Market Overview

Business Figures for the First Half of 2018: Sartorius Records Double-Digit Sales Growth

  • Group sales revenue up 11.9%; order intake up 12.7%; earnings margin1)
  • Both divisions with dynamic business performance
  • Management raises sales forecast for the full year of 2018

Sartorius, a leading international partner of the biopharmaceutical
industry and the research sector, continued on the growth track, with
significant increases in sales revenue and earnings. "The first half of
2018 was very successful overall for Sartorius," commented CEO Joachim
Kreuzburg on the results after six months. "We grew dynamically in our
two divisions and in all regions and, despite currency headwinds,
further increased our profit margin. Due to the dynamics that were
slightly above our expectations in Bioprocess Solutions, we have raised
our sales forecast for this division and thus for the entire Group."

Business development of the Sartorius Group

In the first half of 2018, Sartorius increased its sales revenue by
11.9% (reported: +8.0%) in constant currencies to 758.4 million euros.
Acquisitions contributed around 2 percentage points to this positive
business performance. Order intake rose somewhat more strongly than
sales revenue and was up 12.7% (reported: +8.9%).

Regionally, the Americas recorded the highest dynamics. Sales in this
region were up 16.6% to 249.6 million euros, relative to a moderate
revenue base in the previous year. In Asia|Pacific, Sartorius also grew
by double digits, with sales up 12.2% to 184.4 million euros, while the
company achieved higher revenue in the EMEA2) region,
recording 324.4 million euros, 8.4% up from the comparable period a year
ago (regional growth rates in constant currencies).

Earnings also increased robustly: Underlying EBITDA rose 9.6% to 189.5
million euros, despite negative currency effects that occurred
especially in the first quarter. The Group's underlying EBITDA margin
improved to 25.0% compared with 24.6% a year ago. Relevant net profit3)
for the Group grew even more significantly, by 14.1% from 69.9 million
euros to 79.8 million euros. This corresponds to earnings per ordinary
share of 1.16 euros (H1 2017: 1.02 euros) and per preference share of
1.17 euros (H1 2017: 1.03 euros).

The Group's key financial indicators continued to remain at robust
levels. At the end of the reporting period, the company's equity ratio
was 34.9% and its ratio of net debt to underlying EBITDA1)
stood at 2.6 (Dec. 31, 2017: 35.1% and 2.5, respectively). The
first-half capex ratio was 13.2%, approximately at the previous year's
level and thus within the planned range. Investment activities continued
to focus on expansion of the plant for manufacturing single-use bags and
filters in Puerto Rico, as well as on the combination and expansion of
Group headquarters and production capacity levels in Göttingen, Germany.

As of the reporting date on June 30, 2018, Sartorius employed 7,738
people worldwide, 237 more than as of December 31, 2017 (approx. +3%).

Business development of the divisions

The Bioprocess Solutions Division, which offers a wide array of
innovative technologies for the manufacturing of biopharmaceuticals,
recorded sales growth of 11.9% in constant currencies to 550.3 million
euros (reported: +7.9%) after dynamic business performance in the second
half. Consolidation of Umetrics acquired in the previous year
contributed close to one percentage point of non-organic growth to sales
expansion. Order intake also rose slightly more strongly than expected,
up 12.6% in constant currencies (reported: +8.7%).

Underlying EBITDA for the division increased by 10.0% to 153.9 million
euros due to economies of scale and despite negative currency effects.
The division's corresponding margin was 28.0% relative to 27.4% in the
prior-year period.

The Lab Products & Services Division, which offers products and
technologies for laboratories primarily in the pharma sector and for
life science research, grew by double digits, with sales up 12.0% in
constant currencies (reported: +8.1%) to 208.1 million euros. While the
division's organic growth was around 7%, the prior-year acquisition of
Essen BioScience, a specialist in cell analysis, contributed non-organic
growth of around 5 percentage points. First-half order intake for the
division was up 13.1% in constant currencies (reported: +9.2%).

Recording a gain of 7.8%, Lab Products & Services increased its
underlying EBITDA from 33.0 million euros to 35.5 million euros. Within
the context of the less favorable currency environment its margin
remained at the prior-year figure of 17.1%.

Forecast for the full year of 2018 raised

In view of strong business performance in the first half of 2018,
management has raised its sales forecast for the Bioprocess Solutions
Division and thus for the entire Group. Consolidated sales revenue is
projected to grow by about 12% to 15% (previous guidance: 9% to 12%).
The Group's underlying EBITDA margin is still expected to increase by
0.5 percentage points compared with the year-earlier figure of 25.1%.

