Stevanato Group reports Second Quarter 2022 financial results

The company is making meaningful progress on its four strategic and operational priorities of growing global footprint, increasing the mix of accretive high value solutions, investing in R&D and building a multi-year pipeline of opportunities

Stevanato Group S.p.A.has announced its financial results for the second quarter of 2022.

Second Quarter 2022 Highlights (compared to the same period last year)
• Second quarter revenue increased 15 percent to EUR 234.2 million,
• Diluted earnings per share of EUR 0.12 and adjusted diluted earnings per share of EUR 0.12,
• Adjusted EBITDA totaled EUR 61.8 million with an adjusted EBITDA margin of 26.4 percent,
• Backlog increased 37 percent to approximately EUR 1.01 billion,
• Revenue from high value solutions increased to approximately 30 percent of total revenue,
• The Company is raising its full year guidance.

Second quarter results
Revenue for the second quarter of 2022 increased 15 percent to EUR 234.2 million (approximately 11 percent on a constant currency basis), compared to the same period last year, driven by growth in both the Biopharmaceutical and Diagnostic Solutions, and Engineering Segments, as well as favourable foreign currency translation. Revenue contributions from more accretive, high value solutions increased 46 percent and represented 30 percent of total revenue for the second quarter of 2022, compared to 24 percent for the second quarter of last year. In the second quarter of 2022, revenue related to COVID-19 decreased to approximately 9 percent, compared to approximately 15 percent for the same period last year, and was offset by strong demand in the core business.

For the second quarter of 2022, gross profit margin increased to 31.8 percent, compared to the same period last year, and benefited from a higher mix of high value solutions in the Biopharmaceutical and Diagnostics Segment and improved gross profit margins in the Engineering Segment.

Operating profit margin for the second quarter of 2022 was 18.7 percent (19.6 percent on an adjusted basis). For the second quarter of 2022, the Company recorded approximately EUR 6.0 million in other income for a contract modification which reflects a decrease in COVID-19 related business. We believe that the modification represents a fair and equitable arrangement to support the changing needs of our customer, and reflects changes in revenue, lost production time, costs incurred, and the process to reallocate capacity. Year-over-year, G&A expenses increased mostly due to a one-time benefit in the second quarter of last year for the termination of an equity incentive plan, as well as increased costs to support the growth of the business and costs associated with the Company’s status as a public company.

Second quarter net profit totaled EUR 30.6 million, or EUR 0.12 of diluted earnings per share, while adjusted net profit was EUR 31.9 million or EUR 0.12 of adjusted diluted earnings per share. For the second quarter, adjusted EBITDA totaled EUR 61.8 million with an adjusted EBITDA margin of 26.4 percent.

Franco Moro, Chief Executive Officer, stated, “We are raising our fiscal year 2022 guidance in an environment with robust demand, attractive end markets, and durable, secular multi-year macro drivers including pharmaceutical innovation and the growth in biologics. We are making meaningful progress on our four strategic and operational priorities of growing our global footprint, increasing the mix of accretive high value solutions, investing in R&D and building a multi-year pipeline of opportunities. These priorities are designed to drive sustainable organic growth, expand margins and build long-term shareholder value.”

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