West Announces First-Quarter 2021 Results

West Pharmaceutical Services, Inc. (NYSE: WST)

EXTON, PA — West Pharmaceutical Services, Inc. (NYSE: WST) recently announced its financial results for the first-quarter of 2021 and updated full-year 2021 financial guidance.

First-Quarter 2021 Summary (comparisons to prior-year period)

  • Net sales of $670.7 million grew 36.5%; organic sales growth was 31.1%.
  • Reported-diluted EPS of $1.99 increased 101%.
  • Adjusted-diluted EPS of $2.05 increased 103%.
  • The Company is raising full-year 2021 net sales guidance to a new range of $2.630 billion to $2.655 billion, compared to a prior range of $2.500 billion to $2.525 billion. The Company is raising full-year 2021 adjusted-diluted EPS guidance to a new range of $6.95 to $7.10, compared to a prior range of $6.00 to $6.15.

“Adjusted-diluted EPS” and “organic sales growth” are Non-U.S. GAAP measurements.  See discussion under the heading “Non-U.S. GAAP Financial Measures” in this release.

“We delivered another solid performance in the first quarter with strong organic sales growth from both our base as well as increased demand for our products associated with COVID-19 vaccines,” said Eric M. Green, President and Chief Executive Officer.  “I am proud of the relentless focus and consistent execution of our global team members to deliver critical components and solutions during these times. With a strong start to the year, we are raising our full-year financial guidance.  West will continue to play an integral role with our customers as they develop and bring new medicines to the market for a brighter future.”

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Proprietary Products Segment
Net sales grew by 45.6% to $543.7 million.  Organic sales growth was 39.6% with currency translation increasing sales growth by 600 basis points.  High-value products (components and devices) represented more than 70% of segment sales and generated double-digit organic sales growth, led by customer demand for FluroTec®, Westar®, Daikyo® and NovaPure® components as well as for devices such as Daikyo Crystal Zenith® syringes and cartridges.

All three market units had double-digit organic sales growth, led by strong performance in the Biologics market unit.

Contract-Manufactured Products Segment
Net sales grew by 7.6% to $127.1 million.  Organic sales growth was 4.0% with currency translation increasing sales growth by 360 basis points.  Segment performance was led by sales of components for drug-injection delivery devices as well as diagnostic devices.

Financial Highlights
Operating cash flow was $88.7 million, an increase of 55.3%.  Capital expenditures in the quarter were $54.7 million.  Free cash flow (operating cash flow minus capital expenditures) was $34.0 million, an increase of 36%.

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During the quarter, the Company repurchased 479,000 shares for $137.1 million at an average share price of $286.23 under its share repurchase program.

Wets’s capital and financial resources, including overall liquidity, remain strong.  The Company believes that their cash on hand and cash generated from operations, together with availability under their Credit Facility, will be adequate to address their foreseeable liquidity needs based on their current expectations of their business operations, capital expenditures and scheduled payments of debt obligations.

Full-Year 2021 Financial Guidance

  • Full-year 2021 net sales are expected to be in a range of $2.630 billion to $2.655 billion, compared to a prior guidance range of $2.500 billion to $2.525 billion.
    • Organic sales growth is expected to be in a range of 19% to 20%, compared to a prior range of 13% to 14%.
    • Net sales guidance includes an estimated full-year 2021 benefit of $75 million based on current foreign exchange rates.
  • Full-year 2021 adjusted-diluted EPS is expected to be in a range of $6.95 to $7.10, compared to a prior range of $6.00 to $6.15.
    • Full-year adjusted-diluted EPS guidance range includes an estimated benefit of approximately $0.23 based on current foreign currency exchange rates.
    • The revised guidance includes a $0.15 EPS positive impact from first-quarter tax benefits from stock-based compensation.
    • For the remainder of the year, the Company’s EPS guidance range assumes a tax rate of 23% and does not include potential tax benefits from stock-based compensation. Any tax benefits associated with stock-based compensation beyond those recorded in the first-quarter 2021 would provide a positive adjustment to their full-year EPS guidance.
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West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems.

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