Third-Quarter 2023
Third Quarter Overall Net Sales
$747.4M | 8.8%
Diluted Earnings Per Share: $2.14
Adjusted Diluted Earnings Per Share: $2.16
"We had a solid quarter of organic net sales growth, driven by our
Proprietary Products' high-value product (HVP) and strong Contract Manufacturing components. We are observing a slowdown in restocking trends by large Pharma and Generic customers, which is reflected in our revised guidance. As we look to the fourth-quarter 2023, we anticipate double-digit base, non-COVID-19-related organic sales growth, fueled by strong HVP component demand with certain
customers and therapeutic categories."
Eric M. Green
President and Chief Executive Officer
Chair of the Board
West Pharmaceutical Services, Inc.
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
This presentation and any accompanying management commentary contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about product development and operational performance. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates. We caution investors that the risk factors listed under "Cautionary Statement" in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-U.S. GAAP Financial Measures
Certain financial measures included in these presentation materials, or which may be referred to in management's discussion of the Company's results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), and therefore are referred to as non- U.S. GAAP financial measures. Non-U.S. GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with U.S. GAAP. Please refer to "Reconciliation of Non-U.S. GAAP Financial Measures" at the end of these materials for more information.
WST Q3 2023 Earnings | 1 |
West Pharmaceutical Services, Inc.
Eric M. Green
President & CEO, Chair of the Board
Bernard J. Birkett
Senior VP & Chief Financial and Operations Officer
Third-Quarter 2023 Analyst Conference Call 9 a.m. Eastern Time | October 26, 2023
West Analyst Conference Call
9 a.m. Eastern Time October 26, 2023
A webcast of today's call can be accessed in the "Investors" section of the Company's website: www.westpharma.com
To participate on the call by asking questions to Management, please register in advance at:
https://register.vevent.com/register/BI035b5026267348e8a9e
6a05f7c90c015
Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call.
A replay of the conference call and webcast will be available on the Company's website for 30 days.
These presentation materials are intended to accompany today's press release announcing the Company's results for the third-quarter 2023 and management's discussion of those results during today's conference call.
WST Q3 2023 Earnings | 3 |
Safe Harbor Statement
WST Q3 2023 Earnings
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
This presentation and any accompanying management commentary contain "forward- looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about product development, operational performance and expectations regarding future events. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates.
We caution investors that the risk factors listed under our "Forward Looking Statements" in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-U.S. GAAP Financial Measures
Certain financial measures included in these presentation materials, or which may be referred to in management's discussion of the Company's results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), and therefore are referred to as non-U.S. GAAP financial measures. Non-U.S. GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with U.S. GAAP. Please refer to "Reconciliation of Non-U.S. GAAP Financial Measures" at the end of these materials for more information.
Trademarks
Trademarks and registered trademarks used in this report are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless noted otherwise.
Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.
4
Financial Highlights
- Third quarter 2023 net sales of $747.4 million grew 8.8%; organic net sales increased 5.7%
- Third quarter 2023 reported-diluted EPS of $2.14 compared to $1.59 in the same period last year; adjusted-diluted EPS of $2.16 compared to $2.03 in the same period last year
WST Q3 2023 Earnings | 5 |
Execute. Innovate. Grow.
A commitment and focus to deliver superior value to our customers and patients
HVP Components & | Global Capacity | Showcasing our |
Delivery Systems | Expansion | Scientif ic Leadership & |
Technical Expertise |
WST Q3 2023 Earnings | 6 |
Third-Quarter 2023 Summary Results
($ millions, except earnings-per-share (EPS) data)
Three Months Ended | ||
September 30 | ||
2023 | 2022 | |
Reported Net Sales | $747.4 | $686.9 |
Gross Profit Margin | 38.6% | 39.0% |
Reported Operating Profit | $177.3 | $186.2 |
Adjusted Operating Profit (1) | $180.8 | $186.4 |
Reported Operating Profit Margin | 23.7% | 27.1% |
Adjusted Operating Profit Margin (1) | 24.2% | 27.1% |
Reported-Diluted EPS | $2.14 | $1.59 |
Adjusted-Diluted EPS (1) | $2.16 | $2.03 |
- "Adjusted Operating Profit," "Adjusted Operating Profit Margin" and "Adjusted-Diluted EPS" are Non-U.S. GAAP financial measures. See accompanying slides and the discussion under the heading "Non-U.S. GAAP Financial Measures" in today's press release for an explanation and reconciliation of these items.
WST Q3 2023 Earnings | 7 |
Third-Quarter 2023 Organic
Net Sales Growth
Overall Organic Net Sales Increase: 5.7% (Q3 2023)
Proprietary Products Q3 2023 organic net sales increased 3.2% driven by growth in all three market units
BIOLOGICS | GENERICS | PHARMA | CONTRACT |
MANUFACTURING | |||
Low-Single Digit | High-Single Digit | Low-Single Digit | Double Digit |
Sales led by high-value | Sales led by high-value | Sales led by high-value | Organic sales growth of 17.4%, |
products, including Flurotec® | products, including Westar® | products, including Westar® | led by increase in sales of |
components and self-injection | components and Admin Systems | components and Admin | components associated with |
delivery devices | Systems | injection-related and | |
healthcare diagnostic devices |
WST Q3 2023 Earnings | 8 |
Change in Consolidated Net Sales Third-Quarter 2022 to 2023
($ millions)
WST Q3 2023 Earnings | 9 |
Gross Profit Update ($ millions)
Three Months Ended | ||
September 30, | ||
2023 | 2022 | |
Proprietary Products Gross Profit | $261.4 | $247.3 |
Proprietary Products Gross Profit Margin | 43.4% | 43.6% |
Contract-Manufactured Products Gross Profit | $26.9 | $20.7 |
Contract-Manufactured Products Gross Profit Margin | 18.6% | 17.3% |
Reported Consolidated Gross Profit | $288.3 | $268.0 |
Reported Consolidated Gross Profit Margin | 38.6% | 39.0% |
WST Q3 2023 Earnings | 10 |
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West Pharmaceutical Services Inc. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 11:49:08 UTC.