Q1 2024 EARNINGS PRESENTATION April 26, 2024 Disclaimer ...

PART I — FINANCIAL INFORMATION [Item 1. Financial statements](index=7&type=section&id=Item%201.%20Financial%20statements) The company presents its unaudited Q1 2024 condensed consolidated financial statements and discloses a change in its operating segments Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $2,321.1 | $2,384.9 | | **Total assets** | $12,763.4 | $12,972.7 | | **Total current liabilities** | $1,441.9 | $1,480.3 | | **Total liabilities** | $7,427.1 | $7,720.1 | | **Total stockholders' equity** | $5,336.3 | $5,252.6 | Consolidated Statements of Operations (in millions, except per share data) | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net sales | $1,679.8 | $1,780.3 | | Gross profit | $570.5 | $624.8 | | Operating income | $146.3 | $231.2 | | Net income | $60.4 | $121.5 | | Diluted EPS | $0.09 | $0.18 | Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141.6 | $219.5 | | Net cash used in investing activities | $(34.2) | $(27.3) | | Net cash used in financing activities | $(130.2) | $(275.0) | | Net change in cash | $(28.5) | $(78.0) | - Effective January 1, 2024, the company changed its operating model and reporting structure from three segments to two: **Laboratory Solutions and Bioscience Production**[33](index=33&type=chunk)[42](index=42&type=chunk) Segment Net Sales and Adjusted Operating Income (in millions) | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | **Net Sales** | | | | Laboratory Solutions | $1,157.1 | $1,203.0 | | Bioscience Production | $522.7 | $577.3 | | **Total** | **$1,679.8** | **$1,780.3** | | **Adjusted Operating Income** | | | | Laboratory Solutions | $148.2 | $172.2 | | Bioscience Production | $126.9 | $167.5 | | Corporate | $(16.7) | $(16.6) | | **Total** | **$258.4** | **$323.1** | Total Debt Summary (in millions) | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total debt, gross | $5,360.9 | $5,580.0 | | Less: unamortized deferred financing costs | $(37.9) | $(43.4) | | **Total debt** | **$5,323.0** | **$5,536.6** | - The company engages in hedging activities using interest rate swaps, cross-currency swaps, and foreign currency forward contracts to reduce exposure to interest rate and foreign currency exchange rate fluctuations[89](index=89&type=chunk)[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) Management analyzes a 5.6% net sales decrease to $1.7 billion in Q1 2024, driven by reduced demand across its newly defined segments Q1 2024 Key Financial Results (in millions) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net sales | $1,679.8 | $1,780.3 | $(100.5) | | Net income | $60.4 | $121.5 | $(61.1) | | Adjusted EBITDA | $283.0 | $346.2 | $(63.2) | | Adjusted Operating Income | $258.4 | $323.1 | $(64.7) | - Key factors affecting the business include the ongoing **normalization of customer demand post-COVID-19**, global supply chain disruptions, inflationary pressures, and fluctuations in foreign currency rates[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) Organic Net Sales Growth (Decline) by Segment - Q1 2024 | Segment | Net Sales Growth (Decline) | Foreign Currency Impact | Organic Net Sales Growth (Decline) | | :--- | :--- | :--- | :--- | | Laboratory Solutions | (3.8%) | 0.7% | (4.5%) | | Bioscience Production | (9.5%) | 0.5% | (10.0%) | | **Total** | **(5.6%)** | **0.7%** | **(6.3%)** | - Gross margin for Q1 2024 contracted by **110 basis points to 34.0%**, primarily due to unfavorable product mix[129](index=129&type=chunk)[130](index=130&type=chunk) - Operating income decreased by **$84.9 million**, driven by lower gross profit and higher operating expenses, which included restructuring, severance, and transformation costs[131](index=131&type=chunk)[132](index=132&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $60.4 | $121.5 | | Interest expense, net | $64.3 | $73.7 | | Income tax expense | $20.2 | $34.3 | | Depreciation and amortization | $99.6 | $101.1 | | Other adjustments (restructuring, transformation, etc.) | $36.5 | $15.6 | | **Adjusted EBITDA** | **$283.0** | **$346.2** | Reconciliation of Net Income to Adjusted Operating Income (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $60.4 | $121.5 | | Interest expense, net | $64.3 | $73.7 | | Income tax expense | $20.2 | $34.3 | | Other adjustments | $2.5 | $1.7 | | **Operating income** | **$146.3** | **$231.2** | | Amortization & other adjustments | $112.1 | $91.9 | | **Adjusted Operating Income** | **$258.4** | **$323.1** | Liquidity Summary (in millions) as of March 31, 2024 | Source | Amount | | :--- | :--- | | Unused availability under credit facilities | $1,018.4 | | Cash and cash equivalents | $234.9 | | **Total liquidity** | **$1,253.3** | Free Cash Flow (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141.6 | $219.5 | | Capital expenditures | $(34.7) | $(28.0) | | **Free cash flow** | **$106.9** | **$191.5** | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20qualitative%20disclosures%20about%20market%20risk) The company reports no material changes to its market risk disclosures from the 2023 Annual Report - There were **no material changes** during the quarter ended March 31, 2024 to the market risk information reported in the Company's 2023 Annual Report[160](index=160&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2024[161](index=161&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that have materially affected or are reasonably likely to materially affect internal controls[162](index=162&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20proceedings) The company reports no outstanding litigation expected to result in material losses as of March 31, 2024 - As of March 31, 2024, the company did not have any outstanding litigation that it believed would result in **material losses** if decided unfavorably[66](index=66&type=chunk)[163](index=163&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20factors) No material changes to the risk factors disclosed in the 2023 Annual Report have occurred - There have been **no material changes** to the risk factors previously disclosed in the company's Annual Report[164](index=164&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20information) Two executive officers adopted Rule 10b5-1 trading plans for future sales of company stock in March 2024 - On March 7, 2024, Christophe Couturier, EVP, adopted a **Rule 10b5-1 trading plan**[166](index=166&type=chunk) - On March 8, 2024, James Bramwell, EVP, adopted a **Rule 10b5-1 trading plan**[167](index=167&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements and executive certifications - A list of exhibits filed with the report is provided, including credit agreement amendments, consulting agreements, and required **executive certifications**[169](index=169&type=chunk)[170](index=170&type=chunk)[173](index=173&type=chunk)

Exhibit 99.1 Avantor® Reports First Quarter 2024 Results • Net sales of $1.68 billion, decrease of 5.6%; organic decline of 6.3% • Net income of $60 million; Adjusted EBITDA of $283 million • Diluted GAAP EPS of $0.09; adjusted EPS of $0.22 • Operating cash flow of $142 million; free cash flow of $107 million RADNOR, Pa. – April 26, 2024 – Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, toda ...

Core Viewpoint - Avantor Inc (AVTR) is positioned favorably ahead of its upcoming earnings report, with positive earnings estimate revisions indicating potential for an earnings beat [1][2] Earnings Estimates - The Most Accurate Estimate for Avantor's current quarter is 21 cents per share, surpassing the broader Zacks Consensus Estimate of 20 cents per share, reflecting recent upward revisions by analysts [1] - Avantor has a Zacks Earnings ESP of +1.70%, suggesting a positive outlook as it approaches earnings season [1] Historical Performance - A positive Zacks Earnings ESP has historically led to positive surprises and market outperformance, with a 10-year backtest showing that stocks with a positive Earnings ESP and a Zacks Rank 3 (Hold) or better achieve positive surprises nearly 70% of the time and average annual returns of over 28% [2] - Given Avantor's Zacks Rank 3 and positive ESP, it is recommended for investors to consider this stock ahead of its earnings report [2]

Investors with an interest in Medical Services stocks have likely encountered both Elevance Health (ELV) and Avantor, Inc. (AVTR) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets comp ...

Investors interested in stocks from the Medical Services sector have probably already heard of Bausch + Lomb (BLCO) and Avantor, Inc. (AVTR) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong e ...

RADNOR, Pa., April 1, 2024 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced that it will release its first quarter 2024 financial results before the market opens on Friday, April 26, and will hold a conference call on the same day at 8:00 a.m. Eastern Time to discuss the results. To hear a live audio webcast of the session, visit Events & Presentations in the Investo ...

Investors interested in stocks from the Medical Services sector have probably already heard of Bausch + Lomb (BLCO) and Avantor, Inc. (AVTR) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasiz ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Hanmi Financial (HAFC) is a business bank conducting a general community banking business, with its primary market encompassing multi-ethnic small business customers. The Zacks Consensus Estimate for its current year earnings has been revised 9.2% downward over the last 60 days.Avantor (AVTR) is a renowned global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and a ...

RADNOR, Pa., Feb. 20, 2024 /PRNewswire/ -- Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced that Michael Stubblefield, President and CEO, will participate in a fireside chat at the 44th Annual TD Cowen Health Care Conference in Boston on Tuesday, March 5, 2024, at approximately 10:30 a.m. Eastern Standard Time. To hear a live audio webcast of the session, visit Events & Presentation ...