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AVX Aircraft and L3 Technologies Unveil Leap-Ahead Design for U.S. Army’s Future Attack Reconnaissance Aircraft-Competitive Prototype

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The AVX Aircraft Company and L3 Technologies (NYSE:LLL) announced today their innovative compound coaxial helicopter (CCH) design, which is competing for Phase 1 of the U.S. Army Future Attack Reconnaissance Aircraft (FARA)-Competitive Prototype (CP) program competition.

The innovative design solution will exceed the reconnaissance and light-attack mission of FARA with a high-performing and survivable platform. AVX-L3 CCH will meet 100 percent of mandatory requirements and exceed 70 percent of them. The CCH design, combined with rigorous engineering and production processes and certifications, will deliver a safe, performance-driven, affordable aircraft capable of operating in highly contested airspace and degraded environments for extended periods.

This FARA-CP solution provides L3 and AVX an opportunity to demonstrate the agility and innovation that sets our team apart in support of the U.S. Armys modernization priorities, said Christopher E. Kubasik, Chairman, Chief Executive Officer and President of L3 Technologies. We are collaborating to deliver a prototype that provides powerful leap-ahead capability for our warfighters at an affordable life-cycle cost.

We are extremely pleased to reveal the design for this very important U.S. Army program, said Troy Gaffey, AVX CEO and Chief Engineer. AVX and L3 provide unique engineering design skills and manufacturing expertise that will provide the Army with an advanced, lethal and affordable reconnaissance and light-attack platform.

The companies next-generation single-engine design, paired with a wing for lift during high-speed forward flight, provides leap-ahead capabilities in a faster, lighter and more lethal aircraft that requires less maintenance through its life cycle, featuring:

  • A fly-by-wire, side-by-side cockpit optimized for pilot efficiency
  • Two ducted fans that provide forward and reverse thrust for both high-speed operation and agility
  • State-of-the-art modern open systems architecture (MOSA)-based digital backbone and avionics systems
  • A small form factor that meets C-17 loading and Navy DDG shipboard size limits through manually folding blades and wings
  • Modularity that provides for component reuse and a high degree of systems commonality across all of the U.S. Army capability sets

See more about the solution at https://youtu.be/nVdXsVGCyBQ.

The two companies announced their proposal in December 2018.

With headquarters in New York City and approximately 31,000 employees worldwide, L3 develops advanced defense technologies and commercial solutions in pilot training, aviation security, night vision and EO/IR, weapons, maritime systems and space. The company reported 2018 sales of $10.2 billion. To learn more about L3, please visit the companys website at www.L3T.com.

Founded in 2005, and headquartered in Fort Worth, Texas, AVX Aircraft Company employs helicopter industry veterans and executives with a combined experience of over 400 years across a spectrum of skill sets. AVX has developed and has patented a unique compound helicopter configuration with coaxial rotors and dual ducted fans that combine proven technologies to achieve greater aerodynamic efficiency, speed, range, fuel efficiency, HOGE and utility than conventional helicopters. www.avxaircraft.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as expects, anticipates, intends, plans, believes, estimates, will, could and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the companys Safe Harbor Compliance Statement for Forward-Looking Statements included in the companys recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.

AVX Aircraft Company
Mike Cox
817-899-7522

L3 Technologies
Lance Martin
254-749-5051

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JETRO Kyoto Announces to hold Kyoto Virtual Design Fair featuring with Konkai-Komyoji Temple

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– Visit Kyoto virtually and find products from Kyoto –

KYOTO, Japan, Jan. 27, 2021 /PRNewswire/ — In response to the situation lots of trade fairs have been cancelled due to COVID-19, JETRO Kyoto will hold a virtual exhibition with overseas buyers to sell products from Kyoto. JETRO Kyoto has just opened a special virtual exhibition site.

3D photographs had been taken at the venue of Konkai Komyoji Temple where the products of 45 companies from Kyoto are exhibited. Visitors from around the world can select products at the website while enjoying the autumn leaves and culture of Kyoto. Also, overseas buyers can arrange B2B meetings through Eventhub system. 

JETRO Kyoto will also organize a virtual tour to visit a factory of Kyo Kanoko Shibori, which is designated as a traditional craft by Japanese government on 9 of February 2021.

