Stevanato Group(US:STVN)2025-05-08 20:10Unaudited Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements, including the income statement, financial position, and cash flows for the period ended March 31, 2025 Interim Consolidated Income Statement For the three months ended March 31, 2025, Stevanato Group reported revenue of €256.6 million, an 8.7% increase year-over-year, with net profit attributable to equity holders rising by 40.9% to €26.5 million Income Statement Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (EUR million) | Q1 2024 (EUR million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 256.6 | 236.0 | 8.7% | | Gross Profit | 69.9 | 62.2 | 12.4% | | Operating Profit | 34.6 | 25.3 | 36.9% | | Profit Before Tax | 35.1 | 25.7 | 36.7% | | Net Profit (attributable to parent) | 26.5 | 18.8 | 40.9% | | Diluted EPS (in EUR) | 0.10 | 0.07 | 42.9% | Interim Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets were €2.324 billion, a slight decrease from year-end 2024, while total equity increased to €1.416 billion, reflecting a stable financial position Statement of Financial Position (As of March 31, 2025) | Metric | March 31, 2025 (EUR million) | Dec 31, 2024 (EUR million) | | :--- | :--- | :--- | | Total Assets | 2,324.2 | 2,328.8 | | Total Liabilities | 908.3 | 924.4 | | Total Equity | 1,415.9 | 1,404.4 | Interim Consolidated Statement of Cash Flows For the first three months of 2025, the Group generated €99.8 million in cash from operating activities, a significant increase from the prior year, while cash used in investing activities decreased Cash Flow Summary (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (EUR million) | Q1 2024 (EUR million) | | :--- | :--- | :--- | | Net Cash Flows from operating activities | 99.8 | 71.6 | | Net Cash Flows used in investing activities | (70.7) | (102.1) | | Net Cash Flows (used in)/ from financing activities | (35.8) | 146.9 | | Net change in cash and cash equivalents | (6.6) | 116.3 | Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's discussion and analysis of the company's financial condition, operational results, liquidity, and key non-GAAP performance indicators for the period Overview Stevanato Group is a global provider of integrated solutions for the pharmaceutical, biotech, and life sciences industries, expanding its global footprint while navigating market challenges - The company operates in two segments: Biopharmaceutical and Diagnostic Solutions (containment and delivery solutions) and Engineering (manufacturing equipment and technology)167179 - The Group is expanding its global capacity for high-value solutions, with ongoing projects in Fishers, Indiana (U.S.) and Latina, Italy, where commercial production has started at both sites23166 - The company is experiencing challenges from customer destocking of glass vials post-pandemic, temporary inefficiencies from new plant ramp-ups, and increased costs on certain delayed projects in its Denmark-based Engineering operations170171173 Results of Operations (Q1 2025 vs Q1 2024) In Q1 2025, revenue grew 8.7% to €256.6 million, driven by an 11.0% increase in the Biopharmaceutical and Diagnostic Solutions segment, particularly a 25.4% rise in high-value solutions Consolidated Results of Operations (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (EUR million) | Q1 2024 (EUR million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 256.6 | 236.0 | 8.7% | | Gross Profit | 69.9 | 62.2 | 12.4% | | Operating Profit | 34.6 | 25.3 | 36.9% | | Net Profit | 26.5 | 18.8 | 40.9% | Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue (EUR million) | Q1 2024 Revenue (EUR million) | Change (%) | | :--- | :--- | :--- | :--- | | Biopharmaceutical and Diagnostic Solutions | 220.8 | 198.9 | 11.0% | | - High-value solutions | 110.3 | 88.0 | 25.4% | | - Other containment and delivery solutions | 110.5 | 111.0 | (0.4)% | | Engineering | 35.7 | 37.1 | (3.5)% | - Gross profit margin for the Biopharmaceutical and Diagnostic Solutions segment increased to 31.3% from 27.1% YoY, driven by improvements in new facilities and a higher mix of high-value solutions199 - Research and Development expenses decreased by 44.8% to €5.9 million, attributed to cost management, project optimization, and non-recurring severance payments from the