Sartorius Grows by Double Digits
Number of employees grows by around 12% to more than 6,900
"The year 2016 was highly successful for Sartorius, both operationally and strategically," commented CEO Dr. Joachim Kreuzburg. "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."
Business Development of the Sartorius Group
Sartorius increased its sales revenue by 18.2% in constant currencies to 1,300.3 million euros in fiscal 2016, up from 1,114.8 million euros a year ago (reported +16.6%). All regions recorded double-digit growth rates, contributing to the company's excellent business performance. Regionally, Asia|Pacific and the Americas expanded at the strongest rates, with sales up 21.2% to 285.8 million euros and up 21.0% to 445.4 million euros, respectively. This significant expansion was driven in part by some large equipment projects in Asia, while, in the Americas, it was fueled by further market share gains with single-use products and overproportionate growth contributed by the most recent acquisitions. In the EMEA region, Sartorius recorded an increase in sales by 14.7% to 569.1 million euros. (All regional figures in constant currencies)
Earnings in the reporting period rose overproportionately again relative to sales. Sartorius thus increased its underlying EBITDA by 23.6% to 325.4 million euros, and its respective margin rose from 23.6% to 25.0%. Relevant net profit for the Group grew by 23.5% from 107.4 million euros to 132.6 million euros. Earnings per ordinary share totaled 1.93 euros (2015: 1.57 euros4) and earnings per preference share 1.94 euros (2015: 1.58 euros).
The Group's key financial indicators continued to remain at a strong level, despite three acquisitions executed in 2016. At the end of the reporting period, the company's equity ratio was 42.0%, and the ratio of net debt to underlying EBITDA stood at 1.5 (Dec. 31, 2015: 44.9% and 1.3, respectively).
In view of its continued strong organic growth, Sartorius accelerated the implementation of its investment program. Besides extending its Group headquarters in Goettingen, Germany, the company started to expand its single-use filter and bag production plant in Yauco, Puerto Rico, earlier and to a greater extent than initially planned. Capital expenditures rose in the reporting year from 113.1 million euros to 152.1 million euros; the respective ratio of capital expenditures to sales revenue was 11.7% following on 10.1% a year ago.
Sartorius employed 6,911 people worldwide at year-end 2016, thus 11.7% or 726 more people than a year earlier. Of this number, 77 people joined the company due to acquisitions.
Business Development of the Divisions
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 overproportionately 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.
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.
Positive Outlook for Fiscal 2017
Sartorius expects to grow profitably again in the current year. Specifically, management projects that Group sales revenue for the full year will grow by about 8% to 12%. The company's underlying EBITDA margin is forecasted to gain around half a percentage point over the prior-year figure of 25.0%. Due to further investments in strong organic growth, Sartorius projects a capex ratio of around 12% to 15%.
In view of the two divisions, management anticipates that sales for Bioprocess Solutions will grow by about 9% to 13% and the division’s underlying EBITDA margin will rise by around half a percentage point compared with the prior-year figure of 28.0%. For the Lab Products & Services Division that partially depends on general economic trends, Sartorius projects that assuming an overall stable economic environment, sales will increase by about 6% to 10% and the division's underlying EBITDA margin will rise by about one percentage point(2016: 16.0%).
Other news from the department business & finance
Cytomos welcomes new Director
£4 million investment sets path for commercialisation of groundbreaking cell analysis technology
Beckman Coulter and Fujirebio enter into partnership
The goal is a patient-friendly, blood-based Alzheimer's disease test
Metallographic image analysis in second
TGFS invests in start-up for AI-based software for microstructure analysis
Start-up recycles plastic lab waste into new test tubes and petri dishes
University of Bath is home to UK’s first pilot plant for recycling plastic lab waste
Microplate Dx secures £2.5 million to develop rapid diagnostic technology for better antibiotic use
In minutes rather than days to prescribe the optimal antibiotic
Takara Bio and Eppendorf cooperate
Automation of Takara Bio’s Chemistries on Eppendorf’s Automated Pipetting Systems for Significantly Higher Efficiency
KNAUER invests in Dresden-based start-up company
Both companies will offer integrated solutions in the field of material separation and laboratory organisation
Bruker Corporation and PhenomeX Inc. Announce Definitive Agreement for Bruker to Acquire PhenomeX in All-Cash Transaction
Acquisition initiates Bruker’s entry into functional single-cell biology research solutions
Brooks Instrument Joins Major Biotechnology Consortium Focused on Regenerative Drug Manufacturing
Brooks Instrument will contribute insights and precision fluid control technology to the Advanced Regenerative Manufacturing Institute’s BioFabUSA program
ALTANA strengthens its portfolio of testing and measuring instruments with a strategic acquisition
Acquisition of the business of Imaginant, the leading international specialist for ultrasonic measuring equipment
Pure practice: Fritsch inspires with live demo for mechanical comminution and particle measurement!
