- Establishes Full Year 2021 Guidance
-
Stevanato Group S.p.A. (NYSE: STVN), a leading global provider
of drug containment, drug delivery, and diagnostic solutions to the
pharmaceutical, biotechnology, and life sciences industries, today
announced its financial results for the second quarter 2021 and
established full-year 2021 guidance.
Second Quarter 2021 Highlights (compared to the same period
last year) and Guidance
- Revenue grew 26% to €204.0 million; all growth was organic
- Gross margins increased to 31.2%
- Net profit totaled €34.5 million; or €0.14 of diluted earnings
per share (EPS) and included a non-recurring benefit of €4.4
million net profit, or €0.02 diluted EPS
- Excluding the one-time benefit, adjusted diluted EPS was
€0.12
- EBITDA increased 52% to €61.0 million; adjusted EBITDA grew 30%
to €52.4 million
- Backlog totaled €738.9 million
- The Company is establishing fiscal-year 2021 guidance and
currently expects revenue in the range of €820 million to €830
million; adjusted EPS in the range of €0.43 to €0.47; and adjusted
EBITDA in the range of €212 million to €217 million
- Subsequent to June 30, the Company raised net proceeds of
approximately $453.5 million from its initial public offering on
the New York Stock Exchange, including a partial exercise of the
underwriters’ over-allotment option.
Franco Moro, Chief Executive Officer, stated, “Strong second
quarter operational results reflect the demand for our integrated,
end-to-end portfolio of products, processes and services that
address customer needs across the entire drug life cycle at each of
the development, clinical and commercial stages. We achieved
double-digit revenue growth in both segments and across all
geographies. Our financial results reflect solid demand in our core
products and, to a lesser extent, the ongoing need for our drug
containment solutions that play a vital role in the global rollout
of the Covid-19 vaccines. We estimate that approximately 15% of
second quarter 2021 revenue was attributable to Covid-19. Our
strategic shift in prioritizing our high value solutions helped
boost gross margins by 100 basis points over the prior-year period.
For the second quarter of 2021, high value solutions accounted for
approximately 24% of revenue, compared to 23% for the prior
year.”
“The past few months have marked an exciting and important time
for Stevanato Group,” said Franco Stevanato, Executive Chairman of
the Board of Directors. “We are pleased to have successfully
completed our initial public offering and, as a listed company, we
look forward to continuing to drive long-term value for all of our
stakeholders, including customers, patients, employees, partners
and our shareholders.”
Biopharmaceutical and Diagnostic Segment (BDS)
The Biopharmaceutical and Diagnostic Segment delivers a broad
range of proprietary products, processes, and services for the
containment and delivery of pharmaceutical and biotechnology drugs,
reagents, and diagnostic consumables.
The segment benefitted from rising demand in the second quarter.
As a result, second quarter revenue grew 23% to €174.8 million
compared to the same period last year. Revenue growth was
attributable to a 27% increase in the sale of high value solutions,
the Company’s proprietary products including EZ-Fill® vials and
cartridges, as well as a 21% increase in traditional containment
and delivery partly due to the ongoing demand from the continuing
impact of Covid-19 on our industry. In the second quarter, high
value solutions accounted for 28% of BDS Segment revenue, compared
to 27% the prior year.
Gross margin and operating margin expansion in the second
quarter was due, in part, to an increase in more accretive high
value solutions and business optimization efforts compared to the
same period last year.
Engineering Segment
The Engineering Segment develops equipment and technology for
assembly, visual inspection, packaging, serialization, glass
conversion, as well as comprehensive after-sales support to provide
end-to-end solutions to the pharmaceutical, biotechnology and
diagnostic manufacturing processes.
For the second quarter, Engineering Segment (third parties)
revenue grew by 50% to €29.1 million compared to the prior year.
The segment benefitted from growth across all business lines
including glass conversion machines, visual inspection systems, as
well as assembly and packaging machines.
Margin expansion, compared to the prior-year period, was driven
by an increase in after-sales activities to support customers and
improved synergies across the Company’s manufacturing network.
