Revenue and Financial Performance - Revenue and net earnings are typically higher in the third and fourth fiscal quarters, with the first quarter generating the lowest revenue and the last quarter the highest, primarily due to seasonality in operational maintenance, pharmaceutical and biotechnology spending, and product demand[68] - The company's backlog as of June 30, 2024, was $2.34 billion, compared to $2.53 billion in 2023, with 78% expected to be recognized as revenue by the end of fiscal 2025[70] - The company has invested $1.56 billion in manufacturing and development facilities since fiscal 2022, including $327 million in capital expenditures during fiscal 2024[73] Operational Excellence and Delivery - The company achieved approximately 96% on-time shipment delivery in fiscal 2024, driven by operational excellence and process standardization[74] - Research and development costs were $17 million, $18 million, and $23 million for fiscal 2024, 2023, and 2022, respectively[78] Workforce and Employee Engagement - As of June 30, 2024, the company had approximately 16,900 employees globally, with women representing 44% of the workforce and holding 40% of managerial roles[81] - The turnover rate decreased to 19% as of June 30, 2024, with 11% voluntary turnover, driven by voluntary departures in the U.S. and reorganizations at larger sites[82] - The company attracted over 2,400 new employees in fiscal 2024, focusing on reducing time-to-fill for open positions and improving candidate experience[83] - In fiscal 2024, over 2,100 employees moved to new roles within the organization, either as developmental moves or promotions to more senior positions[88] - The company's GOLD program, a two-year rotational program for recent graduates, is being redesigned for a relaunch in fiscal 2026[90] - In fiscal 2024, 55 current and potential general managers participated in the Senior Leader General Managers' Excellence program[92] - Since its inception, the Lead Now program has certified 420 new leaders[92] - The company-wide engagement score in October 2023 was 6.7 out of 10[97] Sustainability and Environmental Impact - Renewable electricity accounted for 80% of electricity use by the end of fiscal 2023, reducing total Scope 1 and 2 emissions by 10% from fiscal 2022[101] - Water usage in water-stressed areas was reduced by 14.4% from fiscal 2022[101] - Waste diverted from landfill increased to 85% in fiscal 2023, up from 73% in fiscal 2022[101] - Philanthropic giving exceeded $1.25 million in fiscal 2023[101] - 21% of employees participated in the annual Month of Service in fiscal 2023, up from 18% in fiscal 2022[101] - The company closed the U.S. gender pay gap in fiscal 2021 through EDGE certification[102] Intellectual Property and Quality Management - Catalent holds more than 2,100 patents and patent applications worldwide[110] - The company has implemented a global quality management system with employees worldwide focusing on quality and regulatory compliance[115] - The company's facilities are subject to periodic inspections by the FDA, DEA, and other regulatory authorities, with all inspection observations resolved or on track for completion[115] - The company's operations are in compliance with environmental, health, and safety regulations, with appropriate reserves recorded for potential liabilities[118] Financial Risks and Exposure - The company is exposed to interest rate fluctuations on $500 million of U.S. dollar-denominated term loans, with the variable portion effectively fixed at 0.9431% through the 2023 Rate Swap[378] - A hypothetical 50 basis point change in the variable rate component of the company's variable rate indebtedness would change annual interest expense by $9 million[378] - The company is exposed to foreign exchange rate fluctuations, with principal drivers including the European euro, British pound, Argentinean peso, and Brazilian real[379] - The company's foreign currency exposure includes transactional and translational risks, with financial statements of foreign operations translated into U.S. dollars using period-end exchange rates[379] - Foreign currency transaction gains and losses are included in the statements of operations, utilizing weighted average exchange rates for the period[379]

Catalent, Inc. (CTLT) reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of 65 cents, which was significantly up from the year-ago period's EPS of 2 cents. The figure surpassed the Zacks Consensus Estimate by 41.3%. The company's GAAP EPS was 13 cents during the quarter against the year-ago period's loss per share of 59 cents. Catalent's Revenues in Detail Revenues grossed $1.30 billion in the reported quarter, up 23.3% year over year. The metric topped the Zacks Consensus Estimate by 5.4 ...

