West Pharmaceutical(WST) - 2024 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2024 were $695.4 million, a decline of 3.0% compared to the prior year[5] - Reported diluted EPS for Q1 2024 was $1.55, down 16.2% year-over-year, while adjusted diluted EPS was $1.56, a decline of 21.2%[5] - The Proprietary Products segment reported net sales of $559.5 million, a decline of 4.0%, while the Contract-Manufactured Products segment saw an increase of 1.8% to $135.9 million[6][8] - Reported net sales for Q1 2024 were $695.4 million, a decrease from $716.6 million in Q1 2023, reflecting a decline of approximately 2.9%[23] - Organic net sales for Q1 2024 were $692.0 million, down from $713.4 million in Q1 2023, indicating a decrease of about 3.0%[23] Guidance and Projections - The company reaffirmed full-year 2024 net sales guidance in the range of $3.000 billion to $3.025 billion, with organic net sales growth expected to be approximately 2% to 3%[10] - The company raised its full-year 2024 adjusted diluted EPS guidance to a new range of $7.63 to $7.88, compared to the previous range of $7.50 to $7.75[5] - Adjusted-diluted EPS for 2024 is guided between $7.63 and $7.88, representing a potential decline of 5.6% to 2.5% compared to the 2023 actual adjusted-diluted EPS of $8.08[24] Cash Flow and Financial Position - Operating cash flow for Q1 2024 was $118.2 million, a decrease of 14.4%, and free cash flow was $27.6 million, down 50.7%[9] - Operating cash flow for Q1 2024 was $118.2 million, down from $138.1 million in Q1 2023, a decrease of approximately 14.4%[28] - Free cash flow for Q1 2024 was $27.6 million, significantly lower than $56.0 million in Q1 2023, reflecting a decline of about 50.7%[28] - As of March 31, 2024, cash and cash equivalents were $601.8 million, down from $853.9 million as of December 31, 2023, a decrease of approximately 29.4%[30] - Total debt as of March 31, 2024, was $206.2 million, slightly reduced from $206.8 million as of December 31, 2023[30] - Working capital decreased to $1,044.5 million as of March 31, 2024, compared to $1,264.6 million as of December 31, 2023, indicating a decline of about 17.4%[30] Expenses and Investments - The gross profit margin for Q1 2024 was 33.1%, down from 37.9% in the prior year[19] - Depreciation and amortization expenses increased to $35.6 million in Q1 2024 from $31.6 million in Q1 2023, reflecting an increase of approximately 15.7%[28] - The company is making strategic investments in new manufacturing capacity to support future organic sales growth[4] Product Segment Performance - The Proprietary Products segment's growth was led by NovaPure® and Daikyo Crystal Zenith® components, despite declines in other product lines[7] - Tax benefits from stock-based compensation increased adjusted-diluted EPS by $0.15 in Q1 2024, compared to an increase of $0.42 for the full year 2023[26]