Liquidity and Balance Sheet
As of June 30, 2021, cash and cash equivalents totaled €100.8
million. For the second quarter, cash from operating activities
increased to €54.1 million. Capital expenditures totaled €23.7
million in the second quarter, as the Company continued to invest
in increasing capacity for its high value solutions to meet growing
customer demand. As a result, free cash flow (defined as cash from
operating activities excluding interests paid and received, less
property, plant, and equipment and intangible assets on a cash
basis) was €31.3 million.
The Company believes that its cash and cash equivalents, cash
generated from operating activities together with availability
under its existing debt facilities and net proceeds of
approximately $453.5 million raised in its IPO, will be adequate to
address liquidity needs based on its current expectations of
business operations, capital expenditures and scheduled payments
under its debt obligations.
On July 20, 2021, we completed our initial public offering, at
completion of which we received aggregate net proceeds of
approximately $439.2 million, after deducting underwriting
discounts and commissions and offering expenses. On August 18, the
underwriters further purchased 712,796 additional newly issued
shares from the Company to cover over-allotments driving the total
net proceeds of the offering to approximately $453.5 million.
Full Year 2021 Guidance
Stevanato Group continues to expand its role in the
pharmaceutical value chain. The Company has established full year
2021 guidance that demonstrates a sharp focus on executing against
its long-term strategic plan.
The Company currently estimates that it has visibility of
approximately 94% of full year forecasted revenue for fiscal 2021,
comprised of first half 2021 revenue contributions plus currently
estimated backlog for the second half.
The Company currently expects:
- revenue in the range of €820 million to €830 million, which
represents year-over-year growth between 24% and 25% compared to
revenue of €662.0 million for fiscal year 2020,
- adjusted diluted EPS in the range of €0.43 to €0.47 (assumes
weighted average shares outstanding of approximately 252.7
million),
- adjusted EBITDA in the range of €212 million to €217 million,
which represents growth between 33% and 35% compared to fiscal year
2020, and,
- high value solutions to range between 25% and 26% of revenue
for 2021.
Mr. Moro concluded, “Our overall approach of increasing capacity
in the fastest growing markets, embedding scientific and
technological advancements in our portfolio and broadening our
services and geographic reach is the cornerstone of driving value
to our customers. We are a mission critical partner in the
pharmaceutical value chain, and we are responding to an
ever-growing demand from customers across the pharmaceutical,
bio-tech and life sciences industries.”
Conference Call and Webcast
The Company will host a conference call to discuss the results
and business expectations at 8:30 a.m. Eastern Time today (14:30
CET). Management will refer to a slide presentation during the
call, which will be made available on the day of the call. To view
the presentation, please visit the “Financial Results” page, under
the Financial Information tab of the Company's Investor Relations
section of its website.
To participate on the call please dial
United States: +1 855 979 6654 Italy: +39 800
684 570 International: +44 20 3936 2999 Access Code: 627926
Preregistration:
Listeners are encouraged to preregister for the call via the
following link:
www.incommglobalevents.com/registration/client/8297/stevanatoearnings-call/,
whereupon you will be provided with a unique dial-in number and
access code.
For Participants that do not preregister:
A live broadcast of the conference call will also be available
online at the following link: www.incommuk.com/customers/online
(access code 627926).
Replay:
An online archive of the broadcast will be available at the
website shortly after the live call and will be available through
Thursday 2 September 2021. The recording will be accessible via the
following link:
www.incommglobalevents.com/replay/6516/stevanato-earnings-call/
(access code 776594).
About Stevanato Group
Founded in 1949, Stevanato Group is a leading global provider of
drug containment, drug delivery and diagnostic solutions to the
pharmaceutical, biotechnology and life sciences industries. The
Group delivers an integrated, end-to-end portfolio of products,
processes and services that address customer needs across the
entire drug life cycle at each of the development, clinical and
commercial stages. Stevanato Group’s core capabilities in
scientific research and development, its commitment to technical
innovation and its engineering excellence are central to its
ability to offer value added solutions to clients.
