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Sartorius AG (SARTF) Q1 2025 Earnings Call Highlights: Strong Start with Robust Growth in ...

In This Article:

  • Group Sales Revenue Growth: 6.5% in constant currencies.

  • Bioprocess Solutions Sales Revenue Growth: 10% in constant currencies to EUR718 million.

  • Lab Products & Services Sales Revenue Decline: 5.5% in constant currencies.

  • Group Underlying EBITDA: EUR263 million, up 12.2%.

  • Group Underlying EBITDA Margin: Increased by 120 basis points to 29.8%.

  • Bioprocess Solutions Underlying EBITDA Margin: Increased by 170 basis points to 31.5%.

  • Lab Products & Services Underlying EBITDA Margin: Decreased to 22.6% from 24%.

  • Net Operating Cash Flow: Increased by EUR94 million.

  • Free Cash Flow: Grew by EUR151 million to EUR61 million.

  • Net Debt to Underlying EBITDA Ratio: Improved from 4.0 times to 3.9 times.

  • 2025 Group Sales Revenue Growth Guidance: Approximately 6% with a plus-minus 2% bandwidth.

  • 2025 Group EBITDA Margin Guidance: 29% to 30%.

  • 2025 CapEx Ratio Guidance: Around 12.5%.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Sartorius AG (SARTF) reported a strong start to 2025 with a 6.5% sales revenue growth in constant currencies.

  • The Bioprocess Solutions division experienced a 10% increase in sales revenue, driven by strong double-digit growth in consumables.

  • The company achieved a substantial margin expansion, with underlying EBITDA growing by 12.2% to EUR263 million.

  • The acquisition of MatTek is expected to enhance Sartorius AG's portfolio, aligning with their innovation strategy and reducing reliance on animal testing.

  • Strong cash flow and reduced leverage ratio were reported, indicating financial stability and effective management of resources.

Negative Points

  • The Lab Products & Services (LPS) division faced challenges with a 5.5% decline in sales in constant currencies due to a soft equipment business.

  • There is a continued reluctance from customers to make larger investments in equipment, impacting the LPS division.

  • The company faces potential impacts from tariffs, although they do not expect it to affect their competitive positioning.

  • China's business performance was slightly below the previous year, indicating regional challenges.

  • The guidance for 2025 includes a cautious outlook with a sales revenue growth expectation of approximately 6%, reflecting market volatilities.

Q & A Highlights

Q: Was there any pull forward of orders observed in the quarter due to tariff dynamics or macro uncertainty, particularly in the Americas? A: Joachim Kreuzburg, CEO, stated that they did not see any pull forward of orders playing a relevant role during Q1. The growth in the Americas was not higher than expected and was attributed to temporary effects rather than an underlying trend.