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“2023 was a year of transition in our industry. Destocking, relatively low production levels and muted investment activity at customers weighed on our business development and led to a decline in sales revenue. At the same time and supported by cost measures, our profitability remained at a healthy and above pre-pandemic level. As many customers are further advanced in optimizing their inventory levels, we have seen business picking up since the end of the third quarter and expect this trend to gradually gain traction over the course of the current year.”

SSB Joint Report of the Chairman and CEO

“Strategically, the acquisition of transfection reagent specialist Polyplus and the respective expansion of our technology platform for cell and gene therapy applications were major milestones for our company in 2023. The portfolio will enable us to significantly contribute to our customers’ efforts to bring these highly innovative therapies to the market and to patients faster.”

SSB Joint Report of the Chairman and CEO


Sales revenue

€2,775.5m

-18.7%


Underlying EBITDA

€785.4m

-35.7%


Order intake

€2,476.1m

-23.6%


Employees

10,662

-1,272


Market capitalization

~€22.1bn

-20.8%

Group Business Development


After the pandemic-related extraordinary business and inventory buildup by customers led to strong additional growth momentum in the years 2020 to 2022, the temporary normalization of demand expected by the company management set in during the reporting year.

Group Business Development

Outlook


Based on the slight demand recovery since the end of the third quarter of 2023 and the market outlook forecast by industry observers, Sartorius Stedim Biotech expects profitable growth for 2024 and beyond.

2024

Forecast

Against the backdrop of still somewhat unstable market trends and therefore limited visibility, management forecasts an increase in Group sales revenue in the mid to high single-digit percentage range, including a contribution of acquired businesses of around 2 percentage points. In terms of profitability, management expects the underlying EBITDA margin to rise to more than 30% compared to the previous year’s figure of 28.3%.

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2028

Medium-term outlook until 2028

Sartorius Stedim Biotech intends to continue its profitable growth course in the long term and expects to grow faster than the market. According to the new medium-term targets, the Group plans to achieve average annual growth in the low- to mid-teens percentage range over the five-year period to 2028 of which acquisitions are anticipated to contribute around a fifth. The underlying EBITDA margin is also expected to increase and reach above 35% in 2028.

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