For more information, please visit www.stevanatogroup.com
Forward-Looking Statements
This press release contains certain forward-looking statements
which include, or may include, words such as "raising", "believe",
"potential", "increased", "future", "remain", "growing", "expect",
"foreseeable", "expected", "to be", "includes", "estimated",
"assumes", "would provide", and other similar terminology.
Forward-looking statements contained in this prospectus include,
but are not limited to, statements about: our future financial
performance, including our revenue, operating expenses, and our
ability to maintain profitability and operational and commercial
capabilities; our expectations regarding the development of our
industry and the competitive environment in which we operate; and
our goals and strategies. The following are some of the factors
that could cause our actual results to differ materially from those
expressed in or underlying our forward-looking statements : (i) our
product offerings are highly complex, and, if our products do not
satisfy applicable quality criteria, specifications and performance
standards, we could experience lost sales, delayed or reduced
market acceptance of our products, increased costs and damage to
our reputation; (ii) we must develop new products and enhance
existing products, adapt to significant technological and
innovative changes and respond to introductions of new products by
competitors to remain competitive; (iii) our backlog might not
accurately predict our future revenue, and we might not realize all
or any part of the anticipated revenue reflected in our backlog;
(iv) if we fail to maintain and enhance our brand and reputation,
our business, results of operations and prospects may be materially
and adversely affected; (v) we are highly dependent on our
management and employees. Competition for our employees is intense,
and we may not be able to attract and retain the highly skilled
employees that we need to support our business and our intended
future growth; (vi) our business, financial condition and results
of operations depend upon maintaining our relationships with
suppliers and service providers; (vii) our business, financial
condition and results of operations depend upon the availability
and price of high-quality materials and energy supply and our
ability to contain production costs; (viii) significant
interruptions in our operations could harm our business, financial
condition and results of operations; (ix) our manufacturing
facilities are subject to operating hazards which may lead to
production curtailments or shutdowns and have an adverse effect on
our business, results of operations, financial condition or cash
flows; and (x) our business may be harmed if our customers
discontinue or spend less on research, development, production or
other scientific endeavors; (xi) we may face significant
competition in implementing our strategies for revenue growth in
light of actions taken by our competitors. This list is not
exhaustive.
These forward-looking statements speak only as at their dates.
The Company undertakes no obligation to update any forward-looking
statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible to predict all of these factors.
Further, the Company cannot assess the impact of each such factor
on our business or the extent to which any factor, or combination
of factors, may cause actual results to be materially different
from those contained in any forward-looking statements. This press
release also contains certain estimates regarding the Company's
future prospects and performance, including, but not limited to,
future revenues and earnings per share, capital deployment. All
such statements and projections are based upon current expectations
of the Company and involve a number of business risks and
uncertainties. The Company disclaimers any current intention to
update such guidance, except as required by law.
For a description of certain additional factors that could cause
the Company's future results to differ from those expressed in any
such forward-looking statements, see Part II, Item 1A. entitled
"Risk Factors" in the Company's Quarterly Report on Form 6-K for
the quarterly period ended June 30, 2021 and "Risk Factors" in our
registration statement on Form F-1, dated July 16, 2021 and which
was filed with the U.S. Securities and Exchange Commission in
accordance with Rule 424(b) of the Securities Act of 1933, as
amended, on July 16, 2021.
