EQS-News: SCHOTT Pharma with strong growth and record margin after solid year-end finish

SCHOTT Pharma with strong growth and record margin after solid year-end finish

• All 2024 targets met including raised revenue guidance: 12% revenue growth and EBITDA margin of 27.8%, both at constant currencies
• Q4 2024 revenues reached EUR 237m; EBITDA margin of 27.9% well above prior year
• FY 2024 revenues reached EUR 957m; EBITDA margin of 26.9% above prior year
• Share of strong-margin high-value solutions (HVS) at 55% in FY 2024
• Guidance for FY 2025 reflects further strong revenue and earnings growth at constant currencies

SCHOTT Pharma, a pioneer in pharma drug containment solutions and delivery systems, showed a solid year-end finish and achieved all financial targets for the fiscal year 2024¹. Revenues in Q4 2024 amounted to EUR 237m (+4% yoy). At constant currencies, revenue grew by 9% yoy in Q4, driving revenue growth for the fiscal year 2024 to 12%, the top half of the previously raised guidance. EBITDA increased even stronger to EUR 66m (+28% yoy). This was driven by the successful expansion of capacities and more than offset the continuous ramp-up efforts and underutilization. The EBITDA margin increased by more than five percentage points to 27.9%, both as reported and at constant currencies, which led to a higher margin of 26.9% for the fiscal year 2024 (FY 2023: 26.6%). At constant currencies, margin was even stronger at 27.8%. “The strong results demonstrate our deep understanding of market needs, even in volatile times. Our team has been able to adapt quickly and flexibly, capitalizing on long-term trends with the most innovative solutions to lead the industry,” said Andreas Reisse, CEO of SCHOTT Pharma.

“Thanks to a strong year-end finish, we are concluding a very successful year with strong results that have enabled us to meet all our 2024 targets. These results serve as a strong foundation on the way to deliver towards our mid-term targets as we enter what we expect to be a year of versatility, in which we will balance short-term market volatility with our growth projects. With our profitable growth strategy, we remain very confident about our 2025 guidance as well as our mid-term targets,“ said Dr. Almuth Steinkühler, CFO of SCHOTT Pharma.

All 2024 targets achieved

For FY 2024, SCHOTT Pharma achieved a strong revenue growth of 7% (at constant currencies: 12%). With that, revenue growth at constant currencies came in in the upper half of the increased FY 2024 guidance. This growth was primarily fueled by the high demand for HVS products and SCHOTT Pharma’s continuous expansion of the corresponding capacities. 55% of revenue in FY 2024 came from strong-margin HVS, bringing the company closer to its mid-term target of above 60%.

SCHOTT Pharma’s profit growth in FY 2024 outperformed the already strong revenue increase. EBITDA increased by 8% yoy to EUR 258m, resulting in a margin of 26.9%. At constant currencies, EBITDA growth was even higher at 17% yoy. Consequently, the EBITDA margin expanded notably to a record level of 27.8%.

Strong innovation pipeline and capacity expansion as growth accelerators

In FY 2024, SCHOTT Pharma remained dedicated to its strategic pillars of innovation and expansion, aiming to further accelerate growth supported by intact market dynamics. With regards to innovation, the company recently launched an optimized nest for its ready-to-use (RTU) cartridges, marking yet another significant step towards more sustainability and efficiency in the pharmaceutical value chain. Following the optimized SCHOTT TOPPAC^® Nest 160 for prefillable polymer syringes, this innovation underscores the benefits of SCHOTT Pharma's deep and longstanding customer relationships and good understanding of the pharmaceutical value chain. 

To boost its innovation power further, SCHOTT Pharma announced a strategic industry alliance “Alliance for RTU” together with Stevanato and Gerresheimer to promote the market acceptance and penetration of RTU vials and cartridges. With this, SCHOTT Pharma demonstrates its strong market position and its role as a trusted partner to the pharma industry.

These innovations mark a strong finish to the fiscal year and perfectly complement the new and improved solutions by SCHOTT Pharma launched throughout 2024. The development of large-volume 10 ml cartridges for on-body injectors, as well as large-volume polymer and glass syringes for subcutaneous infusions of high drug dosages and the introduction of a blister-free syringe concept to reduce packaging waste and CO2 footprint are just a few examples of how the company advanced its broad product portfolio. With all product innovations, SCHOTT Pharma addresses increased market demand and key pharma megatrends: From GLP-1 to advancing the subcutaneous administration of medication and the sustainable transformation and optimization of manufacturing to name a few.

In FY 2024, SCHOTT Pharma continued to drive its various expansion projects. The projects underscore the company’s commitment to meeting the high demand, especially in the Drug Delivery Systems (DDS) segment as well as the RTU cartridges from the Drug Containment Solutions (DCS) segment. In Germany, capacities for prefillable polymer syringes have been increased, which is expected to support the company’s short- to mid-term growth trajectory. In Hungary, the production of prefillable glass syringes has started following the inauguration of a new state-of-the-art facility and final customer qualifications. At the new best-cost production site in Serbia, which is expected to go into commercial supply in early 2025, machines are being installed, and product qualifications are underway. At the same time, production capacities for RTU cartridges were expanded in Switzerland and for RTU vials in the U.S. with an additional increase being currently implemented.

