Sartorius announced expected Q2/H1 21 earnings, which had little element of surprise following the preliminary announcement on 6 July. H1 sales (+60.1%), EBITDA margins (34.1%) as well as guidance (FY21 top line +45%, margin at 34%) were in line with the preliminary numbers. The segmental results (BPS +62.6% with 36.3% EBITDA margin; LPS +52% with 26.2% EBITDA margin) were also broadly in line with the preliminary numbers.
We do not foresee any significant change to our estimates or target pric
Companies: Sartorius AG Pref
Sartorius Q1 21 numbers trumped estimates. Sales were up 61.6% on a cc basis – driven by both bioprocessing solutions (+61.4%) and lab products and services (+62.3). Order intake (+89.2%) implies further acceleration in the near term. EBITDA was up by 91.2%, with the associated margin expanding by 630bp.
FY21 guidance was unchanged: revenue growth of 35% and EBITDA margin of 32%. We will upgrade our estimates and target price to factor in the strong performance.
Sartorius reported street-beating FY20 numbers with 30.2%/49% growth in revenue/order book, respectively. Growth was largely driven by bioprocessing (+34.4%/+56.4% revenue/order growth). EBITDA came in at €692.2m (+39.6%), with the associated margin at 29.6%. For FY21, top-line growth is expected at 19-25% with the EBITDA margin at about 30.5%. Sartorius also raised its mid-term outlook – FY25 revenue of €5bn (vs €4bn previously) and EBITDA margin of 32% (vs 28% earlier). We will upgrade our est
Sartorius reported stronger than expected Q3 20 numbers, as sales grew by 39.5% to €623.2m, driven by 44.1% growth in bioprocessing and 26.2% growth in lab products. EBITDA was up 58.1% to €195.1, with the associated margin at 31.3% (+450 bp), benefitting from operating leverage. Management now expects FY20 growth at the top end/above the previous guidance of 22%-26% and EBITDA margin at 29.5%. We will upgrade our estimates to factor in the strong Q3 showing and sustained bioprocessing tailwinds
Sartorius reported solid Q2 20 numbers, with sales rising by 19.2% to €546.9m and the EBITDA margin at 28.5%, both ahead of our estimates as well as consensus. Momentum was driven by strength across Bioprocessing Solutions (BPS, +20.2%) and Lab Products (LPS, +16.1%).
Management upgraded its FY20 expectations (growth of 22-26% vs 15-19% earlier; EBITDA margin at 28.5% vs 27.5% previously), thanks to COVID-19-driven momentum for BPS.
Following the strong performance, we will be upgrading our es
Sartorius reported strong Q1 20 numbers (16.5% growth, 27% EBITDA margin), driven by Bioprocess solutions (BPS). Management now expects FY 20 topline growth of 15-19% (vs 10-13% earlier) with unchanged EBITDA margin expectations (27.5%).
The COVID-19 impact has so far been neutral, with BPS benefiting from stocking tailwinds and LPS hurt by worsening macro conditions. In light of the ongoing uncertainties, the firm may reduce its FY19 dividend proposal.
Factoring in the strong performance, we
Sartorius reported largely in-line Q4 19 numbers. Sales came in at €471.2m (+12.9%cc), driven by bioprocess solutions (+14.4%). Lab Products and Services (+8.7%) also ended the year on a high. EBITDA came in at €133.8m with the associated margin at 28.4%.
Management expects FY 20 topline growth of 10-13%, EBITDA margin of 27.5% and capex at 10% of sales. Following the largely in-line results, we do not expect any significant changes to our estimates.
