Stevanato Group(STVN) - 2021 Q4 - Annual Report

Overall Financial and Operational Performance Fourth Quarter and Full Year 2021 Highlights Stevanato Group reported strong Q4 and full-year 2021 growth, driven by high-value solutions, margin expansion, and increased order backlog Key Financial Metrics for Q4 & Full Year 2021 | Metric | Q4 2021 | Full Year 2021 | | :--- | :--- | :--- | | Revenue | €232.6M (+12.5% YoY) | €843.9M (+27.5% YoY) | | Diluted EPS | €0.17 | €0.53 | | Adjusted Diluted EPS | €0.13 (+18.2% YoY) | €0.48 (+54.8% YoY) | | Adjusted EBITDA Margin | 25.3% | 25.9% | - The company's order backlog increased to €880 million, indicating strong future demand[5] - Revenue related to Covid-19 represented approximately 14.3% of revenue in Q4 and 14.7% for the full year[4][5] Management Commentary and Strategic Priorities Management outlined 2022 strategic priorities focusing on capacity expansion, global footprint growth, R&D, and leveraging secular trends - CEO Franco Moro emphasized a sharp focus on executing operational priorities: increasing capacity in Italy, expanding globally in the U.S. and China, and investing in R&D[6] - Executive Chairman Franco Stevanato affirmed strategic goals of driving double-digit growth, expanding margins, and increasing the mix of high-value solutions[15] - The company expects to benefit from favorable multi-year secular trends, including pharmaceutical innovation, growth in biologics and biosimilars, and the acceleration of vaccination programs[15] Business Segment Performance Biopharmaceutical and Diagnostic Solutions (BDS) Segment The BDS segment achieved robust revenue growth and significant margin expansion in 2021, driven by high-value solutions demand BDS Segment Revenue Performance | Period | Revenue (Third Party) | YoY Growth | | :--- | :--- | :--- | | Q4 2021 | €185.9 million | +9.3% | | Full Year 2021 | €694.0 million | +22.9% | - High-value solutions were a key growth driver, accounting for 35.7% of segment revenue in Q4 and 29.9% for the full year[7] BDS Segment Full Year 2021 Margin Expansion | Margin | FY 2021 | Basis Point Increase YoY | | :--- | :--- | :--- | | Gross Profit Margin | 33.1% | +350 bps | | Operating Profit Margin | 21.4% | +330 bps | Engineering Segment The Engineering segment delivered substantial revenue growth across all business lines, driven by strong customer capital deployment Engineering Segment Revenue Performance | Period | Revenue (Third Party) | YoY Growth | | :--- | :--- | :--- | | Q4 2021 | €46.7 million | +27.2% | | Full Year 2021 | €149.9 million | +54.3% | Engineering Segment Full Year 2021 Margins | Margin | FY 2021 | | :--- | :--- | | Gross Profit Margin | 19.3% | | Operating Profit Margin | 10.5% | Financial Position and Guidance Liquidity and Balance Sheet The company maintained a strong liquidity position in 2021, with positive net financial position and significant capital expenditures Key Balance Sheet and Liquidity Metrics (as of Dec 31, 2021) | Metric | Amount | | :--- | :--- | | Net Financial Position | €189.8 million | | Cash and Cash Equivalents | €411.0 million | | Full Year Capital Expenditures | €122.1 million | - For the full year, net cash generated from operating activities was €133.3 million, and the company achieved a positive free cash flow of €25.1 million[12] Full Year 2022 Guidance Stevanato Group provided 2022 financial guidance, projecting continued revenue and profitability growth for the upcoming fiscal year Fiscal Year 2022 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | €935.0M - €945.0M | | Adjusted Diluted EPS | €0.49 - €0.51 | | Adjusted EBITDA | €248.0M - €253.0M | Financial Statements and Reconciliations Consolidated Income Statement The consolidated income statement reflects significant revenue and net profit growth in 2021, driven by improved gross and operating margins Full Year Income Statement Highlights (2021 vs 2020) | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Revenue | €843.9M | €662.0M | +27.5% | | Gross Profit | €265.4M | €194.2M | +36.7% | | Operating Profit | €162.2M | €103.1M | +57.3% | | Net Profit | €134.3M | €78.6M | +70.8% | | Diluted EPS | €0.53 | €0.33 | +60.6% | Cash Flow Statement The company generated positive cash flow from operations and free cash flow in 2021, with significant financing inflows primarily from its IPO Full Year Cash Flow Summary (2021 vs 2020) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Cash flow from operating activities | €133.3M | €155.7M | | Cash flow used in investing activities | (€96.4M) | (€96.1M) | | Cash flow from/(used in) financing activities | €254.8M | (€26.5M) | | Net change in cash and cash equivalents | €291.7M | €33.1M | - Free cash flow for the full year 2021 was €25.1 million, compared to €64.4 million in 2020[45] Non-GAAP Reconciliations This section reconciles IFRS to non-GAAP financial measures, detailing key adjustments for 2021 related to operational and financial items Full Year 2021 Reconciliation of Net Profit to Adjusted Net Profit | Metric | Amount | | :--- | :--- | | Reported Net Profit | €134.3M | | Restructuring Charges | +€0.8M | | Incentive Plans Settlement | -€5.1M | | Out-of-cycle bonus | +€4.8M | | Gain from sale of associate | -€12.3M | | Patent Box tax saving | -€7.6M | | Other Adjustments | +€5.6M | | Adjusted Net Profit | €120.5M | Full Year 2021 Reconciliation of Diluted EPS to Adjusted Diluted EPS | Metric | Amount | | :--- | :--- | | Reported Diluted EPS | €0.53 | | Adjustments (net) | -€0.05 | | Adjusted Diluted EPS | €0.48 |