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Italy-based Stevanato reports mixed first-quarter earnings and revises annual guidance on interim stock removal

Italy-based Stevanato reports mixed first-quarter earnings and revises annual guidance on interim stock removal

Italy-based Stevanato reports mixed first-quarter earnings and revises annual guidance on interim stock removal

Thursday, Stevanato Group SpA (NYSE:STVN) saw a figure of €236.0 million for the first quarter, down 1% y/y compared to the consensus figure of €237.17 million.

Adjusted diluted earnings per share were EUR 0.08 compared to the consensus estimate of EUR 0.11. Adjusted EBITDA margin for the first quarter was 21.4%.

Sales decreased due to lower revenues related to glass vials in the Biopharmaceutical and Diagnostic Solutions Segment, resulting from the ongoing liquidation of excess inventories of vials that customers have accumulated during the pandemic, and lower revenues from the Engineering Segment.

High-value solutions revenue increased to 37% of total revenue in the first quarter of 2024 compared to 32% in the same period last year, mainly driven by demand for syringes and cartridges.

Lower EZ-fill vial revenues adversely impacted the high-value solutions pipeline in Q1 2024.

First quarter 2024 gross profit margin decreased to 26.4%, primarily due to product mix resulting from lower EZ-fill vial revenues.

Operating profit margin decreased to 10.7%.

The revenues of the Biopharmaceutical and Diagnostic Solutions Segment increased by 2% to EUR 198.9 million (2% on a constant currency basis).

Revenues of the engineering segment decreased by 13% to EUR 37.1 million.

CEO Franco Moro stated: “Industry-wide vial inventory clearing was more pronounced than expected in the first quarter, particularly in our higher volume EZ-filled vials. While we believe this is a temporary situation, we currently expect a more gradual recovery in the vials market, with orders starting to pick up in late 2024 and early 2025, with recovery expected first wholesale vials. This, combined with the deferral of expected orders related to a large customer, has resulted in us taking a more cautious approach to our 2024 guidance.”

Conductivity: Stevanato updates its fiscal 2024 guidance of €1.125-1.155 billion in revenue, compared to a consensus of €1.186 billion and previous guidance of €1.18-1.21 billion.

The company forecasts adjusted EBITDA of EUR 277.9-292.2 million, compared to earlier guidance of EUR 314.1-329.5 million.

The company forecasts adjusted EPS of EUR 0.51-0.55 compared to the consensus estimate of EUR 0.62 and previous estimates of EUR 0.62-0.66.

The company maintains its medium-term goals for the financial years 2025-2027, which assume low double-digit revenue growth.

In 2027, the company expects the share of high-value solutions to be 40%-45% of total revenues and adjusted EBITDA margin of approximately 30%.

CEO Franco Stevanato exclusively told Benzinga: “Stevanato Group has updated its guidance based on temporary stock-outs and assumes the deferral of expected orders for high-value solutions for a large customer, expected to be delivered in 2024. This was due to a change in the customer’s commercialization schedule, but we have nevertheless removed the forecast orders from our guidance.”

“Despite these factors, we remain confident in our long-term prospects and remain on track to achieve our near-term goals in 2027.” – added the general director.

Reduction: STVN shares closed at $26.92 on Wednesday.

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This article Italy-based Stevanato reports mixed first-quarter earnings, revises annual guidance on interim stock removal originally appeared on Benzinga.com

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