Sartorius reported strong Q3 19 numbers. Revenue was up by 14.7% – driven by Bioprocess Solutions (+17%) and supported by Lab Products and Services (+8.3%). EBITDA came in at €123.7m (margin +30bp to 26.8%). Management upgraded its FY 19 top-line growth guidance to the upper end of the earlier 10-14% range while re-iterating its EBITDA margin expectations (slightly above 27%). The company also announced the acquisition of parts of Danaher’s life science business. Following the strong performance
Sartorius reported strong Q2 19 results – beating our estimates as well as the consensus. Sales were up 15.1%, on a cc basis, driven by Bioprocess Solutions (+20.5%), which more than offset the weakness in Lab Products and Services (+0.6%). EBITDA came in at €123.5m (margin +130bp to 26.9%). Management upgraded its FY 19 top-line growth guidance to 10-14% (vs 7-11% earlier) while re-iterating its EBITDA margin expectations (27%). Following the strong Q2 performance, we will be upgrading our esti
Sartorius reported strong Q1 19 numbers – beating estimates on the top-line as well as the bottom-line. The bioprocess solutions business, up ~21%, was the clear growth driver, more than offsetting the softness in the lab products segment (5.9%). Looking ahead, management reiterated its FY 19 guidance: 7-11% top-line growth and an EBITDA margin of 27%. Factoring in the strong performance, we will be upgrading our estimates marginally. However, our recommendation will remain unchanged.
The recently-announced medium-term targets for 2025 are surprisingly ambitious, compelling us to reconsider our stance on the stock. The targets speak giant numbers (14%/15.5% CAGR sales/EBITDA between 2017 and 2025) and reflect a robust outlook for Sartorius’ underlying markets. Biosimilars are expected to play a key role and so are China and the US. We acknowledge management’s optimism and bump up our out-year revenue growth/EBITDA growth rates from 8%/10% to 13.5%/15%. Our recommendation chan
Coming in the wake of a profit warning issued on 16 October, Sartorius’ Q3 17 results were expectedly weak with both top-line and profitability trending materially below ours and the market expectations (both top-line and profitability). Net sales grew 3.3% in cc to €339.5m (flat on a reported basis) vs. our expectation of 7-8% growth. This included a good 4.6ppt contribution from acquisitions (Essen Bioscience and Vericyte), so that organic growth was effectively negative (-1.4% to be precise).
Sartorius reported its Q1 17 results slightly ahead of the Street’s expectations, driven by a combination of strong organic growth and higher than expected M&A contribution in the Lab Products division (IntelliCyt, ViroCyt and Essen Bioscience). Net sales increased 13.6% yoy (12.2% in cc) to €343.1m (vs. our expectation of c.€337m) while adjusted EBITDA margin rose 70bp to 24.7%. At the segmental level, strong double-digit growth in the Lab Product segment (21% cc growth, of which 11% was contri
We are initiating coverage on Sartorius (market cap. of c.€4.8bn and a free float of c.42%) with a “Reduce”
recommendation and a target price of €63.1 per share (c.2% downside). Sartorius is one of the top five
players in the high growth €5-6bn oligopolistic bioprocessing industry (the top-five players together control
>80% of the total market) with a market share of 15-20%. The industry presents robust growth opportunities
and is expected to grow at 9-10% pa over the next five years, driven
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EKF has delivered another strong set of results, with the step change in the scale of the business firmly consolidated. H1 revenues increased 46.5% driven by an ongoing recovery in the core business and strong demand from a number of public and private sector customers for sample collection devices. The outlook remains positive and progress is being made against the new strategy set out earlier in the year. We upgrade our FY21 revenue forecasts by 7% and EBITDA by 13% noting this still implies a
Companies: EKF Diagnostics Holdings plc
After the exceptional trading conditions in China last year comes the hangover. A further softening in pork prices highlighted at the July trading statement has led to conditions in China continuing to ease in Q2. Revenues YTD in that market are now significantly below management expectations and down YoY. Whilst some recovery is expected in H2, there looks to be much to do to make up the shortfall. More encouragingly, trading in the group’s other markets remains in line with expectations. We re
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Momentum is building in Circassia, with the recovery from the pandemic gaining traction and actions taken by management to focus the business having a material impact on the bottom line. Having already upgraded in July, we are upgrading forecasts again today to reflect the further progress on reducing fixed costs. We now expect the group to trade close to EBITDA breakeven this year and for significantly improved profitability and cash generation from next year onwards.
