Sartorius AG

Earnings Release • Apr 17, 2025

Göttingen, Germany | April 16, 2025

Strong start to the year: Sartorius achieves significant profitable growth in the first quarter

• Group sales revenue up 6.5 percent
• High demand for consumables: sales revenue in the Bioprocess Solutions division up by almost 10 percent; in contrast, development in lab division muted, as expected
• Very good development of order intake: Group book-to-bill ratio well above 1
• Profitability increases overproportionately: underlying EBITDA up 12.2 percent; margin reaches 29.8 percent
• Full-year guidance: sales revenue to increase by around 6 percent with underlying EBITDA margin of around 29 to 30 percent

In the first quarter of 2025, the life science group Sartorius built on the momentum from the second half of 2024 and achieved significant growth in sales revenue and profitability.

"Sartorius has gotten off to a very good start to the new year, in particular the strong trend in our consumables business continues. By contrast, customers are still cautious about investing in lab instruments and bioprocessing equipment, as expected," said Sartorius CEO Dr. Joachim Kreuzburg. "The fundamental growth drivers of our industry are increasingly playing the central role again. Demand for biologics – often the only effective therapies for severe diseases – will continue to rise sustainably, along with the strong need for innovative technologies that make their development and manufacture faster and more efficient. This is precisely our strategic and operational focus. For the full year 2025, we expect Group sales revenue growth of around 6 percent and an increase in our profit margin."

Business development of the Group¹

In the first three months of the fiscal year, Sartorius Group reported a 6.5 percent sales revenue increase in constant currencies (reported: 7.7 percent) to 883 million euros. The book-to-bill ratio, which reflects the ratio of order intake to sales revenue, was well above 1.

The positive trend in sales revenue was visible in all business regions: The Americas region recorded an increase of 8.1 percent in constant currencies compared to the same period of the previous year, while the EMEA² region grew by 6.3 percent. In Asia/Pacific, sales revenue gained 4.6 percent; excluding China, the region grew by 10.0 percent.

The Group's underlying EBITDA rose overproportionately, by 12.2 percent to 263 million euros, mainly as a result of the sales revenue development. Product mix effects and the previous year's efficiency program also had a positive impact. The corresponding margin increased to 29.8 percent compared with 28.6 percent in the same period of 2024.

The underlying net profit increased by 21.4 percent to 85 million euros after 70 million euros in the first three months of the previous year. Underlying earnings per ordinary share amounted to 1.22 euros (PY 1.01 euros) and underlying earnings per preference share to 1.23 euros (PY 1.02 euros).

The company employed 13,573 people as of March 31, 2025, slightly exceeding the figure for year-end 2024 (December 31, 2024: 13,528).

Key financial indicators

The Group's balance sheet and key financial figures remain at robust levels. The equity ratio as of March 31, 2025, was 38.0 percent (December 31, 2024: 38.6 percent).

Net operating cash flow tripled to 139 million euros, compared with 45 million euros in the first quarter of the previous year. As planned, the ratio of net debt to underlying EBITDA was further reduced and stood at 3.9 (December 31, 2024: 4.0). Investments in research and the company's global production infrastructure were, as planned, disproportionately low in the first quarter and amounted to 76 million euros, compared with 128 million euros in the same period of the previous year. This resulted in a ratio of capital expenditures (capex) to sales revenue of 8.6 percent (PY 15.7 percent).

Business development in the Bioprocess Solutions division

In the Bioprocess Solutions division, which offers a wide range of innovative technologies for the efficient and sustainable manufacture of biopharmaceuticals, the very positive development in the consumables business continued. In contrast, the industry-wide reluctance of customers to invest continued to impact the equipment and systems business.

In the first three months of the fiscal year, the division's sales revenue increased by 9.7 percent in constant currencies (reported: 11.0 percent) to 718 million euros. Underlying EBITDA grew even more significantly, up 17.0 percent to 226 million euros due to positive volume and product mix effects. The corresponding margin rose from 29.8 percent in the same period last year to 31.5 percent.