Consolidated Income
Statement
(Amounts in € millions, except
per share data)
(Unaudited)
For the three months
ended June 30,
For the six months
ended June 30,
2021
%
2020
%
2021
%
2020
%
Revenue
€204.0
100.0%
€161.8
100.0%
€396.8
100.0%
€298.2
100.0%
Costs of sales
140.3
68.8%
113.0
69.8%
267.7
67.5%
209.9
70.4%
Gross Profit
63.7
31.2%
48.9
30.2%
129.1
32.5%
88.4
29.6%
Other operating Income
2.3
1.1%
1.8
1.1%
5.5
1.4%
2.1
0.7%
Selling and Marketing Expenses
5.4
2.7%
5.1
3.1%
11.3
2.8%
11.3
3.8%
Research and Development Expenses
6.9
3.4%
3.8
2.4%
12.7
3.2%
7.8
2.6%
General and Administrative Expenses
6.0
3.0%
14.6
9.0%
20.0
5.0%
28.8
9.7%
Operating Profit
47.6
23.3%
27.1
16.8%
90.5
22.8%
42.5
14.3%
Finance Income
2.3
1.1%
3.8
2.4%
4.3
1.1%
9.5
3.2%
Finance Expense
2.4
1.2%
3.4
2.1%
5.6
1.4%
13.6
4.6%
Share of Profit of an Associate
0.4
0.2%
0.2
0.1%
0.4
0.1%
0.2
0.1%
Profit Before Tax
47.9
23.5%
27.8
17.2%
89.6
22.6%
38.6
12.9%
Income Taxes
13.4
6.6%
7.1
4.4%
18.6
4.7%
10.6
3.6%
Net Profit
€34.5
16.9%
€20.7
12.8%
€71.0
17.9%
€27.9
9.4%
Earnings per share
Basic earnings per common share
€0.14
€0.09
€0.29
€0.12
Diluted earnings per common share
€0.14
€0.09
€0.29
€0.12
Average common shares outstanding
241.0
240.5
240.8
240.5
Average shares assuming dilution
241.0
240.5
240.8
240.5
Report Segment
Information
(Amounts in € millions, except
per share data)
(Unaudited)
For the three months
For the six months
ended June 30,
ended June 30,
2021
2020
2021
2020
Revenue
Biopharmaceutical and Diagnostic
Solutions
175.1
142.6
335.9
263.2
Engineering
43.0
31.5
83.0
63.2
Adjustments, eliminations, and unallocated
items
(14.1)
(12.3)
(22.1)
(28.2)
Consolidated Total
204.0
161.8
396.8
298.2
Gross Profit
Biopharmaceutical and Diagnostic
Solutions
57.6
44.4
114.8
79.8
Engineering
7.7
4.6
16.5
10.7
Adjustments, eliminations, and unallocated
items
(1.6)
(0.2)
(2.2)
(2.1)
Consolidated Total
63.7
48.8
129.1
88.4
Gross Profit Margin
31.2%
30.2%
32.5%
29.6%
Operating Profit
Biopharmaceutical and Diagnostic
Solutions
39.5
28.9
79.9
46.3
Engineering
3.4
0.9
7.8
3.2
Adjustments, eliminations, and unallocated
items
4.7
(2.7)
2.9
(7.0)
Consolidated Total
47.6
27.1
90.5
42.5
Operating Profit Margin
23.3%
16.8%
22.8%
14.3%
Consolidated Statement of
financial position (Unaudited)
(Amounts in €
millions)
(Amounts in € millions)
As of June 30, 2021
As of December 31, 2020
- Intangible assets
79,7
81,1
- Right of use assets
24,1
25,4
- Property, plant, and equipment
341,7
313,7
- Other non-current financial assets
4,5
8,1
- Deferred tax assets
45,1
45,6
Non-current assets
495,2
473,9
- Inventories
149,7
139,4
- Contract Assets
48,5
39,4
- Trade receivables
135,8
127,8
- Trade payables
(100,6)
(118,7)
- Advances from customers
(46,7)
(48,4)
- Contract Liabilities
(6,5)
(5,0)
Trade working capital
180,3
134,5
- Other liabilities (net of
receivables)
(48,5)
(33,8)
Net working capital
131,8
100,7
- Deferred tax liabilities
(13,8)
(11,6)
- Employees benefits
(10,5)
(29,7)
- Provisions
(4,1)
(4,4)
- Other non-current liabilities
(1,8)
(1,8)
Total non-current liabilities and
provisions
(30,3)
(47,5)
Capital employed
596,6
527,0
Net debt
(215,2)
(216,9)
Equity
(381,5)
(310,1)
Total equity and net debt
(596,6)
(527,0)
Non-GAAP Financial Information
This press release contains non-GAAP measures. Please refer to
the tables included in this press release for a reconciliation of
non-GAAP measures.
Management monitors and evaluates our operating and financial
performance using several non-GAAP financial measures, including
Constant Currency Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Operating Profit, Adjusted Operating Profit
Margin, CAPEX, Adjusted Diluted EPS, Net Debt1, and Free Cash Flow.
