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Avantor(AVTR) - 2024 Q4 - Annual Results
AVTRAvantor(AVTR)2025-02-07 11:12

Financial Performance - Fourth quarter 2024 net sales were 1,686.6million,adecreaseof21,686.6 million, a decrease of 2% compared to Q4 2023, with organic growth of 1%[4] - Net income for Q4 2024 increased to 500.4 million from 98.5millioninQ42023,resultinginanetincomemarginof29.798.5 million in Q4 2023, resulting in a net income margin of 29.7%[5] - Adjusted EBITDA for Q4 2024 was 307.7 million, with an adjusted EBITDA margin of 18.2%[5] - Full year 2024 net sales were 6,783.6million,adecreaseof36,783.6 million, a decrease of 3% compared to 2023, with an organic decline of 2%[8] - Full year 2024 net income increased to 711.5 million from 321.1millionin2023,withanetincomemarginof10.5321.1 million in 2023, with a net income margin of 10.5%[9] - Adjusted EBITDA for the full year 2024 was 1,198.8 million, with an adjusted EBITDA margin of 17.7%[9] - Operating income increased significantly to 638.1millioninQ42024,comparedto638.1 million in Q4 2024, compared to 183.3 million in Q4 2023, marking a growth of 248.5%[23] - Net income for the year ended December 31, 2024, was 711.5million,morethandoublethe711.5 million, more than double the 321.1 million reported in 2023, representing a 121.5% increase[23] - Basic earnings per share rose to 1.05fortheyearendedDecember31,2024,comparedto1.05 for the year ended December 31, 2024, compared to 0.48 in 2023, an increase of 118.8%[23] Cash Flow and Leverage - Operating cash flow for Q4 2024 was 173.3million,whilefreecashflowwas173.3 million, while free cash flow was 222.1 million[6] - Full year 2024 operating cash flow was 840.8million,withfreecashflowof840.8 million, with free cash flow of 768.3 million[10] - The adjusted net leverage ratio was 3.2x as of December 31, 2024, indicating a focus on deleveraging[10] - Cash flows from operating activities for the year ended December 31, 2024, were 840.8million,slightlydownfrom840.8 million, slightly down from 870.0 million in 2023[25] - Net cash provided by investing activities was 438.9millionfortheyearendedDecember31,2024,comparedtoacashoutflowof438.9 million for the year ended December 31, 2024, compared to a cash outflow of 143.7 million in 2023[25] - For the three months ended December 31, 2024, Avantor reported free cash flow of 222.1million,comparedto222.1 million, compared to 201.0 million in the same period of 2023, representing an increase of 10.5%[30] - The adjusted net leverage ratio for Avantor as of December 31, 2024, was 3.2x, based on adjusted EBITDA of 1,196.7million[31]SegmentPerformance−TheLaboratorySolutionssegmentgeneratednetsalesof1,196.7 million[31] Segment Performance - The Laboratory Solutions segment generated net sales of 4,610.1 million for the year ended December 31, 2024, down from 4,738.3millionin2023,reflectingadeclineof2.74,738.3 million in 2023, reflecting a decline of 2.7%[34] - The Bioscience Production segment saw net sales of 2,173.5 million for the year ended December 31, 2024, a decrease of 2.5% from 2,228.9millionin2023[34]−Organicnetsalesgrowthforthetotalcompanywas0.72,228.9 million in 2023[34] - Organic net sales growth for the total company was 0.7% for the three months ended December 31, 2024, despite a total net sales decline of 2.1%[34] - The Laboratory Solutions segment's organic net sales growth was -0.9% for the three months ended December 31, 2024, while the Bioscience Production segment achieved organic net sales growth of 4.1%[34] Expenses and Charges - The company reported a loss on the extinguishment of debt of 4.4 million in Q4 2024, compared to 1.0millioninQ42023[28]−Restructuringandseverancechargesamountedto1.0 million in Q4 2023[28] - Restructuring and severance charges amounted to 0.5 million in Q4 2024, down from 8.5millioninQ42023[28]−Thecompanyincurredtransformationexpensesof8.5 million in Q4 2023[28] - The company incurred transformation expenses of 12.3 million in Q4 2024, compared to 5.4millioninQ42023[28]−Interestexpense,netfortheyearendedDecember31,2024,was5.4 million in Q4 2023[28] - Interest expense, net for the year ended December 31, 2024, was 218.8 million, down from 284.8millionin2023[28]AssetandLiabilityChanges−Totalassetsdecreasedto284.8 million in 2023[28] Asset and Liability Changes - Total assets decreased to 12,114.5 million as of December 31, 2024, down from 12,972.7millionin2023,adeclineof6.612,972.7 million in 2023, a decline of 6.6%[24] - Current liabilities increased to 2,007.5 million in 2024, compared to 1,480.3millionin2023,reflectingariseof35.41,480.3 million in 2023, reflecting a rise of 35.4%[24] - Total stockholders' equity increased to 5,956.7 million in 2024, up from 5,252.6millionin2023,anincreaseof13.45,252.6 million in 2023, an increase of 13.4%[24] Adjusted Metrics - Adjusted EBITDA for the year ended December 31, 2024, was 1,198.8 million, with a margin of 17.7%, compared to 1,309.1millionandamarginof18.81,309.1 million and a margin of 18.8% in 2023[28] - Adjusted net income for Q4 2024 was 183.9 million, a 10.9% increase from 166.7millioninQ42023[26]−Adjustedearningspershare(EPS)forQ42024was166.7 million in Q4 2023[26] - Adjusted earnings per share (EPS) for Q4 2024 was 0.27, compared to 0.25inQ42023[29]−AdjustedOperatingIncomeforthetotalcompanywas0.25 in Q4 2023[29] - Adjusted Operating Income for the total company was 279.4 million for the three months ended December 31, 2024, with a margin of 16.6%, compared to $274.8 million and a margin of 16.0% in the same period of 2023[35]