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Mar 31, 2023

Mettler-Toledo Q1 2023 Earnings Report

Mettler-Toledo's Q1 2023 results demonstrated strong performance, driven by broad-based growth and effective margin initiatives.

Key Takeaways

Mettler-Toledo International Inc. reported a 3% increase in reported sales and a 7% increase in local currency sales for the first quarter of 2023. Adjusted EPS increased by 10% year-over-year, driven by growth across geographic regions and product categories, and strong execution on margin initiatives and cost control.

Reported sales increased by 3% compared to the prior year, with a 7% increase in local currency.

Net earnings per diluted share (EPS) were $8.47, compared to $7.55 in the prior-year period.

Adjusted EPS was $8.69, a 10% increase over the prior-year amount of $7.87.

The company benefited from broad-based growth across geographic regions and product categories, including strong momentum in the service business.

Total Revenue
$929M
Previous year: $898M
+3.4%
EPS
$8.69
Previous year: $7.87
+10.4%
Gross Profit
$547M
Previous year: $520M
+5.2%
Cash and Equivalents
$89.1M
Previous year: $117M
-23.8%
Free Cash Flow
$130M
Previous year: $71.7M
+81.4%
Total Assets
$3.41B
Previous year: $3.36B
+1.6%

Mettler-Toledo

Mettler-Toledo

Forward Guidance

For the second quarter of 2023, the company anticipates local currency sales growth of approximately 3% and Adjusted EPS of $9.90 to $10.00, a growth rate of 5% to 7%. For the full year 2023, the company anticipates local currency sales growth of approximately 5% and Adjusted EPS in the range of $43.65 to $43.95, representing growth of approximately 10% to 11%.

Positive Outlook

  • Local currency sales growth for Q2 2023 is expected to be approximately 3%.
  • Adjusted EPS for Q2 2023 is forecast to be $9.90 to $10.00, a growth rate of 5% to 7%.
  • Full year 2023 local currency sales growth is anticipated to be approximately 5%.
  • Adjusted EPS for full year 2023 is forecast to be in the range of $43.65 to $43.95, representing growth of approximately 10% to 11%.
  • The company remains focused on capitalizing on Spinnaker sales and marketing programs and executing on productivity and margin expansion initiatives.

Challenges Ahead

  • Forecasting remains challenging due to dynamic market conditions.
  • There is uncertainty in the economic environment, including the risk of recession in many countries.
  • Second quarter guidance includes an estimated 4% headwind to Adjusted EPS growth due to adverse currency.
  • Full year 2023 guidance includes an estimated 2% headwind to Adjusted EPS growth due to adverse currency.
  • Market conditions are subject to change.