•
Jun 30, 2023

Mettler-Toledo Q2 2023 Earnings Report

Mettler-Toledo's Q2 2023 results were announced, revealing flat reported sales compared to the prior year, but a 2% increase in local currency, driven by strong service business growth and solid industrial product performance, offset by softer conditions in Laboratory and China.

Key Takeaways

Mettler-Toledo reported flat sales growth in Q2 2023, but experienced a 2% increase in local currency. Adjusted EPS increased by 9% due to margin expansion and cost control initiatives. The company anticipates a decline in local currency sales for Q3 2023 and has lowered its full-year sales growth and Adjusted EPS guidance.

Reported sales were flat compared to the prior year, but increased 2% in local currency.

Net earnings per diluted share (EPS) were $9.69, compared to $9.29 in the prior-year period.

Adjusted EPS was $10.19, an increase of 9% over the prior-year amount of $9.39.

Management anticipates local currency sales for the third quarter of 2023 will decline approximately 3% to 4%.

Total Revenue
$982M
Previous year: $978M
+0.4%
EPS
$10.2
Previous year: $9.39
+8.5%
Adjusted Operating Profit
$308M
Previous year: $285M
+7.8%
Gross Profit
$584M
Previous year: $572M
+2.1%
Cash and Equivalents
$83.6M
Previous year: $109M
-23.6%
Free Cash Flow
$238M
Previous year: $176M
+35.3%
Total Assets
$3.37B
Previous year: $3.34B
+1.0%

Mettler-Toledo

Mettler-Toledo

Forward Guidance

Management anticipates local currency sales for the third quarter of 2023 will decline approximately 3% to 4%, and Adjusted EPS is forecast to be $9.55 to $9.85, a decline of 3% to 6%. For the full year, management anticipates local currency sales growth in 2023 will be approximately 0% to 1%, and Adjusted EPS is forecast to be in the range $40.30 to $41.20, representing growth of approximately 2% to 4%.

Positive Outlook

  • Executing on best-in-class sales and marketing programs.
  • Margin expansion initiatives.
  • Proactive cost savings initiatives.
  • Agile adaptation to changing market conditions.
  • Confidence in delivering good financial results.

Challenges Ahead

  • Increased uncertainty in the global economy.
  • Challenging sales growth comparisons.
  • Deteriorated market demand in China.
  • Risk of recession in many countries.
  • Adverse currency impact.