Q2 2024 Avantor Inc Earnings Call Transcript
Key Points
- Avantor Inc (AVTR) reported revenue of $1.7 billion for Q2 2024, with adjusted EBITDA margin increasing by over 100 basis points to 17.9%.
- The company generated $235 million of free cash flow in the quarter, reflecting strong working capital performance.
- Avantor Inc (AVTR) paid down over $200 million of debt in the quarter, showing commitment to reducing its adjusted net leverage ratio below three times.
- The launch of new products such as the J.T. Baker Cell Lysis Solution and Masterflex MasterSense gear pump indicates ongoing innovation and product development.
- The company is ahead of plan in executing its multi-year cost transformation initiative, driving margin performance above guidance and targeting $75 million in cost savings for 2024.
- Organic revenue declined by 2% year-over-year, indicating some challenges in maintaining top-line growth.
- The Laboratory Solutions segment saw a 2.7% decline in revenue on an organic basis, with stable sales trends compared to the first quarter.
- Bioprocessing, a significant part of the Bioscience Production segment, was down mid-single digits on an organic basis year-over-year.
- The company continues to face pockets of inventory destocking and cautious customer spending, particularly from biopharma customers.
- Adjusted net leverage remains relatively high at 3.9 times adjusted EBITDA, despite efforts to reduce debt.
Good morning. My name is Emily, and Iâll be your conference operator today. At this time, I would like to welcome everyone to Avantorâs second quarter 2024 earnings results conference call. (Operator Instructions) I will now turn the call over to Christina Jones, Vice President of Investor Relations. Ms. Jones, you may begin the conference.
Good morning. Thank you for joining us. Our speakers today are Michael Stubblefield, President and Chief Executive Officer; and Brent Jones, Executive Vice President and Chief Financial Officer. The press release and a presentation accompanying this call are available on our Investor Relations website at ir.avantorsciences.com. A replay of this webcast will also be made available on our website after the call. Following our prepared remarks, we will open the line for questions.
During this call, we will be making forward-looking statements within the meaning of the US federal securities laws, including statements regarding events or developments that
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