Sartorius, Sartorius Stedim Biotech shares jump after results beat

Sartorius AG

28/01/2025 08:59

Jan 28 (Reuters) - Shares in Sartorius  SATG.DE  jumped
15.6% on Tuesday after the Franco-German lab supplies maker's
preliminary annual results beat expectations and despite a
cautious outlook for 2025.
    "Business development in the second half of the year, and
especially in the final quarter, confirms our estimate that the
temporary weakness in demand is coming to an end and that the
industry will gradually return to its robust, structurally
underlying growth trend," CEO Joachim Kreuzburg said in a
statement.
    The company reported its annual underlying earnings before
interest, tax, depreciation and amortisation (EBITDA) of
945 million euros ($985.54 million), topping a Vara consensus
estimate of 932.7 million.
    Fourth-quarter orders for its key Bioprocess Solutions
division (BPS) rose 23.1% to 856.7 million euros, representing a
22% beat to J.P. Morgan estimates.
    Underlying EBITDA and order intake beat should support
Sartorius shares and those of its French subsidiary Sartorius
Stedim Biotech on Tuesday, J.P.Morgan said in a note to clients.
    Shares in Sartorius Stedim Biotech  STDM.PA  were up 13.9%
in morning trade.
    Both shares are on track for their best day since October.
    Shares in Sartorius peer Merck KGaA  MRCG.DE  were up 5.5%.
    For 2025, Sartorius expects continuous demand recovery and
growth in the life science market, albeit at a rate below its
long-term average.
    The company anticipates growth in underlying EBITDA will
outpace sales revenue, citing expected volume development and
positive product mix effects.
    The company plans to publish a quantitative forecast after
the first quarter of 2025, IT said.
 
($1 = 0.9589 euros)
    

 (Reporting by Amir Orusov and Anastasiia Kozlova)
 ((Amir.Orusov@thomsonreuters.com;
Anastasiia.Kozlova@thomsonreuters.com))