We believe that these non-GAAP financial measures provide useful
and relevant information regarding our performance and improve our
ability to assess our financial condition. While similar measures
are widely used in the industry in which we operate, the financial
measures we use may not be comparable to other similarly titled
measures used by other companies, nor are they intended to be
substitutes for measures of financial performance or financial
position as prepared in accordance with IFRS.
Reconciliation of Non-GAAP
Measures (Unaudited)
Reconciliation of Net
Debt
(Amounts in €
millions)
(Amounts in € millions)
As of June 30,
As of December 31,
2021
2020
Non-current financial liabilities
264.6
294.1
Current financial liabilities
80.7
81.2
Financial Receivables from associate
(1)
(1.3)
(1.3)
Other current financial assets
(27.9)
(41.5)
Cash and cash equivalents
(100.8)
(115.6)
Net Debt
215.2
216.9
(1) The Financial Receivable granted to the associate Swissfillon
AG is included in line "Other non-current financial assets" of the
Interim condensed consolidated statements of financial position.
Reconciliation of
EBITDA
(Amounts in € millions)
(Amounts in € millions, except
as indicated otherwise)
For the three months
ended June, 30
Change
For the six months ended June,
30
Change
2021
2020
%
2021
2020
%
Net Profit
34.5
20.7
66.7
71.0
27.9
154.5
Income Taxes
13.4
7.1
88.7
18.6
10.6
75.5
Finance Income
(2.3)
(3.8)
(39.5)
(4.3)
(9.5)
(54.7)
Finance Expenses
2.4
3.4
(29.4)
5.6
13.6
(58.8)
Share of Profit of an Associate
(0.4)
(0.2)
100.0
(0.4)
(0.2)
100.0
Operating Profit
47.6
27.1
75.6
90.5
42.5
112.9
Depreciation and Amortization
13.4
13.1
2.3
26.4
25.7
2.7
EBITDA
61.0
40.2
51.7
116.9
68.2
71.4
Reconciliation of Reported and
Adjusted EBITDA, Operating Profit, Income Taxes, Net Profit and
Diluted EPS
(Amounts in € millions, except
per share data)
Three months ended June 30,
2021
EBITDA
Operating
Profit
Income Taxes
Net Profit
Diluted EPS
Reported
61.0
47.6
13.4
34.5
0.14
Adjusting items:
Restructuring and related charges (2)
0.7
0.7
0.2
0.5
0.00
Incentive Plans Settlement (3)
(7.8)
(7.8)
(4.0)
(3.8)
(0.02)
IPO costs reversed (booked as at March, 31
2021)(4)
(1.5)
(1.5)
(0.4)
(1.1)
(0.00)
Adjusted
52.4
39.0
9.2
30.1
0.12
Adjusted Margin
25.7%
19.1%
Six months ended June 30, 2021
EBITDA
Operating
Profit
Income Taxes
Net Profit
Diluted EPS
Reported
116.9
90.5
18.6
71.0
0.29
Adjusting items:
Restructuring and related charges (2)
1.0
1.0
0.3
0.7
0.00
Incentive Plans Settlement (3)
(9.9)
(9.9)
(4.8)
(5.1)
(0.02)
Tax Incentive - Patent Box(5)
-
-
5.5
(5.5)
(0.02)
Adjusted
108.0
81.6
19.6
61.1
0.25
Adjusted Margin
27.2%
20.6%
Three months ended June 30,
2020
EBITDA
Operating
Profit
Income Taxes
Net Profit
Diluted EPS
Reported
40.2
27.1
7.1
20.7
0.09
Adjusting items:
-
-
-
-
-
Adjusted
40.2
27.1
7.1
20.7
0.09
Adjusted Margin
24.8%
16.7%
Six months ended June 30, 2020
EBITDA
Operating
Profit
Income Taxes
Net Profit
Diluted EPS
Reported
68.2
42.5
10.6
27.9
0.12
Adjusting items:
-
-
-
-
-
Adjusted
68.2
42.5
10.6
27.9
0.12
Adjusted Margin
22.9%
14.2%
(2) During the three and the six months
ended June 30, 2021, the Group recorded € 0.7 million and € 1.0
million respectively in restructuring and related charges for the
consolidation of Balda plants in the U.S.