Companies: Circassia Group PLC
Companies: SourceBio International Plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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genedrive has raised £6m with up to £4.5m possible via an Open Offer to launch its point-of-care (POC) antibiotic-induced hearing loss (AIHL) test in September, complete development and launch of its POC molecular COVID-19 test, and support commercialisation and further product development activities. Both new tests will utilise the Genedrive® POC instrument platform, which is a proven molecular diagnostics (MDx) platform validated by the US Department of Defense (DoD). The AIHL test could suppo
Companies: Genedrive Plc
Interims show a sharp recovery in revenues (+63% YoY) and a continued improvement into H2, albeit with the caveat that visibility remains limited in the short term. The building blocks are in place for a strong growth story, but this remains dependent on elective surgery volumes normalising over a consistent period. At the moment, the recovery is somewhat stop-start in nature, hence we cautiously reinstate FY21 estimates, but leave outer years withdrawn for now.
Companies: Surgical Innovations Group plc
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
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Trading has strengthened significantly since restrictions eased in April, especially in the UK. UK brand sales are now up 64% YTD (+18% vs 2019). Further distribution gains are being made, including in the USA and online sales have tripled, albeit off a small base. Net cash has increased to £6.6m (Dec’20, £4.9m). Risk appears to lie to the upside vs prudent forecasts. The re-rating looks well supported to us, and we look forward to the H1 update in July
Companies: Warpaint London PLC
EKF recently unveiled a strategy for driving growth in the business over the next few years. It will be led by a refreshed executive management team and board, building on renewed strength in the core business and opportunities in developing wider contract development and manufacturing activities. Accretive bolt-on acquisitions will also be considered, all funded by the current strong net cash position of the group. Overall, the ambition is to deliver sustainable double-digit EBITDA growth into
Fusion showed solid FY21 revenue growth of 7% to £4.2m (vs £3.9m), particularly as client projects were delayed by the COVID-19 pandemic. Operating loss rose marginally from £1.1m to £1.2m (reported net profit in FY21 was distorted by a £1.7m non-cash, accounting charge). This reflects strong R&D investment in the new OptiMAL service; this is due to gain commercial revenues in FY23. Fusion should then experience narrowing losses on the trajectory to profitability. After a £3m gross capital raise
Companies: Fusion Antibodies Plc
Maiden interim results are slightly ahead of our expectations with a better performance on cash preservation. This should be taken positively in light of the strong strategic progress in the period. The validation study of Clarava and Tuteva is on track to complete by year-end 2021 and, pending the outcome of the data in Q1 2022, be commercially launched in 2022. We have made no headline forecast changes, but the Company is well-placed to execute against our FY’21E estimates and is fully funded
Companies: Verici Dx Plc
Medical device companies are gradually seeing a rebound in their business after the focus of healthcare is slowly shifting from Covid-19 back to normalcy. Stryker Corporation is one of the top-most high-tech names within this domain that has performed exceptionally well on the financial front on account of the recovery in surgical volumes in the U.S. and abroad. It is worth highlighting that Stryker’s product portfolio has grown exceptionally well over the years, both organically as well as thro
Companies: Stryker Corporation (SYK:NYSE)Stryker Corporation (SYK:NYS)
Doctor Care Anywhere (DOC) has delivered on another IPO commitment, entering the Australian telehealth market with its acquisition of GP2U Telehealth for A$11m. The COVID-19 pandemic has created permanent structural changes in Australian healthcare, which has accelerated the adoption of telehealth, particularly for its large rural population where access to quality healthcare has historically been limited. This acquisition gives DOC a foothold in the market, where management’s experience could a
Companies: Doctor Care Anywhere Group PLC Shs Chess Depository Interests Repr 1 sh
Following a placing in June 2021, raising gross proceeds of £7.7m,
management is now leveraging the strength of the balance sheet to accelerate its
growth strategy. The Martlet investment diversifies NSCI's business further with
quality investments in high-growth sectors, aligned to NSCI's capital-light
investment model, while providing further transactional opportunities for its
subsidiary EMV Capital. The portfolio companies, and additional strategic funding
partners, decrease port
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