Given the dynamic growth of sales revenue and order intake in the first
half for the Bioprocess Solutions Division, management now projects that
division sales will increase by about 12% to 15% (previous guidance
about 8% to 11%). This figure includes a non-organic growth contribution
of slightly less than 0.5 percentage points. The division's underlying
EBITDA margin is forecasted to gain about half a percentage point over
the prior-year figure of 28.0%.

For the Lab Products & Services Division, guidance remains unchanged.
Sartorius expects division sales to grow by about 12% to 15%, which
includes more than 2.5 percentage points of non-organic growth expected
to be contributed by Essen BioScience that was consolidated as of the
end of March in 2017. The division's underlying EBITDA margin is
projected to rise by around one percentage point (previous year: 18.0%).

All forecasts are based on constant currencies. Due to the latest
foreign exchange developments, our results reported in actual currencies
may differ. We will explain any particular effects that occur during

1) Sartorius uses underlying EBITDA (earnings before
interest, taxes, depreciation and amortization; adjusted for
extraordinary items) as the key profitability indicator
EMEA = Europe | Middle East | Africa
3) After
non-controlling interest, adjusted for extraordinary items and non-cash
amortization, as well as based on the normalized financial result and
corresponding tax effects.

This press release contains statements about the future development of
the Sartorius Group. The content of these statements cannot be
guaranteed as they are based on assumptions and estimates that harbor
certain risks and uncertainties. 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.

Current image files

Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG

Sartorius products used in the manufacture of medications

Sartorius products used in pharmaceutical research

Conference call

Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, and
Rainer Lehmann, CFO of Sartorius, will discuss the company's business
results with analysts and investors on Tuesday, July 24, 2018, at 3:30
p.m. Central European Time (CET) in a teleconference. You may register
by clicking on the following link:

Alternatively, you can dial into the teleconference, without
registering, at:
+49 (0) 69 566 03 6000

The company presentation will be available on July 24, 2018, starting at
3:15 p.m. CET, for viewing on our website at:

Upcoming financial date:

October 23, 2018 Publication of nine-month figures (January to September

A profile of Sartorius

The Sartorius Group is a leading international pharmaceutical and
laboratory equipment provider with two divisions: Bioprocess Solutions
and Lab Products & Services. Bioprocess Solutions with its broad product
portfolio focusing on single-use solutions helps customers produce
biotech medications and vaccines safely and efficiently. Lab Products &
Services, with its premium laboratory instruments, consumables and
services, concentrates on serving the needs of laboratories performing
research and quality assurance at pharma and biopharma companies and on
those of academic research institutes. Founded in 1870, the company
earned sales revenue of more than 1.4 billion euros in 2017. More than
7,500 people work at the Group's approximately 50 manufacturing and
sales sites, serving customers around the globe.

Key Figures for the First Half of 2018

Sartorius Group Bioprocess Solutions Lab Products & Services
In millions of € (unless otherwise specified)      



Δ∆ in %


Δ∆ in %


Δ∆ in %


Δ∆ in %


Δ∆ in %


Δ∆ in %

Sales Revenue and Order Intake
Sales revenue       758.4     702.5     8.0     11,9     550.3     510.1     7.9       11,9     208.1     192.4     8.1     12.0

- EMEA2)

      324.4     301.8     7.5     8,4     229.5     208.5     10.0       10,7     94.9     93.3     1.8     3.3
- Americas2)       249.6     228.5     9.3     16,6     195.8     181.3     8.0       15,4     53.9     47.2     14.1     20.9
- Asia | Pacific2)       184.4     172.2     7.1     12,2     125.1     120.3     4.0       8,9     59.3     51.9     14.2     19.9
Order intake       807.6     741.9     8.9     12,7     594.6     546.9     8.7       12,6     213.0     195.0     9.2     13.1
EBITDA3)       189.5     172.9     9.6           153.9     140.0     10.0             35.5     33.0     7.8      
EBITDA margin3) in %       25.0     24.6                 28.0     27.4                   17.1     17.1            
Net profit for the period4)       79.8     69.9     14.1                                                        
Financial Data per Share

Earnings per ordinary share4) in €

      1.16     1.02     14.1                                                        

Earnings per preference share4) in €

      1.17     1.03     14.0                                                        

1) In constant currencies

2) Acc. to the customer's location

3) Adjusted for extraordinary items

4) After non-controlling interest, adjusted for
extraordinary items and non-cash amortization, as well as based on
the normalized financial result and corresponding tax effects

5) The previous year's figures have been restated due
to the finalization of the purchase price allocations for the
acquisitions of 2017


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