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Healthy through the crisis: Sartorius share: Why the laboratory supplier increases the forecast | message


by Stephan Bauer, Euro am Sonntag

An all-time high in the middle of the crisis – that’s extraordinary. Just happened with the preference shares of the laboratory equipment supplier Sartorius. The reason: The Göttingen have just raised their annual forecast. The manufacturer’s sales of equipment for the biopharmaceutical industry and laboratories are expected to increase by 15 to 19 percent instead of the originally planned 10 to 13 percent. However, head Joachim Kreuzburg pointed out that the forecast due to the pandemic is more uncertain than usual.

According to Kreuzburg, the crisis presented the company with “operational challenges”. However, as a company relevant to the health sector, Sartorius is relatively unaffected by state lockdowns. Production is largely uninterrupted in all plants, and the supply chains are largely intact.

According to current quarterly figures, the MDAX value the crisis is handled very well. In the smaller business area, the conventional laboratory equipment, there was a loss due to the shutdown in China, the impact of the pandemic had been six percentage points on the division’s sales. Ultimately, Lab Products & Services (LPS) sales were at the same level as in the previous year at EUR 115.6 million, while operating profit fell from EUR 23 to 18 million. The larger area Bioprocess Solutions (BPS), which includes test kits or bioreactors for the
The biopharmaceutical industry, on the other hand, registered pull-forward effects from customers. These refreshed their camps because of the crisis. BPS’s sales increased by 22.4 percent to 394.3 million euros
operating profit from 90 to 120 million.

Overall, the business volume of Göttingen grew by 17 percent in the quarter, while incoming orders climbed by almost 30 percent – a good starting point for the year as a whole. The forecast for 2020 also includes the effects of acquisitions: Sartorius expects the takeover of the biopharmaceutical activities of the US group Danaher to be completed by May, which should contribute around five percentage points to the annual growth. According to the new forecast, sales in 2020 should be between 2.1 and just under 2.2 billion euros, with an operating margin of 27.5 percent compared to 27.1 in the previous year.

Buy signal: The all-time high is a strong technical buy signal. But the stock is expensive – investors use weaknesses to get started.


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Image sources: Sartorius AG

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