First Half of 2015: Sartorius AG Continues Dynamic Growth

GOETTINGEN, Germany--(BUSINESS WIRE)--Sartorius, a leading international pharmaceutical and laboratory equipment supplier, closed the first half of 2015 with significant double-digit gains in order intake, sales revenue and earnings. Group order intake rose 19.7%, excluding currency effects; the reported figure surged 31.1%. Sales climbed 15.9% in constant currencies; the reported figure, 26.6%. Operating profit¹ for Sartorius also soared 42.8%; its respective margin after six months was 22.6%. Based on the company’s strong first-half results, management raised its forecast for the full year of 2015.

“The dynamic development of the first three months continued on into the second quarter so that we showed overall strong first-half performance”

“The dynamic development of the first three months continued on into the second quarter so that we showed overall strong first-half performance,” commented Group CEO Dr. Joachim Kreuzburg. “For Bioprocess Solutions, business developed better than expected in an expansive market environment. We are continuing on the growth track, especially in North America. At the same time, Lab Products & Services reported a robust growth trend, despite the uneven economic situation. Driven by the significant gain in sales revenue, our earnings have further increased, also due to favorable exchange rates. For the second half, we expect positive business development as well. We project that in constant currencies, sales including revenue contributed by acquisitions will grow in the range of 12%, and our underlying EBITDA margin will reach around 22.5% for the full year.”

Double-Digit Increase in Order Intake and Sales Revenue

Order intake for the Group rose considerably by 19.7% to 577.8 million euros in constant currencies. Sales revenue also grew significantly by 15.9%, attaining 535.3 million euros after 423.0 million euros in the prior-year reporting period. The effects of the changes in foreign exchange rates were noticeable: In the reporting currency, consolidated order intake jumped 31.1% and sales revenue soared 26.6%.

In view of the divisions, Bioprocess Solutions that focuses on single-use products for the manufacture of biopharmaceuticals proved to be the growth engine again. Relative to the moderate first-half comparables in 2014, this division achieved above-average growth rates. All product segments contributed to this expansion. The division’s order intake rose by 27.0% in constant currencies (reported: 40.3%) to 427.9 million euros, while its sales revenue increased 20.0% (reported: 32.2%) to 384.9 million euros.

For the Lab Products & Services Division, which supplies premium laboratory instruments and lab consumables, order intake in constant currencies rose 3.3% (reported: 10.5%) to 149.9 million euros. Its sales revenue was up 6.8% to 150.5 million euros (reported: 14.1%).

All regions contributed significant double-digit gains in sales revenue to the dynamic development of the Group. Business in the Americas increased at the highest rates, with an uptick in sales of 23.2%. Sales revenue with customers in the Asia | Pacific region rose 15.6% and in the EMEA region² 12.1%, respectively. (All regional figures in constant currencies)

Significant Gain in Profitability

The Sartorius Group significantly increased its underlying EBITDA by 42.8% to 121.1 million euros. This was due to strong development of sales and positive currency effects. The Group’s corresponding margin was 22.6% relative to 20.1% in the prior-year reporting period. Earnings contributed by the Bioprocess Solutions Division climbed to 97.8 million euros; its respective margin rose from 22.8% in the year-earlier period to 25.4% as of the reporting date. The Lab Products & Sales Division also improved its profitability, reporting an underlying EBITDA of 23.4 million euros following on 18.4 million euros a year ago. This equates to a margin of 15.5%, up from 14.0% in the respective prior-year period.

Group EBIT, including extraordinary items of -3.8 million euros (H1 2014: -2.0 million euros), depreciation and amortization, was 90.8 million euros, reflecting a gain of 56.5%. The corresponding earnings margin rose year over year from 13.7% to 17.0%. Relevant net profit³ for the Group surged from 29.3 million euros to 47.8 million euros. Consolidated earnings per ordinary share were 2.80 euros (H1 2014: 1.71 euros), and per preference share, 2.82 euros (H1 2014: 1.73 euros).

Forecast Raised

Based on the company’s positive business performance, management raised and specified its sales and earnings guidance for the full year of 2015. For the Group, the company now expects sales to grow approx. 12% in constant currencies. This figure includes revenue of around one percentage point from recent acquisition (previous forecast without acquisitions: approx. 6% to 9%). The company’s underlying EBITDA margin is forecasted to reach around 22.5%; previously, around 22.0% was anticipated. Sartorius continues to plan on investing around 10% of its sales revenue.

In view of the two divisions, Sartorius now expects that sales revenue for Bioprocess Solutions will grow approx. 15%. Of this percentage, around 1.5 percentage points are forecast to be contributed by the two acquisitions of BioOutsource and Cellca, which had a negligible effect on the company’s first-half results, respectively. The division’s previous forecast without acquisitions was approx. 8% to 11%. The underlying EBITDA margin of Bioprocess Solutions is projected to attain around 25.5% (previous guidance: around 25.0%).

For the Lab Products & Services Division, management specified its current forecast. The division is now expected to reach approx. 5%, the upper limit of the growth range of approx. 2% to 5% in sales revenue projected so far. Management continues to anticipate that the lab division will achieve an underlying EBITDA margin of around 15.5%.

¹ Sartorius uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items) as the key profitability indicator.

² EMEA = Europe | Middle East | Africa

³ After non-controlling interest, adjusted for extraordinary items and non-cash amortization, as well as based on the normalized financial result and corresponding tax effects.

This press release contains statements about the future development of the Sartorius Group. The content of these statements cannot be guaranteed as they are based on assumptions and estimates that harbor certain risks and uncertainties. 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. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.

Key Performance Indicators for the First Half of 2015

www.sartorius.com/fileadmin/media/global/company/pr_20150721_hy_figures_sag.pdf

Current Image Files

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG

http://www.sartorius.com/fileadmin/media/global/company/Sartorius_Kreuzburg.jpg

Sartorius products used in the manufacture of medications

www.sartorius.com/fileadmin/media/global/company/pr_20140303_bioprocess_solutions.jpg

Sartorius products used in laboratory research

www.sartorius.com/fileadmin/media/global/company/pr_20140303_lab_products_and_services.jpg

Conference Call and Webcast

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the business figures with analysts and investors on Tuesday, July 21, 2015, at 3:30 p.m. Central European Time (CET) in a teleconference. You may dial into the teleconference starting at 3:20 p.m. CET at the following numbers:

Germany: +49(0)69 2222 10644
France: +33(0)1 76 77 22 37
UK: +44(0)20 3427 1936
USA: +1646 254 3374

The dial-in code is as follows: 2380307; to view the webcast, log onto:

http://www.sartorius.de/de/konzern/investor-relations/sartorius-ag/

Upcoming Financial Date

October 20, 2015 Publication of nine-month figures (January to September 2015)

A Profile of Sartorius

The Sartorius Group is a leading international pharmaceutical and laboratory equipment provider covering the two segments of Bioprocess Solutions and Lab Products & Services. In 2014, the technology group earned sales revenue of 891.2 million euros. Founded in 1870, the Goettingen-based company currently employs more than 5,500 persons. The major areas of activity of its Bioprocess Solutions segment cover filtration, fluid management, fermentation, cell cultivation and purification, and focus on production processes in the biopharmaceutical industry. The Lab Products & Services segment primarily manufactures laboratory instruments and lab consumables. Sartorius has its own production facilities in Europe, Asia and America as well as sales subsidiaries and local commercial agencies in more than 110 countries.

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