Stevanato Group Achieves Record €1.1 Billion Revenue in Fiscal Year 2024
Stevanato Group S.p.A. (NYSE: STVN), a leading global provider of drug containment, drug delivery, and diagnostic solutions for the pharmaceutical, biotechnology, and life sciences industries, has announced its financial results for the fourth quarter and fiscal year 2024. The company has achieved record revenue, reinforcing its market position and growth trajectory.
Fourth Quarter and Full-Year 2024 Highlights
- Revenue for Q4 2024 rose 3% to €330.6 million, with high-value solutions representing 40% of total revenue.
- Diluted earnings per share (EPS) for Q4 2024 stood at €0.18, with adjusted diluted EPS at €0.19.
- Adjusted EBITDA margin increased by 50 basis points to 27.5% in Q4.
- Full-year 2024 revenue increased by 2% to €1,104 million, with high-value solutions making up 38% of total revenue.
- Fiscal year diluted EPS stood at €0.43, with adjusted diluted EPS at €0.48.
- The adjusted EBITDA margin for the full year was 23.5%.
- The company provided fiscal year 2025 guidance, projecting revenue in the range of €1,160 million to €1,190 million, adjusted EBITDA between €293.0 million and €306.3 million, and adjusted diluted EPS between €0.51 and €0.55.
Fourth Quarter 2024 Performance
Revenue for the fourth quarter of 2024 increased by 3% year-over-year on a constant currency basis, totaling €330.6 million. The Biopharmaceutical and Diagnostic Solutions (BDS) Segment experienced a 7% increase in revenue, which helped offset a 16% decline in the Engineering Segment.
High-value solutions reached a record €131 million, constituting 40% of total revenue in Q4 2024, an increase from 37% in the same period the previous year. This growth was primarily driven by heightened demand for high-performance syringes. However, reduced revenue from EZ-fill® vials had a negative impact on the overall mix within high-value solutions.
Gross profit margin declined by 210 basis points to 29.7% in Q4, largely due to vial destocking and reduced profitability within the Engineering Segment. Despite these challenges, improvements in high-value solutions, along with operational efficiencies in the company’s Fishers and Latina manufacturing facilities, provided partial relief.
Operating profit margin increased by 20 basis points to 20.2%, with adjusted operating profit margin improving by 70 basis points to 21.5% due to effective cost management strategies.
Full-Year 2024 Financial Overview
For the full fiscal year 2024, revenue increased by 2% to €1,104 million. Growth in the BDS Segment (6% increase) offset a 17% revenue decline in the Engineering Segment.
High-value solutions generated €422.3 million in revenue, a 15% year-over-year increase, accounting for 38% of total revenue, compared to 34% in 2023.
Gross profit margin declined from 31.3% in 2023 to 27.4% in 2024, primarily due to:
- Lower bulk and EZ-fill® vial volumes caused by vial destocking.
- Reduced profitability in the Engineering Segment.
- Short-term inefficiencies from the start-up of new manufacturing facilities.
As a result, operating profit margin was 14.6%, with adjusted operating profit margin at 16.2% for fiscal year 2024.
Franco Stevanato, Chairman and Chief Executive Officer, commented on the company’s performance, stating, “We finished the year with positive fourth quarter results, which were in line with our expectations. The increase in high-value solutions was driven by strong customer demand for high-performance syringes. We believe our growth investments are aligned to satisfy market needs to capitalize on the growing patient demand for biologics such as GLP-1s and monoclonal antibodies. In 2024, revenue from biologics increased to 34% of BDS Segment revenue, compared with 30% in the same period last year. We continue to make meaningful progress on our Engineering optimization plan and are on track to complete the majority of the previously delayed projects by mid-year 2025.”
Segment Analysis
Biopharmaceutical and Diagnostic Solutions (BDS) Segment
- Q4 2024 revenue rose 7% to €279.4 million, with full-year revenue increasing 6% to €933.7 million.
- Growth was primarily driven by demand for high-value syringes, though bulk and EZ-fill® vial sales declined, particularly in the latter category.
- High-value solutions contributed to 47% and 45% of segment revenue in Q4 and full-year 2024, respectively.
- Gross profit margin in Q4 2024 declined to 31.1% due to vial destocking, though strong high-value solutions performance and operational improvements in Fishers and Latina helped offset some negative impacts.
- Fiscal year 2024 gross profit margin for BDS was 28.7%.
Engineering Segment
- Q4 revenue declined by 16% to €51.2 million, while full-year revenue decreased by 17% to €170.3 million.
- The company is executing a business optimization plan to address existing challenges and return the segment to profitable growth.
- Gross profit margin for the Engineering Segment declined to 18.6% in Q4 and 15.7% for the full year.
Balance Sheet and Cash Flow
As of December 31, 2024:
- Cash and cash equivalents stood at €98.3 million, with net debt at €335.0 million.
- The company has sufficient liquidity to support strategic priorities over the next twelve months, utilizing cash reserves, available credit, operational cash flow, and potential additional financing.
Capital expenditures (CapEx) for Q4 2024 amounted to €80.0 million, while full-year CapEx totaled €286.6 million. These investments focus on expanding manufacturing capacity to meet customer demand for high-value solutions, particularly in Fishers, Indiana, and Latina, Italy.
Operating cash flow for fiscal year 2024 was €155.8 million, with capital expenditures on property, plant, equipment, and intangible assets totaling €313.6 million. This was primarily driven by strategic growth initiatives. Improved cash flow from operations and reduced CapEx led to a significant year-over-year improvement in free cash flow, which improved from negative €333.9 million in 2023 to negative €148.5 million in 2024.
For fiscal year 2025, Stevanato Group expects:
- Revenue to range between €1,160 million and €1,190 million.
- Adjusted EBITDA to be between €293.0 million and €306.3 million.
- Adjusted diluted EPS to range from €0.51 to €0.55.
With its focus on high-value solutions and strategic growth investments, the company remains committed to strengthening its market leadership and operational efficiency.
