SCHOTT Pharma AG & Co. KGaA / DE000A3ENQ51
29.02.2024 - 07:00:16SCHOTT Pharma reports good start into fiscal year 2024
| SCHOTT Pharma AG & Co. KGaA / Key word(s): Quarterly / Interim Statement/Quarter Results 29.02.2024 / 07:00 CET/CEST The issuer is solely responsible for the content of this announcement. Q1 2024 revenues of EUR 232m; increase of 8% yoy at constant currencies Q1 2024 EBITDA margin of 27.9% at constant currencies Share of strong-margin high-value solutions (HVS) further increased to 53% Guidance for fiscal year 2024 confirmed SCHOTT Pharma, a pioneer in pharma drug containment solutions and delivery systems, had a good start into the fiscal year 20241. In the first quarter, the company achieved revenues of EUR 232m (Q1 2023: EUR 225m), corresponding to an increase of 8% at constant currencies and a reported growth rate of 3%. This performance led to an EBITDA margin of 27.9% at constant currencies, and is thus approximately at the previous year's level. The reported EBITDA benefited from currency tailwinds and totaled EUR 73m. This resulted in an EBITDA margin of 31.3%, an increase of more than 3 percentage points year-over-year. “We started the new fiscal year on a high note with both business segments showing positive development. As expected, our Drug Delivery Systems business continued to grow strongly. This proves that our strategy focusing on high-value solutions is the right one. In addition, our Drug Containment Solutions business achieved a good profitability with a margin at the previous year’s level. On this basis, we are embarking on another successful year for SCHOTT Pharma,” said Andreas Reisse, CEO of SCHOTT Pharma. “Building on last year's growth momentum, we had a successful start to 2024 considering the high comparative basis from the previous year. We were able to achieve a strong margin particularly through economies of scale. While we are very pleased with this development, we expect it to normalize over the course of the year. Overall, we are well on track to achieve our full-year guidance,” said Dr. Almuth Steinkühler, CFO of SCHOTT Pharma. Strategy execution continues to drive growth In the first quarter of 2024, SCHOTT Pharma achieved several milestones along its strategy of innovation and expansion, demonstrating its commitment to growth. On the innovation side, SCHOTT Pharma focused on commercializing large volume polymer syringes for wearable injectors. These 10 ml, 20 ml or 50 ml syringes are suitable for storing high-value biologics used for homecare treatments of autoimmune diseases. The company is thereby addressing a major pharma trend, which allows patients to self-administer medications in the comfort of their home, while reducing costs for the healthcare system. SCHOTT Pharma is also responding to growing market demand by expanding its global production network. For example, the construction of the new state-of-the-art factory in Hungary is well on track and the company plans to inaugurate it later this year. The new site will manufacture prefillable glass syringes, which are used to safely store a wide range of drugs, such as GLP-1, vaccines, and biologics. In addition, the company is investing a double-digit million euro amount in a new best-cost production site for pharma drug containment solutions in Serbia. With the new site, SCHOTT Pharma is able to free up capacity for its HVS portfolio at the site in Hungary. The ramp-up of manufacturing lines in Serbia is expected to start in the course of 2024. Growth in Q1 fueled by the DDS segment and high demand for HVS Q1 revenue growth was mainly driven by the Drug Delivery Systems (DDS) segment, which saw a significant increase in revenues thanks to high demand for prefillable syringes. DDS revenues amounted to EUR 103m, an increase of 25% at constant currencies or reported basis, respectively. This growth was possible due to the rapid and successful expansion of production capacities to meet the strong demand from customers and confirms the strategic focus on HVS. As a result, the revenue from HVS rose to 53%, an increase of 8 percentage points compared to the same quarter of the previous year. Revenues for the Drug Containment Solutions (DCS) segment accounted for EUR 129m, impacted as expected by the temporary destocking effect for vials on the customer side. This translated into a decrease of 3% at constant currencies, or 10% as reported, compared to the first quarter of the previous year. Very strong profitability due to the shift to HVS and economies of scale from capacity expansion With an EBITDA margin of 27.9% on a constant currency basis, SCHOTT Pharma achieved good profitability in Q1 at approximately the previous year’s level, and slightly above market expectations. This development was mainly driven by the strong EBITDA performance in the DDS segment with an increase of 19% at constant currencies, or 21% as reported. This increase reflects the significant increase in revenues and the associated operating economies of scale. The DCS segment achieved an EBITDA of EUR 26.9m, which was up 5% on a constant currency basis and down 7% on a reported basis. Compared to revenue, the stronger EBITDA development was mainly due to initiated efficiency measures. For Q1 2024, the company’s profit for the period came in at EUR 45m, resulting in 17% growth year-on-year. Investments in the first quarter totaled EUR 28m, of which the largest share were growth investments. The free cash flow amounted to EUR 37m, which was EUR 30m up from the first quarter in fiscal year 2023. SCHOTT Pharma’s strong cash generation enabled the company to self-fund its high-growth investments. Outlook Based on the strong Q1 2024 results, SCHOTT Pharma is well on track to achieve its full year guidance: At constant currencies, the company expects an organic revenue growth of 9% to 11% and an EBITDA margin approximately at prior year’s level. The most important pharma trends that SCHOTT Pharma meets with its products will continue to serve as growth drivers for the company. These include primarily GLP-1, mRNA, homecare, ADCs, subcutaneous administration of drugs, and the ready-to-use manufacturing transformation of pharma companies. In addition, the company continuously works on the development of new solutions to ensure the safe and easy storage and administration of injectable drugs to patients all over the world. For additional news about SCHOTT Pharma please visit our media center. Key figures Q1 2024
Joana Kornblum Media Relations Tel.: +49 151/29223552 E-Mail: joana.kornblum@schott.com 29.02.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com |
| Language: | English |
| Company: | SCHOTT Pharma AG & Co. KGaA |
| Hattenbergstraße 10 | |
| 55122 Mainz | |
| Germany | |
| ISIN: | DE000A3ENQ51 |
| WKN: | A3ENQ5 |
| Indices: | SDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1847869 |
| End of News | EQS News Service |
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