(AOF) – The biggest drop in the SBF 120 index, Sartorius Stedim Biotech fell by 11.23% to 199.65 euros after issuing a warning on its results. Due to lower volume forecasts and product mix effects, the biopharmaceutical industry supplier’s current EBITDA margin is now expected to be slightly higher than 28% compared to around 30% previously, after 35% during the Previous exercice.
The company now expects a drop in revenue of almost 19% and if Covid-19-related items are excluded, a drop of around 14%.
Sartorius Stedim Biotech previously anticipated a drop in revenue of a percentage in the low to mid-tens range. If Covid-19-related activities are excluded, revenue was expected to decline by a percentage between the high single-digit range and the low tens range.
Sartorius Stedim Biotech had already issued a profit warning in June 2023.
According to preliminary figures, Sartorius Stedim Biotech recorded consolidated sales of approximately 2.069 billion euros during the first nine months of 2023, down 19% at constant exchange rates. “The main reasons are linked to a longer-than-expected decline in inventories after the end of the Covid-19 pandemic, low production levels at certain customers, the cessation of activities in Russia and an overall level of investment slowing from customers, mainly in China and the United States,” the company explained.
Preliminary current EBITDA declined due to volume changes and product mix effects to €594 million from €912 million. The corresponding margin stood at 29%, compared to 35.0%, a year earlier.
The company confirmed that its market outlook remains fundamentally positive in the medium and long term and continues to view itself in a strong position compared to the competition. Management expects profitable growth in 2024 and will give quantitative indications when publishing the figures for the year 2023 in January 2024. Its medium-term ambition until 2025 is currently under study and an update update will also be provided in January 2024.
Sartorius Stedim Biotech will publish its figures for the first 9 months of 2023 on October 19 as planned.
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