Students from Geisenheim University visit FRITSCH
Precision diagnostics to immune medicine using AI-assisted analysis of single-cell blood data
hema.to raises €3.6M
Clinisys Acquires Promium
Further Grow Scientific, Environmental and Public Health Diagnostics Capabilities
Most read news
Benchtop NMR spectroscopy can accurately analyse pyrolysis oils
More accessible analysis could help develop the potential of bio-oils as an alternative to fossil fuels
New approach to testing for long Covid
Blood vessels in the eye altered with persistent coronavirus symptoms
Scientists use quantum device to slow down simulated chemical reaction 100 billion times
What happens in femtoseconds in nature can now be observed in milliseconds in the lab
Fondant under the magnifying glass
New insights into the properties of sweet coating: The results could be used to optimize the industrial production process in the future
More news from our other portals
Major breakthrough in the development of electric vehicle batteries
New study finds ways to suppress lithium plating in automotive batteries for faster charging electric vehicles
Cells with an ear for music release insulin
For the first time, researchers are using music, including Queen's global hit "We will rock you," to stimulate insulin release from cells
Clean water from fog
A property known as photocatalytic memory ensures that this also functions when skies are overcast and at night
Research shows table salt could be the secret ingredient for better chemical recycling
Table salt as the key to the plastics recycling revolution?
Microbe of the Year 2023: Bacillus subtilis – for health and technology
Already, Bacillus subtilis is indispensable in many industries, and many more innovations are expected
Green, sweet and crisp - New apple variety Pia41 approved
The apple bred at the Julius Kühn Institute receives variety protection
Leipzig-based start-up converts CO₂ into green chemicals with patented plasma catalysis
CO₂ recycling as a useful complement to carbon capture and storage
Younger generation gets sick earlier and more often than older generation
In spite of their advanced age, they are in the middle of life, healthy, active and mentally alert – they are referred to as the “young old”
Sugar: Small increase in production despite record prices
EU sugar market more than in need of reform to keep medium-sized processing companies competitive
New battery holds promise for green energy
Redox-flow battery eliminates costly and inefficient membrane
How sleep deprivation can harm the brain
Sleep deprivation decreases the amount of a factor that protects neurons
A Second Life for Electric Car Batteries
Scientists develop a decision model for retired lithium-ion batteries
A microchip for Parmigiano Reggiano cheese
Consorzio del Parmigiano Reggiano, p-Chip Corporation, and Kaasmerk Matec Partner to Launch Breakthrough in Food-Safe Digital Tracking Technology
World record: World's longest-range electric car comes from Munich
Electric car drives over 2500 kilometres on a single battery charge
A whole new order of bacteria could hold the key to improving biogas production
The discovery was made by researchers from Germany, Spain and the Netherlands
Green methanol for shipping and industry: € 10.4 Mio. for the "Leuna100" project
A consortium of two Fraunhofer institutes, DBI-Gastechnologisches Institut Freiberg, Technical University of Berlin and C1 makes industrial history at the Leuna site
How to inactivate common cold viruses
In the cold season, cold viruses are everywhere. But we can do something about it
How minimal genetic differences can turn healthy food into a deadly danger
You are what you eat - this old saying could take on a new dimension according to latest research results
At which age we are at our happiest
An evaluation of over 400 samples shows how subjective well-being develops over the course of a lifespan
Making plant-based meat more ‘meaty’ — with fermented onions
When fermented with specific type of fungus, normally pungent onions can produce the same sort of chemicals that make meats smell ‘meaty’
New lithium battery with simple production and high safety developed
"This study underscores the importance of molecular structure design in creating effective additives for quasi-solid-state electrolytes"
New compound unleashes the immune system on metastases
A new nanocomplex renders a tumor harmless – and, on top of that, it trains the immune system to detect and eliminate metastases