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Avantor reports first quarter 2024 results

Avantor, Inc. reported financial results for its first fiscal quarter ended March 31, 2024.

“The year is off to a good start as first quarter organic revenue growth was in line with our guidance and disciplined execution drove outperformance on margins and profitability. We are encouraged by the relative stability of our end markets, the impact of our commercial intensity on customer wins and contract renewals, and the sequential improvement in our bioprocessing orders,” said Michael Stubblefield, President and Chief Executive Officer.

“We made significant progress in implementing our new operating model and accelerating our multi-year cost transformation initiative, unlocking efficiencies and strengthening alignment with customer needs. We are reaffirming fiscal year 2024 guidance and remain focused on executing our long-term growth strategy,” Stubblefield concluded.

First quarter 2024
For the three months ended March 31, 2024, net sales were $1.68 billion, a decrease of 5.6% compared to the first quarter of 2023. Foreign currency translation had a favorable impact of 0.7%, resulting in sales decline of 6.3% on an organic basis.

Net income decreased to $60.4 million from $121.5 million in the first quarter of 2023, and adjusted net income was $150.6 million as compared to $195.4 million in the comparable prior period. Net Income margin was 3.6%. Adjusted EBITDA was $283.0 million and Adjusted EBITDA margin was 16.8%. Adjusted Operating Income was $258.4M and Adjusted Operating Income margin was 15.4%.

Diluted earnings per share on a GAAP basis was $0.09, while adjusted EPS was $0.22.

Operating cash flow was $141.6 million, while free cash flow was $106.9 million. Adjusted net leverage was 4.0x as of March 31, 2024.

First quarter 2024 – Segment results
Laboratory solutions

  • Net sales were $1,157 million, a reported decrease of 3.8%, as compared to $1,203 million in the first quarter of 2023. Sales declined 4.5% on an organic basis.
  • Adjusted Operating Income was $148 million as compared to $172 million in the comparable prior period. Adjusted Operating Income margin was 12.8%.

Bioscience production

  • Net sales were $523 million, a reported decrease of 9.5%, as compared to $577 million in the first quarter of 2023. Sales declined 10.0% on an organic basis.
  • Adjusted Operating Income was $127 million, as compared to $168 million in the comparable prior period. Adjusted Operating Income margin was 24.3%.

Adjusted Operating Income is our segment reporting profitability measure under generally accepted accounting principles and is used by management to measure and evaluate the performance of our Company’s business segments.
MB Bureau

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