Stevanato Group(US:STVN)2025-11-06 21:10Financial Performance - Revenue for Q3 2025 reached €303.2 million, a 9.1% increase from €277.9 million in Q3 2024[14] - Gross profit for Q3 2025 was €88.5 million, up 18.9% from €74.4 million in Q3 2024[14] - Operating profit for the nine months ended September 30, 2025, increased to €128.7 million, a 36.4% rise from €94.3 million in the same period of 2024[14] - Net profit for Q3 2025 was €36.1 million, compared to €30.0 million in Q3 2024, reflecting a 20.1% growth[14] - Basic earnings per share for Q3 2025 were €0.13, up from €0.11 in Q3 2024, indicating an 18.2% increase[14] - Total comprehensive income for Q3 2025 was €39.3 million, compared to a loss of €2.6 million in Q3 2024[16] - Profit before tax for the nine months ended September 30, 2025, increased to €123,344 thousand, up from €95,637 thousand in 2024, representing a growth of 29%[21] - Net cash flows from operating activities rose to €191,970 thousand, compared to €112,141 thousand in the same period of 2024, marking an increase of 71%[21] - Basic earnings per ordinary share for the nine months ended September 30, 2025, were €0.34, reflecting a 30.8% increase from €0.26 in 2024[182] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, were €19.6 million, down from €26.1 million in the same period of 2024, a decrease of 25.5%[14] - Selling and marketing expenses for the nine months ended September 30, 2025, increased to €20.3 million from €19.0 million in the same period of 2024, a rise of 7.2%[14] - Total expenses for the nine months ended September 30, 2025, were EUR 113,030 thousand, slightly down from EUR 113,439 thousand in 2024[65] - Selling and marketing expenses rose to EUR 20,346 thousand for the nine months ended September 30, 2025, compared to EUR 18,950 thousand in 2024, reflecting increased personnel and marketing costs[65] - Total cost of sales for the nine months ended September 30, 2025, was EUR 602,823 thousand, compared to EUR 569,276 thousand in 2024, reflecting a 5.9% increase[62] Assets and Liabilities - Total assets increased to €2,414,007 thousand as of September 30, 2025, up from €2,328,819 thousand at December 31, 2024, representing a growth of 3.67%[18] - Total liabilities increased to €976,721 thousand at September 30, 2025, compared to €924,434 thousand at December 31, 2024, an increase of 5.66%[18] - Current assets increased slightly to €884,475 thousand as of September 30, 2025, from €879,901 thousand at December 31, 2024, reflecting a growth of 0.65%[18] - Cash and cash equivalents increased to €113,333 thousand at September 30, 2025, from €98,270 thousand at December 31, 2024, representing a growth of 15.3%[18] - Trade receivables decreased to €266,824 thousand at September 30, 2025, down from €295,951 thousand at December 31, 2024, a decline of 9.8%[18] - Total financial liabilities rose to EUR 453,349 thousand at September 30, 2025, from EUR 434,605 thousand at December 31, 2024, primarily due to increased bank loans[120] Market and Growth Outlook - The company anticipates continued growth driven by demand for its products and ongoing capacity expansion initiatives[10] - The total addressable market is estimated to exceed $13 billion in 2024, covering drug containment solutions, drug delivery systems, IVD solutions, and engineering[176] - The Group is expanding its global capacity, particularly in Italy and the United States, with commercial production of high-value syringes launched in 2023 and ready-to-use cartridge production expected to start in 2026[23] - The Group's global footprint allows it to sell products and provide services in approximately 70 countries worldwide, enhancing its market reach[23] Financial Risks and Management - The Group is exposed to financial risks including foreign currency exchange rates, liquidity, credit, and commodity price fluctuations, which could significantly impact financial performance[43] - The average foreign currency exchange rate for the US dollar was 1.1188 for the nine months ended September 30, 2025, compared to 1.0871 for the same period in 2024, indicating a depreciation of the Euro[46] - The Group is assessing the impact of the new Pillar Two income taxes legislation on its future financial performance, with potential exposure identified in China[80][79] Investments and Capital Expenditures - The Group's investment in property, plant, and equipment for the nine months ended September 30, 2025, was €174,409 thousand, a decrease from €213,718 thousand in 2024, down by 18%[21] - Capital expenditures related to ongoing infrastructure investments were approximately EUR 105 million, net of expected contributions from BARDA, which agreed to contribute up to approximately USD 95 million (EUR 80 million) for manufacturing capacity[89] - Property, plant, and equipment additions for the nine months ended September 30, 2025, were EUR 187,650 thousand, driven by new production lines in Fishers, Indiana, and Latina, Italy[87] Shareholder Information - The Group's equity interest in Medical Glass a.s. is 99.74%, with net profit attributable to non-controlling interests reported as of September 30, 2025[42] - The company has a Long Term Incentive Plan running from January 1, 2023 to December 31, 2027, divided into three vesting periods[138] - Share-based compensation expense recognized for the nine months ended September 30, 2025, was EUR 1,013 thousand, down from EUR 1,886 thousand in the same period of 2024[154]