Business development in the Lab Products & Services division

As expected, the performance of the Lab Products & Services division, which specializes in life science research and pharmaceutical laboratories, remained below that of the bioprocess division in the first quarter of 2025. This was mainly due to customers' continued reluctance to invest, particularly in bioanalytical equipment. The division generated sales revenue of 165 million euros, a decline of 5.5 percent in constant currencies (reported: 4.4 percent) with an underlying EBITDA of 37 million euros (PY 41 million euros) and a corresponding margin of 22.6 percent (PY 24.0 percent).

Guidance for fiscal 2025

Based on the first quarter results and the expected good underlying market development, management projects sales revenue growth of around 6 percent for the Group, around 7 percent for the Bioprocess Solutions division and around 1 percent for Lab Products & Services for 2025. Due to the continued aboveaverage volatility, the company currently anticipates a forecast range of about plus/minus two percentage points respectively.

For earnings, the company expects an underlying EBITDA margin at Group level of around 29 to 30 percent (PY 28.0 percent), with the margin for the Bioprocess Solutions division rising to around 31 to 32 percent (PY 29.3 percent) and the margin for the lab division reaching around 22 to 23 percent (PY 22.9 percent). The margin forecast does not include possible effects of tariffs or related mitigating and corrective measures, which, depending on their design, scope, and duration, could impact margin development temporarily to a limited extent. Management does not expect any influence on the strong market position and competitiveness of Sartorius.

The ratio of capital expenditures to sales revenue should be on par with the previous year at around 12.5 percent and the ratio of net debt to underlying EBITDA should decrease to around 3.5.

Contributions from the agreed acquisition of microtissue specialist MatTek will be recognized after the transaction closes, which is expected in the second quarter of 2025.

1 Sartorius publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.

• Underlying EBITDA: earnings before interest, taxes, depreciation, and amortization and adjusted for extraordinary items
• Relevant net profit: profit for the period after non-controlling interest, adjusted for extraordinary items and amortization, as well as based on the normalized financial result and the normalized tax rate
• Ratio of net debt to underlying EBITDA: quotient of net debt and underlying EBITDA over the past 12 months, including the pro forma amount contributed by acquisitions for this period

2 EMEA = Europe, Middle East, Africa

This media release contains forward-looking statements about the future development of the Sartorius Group. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements. Sartorius assumes no liability for updating such statements in light of new information or future events. This is a translation of the original German-language media release. Sartorius shall not assume any liability for the correctness of this translation. The original German media release is the legally binding version.

All forecast figures are based on constant currencies, as in past years. Management points out that the dynamics and volatilities in the industry have increased significantly in recent years. In addition, uncertainties due to the changed geopolitical situation, such as the emerging decoupling tendencies of various countries, are playing a greater role. This results in higher uncertainty when forecasting business figures.

Conference call

CEO Dr. Joachim Kreuzburg and CFO Dr. Florian Funck will discuss the company's first quarter results with analysts and investors in a conference call at 1.00 p.m. CEST on April 16, 2025. Register here: https://sar.to/Investors\_Call\_Q1\_2025

Financial calendar

July 22, 2025 Publication of the first-half figures (January to June 2025) October 16, 2025 Publication of the nine-month figures (January to September 2025)

A profile of Sartorius

Sartorius is a leading international partner to life sciences research and the biopharmaceutical industry. With innovative laboratory instruments and consumables, the Group's Lab Products & Services Division focuses on laboratories performing research and quality control at pharmaceutical and biopharmaceutical companies as well as academic research institutes. The Bioprocess Solutions Division, with its broad product portfolio focusing on single-use solutions, helps customers manufacture biotech medications, vaccines, and cell and gene therapies more safely, rapidly, and sustainably. Based in Göttingen, Germany, the company has a strong global reach with around 60 production and sales sites worldwide. Sartorius regularly expands its portfolio through the acquisition of complementary technologies. In 2024, the company generated sales revenue of around 3.4 billion euros. More than 13,500 employees work for customers around the globe.

Visit our newsroom and follow Sartorius on LinkedIn.

