EXTON, Pa., July 11, 2024 /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST), a global leader in innovative solutions for injectable drug administration, today announced that it will release second-quarter financial results before the market opens on Thursday, July 25, 2024, and will follow with a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time. Management will refer to a slide presentation during the call, which will be made available on the day of the ...

First-Quarter 2024 | --- | --- | |-----------------------------------|--------------------------------------------| | $695.4M | First Quarter Overall Net Sales \| 3.0% | | | | | Diluted Earnings Per Share: $1.55 | Adjusted Diluted Earnings Per Share: $1.56 | WST Q1 2024 Earnings 1 "We had a solid start to the year and our full-year 2024 financial outlook remains unchanged. We are actively managing the timing of inventory decisions by some of our customers, and our recent order trends reinforce our prior out ...

Financial Data and Key Metrics Changes - The company reported Q1 2024 net sales of $695.4 million, representing an organic sales decline of 3% compared to the same period last year [17] - Adjusted operating profit margin decreased by 530 basis points to 17.7%, and adjusted diluted EPS declined by 21.2% [20] - Operating cash flow was $118.2 million, a decrease of 14.4% year-over-year [24] Business Line Data and Key Metrics Changes - Proprietary Products organic net sales decreased by 4%, with high-value products making up 72% of sales [18] - The Contract Manufacturing segment experienced low single-digit net sales growth, primarily driven by an increase in sales of components associated with diagnostic devices [20] Market Data and Key Metrics Changes - The Biologics market unit delivered low single-digit growth, primarily led by sales of NovaPure, while the pharma market unit saw a high single-digit decline [19] - The generics market unit declined in double digits, primarily due to decreased sales from Westar and FluroTec components [19] Company Strategy and Development Direction - The company is maintaining its full-year 2024 organic sales growth outlook of 2% to 3% and expects stronger gross and operating margins in the second half of the year [15][27] - Capital expansion projects are ongoing to increase capacity for both Proprietary Products and Contract Manufacturing segments [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that customer destocking is still ongoing, impacting Q2, but expects a return to more typical order patterns in Q4 [8][15] - The company is optimistic about the second half of 2024, with anticipated growth driven by confirmed orders and improved order patterns [74] Other Important Information - The company is raising its full-year 2024 adjusted diluted EPS guidance to a range of $7.63 to $7.88 [28] - The company is actively engaged in discussions regarding regulatory changes, particularly the European Union GMP Annex 1, which is expected to drive demand for higher quality products [11][77] Q&A Session Summary Question: Outlook for Q2 organic growth - Management indicated that Q2 will be sequentially stronger than Q1, but destocking is still impacting the quarter [33][34] Question: Competitive positioning and supply chain dynamics - Management emphasized strong customer relationships and confidence in their ability to supply products without stockouts during the pandemic [38] Question: Margin leverage and performance - Management acknowledged that gross margin was impacted by mix and absorption issues, but expects sequential improvement throughout the year [42][56] Question: Long-term outlook amidst emerging trends - Management remains confident in their long-term outlook, particularly in the GLP-1 sector and compliance with Annex 1 regulations [44] Question: Capacity constraints in Contract Manufacturing - Management confirmed significant investments in capacity expansion, with commercial revenues expected to ramp up in 2025 [47] Question: Impact of customer inventory management - Management confirmed that the impact of destocking will wane throughout the year, supported by confirmed orders [74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8036 WEST PHARMACEUTICAL SERVICES, INC. (Exact name of registrant as specified in its charter) Pennsylvania 23-1210010 (State or o ...

Exhibit 99.1 West Announces First-Quarter 2024 Results and Declares Third-Quarter 2024 Dividend - Conference Call Scheduled for 9 a.m. EDT Today - Exton, PA, April 25, 2024 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the first-quarter 2024 and updated full-year 2024 financial guidance. First-Quarter 2024 Summary (comparisons to prior-year period) "Adjusted-diluted EPS" and "organic sales growth" are Non-U.S. GAAP measurements. See discussion under the heading " ...