“Due to COVID-19, it is difficult to invite overseas buyers to Kyoto at this moment. However, at this virtual exhibition site, visitors can enjoy beautiful autumn which is the most beautiful season in Kyoto as well as find excellent design products from Kyoto. We are looking forward to your visit to Kyoto virtually!”, said Naofumi MAKINO, Chief Director, JETRO Kyoto.

Name: Kyoto Virtual Design Fair featuring with Konkai-Komyoji Temple

Date and time:
Virtual exhibition site opening January 27, 2021
B2B business meetings 1-19 February, 2021

Location: Online
Virtual Exhibition Site
Event Introduction Page

About JETRO:

JETRO, or the Japan External Trade Organization, is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. Originally established in 1958 to promote Japanese exports abroad, JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential. JETRO has 76 overseas offices in 55 countries worldwide, as well as 48 offices in Japan, including Kyoto office.

virtual exhibition site with products from Kyoto

 

Garden at Konkai Komyoji Temple

Photo – https://mma.prnewswire.com/media/1422765/image_1.jpg
Photo –  https://mma.prnewswire.com/media/1422766/image_2.jpg

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Sartorius Stedim Biotech with exceptionally strong growth in 2020 and a further increase in profitability

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AUBAGNE, France, Jan. 27, 2021 /PRNewswire/ — Sartorius Stedim Biotech, a leading partner of the biopharma industry, recorded exceptionally strong growth in 2020 that was driven by strong organic development, several acquisitions and additional momentum from business related to the coronavirus pandemic. According to preliminary figures, the Group closed the year with significant double-digit growth rates in sales revenue, order intake and earnings, recording further gains across all geographies.

“The pandemic year of 2020 was exceptional and very challenging also for our company. First and foremost, we are glad that we did not have to report any high numbers of infections or serious illnesses among our employees. At the same time, our strong business results once again underscore the strength and resilience of our strategy and business model. In this demanding environment, we were able to both achieve very substantial growth and close a few strategically very relevant acquisitions. And more than that: We are an essential contributor toward overcoming this pandemic; each and every day, we deliver essential products and technologies to vaccine manufacturers all over the world. A big thank you goes out to the entire international Sartorius Stedim Biotech team for mastering all these challenges and for performing a fantastic job,” said Joachim Kreuzburg, Chairman of the Board of Directors and CEO.

Looking at current year and to the future, Kreuzburg remains optimistic: “The pandemic is not yet over so protecting the health of our employees continues to be our top priority. In such an environment, even short-term forecasts are subject to increased uncertainty. From today's perspective, we expect continuous strong growth for 2021 and beyond. That's why we will accelerate and extend the expansion of our production capacities very significantly, above all at our major sites in Germany, Puerto Rico, and China. Moreover, we considerably raised our mid-term targets for 2025 and now plan to grow our sales to 4 billion euros.”

Business development of the Group

According to preliminary figures, Group sales revenue surged by 34.6 percent to 1,910 million euros in constant currencies (reported: +32.6 percent). Sartorius Stedim Biotech thus exceeded its forecast issued at the beginning of the year, which had projected an increase in sales revenue by 11 percent to 14 percent and had been raised during the year. This was particularly because of two effects: In addition to strong organic growth, consolidation of the most recent acquisitions contributed close to 6 percentage points to non-organic expansion. Furthermore, the preparations of several biopharmaceutical customers to manufacture coronavirus vaccines and Covid-19 therapeutics also had a positive impact. The influence of these pandemic-related effects on consolidated growth was a good 12 percentage points.

Order intake1 grew even more dynamically than sales revenue and was up 56.7 percent in constant currencies to 2,381 million euros (reported: +54.3 percent). Pandemic-related orders accounted for close to 19 percentage points of growth.

Underlying EBITDA1, the Group's most important earnings indicator, also rose very significantly and overproportionately to sales revenue by 43.5 percent to 605 million euros. The respective margin climbed year over year from 29.3 percent to 31.7 percent. Economies of scale primarily played a role in this substantial increase in profitability, yet the underproportionate development of costs in some areas, i. e. due to less business travel and fewer hires in non-production units also added to this effect. The most recent acquisitions had a slightly positive effect on the earnings margin, while currency headwinds had a somewhat dilutive impact. Relevant net profit1 rose by 45.9 percent to 384 million euros. Underlying earnings per share surged by 45.9 percent from 2.85 euros a year earlier to 4.16 euros.