Contact

Petra Müller Head of Investor Relations +49 (0)551.308.6035 petra.mueller2@sartorius.com

Key Performance Indicators for the First Quarter of 2025
----------------------------------------------------------	--	--	--	--	--

	Sartorius Group			Bioprocess Solutions				Lab Products & Services
in millions of € unless otherwise specified	Q1 2025	Q1 2024	Δ in %	Δ in % cc1	Q1 2025	Q1 2024	Δ in %	Δ in % cc1	Q1 2025	Q1 2024	Δ in %	Δ in % cc1
Sales Revenue
Sales revenue	883.0	819.6	7.7	6.5	718.0	647.0	11.0	9.7	165.0	172.5	-4.4	-5.5
▪ EMEA2	364.4	341.4	6.7	6.3	299.3	273.0	9.7	9.3	65.1	68.4	-4.9	-5.5
▪ Americas2	320.9	288.3	11.3	8.1	268.5	233.1	15.2	11.9	52.3	55.2	-5.2	-7.8
▪ Asia Pacific2	197.7	189.8	4.2	4.6	150.1	140.9	6.5	7.1	47.6	48.9	-2.6	-2.8
Earnings
EBITDA3	263.0	234.4	12.2		225.8	193.1	17.0		37.2	41.4	-10.1
EBITDA-Margin3 in %	29.8		28.6 +1.2 pp		31.5		29.8 +1.7 pp		22.6		24.0 -1.4 pp
Relevant net profit4	84.8	69.9	21.4
Net result5	48.5	36.9	31.2
Financial Data per Share
Earnings per ord. share4 in €	1.22	1.01	21.5
Earnings per pref. share4 in €	1.23	1.02	21.3

1 cc = Constant currencies: Figures given in constant currencies eliminate the impact of changes in exchange rates by applying the same exchange rate for the current and the previous period

2 Acc. to the customer's location

3 Earnings before interest, taxes, depreciation and amortization, and adjusted for extraordinary items.

4 Profit for the period after non-controlling interest, adjusted for extraordinary items, and amortization, as well as based on the normalized financial result and the normalized tax rate.

5 After non-controlling interest

Statement of Profit or Loss

	Q1	Q1
€ in millions	2025	2024
Sales revenue	883.0	819.6
Cost of sales	–452.0	–423.2
Gross profit on sales	431.0	396.4
Selling and distribution costs	–173.2	–170.1
Research and development expenses	–49.7	–44.9
General administrative expenses	–58.7	–53.7
Other operating income	10.9	9.6
Other operating expenses	–22.8	–14.6
Earnings before interest and taxes (EBIT)	137.4	122.7
Financial income	54.9	16.4
Financial expenses	–92.8	–65.6
Financial result	–37.9	–49.2
Profit before tax	99.5	73.5
Income taxes	–26.9	–19.9
Net profit for the period	72.6	53.7
Attributable to:
Shareholders of Sartorius AG	48.5	36.9
Non-controlling interest	24.2	16.8
Earnings per ordinary share (€) (basic)	0.70	0.53
Earnings per preference share (€) (basic)	0.71	0.54
Earnings per ordinary share (€) (diluted)	0.70	0.53
Earnings per preference share (€) (diluted)	0.71	0.54

Statement of Comprehensive Income

	Q1	Q1
€ in millions	2025	2024
Net profit for the period	72.6	53.7
Cash flow hedges	17.2	–10.2
- of which effective portion of the change in fair value	14.9	–9.0
- of which reclassified to profit or loss	2.3	–1.2
Income tax on cash flow hedges	–5.2	2.4
Net investment in a foreign operation (currency translation)	–14.2	12.4
Currency translation differences	–59.5	30.7
Items that may be reclassified to the profit or loss statement, net of tax	–61.6	35.3
Remeasurements of the net defined benefit liabilities	0.0	0.0
Income tax on remeasurements of the net defined benefits liabilities	0.0	0.0
Equity Instruments at FVOCI	0.1	–7.5
Items that will not be reclassified to the profit or loss statement, net of tax	0.1	–7.5
Other comprehensive income after tax	–61.5	27.8
Total comprehensive income	11.1	81.5
Attributable to:
Shareholders of Sartorius AG	–3.4	61.3
Non-controlling interest	14.6	20.2

