{"id":520320,"date":"2021-07-29T16:11:41","date_gmt":"2021-07-29T20:11:41","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/avantor-reports-second-quarter-2021-results\/"},"modified":"2021-07-29T16:11:41","modified_gmt":"2021-07-29T20:11:41","slug":"avantor-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/avantor-reports-second-quarter-2021-results\/","title":{"rendered":"Avantor\u00ae Reports Second Quarter 2021 Results"},"content":{"rendered":"
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– Net sales of $1.86 billion, increase of 25.7%; organic net sales growth of 20.5%<\/h2>\n

– Net income of $157.8 million; Adjusted EBITDA of $366.6 million<\/h2>\n

– Diluted GAAP EPS of $0.24; adjusted EPS of $0.35<\/h2>\n

– Operating cash flow of $263.8 million; free cash flow of $265.0 million<\/h2>\n

– Adjusted net leverage of 3.8x, up from 3.5x as of March 31, 2021<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n RADNOR, Pa.<\/span>, July 29, 2021<\/span> \/PRNewswire\/ —\u00a0Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences, advanced technologies and applied materials industries, today reported financial results for the quarter ended June 30, 2021<\/span>.<\/p>\n

“Our exceptional second quarter performance reflects the strong momentum across each of our end markets, reinforces the relevance of our business model and highlights our continued track record of execution,” said Michael Stubblefield<\/span>, President and Chief Executive Officer of Avantor.<\/p>\n

“Our outstanding top-line growth was accompanied by substantial growth in earnings and free cash flow. We continue to invest in our long-term growth strategy, including capacity expansions and the completion of two acquisitions, Ritter GMBH and RIM Bio, which will enhance our proprietary offerings and extend our geographic reach. We are proud to have issued our first corporate sustainability report and look forward to advancing our initiatives on culture, environment, community and governance. We are well positioned to capitalize on expanded opportunities across our end markets and have again raised our guidance for full year results,” Stubblefield concluded.<\/p>\n

Second Quarter 2021
For the three months ended June 30, 2021<\/span>, net sales were $1.86 billion<\/span>, an increase of 25.7% compared to the second quarter of 2020. Foreign currency translation had a favorable impact of approximately 5.2% resulting in organic sales growth of 20.5%. Net income increased 162.1% to $157.8 million<\/span> from $60.2 million<\/span> in the comparable prior period. Adjusted EBITDA increased 34.2% to $366.6 million<\/span> and margin expanded approximately 125 basis points. The Ritter and RIM Bio acquisitions did not have a material impact on our quarterly results.\u00a0<\/p>\n

Diluted GAAP earnings per share were $0.24<\/span> as compared to $0.08<\/span> for the comparable prior period, while adjusted EPS were $0.35<\/span> as compared to $0.19<\/span> for the comparable prior period.<\/p>\n

Operating cash flow in the quarter was $263.8 million<\/span>, while free cash flow in the quarter was $265.0 million<\/span>.<\/p>\n

As of June 30, 2021<\/span>, adjusted net leverage was 3.8x, up from 3.5x as of March 31, 2021<\/span> reflecting an increase from the Ritter and RIM Bio acquisitions, offset by ongoing deleveraging.<\/p>\n

Second Quarter 2021 \u2013 Segment Results
Management uses Adjusted EBITDA to measure and evaluate the internal operating performance of the Company’s business segments. Adjusted EBITDA is also our segment reporting profitability measure under generally accepted accounting principles.<\/p>\n

\n Americas
<\/u>Net sales were $1,069.8 million<\/span>, a reported increase of 24.8%, as compared to $857.5 million<\/span> in the second quarter of 2020. On an organic basis, sales increased 23.6%.<\/p>\n

Adjusted EBITDA margin increased 50 basis points to 23.5%, as compared to 23.0% in the comparable prior period.<\/p>\n

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\n Europe<\/span>
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\n <\/u>Net sales were $666.0 million<\/span>, a reported increase of 27.8%, as compared to $521.0 million<\/span> in the second quarter of 2020. On an organic basis, sales increased 16.5%.<\/p>\n

Adjusted EBITDA margin increased 165 basis points to 18.6%, as compared to 16.9% in the comparable prior period.<\/p>\n

\n AMEA
<\/u>Net sales were $122.8 million<\/span>, a reported increase of 22.6%, as compared to $100.2 million<\/span> in the second quarter of 2020. On an organic basis, sales increased 16.4%.<\/p>\n

Adjusted EBITDA margin increased 65 basis points to 23.2%, as compared to 22.5% in the comparable prior period.<\/p>\n

Conference Call
Avantor will host a conference call to discuss its results tomorrow, July 30<\/span>, at 7:30 a.m. Eastern Daylight Time<\/span>. A live webcast can be accessed on the investors section of our website<\/a>. Or you may listen to the call by dialing (866) 211-4132 (domestic) or (647) 689-6615 (international) and use the conference code 1885843. Prior to the webcast, a presentation relating to the earnings call will be available on the Company’s website.<\/p>\n

Following the live webcast, a replay of the webcast and the slide presentation will be available at https:\/\/ir.avantorsciences.com\/investors\/news-and-events\/events\/<\/a>.<\/p>\n

About Avantor
Avantor\u00ae<\/sup>, a Fortune 500 company, is a leading global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. Our portfolio is used in virtually every stage of the most important research, development and production activities in the industries we serve. Our global footprint enables us to serve more than 225,000 customer locations and gives us extensive access to research laboratories and scientists in more than 180 countries.\u00a0We set science in motion to create a better world. For more information, please visit www.avantorsciences.com<\/a>.<\/p>\n

Use of non-GAAP Financial Measures
To evaluate our performance, we monitor a number of key indicators. As appropriate, we supplement our results of operations determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measurements that we believe are useful to investors, creditors and others in assessing our performance. These measures should not be considered in isolation or as a substitute for reported GAAP results because they may include or exclude certain items as compared to similar GAAP-based measures, and such measures may not be comparable to similarly titled measures reported by other companies. Rather, these measures should be considered as an additional way of viewing aspects of our operations that provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements included in reports filed with the SEC in their entirety and not rely solely on any one, single financial measurement or communication.<\/p>\n

The non-GAAP financial measures used in this press release are sales growth on an organic basis, Adjusted EBITDA, adjusted net income, adjusted EPS, adjusted net leverage and free cash flow.<\/p>\n