In This Article:
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Revenue: EUR257.6 million, a decrease of 4.7% from the previous year.
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Adjusted EBIT Margin: Increased by 250 basis points to 19.1%.
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Adjusted EBIT: EUR33.5 million, with adjustments including PPA amortization and severance payments.
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Earnings Per Share: Increased by 4.8% to EUR132.
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Cash Flow from Operating Activities: Increased by 152% to EUR48.7 million.
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Free Cash Flow: Positive at EUR32.7 million.
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Equity Ratio: Improved to 54.5%.
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Net Debt to Adjusted EBITDA: Improved from 2.5 times to 1.8 times.
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Dividend Proposal: EUR0.60 per share for fiscal year 2024.
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Systems Sales: Decreased by 27.8%.
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Service Parts and Consumables Sales: Increased by 14.8%.
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Development and Services Sales: Increased by 1.8%.
Release Date: May 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Stratec SE (XTER:SBS) reported a significant improvement in margins, with the adjusted EBIT margin increasing by 250 basis points to 19.1%.
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The company achieved a strong cash flow from operating activities, increasing by 152% to EUR48.7 million.
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Stratec SE exceeded the higher end of its guidance range for 2024 regarding adjusted EBIT margin, which was between 10% to 12%.
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The company successfully renegotiated some long-term supply agreements, which is expected to positively impact future cash flows.
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Stratec SE is well-prepared for deglobalization with a strong presence in the United States and Europe, and is establishing a manufacturing site in Asia.
Negative Points
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Sales decreased by 4.7% compared to the previous year, primarily due to the application of new accounting principles.
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The company faced delays in its full-year disclosure due to the rotation of its balance sheet auditor and a routine Bafin audit.
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Stratec SE is experiencing elevated inventory levels, which are still too high due to long-term supply agreements made during the COVID-19 pandemic.
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There is a temporary decline in the percentage of sales coming from instruments, with customers hesitant to invest in new placements.
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The company is facing a high degree of fragmentation in the industry, leading to longer decision-making processes and increased efforts in sales and program management.
Q & A Highlights
Q: Could you elaborate on the latest market developments, particularly regarding molecular instruments and their demand post-pandemic? A: Marcus Wolfinger, CEO, explained that the molecular segment, the largest in their business, faced saturation due to increased instrument availability during COVID-19. However, there is a positive shift in market sentiment, especially in the U.S., with growth returning in Q4 2024. While the molecular space still shows saturation, other areas like complex sample prep and immunoassays are seeing renewed customer interest.