Sartorius Reviews Fiscal 2012
- Consolidated sales revenue climbs 15.4% to 845.7 million euros
- Operating profit* soars 20.3%; profit margin up to 16.0%
- Dividends set to rise by around 17%
- Further increases in sales revenue and earnings expected for 2013 as well
GOETTINGEN, Germany--(BUSINESS WIRE)-- Sartorius, a leading international laboratory and pharmaceutical equipment provider, closed the year 2012 with double-digit sales growth and increased its earnings by a good 20%. At the annual press conference of the company in Goettingen, Germany, Group CEO Dr. Joachim Kreuzburg pointed out that beyond the company's economic success, 2012 was also an intensive and successful financial year: "2012 marks the first full year in which we have executed on our growth initiatives that we are pursuing as part of our long-term strategy, 'Sartorius 2020'. Specifically, in 2012 we implemented our new division structure, substantially expanded manufacturing capacities, started up a new, standardized and expandable ERP system, invested heavily in the expansion of our sales organizations in North America and Asia, and further reinforced our product portfolio by acquisitions and alliances. I find it very remarkable what our teams across the globe have accomplished in parallel over the past year in these areas."
For 2013, Sartorius expects sales revenue to grow by approximately 6% to 9% in constant currencies and its operating profit margin to increase to about 16.5%. "Aside from driving further incremental expansion of sales revenue and earnings, we will be especially focusing in the coming months on continuing to fast-track our growth initiatives. For North America and selected Asian countries, above all, we have set ourselves ambitious goals and are aiming at achieving double-digit sales growth in these regions in the current fiscal year as well," said Dr. Kreuzburg.
Dynamic Growth of Sales Revenue and Order Intake
In fiscal 2012, Sartorius generated consolidated sales revenue of 845.7 million euros, up from 733.1 million euros a year ago. This equates to an increase of 15.4%, or 11.7% in constant currencies. The Biohit Liquid Handling business acquired at the end of 2011 added approximately six percentage points to this expansion in sales revenue. The gain in order intake reached a similarly strong level: it jumped 15.7%, or 12.0% in constant currencies, to 866.8 million euros.
All divisions contributed to this positive business performance. Accounting for more than half of consolidated revenue, the Bioprocess Solutions Division continued on track, extending its success of the previous year: It reported strong organic sales growth of 15.6%, or 11.8% in constant currencies, to 474.2 million euros and an increase in order intake of 11.0%, or 7.3% in constant currencies, to 479.5 million euros. Demand was especially high for single-use products for biopharmaceutical manufacture, and the division posted solid growth for its equipment business with biotech production systems, primarily in North America.
The Lab Products & Services Division, a supplier of premium laboratory instruments and lab consumables, reported a significant gain of 21.1%, or 17.1%, based on constant currencies, in sales revenue, which soared to 268.9 million euros. Compared with sales, order intake rose at a slightly sharper rate, 30.5%, or 26.2% in constant currencies, to 282.0 million euros. Initial consolidation of the Biohit Liquid Handling business contributed around 19.0 percentage points in constant currencies to this growth.
The smallest Group division, Industrial Weighing, showed stable development, as projected. Its sales revenue of 102.7 million euros reached the good level reported for the previous year (+1.8%; currency-adjusted: -0.2%). Its order intake moved up 3.9%, or 1.9% in constant currencies, to 105.4 million euros.
Regionally, Sartorius reported the highest dynamics in North America, with sales revenue up 18.9%. The key growth driver in this region was the excellent performance of both its laboratory and bioprocess businesses. The company's business also saw double-digit growth, at 13.0%, in Asia as well. In Europe, where the economic environment was weaker on the whole, Sartorius expanded its business at 8.6%. (All regional figures in constant currencies)
Substantial Increase in Earnings
Despite the heavy investments made in new production capacity and the expansion of its sales structures as planned, Sartorius further increased its profitability in the reporting year. Based on dynamic sales growth, the Group's operating earnings surged 20.3% from 112.2 million euros in the previous year to 135.0 million euros. The respective margin for the Group rose from 15.3% a year earlier to 16.0% and, therefore, marks a new high. Besides the expansion of sales volume, the favorable currency environment contributed to positive development of consolidated earnings.
In view of the divisions, the Bioprocess Solutions Division, in particular, significantly expanded its operating earnings at growth rates of 22.9%, from 71.6 million euros a year ago to 88.0 million euros. The underlying EBITA margin for this division climbed from 17.5% to 18.6%. The Lab Products & Services Division reported operating earnings of 36.9 million euros, up from 30.7 million euros in the year before. This equates to an increase of 20.1% and an approximately constant margin of 13.7% (previous year: 13.8%). The Industrial Weighing Division posted earnings of 10.1 million euros and a margin of 9.9%, up from 9.9 million euros and 9.8%, respectively, a year earlier.
Including extraordinary items of -13.9 million euros (previous year: -11.3 million euros), Group EBITA rose year on year from 100.9 million euros to 121.1 million euros and its respective margin increased from 13.8% to 14.3%. These extraordinary expenses primarily were related to the transfer of single-use bag manufacture from California, USA, to Puerto Rico, the integration of the Biohit Liquid Handling business, and to further Group projects.