Business development of the regions

The Group increased its revenues by double digits in all three geographies yet again. Particularly in the regions of EMEA2 and the Americas, Sartorius Stedim Biotech benefited from additional demand in connection with the manufacture of coronavirus vaccines and Covid-19 therapeutics. Revenue in the Americas, which accounts for about 35 percent of total Group sales, rose sharply, also due to the acquisitions, by 34.0 percent to 670 million euros. Sales revenue in the EMEA2 region that contributes the highest share of around 40 percent to total Group revenue amounted to 761 million euros, up 33.0 percent. Generating around 25 percent of Group sales, the Asia | Pacific region recorded sales revenue totaling 479 million euros, a gain of 38.3 percent. (All sales revenue growth figures in constant currencies)

Key financial indicators

Sartorius Stedim Biotech invested substantially in expanding its capacity in 2020 in order to meet high demand. The ratio of capital expenditures (CAPEX) to sales revenue1 was within the expectations at 8.3 percent (previous year: 9.4 percent). Equity rose at year-end from 1,189 million euros to 1,483 million euros. The equity ratio of the Group continued to remain at a solid level of 48.3 percent even after closing of the acquisitions and the increased balance sheet total due to a significantly expanded cash position (December 31, 2019: 64.4 percent). Following the acquisitions, net debt to underlying EBITDA1 increased as expected, from 0.3 at year-end 2019 to 0.8 for the period ended December 31, 2020.

More than 7,500 employees

At the end of 2020, the Group employed 7,566 people worldwide. Compared to the prior-year headcount, this number was thus 1,343 higher. Besides the acquisitions, the increase resulted primarily from hiring additional production staff at the company's manufacturing sites with especially high capacity utilization. At the end of the reporting period, around 5,250 people were employed in the EMEA2 region, more than 1,200 in the Americas and about 1,100 in the Asia | Pacific region.

Forecast for 2021

Sartorius Stedim Biotech plans to grow profitably in 2021 as well. Consolidated sales revenue is thus projected to increase by about 20 percent to 26 percent. Initial consolidation of the acquisitions is expected to contribute about 5.5 percentage points to this growth, and the impact of the pandemic-related businesses on Group revenue, which is difficult to precisely estimate at present, could amount to up to 7 percentage points. Regarding profitability, the company forecasts that its underlying EBITDA1 margin will be about 32.0 percent, up from 31.7 percent a year earlier, with a negligible impact of the acquisitions on profitability. Due to very high organic growth, Sartorius Stedim Biotech is extending and accelerating the expansion of production capacities. Therefore, the CAPEX ratio is expected to be around 15 percent (previous year: 8.3 percent).

All forecasts are based on constant currencies, as in the past years. In addition, the company assumes that the global economy will increasingly recover as the current year progresses and that supply chains will remain stable.

Mid-term targets up to 2025 increased

As early as 2018, management outlined its strategy and long-term ambition for the period of 2020 to 2025. The 2025 targets have now been raised, given the strong results achieved in 2020 and the resulting increase in the baseline values, as well as expectations of future organic growth.

Accordingly, Sartorius Stedim Biotech now plans to increase its consolidated sales revenue to about 4 billion euros in the five-year period up to 2025 (previous target: around 2.8 billion euros). The company intends to achieve this increase primarily through organic growth as well as additionally by acquisitions. The Group's underlying EBITDA1 margin is forecasted to rise to around 33 percent (former guidance: around 30 percent).

These projections are based on the assumption that on average the margins of future acquisitions will initially be somewhat below and, after integration, at a level comparable to those of the Group's existing businesses, and that there will be no relevant changes in the key currency exchange rates.

Management points out that the dynamics and volatilities in the life science and biopharma sectors have increased over the past years and the coronavirus pandemic has further amplified this trend, so that multi-year forecasts show even higher uncertainties than usual.

