Sartorius leads the DAX index, but forecasts reveal pessimistic outlook
Sartorius' Glimpse into the Future: A Bullish Run for Preference Shares
It's a bright future ahead for Sartorius AG, a leading player in the pharmaceutical and lab equipment sector, as evidenced by the impressive business figures they've showcased for the past year. This is highlighted by a 21% surge in revenue and a 20% increase in adjusted EBITDA, despite a challenging environment.
The company's CEO, Joachim Kreuzburg, shared that they've experienced growth across the entire portfolio and all regions, largely due to the corona pandemic. However, the company anticipates a slower pace moving forward. Interestingly, they've also raised their medium-term targets, signaling optimism for growth in the coming years.
Taking the DAX by StormWith this more optimistic outlook, Sartorius preferred shares are catching the attention of investors, swiftly shooting up the DAX rankings. As of Thursday morning, the shares reached a peak not seen since August, with the next price target set at the August high of 456 euros.
Adjusting for the New NormalIn 2022, Sartorius reported a slight decline in the adjusted operating margin, due to the effects of pandemic-related cost savings wearing off. However, the adjusted consolidated net profit reached 655 million euros, an 18% increase compared to the previous year.
Shining Spots: Biotech and Lab SegmentsThe biotechnology segment, operated under Sartorius Stedim Biotech, significantly benefited from the high corona demand during the pandemic. Despite a decrease in orders in 2022, this segment reported double-digit growth in sales and earnings. The smaller laboratory segment also thrived, with particularly strong growth reported in the business with bioanalytical instruments.
Anticipating a Stronger Laboratory SegmentManagement expects the laboratory segment to outperform the biotechnology business in the new fiscal year, thanks to the robust growth seen in 2022. This growth was most notable in the BioA segment, which faces some softness due to lower volumes and product mix challenges.
In summary, Sartorius AG presents a promising investment opportunity, with robust financials, growth expectations, and a confident outlook. However, as with any investment, it's crucial to consider factors such as stability, potential for capital gains, and risk management to make informed decisions.
- Sartorius' financial performance has been commendable, with a 21% revenue increase and a 20% adjusted EBITDA growth, showcased in the past year.
- In the current market situation, Sartorius' preferred shares are experiencing an increase in value, climbing up the DAX rankings, reaching a peak not seen since August.
- Despite a slight decline in the adjusted operating margin in 2022 due to pandemic-related cost savings wearing off, the adjusted consolidated net profit of Sartorius reached 655 million euros, marking an 18% increase compared to the previous year.
- The lab segment of Sartorius, notably the BioA segment, is anticipated to outperform the biotechnology business in the new fiscal year, thanks to the robust growth seen in 2022.