(3) During the three and the six months
ended June 30, 2021, the Group recorded € 7.8 million and € 9.9
million respectively, within general and administrative expenses,
as accrual reversal related to the early termination of incentive
plans aimed at a limited number of key managers.
(4) During the three months ended June 30,
2021, the Group reversed the IPO project costs prudentially accrued
at P&L as of March 31, 2021.
(5) During the first quarter 2021, the
Group reached an agreement with Italian Tax Agency regarding the
so-called “Patent box regime”, resulting in a retroactive € 5.5
million tax saving for the financial years 2016-2020.
Reconciliation of Revenue to
Constant Currency Revenue (6)
(Amounts in €
millions)
Three months ended June 30,
2021
Biopharmaceutical and Diagnostic
Solutions
Engineering
Reported Revenue
174.9
29.1
Effect of changes in currency translation
rates
4.0
-
Constant Currency Revenue
178.9
29.1
Six months ended June 30, 2021
Biopharmaceutical and Diagnostic
Solutions
Engineering
Reported Revenue
335.4
61.4
Effect of changes in currency translation
rates
9.8
(0.1)
Constant Currency Revenue
345.2
61.3
(6) Constant currency revenue translates
the current-period reported revenue of subsidiaries whose
functional currency is other than the Euro at the applicable
foreign exchange rates in effect during the comparable prior-year
period.
In the second quarter 2021, revenue on a
constant currency basis grew by 25.5% and by 50.2% in the
Biopharmaceutical and Diagnostic Solutions segment and in the
Engineering segment respectively.
In the first half 2021, revenue on a
constant currency basis grew by 31.3% and by 73.0% in the
Biopharmaceutical and Diagnostic Solutions segment and in the
Engineering segment respectively.
Reconciliation of 2021
Guidance for Operating Profit, EBITDA, Adjusted EBITDA, Adjusted
Net Profit and Adjusted Diluted (Unaudited)
(Amounts in € millions, except
per share data)
2021 Guidance
Operating Profit
Depreciation and
Amortization
EBITDA
Net Profit
Diluted EPS
Reported
155.5 – 160.5
58.5
214.0 – 219.0
113.0 – 122.8
0.45 – 0.49
Adjusting items
Restructuring and Related Charges
1.6
-
1.6
1.1
0.00
Incentive Plans Settlement
(9.9)
-
(9.9)
(5.1)
(0.02)
Tax Incentive – Patent Box
-
(5.5)
(0.02)
One-time Bonus to Employees
6.5
-
6.5
4.9
0.02
Adjusted
153.5 – 158.5
58.5
212.0 – 217.0
109.0 - 118.8
0.43 – 0.47
Cash Flow Items
(Unaudited)
(Amounts in €
millions)
For the six months ended June
30,
For the six months ended June
30,
2021
2020
Cash flow from operating activities
60.0
44.6
Cash flow used in investing activities
(46.7)
(43.5)
Cash flow from/ (used in) financing
activities
(29.8)
20.4
Net change in cash and cash
equivalents
(16.6)
21.6
Free Cash Flow
(Unaudited)
(Amounts in €
millions)
(Amounts in €
millions)
For the three months ended
June 30,
For the six months ended June
30,
2021
2020
2021
2020
Cash Flow from Operating Activities
54.1
53.9
60.0
44.6
Interest paid
1.1
1.3
2.3
2.4
Interest received
(0.2)
(0.1)
(0.3)
(0.4)
Purchase of property, plant, and
equipment
(22.3)
(17.3)
(44.1)
(41.4)
Purchase of intangible assets
(1.4)
(1.5)
(2.1)
(2.1)
Free Cash Flow
31.3
36.3
15.8
3.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210819005323/en/
Media Stevanato Group media@stevanatogroup.com
Investor Relations Lisa Miles
lisa.miles@stevanatogroup.com
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