Sartorius Reviews Fiscal 2016

Key figures: Group sales revenue rises by a good 18% to 1.3 billion euros; Earnings increase by nearly one-fourth to 324.5 million euros; Number of employees grows by around 12% to more than 6,900; Product portfolio expanded by acquisitions; Comprehensive investment programme under way & Outlook for 2017: Sales growth of 8% to 12% planned; profitability projected to further increase

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

The Sartorius Group, a leading international laboratory and pharmaceutical equipment supplier, closed fiscal 2016 with dynamic doubledigit growth in sales revenue and earnings. "The year 2016 was highly successful for Sartorius, both operationally and strategically," commented CEO Dr. Joachim Kreuzburg at the annual press conference. "Our Bioprocess Solutions Division is continuing to expand strongly. As a supplier for the biopharmaceutical industry, the division addresses a very dynamic market and is additionally gaining market share in the important North American market. Also, our Lab Products & Services Division achieved its targets, reporting profitable organic growth, and has considerably sharpened its strategic positioning, especially with biopharmaceutical lab customers, due to our two recent acquisitions.”

For the current fiscal year as well, Sartorius expects significant growth and a further increase in profitability. In constant currencies, Group sales revenue for the full year is projected to grow by about 8% to 12%, and the underlying EBITDA margin is forecasted to gain around half a percentage point over the prior-year figure of 25.0%. Kreuzburg also confirmed the mid-term targets for Sartorius with sales revenue projected to increase to around 2 billion euros at an underlying EBITDA margin of about 26% to 27% in 2020.

”As a partner to the biopharmaceutical industry, Sartorius is better positioned than ever before. Especially through our acquisitions over the past years, we today offer our customers solutions ranging from molecule discovery to process development, to efficient production of biopharmaceuticals.”

The Group is continuing with its multi-year investment programme, expanding its international production capacities and its IT systems. For 2017, Sartorius projects a capex ratio of around 12% to 15%. At headquarters in Goettingen, the company's two largest facilities will have been combined, modernised and extended by the end of 2018. In view of continued strong growth in North America, the company started to expand its filter and bag production plant in Yauco, Puerto Rico, earlier and to a greater extent than initially planned.

Business Development of the Divisions

Sartorius products used in the manufacture of medications

The Bioprocess Solutions Division, which focuses on single-use products for the manufacture of biopharmaceuticals, proved to be the growth engine in the reporting year yet again. Within a continued dynamic market environment, the division increased its sales by 22.1% in constant currencies to 975.0 million euros (reported +20.5%). Organic growth was around 20%; acquisitions contributed around 2 percentage points. Driven by economies of scale, underlying EBITDA of the Bioprocess Solutions Division rose over-proportionately relative to sales by 27.5% to 273.5 million euros. The division's margin reached 28.0% compared with 26.5% a year ago.

Sartorius products used in laboratory research

The Lab Products & Services Division, which offers instruments and consumables primarily for the pharmaceutical sector and public research, also continued its positive business development in the reporting year. Its sales revenue increased 7.9% in constant currencies to 325.3 million euros (reported +6.5%). The companies acquired at mid-2016, IntelliCyt and ViroCyt, contributed about 3 percentage points to this gain. Underlying EBITDA for the division rose 6.5% to 51.9 million euros. Its margin of 16.0% was at the previous year's level as expected because the positive effects of economies of scale were temporarily diluted by the recent acquisitions.

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