Customer Concentration - The company's ten largest customers accounted for 41.4% of consolidated net sales in 2023, with one customer contributing 10.9% or $322.1 million[34] - In 2023, the company's ten largest customers accounted for 41.4% of consolidated net sales, with one customer contributing 10.9% or $322.1 million[34] Intellectual Property - In 2023, more than 190 patents were issued globally, indicating a strong focus on intellectual property development[27] - The company was issued more than 190 patents globally in 2023, indicating a strong focus on intellectual property development[27] Workforce and Employment - The company employed approximately 10,600 people as of December 31, 2023, with a hiring of 2,100 new team members during the year and an attrition rate of approximately 21%[43] - The company employed approximately 10,600 people as of December 31, 2023, with a hiring of 2,100 new team members and an attrition rate of approximately 21%[43] Health and Safety - The Recordable Injury Rate in 2023 was 0.74 per 100 employees, reflecting the company's commitment to health and safety[49] - The Recordable Injury Rate for the company in 2023 was 0.74 per 100 employees, reflecting its commitment to health and safety[49] Capital Expenditures - The company has not required material capital expenditures for compliance with government regulations in 2023 and does not expect significant expenditures in 2024[29] - The company has not incurred material capital expenditures for compliance with government regulations in 2023 and does not expect significant expenditures in 2024[29] Strategic Initiatives - The company continues to pursue strategic initiatives in drug containment components and novel drug delivery devices, focusing on innovation and market expansion[42] - The company continues to pursue strategic initiatives in drug containment components and integrated drug delivery systems, focusing on innovation and market expansion[42] Supply Chain Management - The company maintains a supply chain management strategy that relies on single-source suppliers for many critical raw materials, which increases supply chain risk[25] - The company maintains a supply chain management strategy that relies on single-source suppliers for many critical raw materials, which poses risks of supply interruption[25] Gender Demographics - The company has a global gender demographic of 64% men and 36% women among its employees as of December 31, 2023[43] - The company has a global gender demographic of 64% men and 36% women among its employees as of December 31, 2023[43] Environmental Commitment - The company is committed to environmental, social, and governance (ESG) initiatives, focusing on sustainability and community health[52] - The company has committed to a climate and greenhouse gas reduction strategy, focusing on renewable energy and sustainability in its operations[52] Market Presence - The company’s proprietary products are primarily sold to major biologic, generic, and pharmaceutical drug companies, indicating a strong market presence[33]

Financial Data and Key Metrics Changes - In Q4 2023, the company recorded net sales of $732 million, representing organic sales growth of 1.4% [26] - COVID-related net revenues were approximately $7 million in the quarter, a reduction of about $48 million compared to the prior year [26] - Adjusted diluted EPS rose by 3.4% for Q4, with an increase of approximately 6.4% when excluding stock-based compensation tax benefits [30] Business Line Data and Key Metrics Changes - Proprietary Products organic net sales declined by 0.3% in Q4, with high-value products generating low single-digit growth [27] - The Contract Manufacturing segment showed high single-digit net sales growth, driven by an increase in sales of medical device and diagnostic products [29] - High-value products accounted for approximately 75% of proprietary product sales in the quarter [27] Market Data and Key Metrics Changes - The pharma market unit experienced low single-digit growth, while biologics and generics market units faced low single-digit and mid-single-digit declines, respectively, due to reduced sales related to COVID-19 vaccines [28] - The company anticipates that Q1 2024 will have the largest negative impact due to destocking and timing of new HVP device capacity [15] Company Strategy and Development Direction - The company plans to expand its industry-leading capacity with major HVP expansion projects and expects to see robust volume growth over the next few years [18][22] - The focus is on transitioning existing drugs to higher-value products due to regulatory changes requiring higher quality and lower particulate solutions [91][93] - The company aims for 7% to 9% annual organic sales growth and at least 100 basis points of operating margin expansion per year [24] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in not achieving usual full-year organic sales and margin expansion in 2024, attributing this to destocking and timing issues [17] - The company remains optimistic about long-term growth, with significant capital investments planned for 2024 [17][20] - Management noted that the destocking trend is industry-wide and not indicative of a change in market share or patient demand [17] Other Important Information - Operating cash flow for the year was $776.5 million, a 7.3% increase compared to the previous year [34] - The company expects full-year 2024 net sales guidance in the range of $3 billion to $3.025 billion, with organic sales growth projected at approximately 2% to 3% [36] Q&A Session Summary Question: Clarification on Q1 growth expectations - Management clarified that proprietary products are expected to decline by high single digits in Q1, primarily due to destocking from six customers [41] Question: Insights on contract manufacturing growth - Management indicated that contract manufacturing is expected to grow within the company's long-term growth construct, supported by specific customer commitments [51] Question: Visibility on destocking trends - Management expressed confidence that destocking would not be a long-term issue and expects a return to normal growth rates in the back half of the year [54] Question: Margin expectations for 2024 - Management expects operating margins to trend back to more normal rates as the year progresses, with Q1 being pressured due to revenue declines [57] Question: Pricing sustainability - Management noted that while pricing has been better than expected, it is likely to stabilize around 3% to 4% net price contribution moving forward [58]

Fourth-Quarter 2023 and Full Year Results WST Q4/FY 2023 Earnings 1 | --- | |-------------------------------------------------------------------------------| | Quarter Overall Net Sales $732.0M \| 3.3% | | | | Diluted Earnings Per Share: $1.83 Adjusted Diluted Earnings Per Share: $1.83 | "We had strong 2023 base organic sales growth, excluding the headwinds from lower pandemic- related sales, led by high-value product (HVP) components and devices and contract manufacturing. Our continued investments in both ...

For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8036 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WEST PHARMACEUTICAL SERVICES, INC. (Exact name of registrant as specified in its charter) Pennsylvania 23-1210010 (State ...

Third-Quarter 2023 WST Q3 2023 Earnings 1 Third Quarter Overall Net Sales $747.4M | 8.8% Diluted Earnings Per Share: $2.14 Adjusted Diluted Earnings Per Share: $2.16 "We had a solid quarter of organic net sales growth, driven by our Proprietary Products' high-value product (HVP) and strong Contract Manufacturing components. We are observing a slowdown in restocking trends by large Pharma and Generic customers, which is reflected in our revised guidance. As we look to the fourth-quarter 2023, we anticipate d ...