Good momentum in glass syringe business as main driver of revenue growth in Q4

The main driver of SCHOTT Pharma’s revenue growth in Q4 2024 was the strong year-end finish of the DDS segment. Revenues in the DDS segment reached EUR 118m, an increase by 12% yoy (at constant currencies: 11%). Q4 represented the highest quarterly revenue in this segment. This development was driven by the ongoing strong demand for prefillable syringes, and in particular by a good momentum in glass syringes. On a twelve-months basis, revenue in the DDS segment amounted to EUR 439m, an increase by 28%yoy (at constant currencies: 26%). Based on the good development in the DDS segment, which consists only of HVS products, the HVS revenue share increased by 7 percentage points to 55%.

The DCS segment achieved revenues of EUR 119m in the fourth quarter compared to EUR 126m a year ago. However, adjusted for the FX headwinds, growth at constant currencies was up by 5% yoy supported by a continued improvement in orders. For the fiscal year, the DCS segment achieved revenues of EUR 519m compared to EUR 558m a year ago. However, at constant currencies, DCS achieved solid revenue growth of 3% yoy as a result of the gradual improvement in demand in core vials and continued growth in other product categories.

Record profitability while simultaneously investing in expansion and innovation

In Q4 2024, EBITDA reached EUR 66m and grew stronger than revenue by 28% yoy (at constant currencies: 35%). Consequently, SCHOTT Pharma achieved strong profitability improvement in Q4 2024 with an EBITDA margin of 27.9%, both as reported and at constant currencies (Q4 2024: 22.6%).

In the DDS segment, the company increased EBITDA to EUR 45m which was up 21% yoy (at constant currencies: 19%). This resulted in the high quarterly margin of 35.5% (at constant currencies: 38.0%). On a twelve-month basis, EBITDA in DDS increased to EUR 166m, representing 29% yoy growth (at constant currencies: 26%).

EBITDA in the DCS segment increased to EUR 17m, showing strong growth of 21% yoy (at constant currencies: 48%). This was due to the positive product mix effects and cost efficiency initiatives. On a twelve-month basis, EBITDA reached EUR 101m compared to EUR 109m a year ago. However, adjusted for FX headwinds, EBITDA grew by 6%.

In FY 2024, SCHOTT Pharma’s high operational cash flow was driven by its profitability and improved working capital performance and led to a strong free cash flow of EUR 79m. The strong cash generation (cash flows from operating activities of EUR 225m) enabled the company to self-fund its investments, mainly its growth investments related to the ongoing expansion of HVS capacities. Total CAPEX amounted to EUR 145m (FY 2023: EUR 176m). The company’s net profit after minorities came in at EUR 150m, a slight decline of 1% yoy. SCHOTT Pharma recorded earnings per share of EUR 0.99 (FY 2023: EUR 1.01).

Outlook

In fiscal year 2025, the company expects to grow thanks to its strong market position, particularly for HVS products. Accordingly, significant revenue growth at constant currencies in the high single digits is expected for the coming fiscal year. As a result, SCHOTT Pharma also expects an increase in EBITDA and forecasts an EBITDA margin approximately at the strong level of FY 2024.

Going forward, SCHOTT Pharma will continue to pursue its strategic priorities along the pillars expansion and innovation while taking advantage of fully intact long-term industry trends such as GLP-1, antibody-drug conjugates (ADCs), homecare, subcutaneous injections and mRNA. The company confirms its mid-term outlook with a revenue CAGR above 10% and an EBITDA margin in the lower 30s% range.

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Key figures Q4 2024

Key figures FY 2024

¹The fiscal year runs from October to September. Q4 2024 therefore relates to the period from July 2024 to September 2024.
²CC = at constant currencies

Webcast

Andreas Reisse (CEO) and Dr. Almuth Steinkühler (CFO) will speak at an analyst and investor conference call at 11:00 a.m. CET on 12 December 2024 to discuss the Q4 and FY 2024 results. The audio webcast can be followed via a conference call. The accompanying presentation can also be downloaded on the IR website: www.schott-pharma.com/investor-relations  

About SCHOTT Pharma

Human health matters. That is why SCHOTT Pharma designs solutions grounded in science to ensure that medications are safe and easy to use for people around the world. The portfolio comprises drug containment solutions and delivery systems for injectable drugs ranging from prefillable glass and polymer syringes to cartridges, vials, and ampoules. Every day, a team of around 4,700 people from over 60 nations works at SCHOTT Pharma to contribute to global healthcare. The company is represented in all main pharmaceutical hubs with 16 manufacturing sites in Europe, North and South America, and Asia. With over 1,000 patents and technologies developed in-house and a state-of-the-art R&D center in Switzerland, the company is focused on developing innovations for the future. SCHOTT Pharma AG & Co. KGaA is headquartered in Mainz, Germany and listed on the Frankfurt Stock Exchange as part of the MDAX. It is part of SCHOTT AG, which is owned by the Carl Zeiss Foundation. In light of this spirit, SCHOTT Pharma is committed to sustainable development for society and the environment and has the strategic goal of becoming climate-neutral by 2030. Currently, SCHOTT Pharma has over 1,800 customers including the top 30 leading pharma manufacturers for injectable drugs and generated revenue of EUR 957 million in the fiscal year 2024. Further information at www.schott-pharma.com

Press contact

Joana Kornblum

Media Relations

Tel.: +49 151 2922 3552

E-Mail: joana.kornblum@schott.com

Tobias Erfurth

Head of Investor Relations

E-Mail: ir.pharma@schott.com

Jasko Terzic, CFA

Senior Manager Investor Relations

E-Mail: ir.pharma@schott.com