prior year205206207 Liquidity and Capital Resources The company maintains a solid liquidity position, financing operations through cash flow, debt, and equity, with capital expenditures primarily directed towards capacity expansion in the U.S. and Italy - As of March 31, 2025, the company had cash and cash equivalents of €90.7 million221 - Capital expenditures for Q1 2025 were €69.7 million, with €64.1 million dedicated to growth and capacity expansion, mainly for EZ-Fill® production lines in Fishers, Indiana, and Latina, Italy226 - In February 2025, the company secured a new €20.0 million loan with a five-year tenor to support capital investments in its growth platforms225 Cash Flow Summary (Q1 2025) | Metric | Q1 2025 (EUR million) | | :--- | :--- | | Cash flows from operating activities | 99.8 | | Cash flows used in investing activities | (70.7) | | Cash flows used in financing activities | (35.7) | Key Indicators of Performance and Financial Condition (Non-GAAP) The company uses several non-GAAP measures to evaluate performance, with Adjusted EBITDA increasing by 13.4% to €57.4 million and Adjusted Diluted EPS at €0.10 for Q1 2025 Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024) | Metric (EUR million) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Profit | 26.5 | 18.8 | | (+) Income taxes | 8.6 | 6.9 | | (-) Finance income | (6.0) | (2.7) | | (+) Finance expense | 5.5 | 2.3 | | Operating Profit | 34.6 | 25.3 | | (+) Depreciation & amortization | 20.6 | 21.7 | | EBITDA | 55.3 | 47.0 | | (+) Adjusting items | 2.1 | 3.6 | | Adjusted EBITDA | 57.4 | 50.6 | | Adjusted EBITDA Margin | 22.4% | 21.4% | Adjusted Operating Profit and Net Profit Reconciliation (Q1 2025) | Metric (EUR million) | Reported | Adjustments | Adjusted | | :--- | :--- | :--- | :--- | | Operating Profit | 34.6 | 2.1 | 36.7 | | Income Taxes | 8.6 | 0.5 | 9.1 | | Net Profit | 26.5 | 1.6 | 28.1 | | Diluted EPS (EUR) | 0.10 | | 0.10 | - Free Cash Flow for Q1 2025 was €29.7 million, a significant improvement from a negative €30.6 million in Q1 2024252 - Net Debt decreased to €300.2 million at March 31, 2025, from €335.0 million at December 31, 2024254 Quantitative and Qualitative Disclosures About Market Risk The Group is exposed to financial market risks, including foreign currency, interest rate, liquidity, credit, and commodity risks, which are managed through formal hedging policies and central liquidity management - The main financial risks identified are foreign currency exchange rates, interest rates, liquidity, credit, and commodity price fluctuations259268 Exchange Rate Sensitivity on Operating Profit | Currency Pair | Change | Effect on Operating Profit (EUR millions) | | :--- | :--- | :--- | | EUR/USD | +5% / -5% | (4.7) / 5.2 | | EUR/MXN | +5% / -5% | (0.6) / 0.6 | | EUR/CNY | +5% / -5% | 0.9 / (1.0) | Interest Rate Sensitivity on Profit Before Tax | Change in Interest Rate | Effect on Profit Before Tax (EUR millions) | | :--- | :--- | | +50 BP | (0.4) | | -50 BP | 0.4 | | +100 BP | (0.8) | | -100 BP | 0.8 | - The Group actively hedges against commodity price volatility for natural gas and electricity using commodity swap contracts286287 Controls and Procedures The company acknowledges material weaknesses in internal control over financial reporting as of December 31, 2024, and is implementing a remediation plan to address these deficiencies - The company's disclosure controls and procedures were deemed not effective as of December 31, 2024, due to previously reported material weaknesses291 - A remediation plan is underway to address the material weaknesses, with progress made during Q1 2025, focusing on enhancing financial reporting procedures, internal control awareness, segregation of duties, and IT controls292293 Legal Proceedings The company is involved in various legal proceedings incidental to its business, but management does not expect a material impact on its financial condition or results of operations - Management does not expect current legal proceedings to have a material impact on the company's business or financial condition297 Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 20-F for the year ended December 31, 2024 - No material changes have occurred in the risk factors since the filing of the 2024 Annual Report on Form 20-F298