1 Sartorius Stedim Biotech publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry

  • Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
  • Order intake: all customer orders contractually concluded and booked during the respective reporting period
  • Relevant / underlying net profit: profit for the period after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and a normalized tax rate
  • Underlying earnings per share: relevant / underlying net profit for the period divided by the number of shares outstanding
  • Ratio of net debt to underlying EBITDA: quotient of net debt and underlying EBITDA over the past 12 months, including the pro forma amount contributed by acquisitions for this period
  • CAPEX ratio: investment payments in relation to sales revenue for the same period

2 EMEA = Europe, Middle East, Africa

This press release contains forward-looking statements about the future development of the Sartorius Stedim Biotech Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such statements. Sartorius Stedim Biotech assumes no liability for updating such statements in light of new information or future events.

This is a translation of the original French-language press release. Sartorius Stedim Biotech shall not assume any liability for the correctness of this translation. The original French press release is the legally binding version.

Follow Sartorius Stedim Biotech on Twitter @Sartorius_Group and on LinkedIn.

Conference call

Dr. Joachim Kreuzburg, Chairman of the Board and CEO of the Sartorius Stedim Biotech Group, will discuss the company's business results with analysts and investors on January 27, 2021, at 3:30 p.m. Central European Time (CET) in a teleconference. You may register by clicking on the following link: https://78449.choruscall.com/dataconf/productusers/sar/mediaframe/42744/indexl.html

The presentation slides will be available on the same day starting at 2:30 p.m. CET for viewing on our website at:

https://www.sartorius.com/en/company/investor-relations/sartorius-stedim-biotech-sa-investor-relations

Current image files

https://www.sartorius.com/en/company/newsroom/downloads-publications

Financial calendar

February 18, 2021                Publication of Annual Report 2020
March 24, 2021                    Virtual Annual Shareholders' Meeting
April 21, 2021                       Publication of first-quarter figures (January to March 2021)
July 21, 2021                         Publication of first-half figures (January to June 2021)
October 20, 2021                Publication of nine-month figures (January to September 2021)

Preliminary key figures for the full year of 2020

In millions of €
unless otherwise specified

2020

2019

∆ in %
Reported

∆ in %
cc1

Order Intake and Sales Revenue

Order intake

2,381.0

1,543.5

54.3

56.7

Sales revenue

1,910.1

1,440.6

32.6

34.6

–  EMEA

761.0

575.1

32.3

33.0

–  Americas

670.2

511.6

31.0

34.0

–  Asia | Pacific

478.9

353.8

35.4

38.3

Results

EBITDA2

604.7

421.5

43.5

EBITDA margin2 in %

31.7

29.3

Net profit3

383.8

263.0

45.9

Earnings per share3 in €

4.16

2.85

45.9

1 In constant currencies

2 Underlying EBITDA = earnings before interest, taxes, depreciation and amortization, and adjusted for extraordinary items

3 Relevant / underlying net profit = net profit after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and normalized tax rate

 

Reconciliation

In millions of €,
unless otherwise specified 

2020

2019

EBIT (operating result)

471.8

331.8

Extraordinary items

32.0

16.8

Depreciation and amortization

100.9

72.8

Underlying EBITDA

604.7

421.5

In millions of €,
unless otherwise specified

2020

2019

EBIT (operating result)

471.8

331.8

Extraordinary items

32.0

16.8

Amortization | IFRS 3

26.3

13.9

Normalized financial result1

-7.8

-5.1

Normalized income tax (26%)2

-135.8

-92.9

Underlying net result

386.4

264.5

Non-controlling interest

-2.7

-1.5

Underlying net result after non-controlling interest                         

383.8

263.0

Underlying earnings per share (in €)

4.16

2.85

1 Financial result excluding fair value adjustments of hedging instruments and currency effects relating to financing activities and change in valuation of earn-out liability

2 Normalized income tax based on the underlying profit before taxes and non-cash amortization

 

A profile of Sartorius Stedim Biotech

Sartorius Stedim Biotech is a leading international partner of the biopharmaceutical industry. As a total solutions provider, the company helps its customers to manufacture biotech medications safely, rapidly and economically. Headquartered in Aubagne, France, Sartorius Stedim Biotech is quoted on the Eurolist of Euronext Paris. With its own manufacturing and R&D sites in Europe, North America and Asia and an international network of sales companies, Sartorius Stedim Biotech has a global reach. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies. In 2020, the company employed more than 7,500 people, and earned sales revenue of 1,910 million euros according to preliminary figures.

