Sartorius, a international laboratory and pharmaceutical equipment provider, got off to a strong start in fiscal 2013 with-currency-adjusted gains of 10.1% in order intake and of 4.2% in sales revenue, as well as an 8.5% increase in profit1). At the same time, development of order intake for the individual divisions was quite uneven. Based on its first-quarter results, Sartorius confirmed its full-year guidance, projecting, under the assumption that the economic environment remains stable, that sales revenue will grow 6.0% to 9.0% in constant currencies and operating profit margin (underlying EBITDA margin) will rise from 19.0% to approximately 19.5% without any currency effects considered.

"Growth momentum for Bioprocess Solutions has continued at a high level, and we are very confident about the division's further performance," commented Group CEO Dr. Joachim Kreuzburg. "The revenues and profit margins of Lab Products & Services and Industrial Weighing are on track, while their order intake figures are overall below our expectations. However, we need to take a differentiated look at these figures. In part, internal factors with only a temporary impact played a role here as, for instance, we phased out a few less profitable product lines from our lab division's range. In addition, over the past months, the economic environment was more volatile and weaker in some markets than expected. At Group level, we are completely on course with our sales revenue and profit development."

Growth of Sales Revenue and Order Intake

Sartorius increased its first-quarter order intake by 9.0%, or 10.1% in constant currencies, to €239.8 million. Given the high revenue base due to the strong year-earlier quarter, consolidated sales revenue grew more moderately and was up 3.0%, or 4.2% in constant currencies, from €208.1 million a year ago to €214.3 million.

The Bioprocess Solutions Division primarily contributed to positive business development. Order intake for the division thus jumped 24.0%, or 24.8% in constant currencies, to €152.9 million. This exceptionally strong increase was due to the high demand for single-use products for biopharmaceutical manufacture, on the one hand, and to special growth impulses, particularly from large equipment orders, on the other hand. After the first three months of business, sales revenue for the Bioprocess Solutions Division totaled €119.9 million, a gain of 3.9%, or 4.9% in constant currencies.

In the Lab Products & Services Division, order intake fell 10.3%, or 9.0% in constant currencies, to €63.6 million, which was attributed to the phase-out of a few non-strategic product lines, among other reasons. By contrast, sales revenue for this division rose 3.4%, or 4.8% in constant currencies, to €68.7 million in the first three months, with the division's pipette business acquired at the end of 2011 recording significant gains.

For the smallest Group division, Industrial Weighing, order intake declined 10.0%, or 8.1% in constant currencies, while its sales revenue at €25.7 million slightly eased from the year-ago quarterly figure by 2.1%, or 0.4% in constant currencies.

From a regional perspective, Sartorius reported the highest growth in Asia, with a gain of 5.7%, followed by Europe, which expanded by 5.1%. In North America, sales revenue slid 3.9%, which was partly due to the high comparative revenue base a year ago (all regional figures in constant currencies).

Profit Increased Further

The Sartorius Group continued to expand its profitability in the first three months of the current fiscal year relative to the year-earlier quarter. Underlying EBITDA rose 8.5% to €39.3 million; the Group's respective margin climbed from 17.4% to 18.4%. The share of earnings contributed by the Bioprocess Solutions Division rose 6.6% to €25.0 million; its corresponding margin was at 20.8% relative to 20.3% in the comparative quarter. The Lab Products & Services Division boosted its operating earnings, relative to a moderate year-earlier base, by 15.3% to €12.0 million; its margin rose from 15.7% to 17.5%. At €2.4 million, earnings for the Industrial Weighing Division were at the previous year's level; accordingly, its underlying EBITDA margin remained constant at 9.2%.

Including extraordinary items of €-1.0 million (Q1 2012: -3.2 million), depreciation and amortization, Group EBIT increased 17.0% to 27.6 million. The Group's EBIT margin was at 12.9%, relative to 11.3% a year ago. Relevant net profit for the Group rose 5.1% to €14.8 million. The respective consolidated earnings per ordinary share were at €0.86, up from 0.82 in the previous year; earnings per preference share, at €0.88, up from 0.84 in the year before.

Positive Full-year Outlook

Based on the company's first-quarter performance in 2013, management has confirmed its guidance for sales and earnings growth for the current fiscal year. The company thus anticipates that full-year sales will grow 6.0% to 9.0% in constant currencies. In addition, the company aims to achieve an increase in its underlying EBITDA margin, without any currency effects considered, to around 19.5%, up from 19.0% a year ago.

"We expect to reach our full-year targets for the Group; however, the figures contributed by our three divisions may differ from the figures forecasted at the beginning of the year. In view of the uncertainty and volatility that we are observing in some markets, we should have a clearer picture when we do the regular mid-year review of our guidance," stated Dr. Kreuzburg.