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• Sales Revenue Growth: 6.5% in constant currencies, 7.7% in reporting currencies to EUR883 million.

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

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

• Underlying EBITDA: Increased by 12.2% to EUR263 million.

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

• Net Income Growth: EPS grew by around 21%.

• Operating Cash Flow: Increased threefold compared to 2024, plus EUR94 million.

• Free Cash Flow: Grew by EUR151 million to EUR61 million in Q1 2025.

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

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

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

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

• Guidance for 2025 EBITDA Margin: Expected between 29% to 30%.

• Warning! GuruFocus has detected 6 Warning Signs with SDMHF.

Release Date: April 16, 2025

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

Positive Points

• Sartorius Stedim Biotech SA (SDMHF) reported a strong start to 2025 with a 10% increase in sales revenue for Bioprocess Solutions, driven by double-digit growth in consumables.

• The company achieved a sales revenue growth of 6.5% in constant currencies, with a book-to-bill ratio above 1, indicating healthy demand.

• Underlying EBITDA grew by 12.2% to EUR 263 million, with a margin increase of 120 basis points to 29.8%, driven by positive volume and product mix effects.

• The acquisition of MatTek aligns with Sartorius Stedim Biotech SA (SDMHF)'s innovation strategy, enhancing its portfolio with advanced cell models and AI analytics.

• Strong cash flow allowed the company to reduce its leverage ratio as planned, indicating improved financial health.

Negative Points

• The equipment business remains muted, particularly affecting the Lab Products & Services division, due to customer reluctance to make larger investments.

• Sales in the Lab Products & Services division declined by 5.5% in constant currencies, reflecting challenges in the non-recurring and CapEx-driven business.

• The company faces potential impacts from tariffs, although it does not expect these to affect its 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 ongoing market volatilities.