SCHOTT Pharma confirms outlook for FY 24 based on Q2 results; FY 25 impacted by slower growth from syringes

SCHOTT Pharma confirms outlook for FY 24 based on Q2 results; FY 25 impacted by slower growth from syringes

• H1 24 revenues up 9% yoy at constant currencies to EUR 489m; EBITDA margin of 27.4% at constant currencies
• FY 25 revenue growth projections impacted by lower demand for syringes from one customer
• Mid-term outlook confirmed
• Full set of Q2/H1 24 financial results to be published on June 27, 2024

SCHOTT Pharma, a pioneer in pharma drug containment solutions and delivery systems, continued its profitable growth trajectory in the first half of the fiscal year 2024¹. From October to March, the company achieved revenues of EUR 489m (H1 23: EUR 449m), corresponding to an increase of 9% at constant currencies and a reported growth rate of 4%. Despite ongoing investments into capacity expansions and a strong comparable base from the previous year, EBITDA slightly increased by 2% to EUR 134m at constant currencies. This development resulted in an EBITDA margin of 27.4% at constant currencies (H1 23: 29.4%). Based on these figures, SCHOTT Pharma confirms its guidance for the fiscal year 2024.

For the current fiscal year, the company forecasts organic revenue growth of 9% to 11% at constant currencies and an EBITDA margin at approximately prior year’s level. The forecasted growth is driven by the Drug Delivery Systems (DDS) segment. The Drug Containment Solutions (DCS) segment is experiencing industry-wide lower safety stock levels following the temporary destocking effect for vials on the customer side.

In the first half of the year, SCHOTT Pharma consequently executed on its strategy focusing on innovation and expansion. The company will continue to pursue this strategic focus, which taps into some of the most important pharma megatrends to further underline its dedication to growth.

“We are convinced that the long-term market dynamics are intact and that we are well positioned with our strategy to continue benefitting from them. This is evidenced by our good quarterly results. We are therefore reiterating our guidance for the fiscal year 2024 as well as our mid-term goals,” said Dr. Almuth Steinkühler, CFO of SCHOTT Pharma. “For the fiscal year 2025, however, we expect slower growth than originally anticipated in our syringe business, caused by lower demand from one customer. This will have an impact on our overall revenue growth in FY 25.”

SCHOTT Pharma learned that a large customer will reduce the needed quantities of syringes from 2025 onwards. At the same time, the ongoing stock optimization at customers in the DCS segment limits the potential for immediate compensation. The company therefore expects a temporary impact on revenue growth for the fiscal year 2025, also slowing the expansion of the EBITDA margin. Due to these effects and a more conservative forecast planning, SCHOTT Pharma assumes a revenue growth for the fiscal year 2025 within a high single to low double-digit percent range. This means that the company’s current expectations for that year are below the current market consensus of high teens revenue growth.

SCHOTT Pharma expects the lower syringe demand to be only a temporary effect. Given the intact long-term market dynamics, the company experiences further interest from other customers in its drug delivery systems and containment solutions. Therefore, the company foresees to compensate this effect in the medium term. SCHOTT Pharma confirms its mid-term guidance of organic revenue growth above 10% CAGR and an EBITDA margin in the low 30% range, at constant currencies.

SCHOTT Pharma will publish its full set of financials for Q2 24 on June 27, 2024.

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Key figures Q2 24

 Key figures H1 24

¹The fiscal year runs from October to September. H1 2024 therefore relates to the period from October 2023 to March 2024.

²cc = at constant currencies

All stated 2024 figures are unaudited.

About SCHOTT Pharma

Human health matters. That is why SCHOTT Pharma designs solutions grounded in science to ensure that medications are safe and easy to use for people around the world. The portfolio comprises drug containment solutions and delivery systems for injectable drugs ranging from prefillable glass and polymer syringes to cartridges, vials, and ampoules. Every day, a team of over 4,600 people from over 60 nations works at SCHOTT Pharma to contribute to global healthcare. The company is represented in all main pharmaceutical hubs with 16 manufacturing sites in Europe, North and South America, and Asia. With over 1,000 patents and technologies developed in-house and a state-of-the-art R&D center in Switzerland, the company is focused on developing innovations for the future. SCHOTT Pharma AG & Co. KGaA is headquartered in Mainz, Germany and listed on the Frankfurt Stock Exchange as part of the SDAX. It is part of SCHOTT AG, which is owned by the Carl Zeiss Foundation. In light of this spirit, SCHOTT Pharma is committed to sustainable development for society and the environment and has the strategic goal of becoming climate-neutral by 2030. Currently, SCHOTT Pharma has over 1,800 customers including the top 30 leading pharma manufacturers for injectable drugs and generated revenue of EUR 899 million in the fiscal year 2023.

Press contact

Joana Kornblum

Media Relations

Tel.: +49 151/29223552

E-Mail: joana.kornblum@schott.com 

Jasko Terzic, CFA

Investor Relations

E-Mail: ir.pharma@schott.com