Sartorius Stands First in DAX Ranking - Pessimistic Forecast
Headline: Sartorius Raises Medium-Term Targets Amid Strong Performance, Bioprocess Solutions Shine
The prominent pharmaceutical and lab equipment provider, Sartorius, has reported robust business figures for the past year. Following a pandemic-induced sales surge, Sartorius now anticipates a more modest growth pace. Yet, the DAX company is bullish about its long-term objectives. Sartorius' shares are skyrocketing as a result.
Sartorius' preliminary calculations reveal a 21% increase in revenues year-over-year, amounting to about 4.2 billion euros or a 15% rise when considering exchange rate fluctuations. The company grew its presence across all product lines and regions, according to CEO Joachim Kreuzburg. The adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) rose by 20% to approximately 1.4 billion euros.
The adjusted operating margin saw a slight dip to 33.8%, decreasing from 34.1% in the preceding year. Sartorius' benefits derived from pandemic-related cost savings such as delayed hiring and reduced travel expenses were less pronounced in 2022.
The adjusted consolidated net profit reached 655 million euros, reflecting a nearly 18% increase compared to the previous year. Sartorius will release its final figures on February 17 in its annual report.
Increased Medium-Term Sales Target
In response to escalating costs and inflation, Sartorius raised its sales target for the year 2025 from around 5 billion euros to 5.5 billion euros. The adjusted operating margin (adjusted EBITDA margin) is expected to remain unchanged at approximately 34%.
After two exceptional pandemic years, demands have stabilized, and corona-related business has significantly decreased. Consequently, order intake fell by about 6% to around 4 billion euros in 2022. During the pandemic, Sartorius experienced altered customer ordering behavior, with customers placing larger orders and ordering earlier than usual.
Biotechnology Segment Thrives
The biotechnology segment, primarily managed through the French subsidiary Sartorius Stedim Biotech, prospered during the pandemic. Despite a significant drop in orders due to the normalization of demands, this segment reported double-digit sales and profit growth in 2022.
The smaller laboratory segment also flourished, with order intake Increasing compared to the larger biotech segment. Particularly strong growth was observed in the business with bioanalytical instruments. The management team, including Joachim Kreuzburg, expects the laboratory segment to grow more robustly than the biotechnology business in the coming year.
Sartorius Preference Shares Leading the DAX
In light of the more optimistic long-term outlook, the Sartorius preference shares are surging to the top of the DAX on Thursday morning. The shares of the laboratory equipment supplier are temporarily gaining more than eight percent to 441.50 euros, reaching their highest level since late August.
The Sartorius stock chart continues to brighten. If the August peak around 456 euros is surpassed sustainably, the way to previous record highs above 600 euros would be paved. BÖRSE ONLINE maintains a long-term positive outlook for the Sartorius preferred stock. Investors are encouraged to hold the stock, while purchases at a slightly lower level around 400 euros are advised.
Sources:1. Sartorius AG Raises Sales Target for 20252. Sartorius Hikes 2025 Sales Target, Sees Profit Margins Rising3. Sartorius to invest in Bioprocessing growth4. Sartorius hikes sales target, says coronavirus disease 2019 (COVID-19) wanes as demand normalizes5. Sartorius: Strong Q1 performance, doubling of order intake in CQ1 2022
- In response to stronger business performance, Sartorius increased its medium-term sales target from around 5 billion euros to 5.5 billion euros for the year 2025.
- The biotechnology segment, primarily managed through Sartorius Stedim Biotech, reported double-digit sales and profit growth in 2022, even with a significant drop in orders due to demand normalization.
- The adjusted consolidated net profit reached 655 million euros, reflecting a nearly 18% increase compared to the previous year, according to Sartorius' preliminary calculations.
- The Sartorius preference shares are surging to the top of the DAX on Thursday morning, temporarily gaining more than eight percent to 441.50 euros, reaching their highest level since late August.