Contact:
Petra Kirchhoff
Head of Corporate Communications and Investor Relations
+49 (0)551.308.1686
[email protected]

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/sartorius-stedim-biotech-with-exceptionally-strong-growth-in-2020-and-a-further-increase-in-profitability-301215852.html

SOURCE Sartorius Stedim Biotech S.A.

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Sartorius closes 2020 with strong growth to well over 2 billion euros and a further increase in profitability

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GOTTINGEN, Germany, Jan. 27, 2021 /PRNewswire/ — The life science group Sartorius recorded high growth according to preliminary figures in 2020 due to strong organic development, several acquisitions and the additional momentum from business related to the coronavirus pandemic. The Group closed the year with significant double-digit growth rates in sales revenue, order intake1 and earnings, reporting further gains in both divisions and across all geographies.

Sartorius_Logo

“The pandemic year of 2020 was exceptional and very challenging for Sartorius as well. First and foremost, we are glad that we did not have to report any high numbers of infections or serious illnesses among our employees to report. Moreover, in a very intense and demanding environment, we also experienced the strongest year of growth in the company's recent history and were simultaneously able to complete several strategically important acquisitions,” said Executive Board Chairman and CEO Joachim Kreuzburg. “Our strategy and business model proved not only to be particularly resilient in the face of the pandemic. Sartorius has also been contributing directly toward overcoming this pandemic: each and every day, we deliver essential products and technologies to vaccine manufacturers all over the world for producing coronavirus vaccines. Our employees mastered considerable challenges in the past year. A big thank you goes out to the entire international Sartorius team for the fantastic job they did.”

“Looking at the current year and ahead to the future, Kreuzburg remains generally optimistic: “The pandemic is still not over so protecting the health of our employees continues to remain our top priority. In this environment, even short-term forecasts are subject to increased uncertainty. Yet from today's perspective, we expect strong growth for 2021 and beyond. That's why we will accelerate and extend the expansion of our production capacities once again, above all at our sites in Germany, Puerto Rico, and China. Moreover, we considerably raised our mid-term targets for 2025 and now plan to grow our sales to about 5 billion euros.”

Business development of the Group

According to preliminary figures, Group sales revenue surged by 30.2 percent to nearly 2,336 million euros in constant currencies (reported: +27.8 percent). Sartorius thus exceeded its forecast issued at the beginning of the year, which had projected an increase in sales revenue by 10 percent to 13 percent and had been raised during the year. Specifically, this was because of two effects: In addition to strong organic growth, consolidation of the most recent acquisitions contributed a good 7 percentage points to non-organic expansion. Furthermore, the preparations of several biopharmaceutical customers to manufacture coronavirus vaccines and Covid–19 therapeutics also had a positive impact. The influence of these pandemic-related effects on consolidated growth was a good 8 percentage points.

Order intake1 grew even more dynamically than sales revenue and was up 49.0 percent in constant currencies to 2,836 million euros (reported: +46.2 percent). Pandemic-related orders accounted for close to 14 percentage points of growth.

Underlying EBITDA1 also rose very significantly, showing an overproportionate increase in relation to sales revenue, by 39.6 percent to 692 million euros. The respective margin climbed year over year from 27.1 percent to 29.6 percent. Economies of scale in the Bioprocess Solutions Division primarily played a role in this substantial increase in profitability, yet the underproportionate development of costs in some areas as a result of the pandemic also added to this effect, such as the significant reduction of business travel as well as fewer new hires in non-production areas. The most recent acquisitions had a slightly positive effect on the earnings margin, while currency headwinds had a somewhat dilutive impact. Relevant net profit1 for the Group rose in relation to sales, by 42.9 percent to 299 million euros. Underlying earnings per ordinary share were 4.37 euros (previous year: 3.06 euros) and per preference share, 4.38 euros (previous year: 3.07 euros).

