Q2 2024 Stevanato Group SpA Earnings Call Transcript
Key Points
- Revenue increased by 2% to EUR260 million, driven by 9% growth in the biopharmaceutical and diagnostic solutions (BDS) segment.
- High-value solutions grew by 23% and represented approximately 40% of total revenue in the quarter.
- Successful completion of the Piombino Dese plant expansion and ongoing multi-ramp-up of expansion projects in Fisher, Indiana, and Latina, Italy.
- Positive signals in the market with orders starting to materialize in smaller markets such as Latin America.
- Strong demand for high-performance syringes and high-value solutions, particularly in biologics, which hit a record high of 35% of BDS revenues in the first half of 2024.
- Margins fell short in the engineering segment due to delays and higher costs on certain projects.
- Increased expenses related to actions taken to address delays in the engineering segment.
- Gross profit margin decreased to 26% due to higher costs in the engineering segment, vial destocking, and inefficiencies tied to the ramp-up phase of new facilities.
- Operating profit margin declined to 10.8%, and on an adjusted basis, it was 12.8%.
- Negative free cash flow of EUR46.1 million in the second quarter due to high capital expenditures and increased inventory levels.
Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Stevanato Group second-quarter 2024 earnings call. (Operator Instructions)
At this time, I would like to turn the conference over to Ms. Lisa Miles, Senior Vice President, Investor Relations. Please go ahead, madam.
Good morning, and thank you for joining us. With me today is Franco Stevanato, Executive Chairman and Chief Executive Officer; and Marco Dal Lago, Chief Financial Officer. This morning, you can find a presentation to accompany today's results on the Investor Relations page of our website, which can be found under the Financial Results tab.
As a reminder, some statements being made today will be forward-looking in nature and are only predictions. Actual events and results may differ materially as a result of the risks we face, including those discussed in Item 3D entitled Risk Factors in the company's most recent annual report on Form 20-F, filed with the SEC
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