  Sartorius Group   Bioprocess Solutions   Lab Products & Services
in millions of € (unless otherwise specified)   2017  
2016
  Δ in % Reported   Δ in % cc1  
2017
 
2016
  Δ in % Reported   Δ in % cc1  
2017
 
2016
  Δ in % Reported   Δ in % cc1
Sales Revenue and Order Intake
Sales revenue   1,404.6   1,300.3   8.0   9.3   1,010.3   975.0   3.6   4.9   394.2   325.3   21.2   22.0
- EMEA2   604.5   569.1   6.2   6.8   413.8   406.9   1.7   2.5   190.7   162.2   17.6   17.7
- Americas2   455.5   445.4   2.3   3.5   357.1   374.6   -4.7   -3.3   98.4   70.8   39.0   39.5
- Asia | Pacific2   344.6   285.8   20.6   22.5   239.4   193.5   23.7   25.3   105.2   92.3   14.0   16.6
Order intake   1,501.4   1,334.7   12.5   13.7   1,091.3   1,006.5   8.4   9.7   410.1   328.1   25.0   25.8
Earnings
EBITDA3   353.2   325.4   8.5       282.4   273.5   3.3       70.8   51.9   36.3    
EBITDA margin3 in %   25.1   25.0           28.0   28.0           18.0   16.0        
Net profit for the period4   144.0   132.6   8.6                                    
Financial Data per Share
Earnings per ordinary share4 in €   2.10   1.93   8.6                                    
Earnings per preference share4 in €   2.11   1.94   8.6                                    

1 In constant currencies abbreviated as "cc"

2 Acc. to the customer's location
3 Underlying
4 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.

Contact information

Sartorius
Petra Kirchhoff
Vice President of Corporate Communications and IR
+49 (0)551.308.1686
petra.kirchhoff@sartorius.com

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme tältä julkaisijalta, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

The 6th Annual World Patient Safety, Science & Technology Summit Kicked off with an Important Announcement about the Progress Being Made to Save Lives in Hospital Settings24.2.2018 13:00Tiedote

The 6th Annual World Patient Safety, Science & Technology Summit kicked off with an important announcement about the progress being made to save lives in hospital settings. Nearly 4,600 hospitals in 44 countries have committed to adopting patient safety processes that are proven to eliminate preventable deaths in hospitals. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180224005027/en/ England’s Health and Social Care Secretary, Rt. Hon. Jeremy Hunt, launches groundbreaking new measures on Day One of the 6th Annual World Patient Safety, Science & Technology held in London (Photo: Business Wire) The Patient Safety Movement Foundation has taken on an inspiring and ambitious goal of reducing preventable patient deaths in hospitals to ZERO by 2020. The annual Summit in central London plays a major role in taking on that challenge with the participation of 300 global leaders, medical experts, medical technology CEOs, and patient

WuQi Technologies is Latest Licensee of CCww’s NB-IoT UE Protocol-Stack Software24.2.2018 12:06Tiedote

Communications Consultants Worldwide Ltd. (CCww), global innovator of 3GPP® technologies, has licensed its NB-IoT protocol-stack software to WuQi Technologies Inc., a leading global developer of highly integrated mixed-signal SoC solutions, and the latest licensee of CCww’s NB-IoT Release 13 UE protocol-stack software. Communications Consultants Worldwide (CCww) is working with WuQi Technologies for the integration of its NB-IoT protocol-stack software onto WuQi Technologies’ highly innovative SoC. This relationship, catalyzed by T2M, is enabling the production of a highly integrated, very low power, NB-IoT SoC chipset targeting IoT Smart City, Smart Home, and wearable applications. CCww’s CEO, Richard Carter, said, “NB-IoT is CCww’s latest cellular Protocol-stack SW. We are excited to be working with WuQi to enable a sector-leading NB-IoT SoC, pushing back boundaries of performance and battery life for the next generation of IoT. See our demonstration at the Mobile World Congress (Hal

IDEMIA and Octo Telematics Reinvent Car Sharing Experience by Adding Facial Recognition to EasyOpen Solution23.2.2018 18:57Tiedote

IDEMIA, the global leader in Augmented Identity for an increasingly digital world, announces today that it has implemented facial recognition technology on EasyOpen, a solution previously developed with its partner Omoove, a wholly-owned Octo Telematics company, Europe’s leading Shared Mobility technology provider. The digital enrolment process combined with facial recognition technology will securely enroll and authenticate the driver before EasyOpen automatically opens the car. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180223005506/en/ (Photo: Idemia) You will never rent a car the same way thanks to EasyOpen solution that combines IDEMIA’s expertise in secure service enablement and Omoove’s experience in Shared Mobility platforms and on-board technology. The first version of the solution was launched last year and allows drivers, who have already registered on the application, to use their smartphones as a key to open

SM-Optics Unveils First FLEXSET Chip, Paving the Way to Optical Micro Nodes23.2.2018 17:00Tiedote

SM-Optics launches FLEXSET, a single chip embedding multiple processing functionalities raising the bar for performances, density and architectural flexibility. The FLEXSET is the heart of the Lightmode product family. FLEXSET OTN switching matrix scales from 300Gbps to 1Tbps and can be addressed by ports spanning from traditional low-speed services like 2Mbps over micro-OTN, to layer2 and layer3 over ODUFlex, 100G over ODU4 and 200G over FlexO. Thanks to its embedded capabilities including multi-technology OAM, packet processing, synchronization and fast protection functions, FLEXSET operates by design at the lowest latency performances and features an Intel Stratix 10 FPGA. Following the launch of micro-OTN, a revolutionary approach to efficiently extend OTN protocol to low speed services, the launch of FLEXSET advances the vision of a highly interconnected metro network and of micro nodes. Revolving around functional block elements, micro nodes collapse in few rack units OTN and pho

Bitcoin Miner HashGains’ Crowdsale to Build Green Cloud Mining Data Centers Receives Excellent Response23.2.2018 16:56Tiedote

HashGains.com, a leading cryptocurrency mining platform, has launched its crowdsale program to build mega cryptocurrency cloud mining data centers in India and Canada which uses renewable energy like wind and solar as source of energy. “With the growing worries around bitcoin mining causing environmental damage, difficulty levels of mining increasing and returns heading southwards, there was no better opportunity but to build green energy data centers which run on free sources of energy like wind and solar, ensuring handsome mining rewards while taking care of environment,” said Mr Anuj Bairathi, CEO & Founder, HashGains, who is crypto enthusiast himself. HashGains is a growing cloud mining platform with more than 10,000 active customers enjoying mining returns and is expected to reach the mark of 1 million customers by 2020. To handle such a massive growth and ever growing demand of customers, it becomes even more important that mega mining centers are planned which can serve needs of

Stratecast Recognizes CARDINALITY as a “10 to Watch in 2018”23.2.2018 16:07Tiedote

In their new report, “Digital Transformation Means New Tools for New Business” —part of the Global Operations, Orchestration, Data Analytics, and Monetisation (ODAM) stream—Stratecast recognises CARDINALITY for their new approach towards processing big data to deliver applications such as Customer Experience, Operational Intelligence, Network Analytics, Churn Management and Marketing Intelligence. Stratecast identified that the CARDINALITY Perception Platform brings large amounts of data from multiple CSP sources together in order to address a growing group of data analysis needs from different operational work teams and the wider business. It also does this at ingestion rates and storage levels previously thought not practical. "Using design principals tied to microservices and containerized solution components, the platform is a major advancement in meeting CSP data analysis needs at a price untouchable by previously-defined platforms," said Karl Whitelock, Stratecast director of glo

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme