Sartorius sticks to 2022 outlook despite rising costs, Ukraine (updated)

Maravai Lifesciences Holdings

21/04/2022 07:25

(Adds detail, background)
    FRANKFURT, April 21 (Reuters) - Franco-German lab supplies
group Sartorius AG  SATG.DE  stuck to its 2022 outlook on
Thursday as demand remained strong in the first quarter despite
uncertainties from the war in Ukraine.
    Sartorius, which competes in bioreactor gear with Merck KGaA
 MRCG.DE  and Thermo Fisher  TMO.N , said underlying earnings
before interest, taxes, depreciation and amortisation (EBITDA)
had increased by nearly a third from the same quarter last year
to reach 349 million euros ($378.28 million).
    The corresponding underlying EBITDA margin improved to
34.1%, said the company which last year entered Germany's
blue-chip index DAX  .GDAXI . 
    Despite rising costs for logistics and raw materials,
Sartorius reiterated guidance for 2022 group sales to increase
by about 15% to 19% at constant foreign exchange rates, and for
the underlying EBITDA margin to match last year's level of about
34% 
    "Demand for our products is high in all segments, and our
investments in the expansion of production capacities are making
good progress," CEO Joachim Kreuzburg said. 
    "However, the global political and economic uncertainties
have increased substantially with the outbreak of war in
Ukraine, further increasing the strain on supply chains and the
risks arising from significantly higher inflation rates."  
    Sartorius shares have slumped by about 60% from a record
high in September on concern that pandemic-related demand will
wane.
    Investors also took a dim view of the German company's
takeover interest in U.S. group Maravai LifeSciences  MRVI.O ,
reported by Reuters in February.  urn:newsml:reuters.com:*:nL1N2V037I
    Last year, sales surged 48% to 3.45 billion euros as the
coronavirus pandemic fuelled demand from biotech businesses. 
    Sartorius has said it plans to invest between 550 million
and 600 million euros in 2022 to meet the high demand.
    The company has warned of strained supply chains, saying
that microchips, specialty plastics and freight capacity were
more difficult to obtain, forcing it to order earlier, at times
to switch suppliers, and to accept higher costs.    
    "The pandemic-related effects and the development of order
intake are normalising, as expected," it said on Thursday.
    ($1 = 0.9226 euros)

 (Reporting by Ludwig Burger; writing by Miranda Murray; editing
by Muralikumar Anantharaman and Jason Neely)