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Sep 30, 2022
Avantor Q3 2022 Earnings Report
Reported a slight increase in net sales, driven by core organic growth and margin expansion.
Key Takeaways
Avantor reported a 1.2% increase in net sales to $1.86 billion, with core organic growth of 7.8%. Adjusted EBITDA increased by 6.9% to $384.0 million, and adjusted EPS was $0.34. The company has updated its full-year guidance to reflect its third quarter performance, $400 million of revenue from its 2021 acquisitions, changes to foreign exchange rates and current market conditions. They now expect to deliver 2.5% - 3.0% organic growth (6.0% - 6.5% excluding COVID-19 headwinds) and $1.38 to $1.40 of adjusted EPS for the full year.
Net sales increased by 1.2% to $1.86 billion, with core organic net sales growth of 7.8%.
Net income reached $167.0 million, and Adjusted EBITDA amounted to $384.0 million.
Diluted GAAP EPS stood at $0.25, while adjusted EPS was $0.34.
Operating cash flow was $258.3 million, and free cash flow totaled $219.3 million.
Avantor
Avantor
Forward Guidance
The company expects continued strength in its core business, despite some near-term headwinds. They have updated their full-year guidance to reflect their third quarter performance, $400 million of revenue from their 2021 acquisitions, changes to foreign exchange rates and current market conditions. They now expect to deliver 2.5% - 3.0% organic growth (6.0% - 6.5% excluding COVID-19 headwinds) and $1.38 to $1.40 of adjusted EPS for the full year.
Positive Outlook
- Continued strength in core business
- Organic growth of 2.5% - 3.0% expected
- Adjusted EPS of $1.38 to $1.40 expected
- Strength of end markets
- Resilience of business model
Challenges Ahead
- Near-term headwinds
- Changes to foreign exchange rates
- Current market conditions
- COVID-19 headwinds
- Performance of recent acquisitions