Catalent (CTLT) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 41.30%. A quarter ago, it was expected that this maker of drug delivery technologies would post earnings of $0.24 per share when it actually produced a loss of $0.06, delivering a surprise of -125%. Over the last four qua ...

Financial Performance - Q4'24 net revenue reached $1.30 billion, a 23% increase as reported, or 24% in constant currency, compared to Q4'23[1] - Fiscal 2024 net revenue totaled $4.38 billion, reflecting a 3% increase as reported, or 2% in constant currency, compared to fiscal 2023[1] - Q4'24 Adjusted EBITDA was $305 million, a 150% increase as reported, or 149% in constant currency, compared to Q4'23[1] - Fiscal 2024 Adjusted EBITDA amounted to $703 million, a 1% increase as reported, or 0% in constant currency, compared to FY'23[1] - Non-COVID revenue grew nearly 30% in Q4'24 compared to Q4'23[2] - Net revenue for the three months ended June 2024 was $1,301 million, a 24% increase from $1,055 million in the prior year[26] - Net revenue for the fiscal year ended June 30, 2024, was $4,381 million, representing a 2% increase from $4,263 million in the previous year[28] - Adjusted EBITDA for the quarter ended June 30, 2024, was $305 million, an increase from $122 million in the same quarter of the previous year[31] - The Adjusted EBITDA for the fiscal year ended June 30, 2024, was $703 million, an increase from $622 million in the previous year[40] Segment Performance - The Biologics segment reported Q4'24 net revenue of $605 million, a 51% increase compared to $400 million in Q4'23[5] - The Pharma and Consumer Health segment achieved Q4'24 net revenue of $697 million, a 7% increase compared to $655 million in Q4'23[5] - The Biologics Segment EBITDA for the three months ended June 30, 2024, was $136 million, a significant increase from a loss of $23 million in the prior year[39] Earnings and Losses - Operating earnings for the period were $106 million, a significant turnaround from an operating loss of $126 million in the same period last year, marking a 186% improvement[26] - Net earnings for the three months ended June 2024 were $23 million, compared to a net loss of $110 million in the prior year, reflecting a 120% increase[26] - The company reported a net loss of $1,043 million, compared to a net loss of $256 million in the previous year[28] - Operating loss for the fiscal year was $749 million, significantly higher than the previous year's loss of $163 million[28] - For the three months ended June 30, 2024, Catalent reported an Adjusted Net Income (ANI) of $1 million, compared to a loss of $24 million in the same period last year[33] - The company reported a net loss of $110 million for the three months ended June 30, 2023, compared to a net income of $23 million for the same period in 2024[39] Cash Flow and Debt - The company generated positive free cash flow exceeding $100 million in the last three months of fiscal 2024[2] - Catalent's total debt as of June 30, 2024, was $4.91 billion, with a net leverage ratio of 6.6x[10] - Total Secured Debt as of June 30, 2024, was $1,980 million, down from $1,907 million as of June 30, 2023[40] - The company’s total net debt decreased to $4,616 million as of June 30, 2024, compared to $4,569 million a year earlier[40] - Cash and cash equivalents at the end of the period were $289 million, slightly up from $280 million at the beginning of the period[30] - Interest expense increased to $254 million, up 36% from $186 million year-over-year[28] Mergers and Acquisitions - Catalent announced a merger agreement with Novo Holdings, valuing the company at $16.5 billion, expected to close by the end of calendar year 2024[11] - Catalent is currently navigating risks associated with a pending merger with an affiliate of Novo Holdings, which may impact future operations and financial results[23] Other Financial Metrics - Adjusted Net Income is used to provide a clearer picture of financial performance, excluding non-core items, although it is not defined under U.S. GAAP[17] - Catalent's Adjusted EBITDA is a key metric for covenant compliance in its credit agreement, although it is not directly comparable to U.S. GAAP measures[16] - The company emphasizes the importance of constant currency results to better understand period-to-period performance, excluding foreign exchange impacts[20] - The company reported a weighted average diluted shares outstanding of 183 million for the period[26] - Earnings per share for the diluted shares was $0.13, compared to a loss of $0.59 in the prior year[26] - Gross margin improved to $384 million, representing a 79% increase compared to $215 million in the previous year[26] - Gross margin decreased to $953 million, down 9% from $1,040 million year-over-year[28] - The company incurred goodwill impairment charges of $687 million during the fiscal year[28] - The company incurred goodwill impairment charges of $689 million during the three months ended September 30, 2023, primarily related to its Biomodalities and Consumer Health reporting units[34] - The company’s first lien debt to Adjusted EBITDA ratio improved to 3.0x as of June 30, 2024, compared to 2.9x in the previous year[40]

Company Expansion - Catalent has completed the expansion of its clinical supply facility in Schorndorf, Germany, which is expected to enhance its capabilities in clinical trial supply materials and support its pharma and biotech customers [1][16] - The expansion includes the addition of temperature-controlled storage and a new fully automatic bottle-filling line, which will improve service levels and accommodate future customer needs [2][16] Market Potential - The global clinical trial supplies market is projected to grow from $3.9 billion in 2023 to $6.3 billion by 2028, reflecting a compound annual growth rate (CAGR) of 9.9%, driven by increased R&D spending and a rise in clinical trials [3] Financial Performance - Catalent's shares have increased by 24.8% over the past year, significantly outperforming the industry, which saw a decline of 2.2% [5] - The company reported year-over-year improvements in its fiscal Q3 2024 results, with revenue growth in the Pharma and Consumer Health segment, and an increase in adjusted EBITDA margin for the second consecutive quarter [10] Industry Outlook - The recent expansion is expected to provide a significant boost to Catalent's position in the clinical trials market, particularly in the European region [8]

In October 2023, William Blair wrote that in fiscal year 2024, Catalent anticipates 30% Y/Y growth in nonCOVID biologics revenue, reaching approximately $1.35 billion to $1.80 billion. This growth is primarily fueled by a 60%-plus expansion attributed to Sarepta, translating into an estimated total revenue of nearly $700 million from the collaboration. Despite this, questions remain about Catalent's manufacturing capacity and the future role of Thermo Fisher Scientific Inc TMO as a secondary manufacturer. W ...

It has been about a month since the last earnings report for Catalent (CTLT) . Shares have added about 0.4% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Catalent due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Catalent Q3 Earnings Lag Estimates, Gross Margin ...

Leadership Transition - Harry Christiaens, PhD, retires as CEO after 20 years of leadership, remaining on the Board [1] - Jeremie Trochu appointed as new CEO, bringing 20 years of experience in the biopharma and CDMO industry [1][2] - Jeremie Trochu has a proven track record in global business growth, market expansion, and large-scale transformations, with deep transatlantic experience in European and North American markets [2] Company Growth and Vision - Ardena has grown from a local 10-person consultancy to a world-leading CDMO with over 500 employees and five facilities across Europe under Harry Christiaens' leadership [3] - The company recently invested EUR 25 million in state-of-the-art GMP nanomedicine and aseptic fill-finish capabilities [3] - Jeremie Trochu's global mindset and US market experience align with Ardena's ambitions for international expansion [3] Industry Expertise and Services - Ardena is a leading CDMO specializing in advanced drug development for innovative and complex molecules, aiming to accelerate therapies to the clinic and patients [4] - The company provides integrated services including solid-state chemistry, API and nanomedicine development, analytical and formulation development, drug product manufacturing, and regulatory services [5] - Ardena serves a wide range of clients, from emerging biotechs to big pharma, supporting drug discovery and development processes [5]

The latest partnership is expected to be a significant stepping stone for its Biologics business and solidify its foothold in the niche space. Rational Behind the Collaboration Under the partnership, Catalent will provide process development and cGMP (current good manufacturing practices) manufacturing of Siren Biotechnology's AAV vector-based therapeutic candidates for use in clinical trials. Catalent will also support process optimization at its process and clinical development center in Baltimore, MD. Pe ...

Catalent, Inc. (CTLT) reported third-quarter fiscal 2024 adjusted loss per share of 6 cents, which was narrower than the year-ago period’s loss per share of 9 cents. The Zacks Consensus Estimate was pegged at an earnings per share (EPS) of 24 cents.The adjustments include charges related to amortization, and impairment charges and gain/loss on the sale of assets, among others.The company’s GAAP loss per share was 56 cents during the quarter, narrower than the year-ago period’s loss per share of $1.26.Revenu ...