Business development of the regions

The Group increased its revenues by double digits in all three geographies yet again. Particularly in the regions of EMEA2 and the Americas, Sartorius benefited from additional demand in connection with the development and manufacture of coronavirus vaccines and Covid-19 therapeutics. Revenue in the Americas, which accounted for about 35 percent of total Group sales, rose sharply, also because of the acquisitions, by 32.8 percent to 812 million euros. Sales revenue in the EMEA2 region that contributed the highest share of around 40 percent to total Group revenue amounted to 935 million euros, up 28.4 percent. Generating around 25 percent of Group sales, the Asia | Pacific region recorded sales revenue totaling 588 million euros, a gain of 29.6 percent. (All figures in sales revenue growth in constant currencies)

Key financial indicators

Sartorius invested substantially in expanding its capacity in 2020 in order to meet high demand. The ratio of capital expenditures (CAPEX) to sales revenue1 remained in the double digits, at 10.3 percent, despite strong sales growth (previous year: 12.3 percent). Equity rose at year-end from 1,093 million euros to 1,402 million euros. The equity ratio of the Group continued to remain at a solid level of 29.9 percent even after closing of the acquisitions and the increased balance sheet total due to a significantly expanded cash position (December 31, 2019:  38.1 percent). Net debt to underlying EBITDA1 increased as expected, from 2.0 at year-end 2019 to 2.6 for the period ended December 31, 2020.

More than 10,600 employees

At the end of 2020, the Group employed 10,637 people worldwide. Compared to the prior-year headcount, this number was thus 1,601 higher. The increase resulted primarily from hiring additional production staff at the company's manufacturing sites with especially high capacity utilization. At the end of the reporting period, around 7,100 people were employed in the EMEA2 region, more than 1,900 in the Americas and about 1,600 in the Asia | Pacific region.

Business development of the divisions

Both divisions contributed significant rates to sales growth. The Bioprocess Solutions Division that offers a wide array of innovative technologies for manufacturing biopharmaceuticals expanded at an exceptionally dynamic rate in the reporting year, with sales up 34.4 percent to 1,783 million euros (reported: +32.0 percent). In addition to strong organic growth across all product categories and geographies, pandemic effects added up to an estimated 12 percentage points of which the majority was attributable to additional sales in connection with the ramp-up of production capacities for coronavirus vaccines and Covid–19 therapeutics. Close to 5 percentage points of the division's growth was due to consolidation of the most recent acquisitions.

Order intake1 developed even more strongly than sales revenue, soaring 56.4 percent in constant currencies (reported: +53.5 percent) to 2,238 million euros, with the pandemic effects described above having a positive impact of around 17 percentage points.

Underlying EBITDA1 of the Bioprocess Solutions Division was 576 million euros, up 46.5 percent very significantly above the prior-year figure of 393 million euros3. Due to economies of scale and pandemic-related underproportionate cost development to some extent, the division's respective margin was up year over year from 29.1 percent3 to 32.3 percent. Currency headwinds had a slightly negative impact, while the most recent acquisitions did not have any significant effect on the division's earnings margin.

The Lab Products & Services Division specializing in equipment and technologies for life science research and pharmaceutical laboratories achieved a sales increase in 2020 of 18.1 percent to 553 million euros (reported: +16.1 percent). Acquisitions contributed about 15 percentage points; the net impact of various countervailing pandemic effects added up to minus 1 percentage point. Thus, the division was confronted in the first half with an extremely challenging economic environment, especially in China and the USA, due to the pandemic. This led to a decline in sales revenue in some product segments. In the second half, rebound and catch-up effects increasingly set in. In particular, demand was high for products such as diagnostic membrane and pipette tips used as part of coronavirus testing. The division's bioanalytics portfolio that includes the protein analytical business acquired from Danaher also grew dynamically. Order intake rose even more strongly than sales revenue, climbing 26.4 percent (reported: +24.1 percent) to 598 million euros.

Underlying EBITDA1 for the Lab Products & Services Division rose by 13.2 percent from 103 million euros3 a year earlier to 116 million euros in the reporting year; the corresponding margin reached 21.0 percent relative to 21.6 percent3 in the previous year. The main reason for the slight decline was the weaker capacity utilization at some plants in the first half of the year due to the pandemic, while the most recent acquisitions had a positive impact of a good 2 percentage points on the division's margin. Exchange rates did not have any significant effect on the division's earnings margin.

