Schott Pharma (ETR:1SXP) shares fell Tuesday after the company narrowed its full-year sales growth forecast to about 6% at constant currencies, the low end of its previous range, even as third-quarter margins rose to 32.4% on a higher share of high-value solutions.
The Germany-based drug containment and delivery systems maker posted an 11% year-over-year rise in quarterly EBITDA to €83 million, with high-value solutions, including sterile cartridges and specialty vials, accounting for 60% of revenue, up from 55% a year earlier. Revenue in the quarter rose 1% to €256 million, or 3% at constant currencies.
Guidance for the year was tightened to reflect increased macro uncertainty and cautious industry sentiment, according to the company.
EBITDA margin guidance was raised to about 28%, compared with the previous view of around last year’s level of 26.9%.
The company also lifted its outlook for high-value solutions’ revenue share to more than 55% from about 55%.
In the quarter, revenue in the Drug Containment Solutions segment rose 4% to €142 million, driven by strong demand for high-value products.
EBITDA for the segment increased 28% to €38 million. Drug Delivery Systems revenue fell 2% to €114 million, with EBITDA down 2% to €42 million.
Jefferies noted that while the high-value product mix supported margins, the guidance change implied a weaker margin in the fourth quarter.
Source :
https://www.investing.com/news/earnings/schott-pharma-slips-on-lower-sales-outlook-margin-beats-4184234
