RADNOR, PA — Avantor, Inc. (NYSE: AVTR) announced its financial results for the second fiscal quarter ended June 30, 2024, highlighting steady operational performance despite a slight dip in sales.
“Our teams delivered another solid quarter with sequential improvements to all key financial metrics,” said Michael Stubblefield, President and CEO. He noted that a better product mix from increased bioprocessing revenue and the accelerated impact of the company’s cost transformation initiative led to over 100 basis points of sequential Adjusted EBITDA margin expansion. Disciplined working capital management also resulted in free cash flow conversion above 100%.
Stubblefield reaffirmed the company’s fiscal year 2024 guidance and emphasized a continued focus on executing the long-term growth strategy and delivering value to customers and shareholders.
For the three months ended June 30, 2024, net sales were $1.70 billion, marking a 2.4% decrease compared to the same period in 2023. Foreign currency translation negatively impacted sales by 0.4%, leading to a 2.0% organic sales decline.
Net income rose to $92.9 million from a loss of $7.3 million in the second quarter of 2023. Adjusted net income was $168.0 million compared to $186.4 million in the prior year. The net income margin stood at 5.5%. Adjusted EBITDA reached $305.6 million with a margin of 17.9%. Adjusted Operating Income was $277.2 million, translating to a margin of 16.3%.
Diluted earnings per share on a GAAP basis were $0.14, while adjusted EPS stood at $0.25. Operating cash flow was $281.1 million, and free cash flow was $235.3 million. Adjusted net leverage was 3.9x as of June 30, 2024.
Segment Performance
Laboratory Solutions: Net sales for this segment were $1.16 billion, a 3.2% decrease from the second quarter of 2023. On an organic basis, sales declined 2.7%. Adjusted Operating Income for the segment was $150.9 million, down from $179.7 million the previous year, with an Adjusted Operating Income margin of 13.1%.
Bioscience Production: Net sales in this segment were $547.1 million, a slight decrease of 0.5% from the same period last year. On an organic basis, sales fell 0.3%. Adjusted Operating Income was $144.0 million, compared to $154.2 million in the prior year, with a margin of 26.3%.
The company continues to measure and evaluate the performance of its business segments using Adjusted Operating Income, a profitability measure under generally accepted accounting principles.
Avantor remains committed to its strategic goals, leveraging strong cash flow and disciplined management to navigate the current market challenges while aiming for long-term growth.
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