Forecast for 2021

Sartorius plans to grow profitably in 2021 as well. Consolidated sales revenue is thus projected to increase by about 19 percent to 25 percent. Initial consolidation of the acquisitions is expected to contribute about 5.5 percentage points to this growth, and the impact of the pandemic-related businesses on Group revenue is difficult to estimate at the present time and is likely to amount to up to 6 percentage points. Regarding profitability, the company forecasts that its underlying EBITDA1 margin will be about 30.5 percent, up from 29.6 percent a year earlier. Due to dynamic organic growth, Sartorius is extending and accelerating the expansion of production capacities and its digital infrastructure. As a result, the CAPEX ratio is expected to be around 15 percent (previous year: 10.3 percent).

For the Bioprocess Solutions Division, the Executive Board expects sales to grow between 22 percent and 28 percent, with consolidation of the most recent acquisitions likely to contribute about 6 percentage points and the pandemic effects up to 8 percentage points. For the division's underlying EBITDA1 margin, management forecasts a moderate increase to around 33 percent (previous year: 32.3 percent) after the underproportionate cost development as a result of the pandemic had additionally increased this margin in the prior year, especially in this division, and now that corresponding effects resulting from pent-up demand are included in this projection.

The Lab Products & Services Division is projected to increase its sales revenue by 10 percent to 16 percent, with the most recent acquisitions expected to contribute around 5 percentage points to growth. Pandemic effects are not anticipated unless laboratories will be closed again as part of potentially very extensive lockdowns. For the division's underlying EBITDA1 margin, a substantial increase to about 23.0 percent is forecasted (previous year: 21.0 percent).

All forecasts are based on constant currencies, as in the past years. In addition, the company assumes that the global economy will increasingly recover as the current year progresses and that supply chains will remain stable.

Mid-term targets up to 2025 updated

As early as 2018, management presented its strategy and long-term targets for the period of 2020 to 2025. The targets for 2025 have now been updated and partly raised, given the results achieved in the Bioprocess Solutions Division in 2020 and the resulting increase in the baseline values, as well as expectations of future organic growth in this segment.

Accordingly, Sartorius now plans to increase its consolidated sales revenue to about 5 billion euros in the five-year period up to 2025 (previous target: around 4 billion euros). The company intends to achieve this increase in both divisions primarily through organic growth as well as additionally by acquisitions. The Group's underlying EBITDA1 margin is forecasted to rise to around 32 percent (former guidance: around 28 percent). For the Bioprocess Solutions Division, the company now projects sales revenue of around 3.8 billion euros (former guidance: approximately 2.8 billion euros), with an underlying EBITDA1 margin of around 34 percent (former guidance: around 30 percent). The outlook for the Lab Products & Services Division remains unchanged, with sales revenue forecasted at around 1.2 billion euros and an underlying EBITDA1 margin at about 25 percent.

These projections are based on the assumption that on average the margins of future acquisitions will initially be somewhat below and, after integration, at a level comparable to those of the Group's existing businesses, and that there will be no relevant changes in the key currency exchange rates.

Management points out that the dynamics and volatilities in the life science and biopharma sectors have increased over the past years and the coronavirus pandemic has further amplified this trend, so that multi-year forecasts show even higher uncertainties than usual.

  1. Sartorius publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.
    •  Order intake: all customer orders contractually concluded and booked during the respective reporting period
    •  Relevant / underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items
    •  Relevant net profit: profit for the period after non-controlling interest, adjusted for extraordinary items and non-cash amortization, as well as based on the normalized financial result and the normalized tax rate
    •  Ratio of net debt to underlying EBITDA: quotient of net debt and underlying EBITDA over the past 12 months, including the pro forma amount contributed by acquisitions for this period
    •  CAPEX ratio: investment payments in relation to sales revenue for the same period
  2. EMEA = Europe, Middle East, Africa
  3. Sales revenues and margins of the divisions in the comparable period adjusted to reflect the reallocation of two small product segments

This press release contains forward-looking statements about the future development of the Sartorius Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such statements. Sartorius assumes no liability for updating such statements in light of new information or future events. This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version.