The Group's relevant net profit totaled 63.0 million euros, up from 52.8 million euros a year ago. Its respective earnings per ordinary share are at 3.69 euros, up from 3.09 euros a year earlier, and per preference share, at 3.71 euros, up from 3.11 euros a year ago. Unadjusted consolidated net profit after non-controlling interest amounts to 48.5 million euros, up year on year from 41.6 million.
In 2012, net operating cash flow was at 53.2 million euros (previous year: 79.0 million euros) and was used, inter alia, for financing investments to substantially expand capacity levels. The key financial indicator, the ratio of net debt to underlying EBITDA, remained constant at 1.9 (previous year: 1.9) in spite of the high investments made, and thus continues to remain at a comfortable level. In view of the company's increased balance sheet total, the equity ratio for the Sartorius Group was at 37.7%, approximately at the year-earlier level of 38.1%.
R&D Expenditures Rose
In fiscal 2012, Sartorius spent 48.1 million euros on research and development, up 8.6% compared with the year-earlier figure of 44.3 million euros. Its ratio of R&D costs to sales revenue was at 5.7% (previous year: 6.0%).
Investments at a High Level
Against the background of its strong growth, Sartorius invested substantially in 2012 in the expansion of its production capacities. Investments were at 74.2 million euros, up 51.8 million euros a year ago; the company's investment ratio was at 8.8%.
As of December 31, 2012, the Sartorius Group employed 5,491 people, 604 persons or 12.4% more than a year earlier. A major reason for this increase besides dynamic growth was the integration of around 400 employees who joined the workforce as a result of the acquisition of Biohit Liquid Handling. In 2011, the number of employees including headcount for this acquisition would have been 5,299.
Dividends Set to Rise by Around 17%
The Executive Board and the Supervisory Board will submit a proposal to the Annual Shareholders' Meeting on April 18, 2013, to raise dividends to 0.96 euro per preference share (previous year: 0.82 euro) and 0.94 euro per ordinary share (previous year: 0.80 euro), respectively. Compared with the previous year (13.8 million euros), the total amount disbursed under this proposal would thus rise 17.3% to 16.2 million euros.
Positive Outlook for Fiscal 2013
Sartorius is set to further grow in the current year as well: For 2013, the company projects that sales revenue on the basis of constant currencies will increase by approximately 6% to 9%. Along with growth in sales, profitability is forecasted to rise again. Without any currency effects considered, the underlying EBITA margin at Group level is expected to increase to about 16.5%.
In view of the three divisions, company management anticipates that sales for Bioprocess Solutions will grow by approximately 9% to 12%. Cooperation in cell culture media, based on the agreement signed in December 2012 with the Swiss life science group Lonza, is projected to contribute around three to four percentage points to this growth. Management forecasts that the division's underlying EBITA margin will increase to approximately 19%. For the Lab Products & Services Division, the company expects sales to grow by around 3% to 6% and its underlying EBITA margin to reach approximately 14%. The Industrial Weighing Division projects sales revenue to rise by about 0% to 3% and its underlying EBITA margin to reach approximately 10%. (All figures currency adjusted)
"The majority of our business areas are driven by stable and long-term trends; this is why we have set ambitious goals again for 2013," commented Dr. Kreuzburg about the forecast. "For part of our business, however, further economic development will play a role, especially in Europe."
* Sartorius uses earnings before interest, taxes and amortization (EBITA) as the key profitability measure. To enable a more meaningful comparison with the year-earlier figures, the company reports earnings adjusted for extraordinary items (= underlying EBITA or operating earnings) in addition to EBITA.
Key Performance Indicators for 2012 at a Glance
|In millions of euros
(unless otherwise specified)
Lab Products & Services
|Group net profit1)2)||63.0||52.8||19.3|
|Earnings per ordinary share1)2) in €||3.69||3.09||19.4|
|Earnings per preference share1)2) in €||3.71||3.11||19.3|
1)Adjusted for extraordinary items (underlying)
2) Relevant consolidated net profit = underlying net profit after non-controlling interest, excluding non-cash amortization and fair value adjustments of hedging instruments
Current Image Files:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:
Sartorius products used in the manufacture of medications:
Sartorius products used in laboratory research:
Upcoming Financial Dates
|April 18, 2013||Annual Shareholders' Meeting in Goettingen, Germany|
|April 23, 2013||Publication of first-quarter figures (Jan. - March 2013)|
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.
A Profile of Sartorius
The Sartorius Group is a leading international laboratory and process technology provider covering the segments of Bioprocess Solutions, Lab Products & Services and Industrial Weighing. In 2012, the technology group earned sales revenue of 845.7 million euros. Founded in 1870, the Goettingen-based company currently employs around 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. Industrial Weighing concentrates on weighing, monitoring and control applications in the manufacturing processes of the food, chemical and pharma sectors. 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.
Petra Kirchhoff, Vice President of Group Communications and IR
Sartorius Corporate Administration GmbH
Phone: +49 (0)551/ 308-1686
fax: +49 (0)551/ 308-3572
KEYWORDS: Europe Germany
The article Sartorius Reviews Fiscal 2012 originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.