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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H1 EBITDA declined by 45% YoY, albeit this was slightly better than we had anticipated after the pre-close update in August. The beat was cost related (efficiencies/savings). There was a significant gross margin drag though and, while transitory in nature and diminishing in H2, this means further savings need to be realised to hit full year forecasts. This is our view and we retain a good level of confidence in next year’s forecasts. Having de-rated, valuation looks very undemanding now on just
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Venture Life has announced its interim results for the six months to June 2021. As previously announced in the August trading statement, revenues were down YoY due to lower HSG sales and sales to the Chinese partner, though revenues are expected to grow subsequently, benefiting from the two recent acquisitions. H1/21 gross margin was impacted by a number of factors including supply chain costs and stockholding costs; however, the company expect margins to improve in H2/21E. Despite the set-backs
Cambridge Cognition has announced strong interims which are consistent with our recently upgraded forecasts. Revenue increased 50% YoY, which outstripped growth in admin expenses leading the group to swing to a net profit. Demand for the company's software & services to support clinical trials continues to be strong, with a contracted order book of £15.2m at the end of H1 21 (+36% HOH; +105% YoY). Contract prepayments aided strong cash generation which led net cash to increase +37% versus FY20 Y
Companies: Cambridge Cognition 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.
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Warpaint’s interim results for the six months ended 30th June demonstrate a highly encouraging rebound in sales and profitability as the markets have reopened post various degrees of Coronavirus lockdown. Strong strategic progress has been made, with the relationship with Tesco expanded and an 84-store trial with the UK’s leading cosmetics retailer Boots confirmed; this is very good news to us. Whilst ahead of our expectations for H1, we leave FY21 forecasts unchanged reflecting the very well do
Companies: Warpaint London PLC
Full year PBT is 4% ahead of our expectations and strong trading momentum has continued into FY22 (14.4% LFL). The strength of the results reflects favourably on the strategy new management put in place in 2019 to focus on optimal patient care and to make CVS an employer of choice. Having shown remarkable resilience through the pandemic, CVS is emerging as a stronger business with excellent ongoing growth prospects. Its integrated veterinary model is ideally positioned to capitalise on sector ta
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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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Companies: Allergy Therapeutics plc
Deltex has reported 2021 interim results which reflect the challenges of the current healthcare environment with COVID cases causing disruption to the Company's core elective surgery market. That said, the Company has demonstrated it is able to keep costs low to match the current low activity, in anticipation of improving activity in 2022.
Companies: Deltex Medical Group plc
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Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European
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Synairgen reported FY 2020 results that showed an adjusted net loss of £13.7m, with year-end cash of £75.0m, some £27m higher than our expectations. The delta can largely be accounted for by delays in starting enrolment into the Phase III trial as well as the treatment of prepayments for drug substance and nebulisers: the latter reflected in working capital rather than expensed through the income statement. Near-term focus remains on the outcome of the Phase III study (SG018), and with the enrol
Companies: Synairgen plc
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