Follow Sartorius on Twitter @Sartorius_Group and on LinkedIn.

Conference call

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, and Rainer Lehmann, Executive Board member and CFO, will discuss the company's business results with analysts and investors on January 27, 2021, at 3:30 p.m. Central European Time (CET) in a teleconference. You may register by clicking on the following link:
https://78449.choruscall.com/dataconf/productusers/sar/mediaframe/42744/indexl.html

The presentation will be available on the same day starting at 2:30 p.m. CET, for viewing on our website at:
https://www.sartorius.com/en/company/investor-relations/sartorius-ag

Current image files
https://www.sartorius.com/en/company/newsroom/downloads-publications

Financial calendar

February 18, 2021               Publication of Annual Report 2020
March 26, 2021                   Virtual Annual Shareholders' Meeting
April 21, 2021                      Publication of first-quarter figures (January to March 2021) 
July 21, 2021                       Publication of the first-half figures (January to June 2021)
October 20, 2021                Publication of nine-month figures (January to September 2021)

 

Preliminary key performance indicators for fiscal 2020

Sartorius Group

 Bioprocess Solutions1

Lab Products & Services1

In millions of €, unless otherwise specified

2020

2019

Δ in % Reported 

Δ in % cc2

2020

2019

Δ in % Reported

Δ in % cc2

2020

2019

Δ in % Reported

Δ in % cc2

Sales Revenue and Order Intake

Order intake

2,836.3

1,939.5

46.2

49.0

2,238.1

1,457.6

53.5

56.4

598.2

481.9

24.1

26.4

Sales revenue

2,335.7

1,827.0

27.8

30.2

1,782.6

1,350.5

32.0

34.4

553.0

476.5

16.1

18.1

 –  EMEA3

935.1

733.4

27.5

28.4

698,5

524.8

33.1

33.8

236.6

208.6

13.4

14.7

 –  Americas3

812.2

629.9

28.9

32.8

651.3

501.1

30.0

33.7

160.9

128.7

25.0

29.1

 –  Asia | Pacific3

588.4

463.7

26.9

29.6

432.9

324.5

33.4

36.5

155.5

139.2

11.7

13.4

Earnings

EBITDA4

692.2

495.8

39.6

575.9

393.1

46.5

116.3

102.7

13.2

EBITDA margin4 in %

29.6

27.1

32.3

29.1

21.0

21.6

Net profit for the period5

299.3

209.4

42.9

Financial Data per Share

Earnings per ordinary share5 in €

4.37

3.06

43.0

Earnings per preference share5 in €

4.38

3.07

42.9

 

1 Sales revenues and margins of the divisions in the comparable period adjusted to reflect the reallocation of two small product segments

2 In constant currencies abbreviated as “cc”

3 Acc. to the customer's location

4 Relevant / underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items

5 After non-controlling interest, adjusted for extraordinary items and non-cash amortization, as well as based on the normalized financial result and the normalized tax rate

A profile of Sartorius

The Sartorius Group is a leading international partner of life science research and the biopharmaceutical industry. With innovative laboratory instruments and consumables, the Group's Lab Products & Services Division concentrates on serving the needs of laboratories performing research and quality control at pharma and biopharma companies and those of academic research institutes. The Bioprocess Solutions Division with its broad product portfolio focusing on single-use solutions helps customers to manufacture biotech medications and vaccines safely and efficiently. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions complementary technologies. In fiscal 2020, the company earned sales revenue of some 2.34 billion euros according to its preliminary figures. At the end of 2020, nearly 11,000 people were employed at the Group's approximately 60 manufacturing and sales sites, serving customers around the globe. https://www.sartorius.com/en

Contact:
Petra Kirchhoff    
Head of Corporate Communications
+49 (0)551 308 1686
[email protected]    

Cision View original content:http://www.prnewswire.com/news-releases/sartorius-closes-2020-with-strong-growth-to-well-over-2-billion-euros-and-a-further-increase-in-profitability-301215854.html

SOURCE Sartorius AG

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