Statement of Financial Position

€ in millions	March 31, 20251	Dec. 31, 2024
Non-current assets
Goodwill	3,477.4	3,502.1
Other intangible assets	1,915.2	1,967.2
Property, plant and equipment	2,381.6	2,347.2
Financial assets	81.5	82.1
Other assets	6.0	4.4
Deferred tax assets	91.0	86.3
	7,952.8	7,989.3
Current assets
Inventories	787.9	788.5
Trade receivables	322.5	317.9
Other financial assets	37.6	27.1
Current tax assets	56.4	62.5
Other assets	115.6	104.2
Cash and cash equivalents	839.5	813.4
	2,159.5	2,113.7
Total assets	10,112.3	10,103.0
€ in millions	March 31, 20251	Dec. 31, 2024
Equity
Equity attributable to Sartorius AG shareholders	2,709.6	2,764.8
Issued capital	69.0	69.0
Capital reserves	245.2	244.9
Other reserves and retained earnings	2,395.4	2,450.9
Non-controlling interest	1,128.1	1,133.0
	3,837.7	3,897.8
Non-current liabilities
Pension provisions	60.5	59.7
Other provisions	23.1	22.8
Loans and borrowings	4,017.7	4,022.1
Lease liabilities	183.0	144.6
Other financial liabilities	104.4	106.2
Deferred tax liabilities	404.5	405.3
	4,793.2	4,760.6
Current liabilities
Provisions	41.5	42.8
Trade payables	359.6	344.1
Contract liabilities	246.5	254.0
Loans and borrowings	395.3	356.5
Lease liabilities	33.7	36.6
Employee benefits	117.6	122.1
Other financial liabilities	117.4	83.4
Current tax liabilities	102.0	144.0
Other liabilities	67.9	61.1
	1,481.4	1,444.6
Total equity and liabilities	10,112.3	10,103.0

1 Figures are not audited nor reviewed

Statement of Cash Flows

€ in millions	Q1 2025	Q1 2024
Profit before tax	99.5	73.5
Financial result	37.9	49.2
Depreciation amortization of intangible and tangible assets	103.5	95.3
Change in provisions	–0.2	–6.9
Change in receivables and other assets	–28.1	–74.5
Change in inventories	–14.2	16.9
Change in liabilities (without loans and borrowings)	4.1	–0.9
Interest received	7.1	7.4
Income taxes paid	–71.5	–115.2
Other non-cash transactions	0.9	0.6
Cash flow from operating activities	139.2	45.4
Investments in intangible and tangible assets	–76.1	–128.3
Investments in financial assets	–1.9	–7.0
Cash flow from investing activities before acquisitions	–78.0	–135.3
Acquisitions of subsidiaries and other business operations	0.0	0.0
Cash flow used in investing activities	–78.0	–135.3
Capital increase	0.0	198.4
Interest paid	–10.3	–9.2
Dividends paid to:
- Shareholders of Sartorius AG	0.0	0.0
- Non-controlling interest	–0.9	–0.9
Changes in non-controlling interest	–2.0	791.7
Repayment of borrowings	–20.9	–170.6
Proceeds from borrowings	0.0	3.5
Cash flow from used in financing activities	–34.1	812.8
Net increase decrease in cash and cash equivalents	27.0	722.8
Cash and cash equivalents at the beginning of the period	813.4	379.2
Net effect of currency translation on cash and cash equivalents	–1.0	0.7
Cash and cash equivalents at the end of the period ▪	839.5 ▪	1,102.8 ▪

Reconciliation

	Q1	Q1
in millions of €	2025	2024
EBIT	137.4	122.7
Extraordinary items	22.1	16.4
Amortization	39.8	39.9
Normalized financial result1	–39.2	–49.6
Normalized income tax (27%)2	–43.2	–35.0
Underlying net result after tax	116.8	94.5
Non-controlling interest	–32.0	–24.7
Underlying earnings after taxes and non-controlling interest	84.8	69.9
Underlying earnings per share
per ordinary share in €	1.22	1.01
per preference share in €	1.23	1.02

1 Financial results adjusted for valuation effects from the subsequent measurement of contingent purchase price liabilities as well as for effects of foreign currency translation and hedging.

2 Income tax considering the average group tax rate, based on the underlying profit before tax.