Shares in German life-sciences group Sartorius took a steep fall on Friday, plunging 12% to EUR 282.20. This drop came on the heels of the company downgrading its full-year targets and reporting lower sales and earnings for the first three quarters of 2023. Its subsidiary, Sartorius Stedim Biotech, didn't escape the fallout, seeing its shares decline by 13%.
The company revised its outlook, anticipating a 17% sales decline and an Ebitda margin slightly above 28%. The company's mid-term guidance is currently under review due to weak investor sentiment. Citi analyst Vineet Agrawal noted that this downward revision was anticipated but failed to improve investor sentiment. James Vane-Tempest of Jefferies echoed this sentiment, predicting continued stock volatility until market trends stabilize.
Despite signs of recovery within the bioprocess-solutions division, the lab-products-and-services segment faced a larger-than-expected downturn. This contributed to a consolidated revenue drop by 16% to EUR 2.5 million. The company's underlying Ebitda also suffered, falling to EUR 733 million from EUR 1.05 billion in the previous year.
This downturn comes despite positive mid-and-long term growth trends within the industry. The market will closely monitor Sartorius' performance in the coming quarters for signs of recovery or further decline.
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