BIO - Sartorius drives U.S. peers higher after Q2 2023 results

2023-07-21 11:43:42 ET

Sartorius AG ( OTCPK:SARTF ) traded sharply higher on Friday, rallying the shares of its U.S. peers, after the German life sciences company posted its Q2 2023 results, indicating a gradual recovery following a post-pandemic contraction in demand.

Notable gainers include Thermo Fisher Scientific ( TMO ), Danaher Corporation ( DHR ), Repligen ( NASDAQ: RGEN ), and Bio-Rad Laboratories ( BIO ).

"The first half of the year was continuously characterized by the aftermath of the pandemic. Customers continued to reduce their inventories and were investing less because of free manufacturing capacities," Sartorius ( OTCPK:SARTF ) CEO Joachim Kreuzburg remarked.

The company’s revenue for the quarter fell ~20% YoY to EUR 832.0 million as its divisions, bioprocess solutions and lab products and services, contracted ~19% YoY and ~13% YoY, respectively, while order intake dropped by about a third to EUR 684.8 million.

While net profit for the quarter also slid ~43% YoY to EUR 95.0 million, the company maintained its recently downgraded outlook for 2023, indicating a low to mid-teens percentage range decline in revenue and a ~30% EBITDA margin.

However, Sartorius ( OTCPK:SARTF ) expects its order flow to pick up in the second half of the year. "We continue to view the fundamental growth drivers of our markets as very positive and are therefore continuing our global investment program," CEO Kreuzburg added.

More on Sartorius

• Thermo Fisher, Danaher among decliners as Sartorius disappoints with Q1
• Sartorius: A German Champion With A Discounted Price

For further details see: