West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q2 2024 Earnings Presentation
22 slides from West Pharmaceutical Services's earnings presentation, Jul 25, 2024
Slide 1: Second-Quarter 2024
Second-Quarter 2024 Second Quarter Overall Net Sales “The second quarter continued to be impacted by an elevated level of $702.1M | 6.9% customer destocking. While the results were below our expectations, we were encouraged to see our second-quarter revenues increase sequentially. Diluted Earnings P
Slide 2: Second-Quarter Results 2024 Analyst Conference Call
West Pharmaceutical Services, Inc. Eric M. Green President & CEO, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial Officer Second-Quarter Results 2024 Analyst Conference Call 9 a.m. Eastern Time | July 25, 2024
Slide 3: West Analyst Conference Call
A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com West Analyst To participate on the call by asking questions to Management, Conference Call please register in advance at: 9 a.m. Eastern Time https://register.vevent.com/register/BI65b49
Slide 4: Safe Harbor Statement
Cautionary Statement Under the Private Non-U.S. GAAP Financial Measures Securities Litigation Reform Act of 1995 Certain financial measures included in these presentation materials, or which may be referred This presentation and any accompanying management to in management’s discussion of the Compan
Slide 5: Financial Highlights
Financial Highlights • Second quarter 2024 net sales of $702.1 million declined 6.9%; organic net sales also declined by 5.9% • Second quarter 2024 reported-diluted EPS of $1.51 compared to $2.06 in the same period last year; adjusted-diluted EPS of $1.52 compared to $2.11 in the same period last ye
Slide 6: Our growth drivers have us positioned well for the future
Our growth drivers have us positioned well for the future MAR KE T L E AD E R I N S T R O N G L E AD E R S H I P F O C US E D I N VE S T M E N T S I N C O N TAI N M E N T & P O S I T I ON I N B I O L O G IC S H VP C O M P ON E N T S , D E L I VE RY O F I N J E C TAB L E I N T E G R AT E D SYS T E M
Slide 7: Capital investments to support future growth
Capital investments to support future growth Increasing capacity to meet growing demand for our Proprietary Products and Contract Manufacturing segments CM Expansion Progress Kinston – Completed Q2 2024 Grand Rapids – Completed Q2 2024 Jurong, Singapore HVP Expansion Progress Jersey Shore Eschweiler
Slide 8: Creating a healthier environment through our sustainability efforts
Creating a healthier environment through our sustainability efforts ESG Priorities Climate Strategy R&D for the Environment Waste in Operational Processes Responsible Supply Chain ESG report published in June 2024 Talent Diversity & Attraction Talent Engagement and Retention WST Q2 2024 Earnings 8
Slide 9: Second-Quarter 2024 Summary Results
Second-Quarter 2024 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended June 30, 2024 2023 Reported Net Sales $702.1 $753.8 Gross Profit Margin 32.8% 38.7% Reported Operating Profit $126.2 $182.5 Adjusted Operating Profit (1) $126.4 $185.0 Reported Operating Profit
Slide 10: Second-Quarter 2024 Organic Net Sales
Second-Quarter 2024 Organic Net Sales Overall Organic Net Sales Decline: 5.9% (Q2 2024) Proprietary Products Q2 2024 organic net sales decreased by 8.4% primarily driven by destocking of high-value products. BIOLOGICS GENERICS PHARMA CONTRACT MANUFACTURING (Mid-Single Digit) (Double Digit) (Low-Sing
Slide 11: Change in Consolidated Net Sales
Change in Consolidated Net Sales Second-quarter 2023 to 2024 ($ millions) WST Q2 2024 Earnings 11
Slide 12: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended June 30, 2024 2023 Proprietary Products Gross Profit $207.0 $271.4 Proprietary Products Gross Profit Margin 37.0% 43.9% Contract-Manufactured Products Gross Profit $23.0 $20.9 Contract-Manufactured Products Gross Profit Margin 16.2% 15.4% Consolida
Slide 13: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition YTD YTD June 30, December 31, Q2 2024 Q2 2023 2024 2023 Depreciation and Amortization $74.5 $65.7 Cash and Cash Equivalents $446.2 $853.9 Operating Cash Flow $283.2 $307.3 Debt $205.8 $206.8 Capital Expenditures $19
Slide 14: 2024 Full-Year Guidance
2024 Full-Year Guidance 2024 Full-Year Guidance Consolidated Net Sales $2.870 - $2.900 billion Adjusted-Diluted EPS $6.35 to $6.65 WST Q2 2024 Earnings 14
Slide 15: Making a positive impact on patients' lives
Making a positive impact on patients’ lives Delivering Unique Value for Customers to Meet Changing Market Needs Significant Capital Investments for Future Growth WST Q2 2024 Earnings 15
Slide 16: Q&A
Eric M. Green Bernard J. Birkett John Sweeney President & Senior VP & Chief Financial VP, Investor Relations Chief Executive Officer, Officer Chair of the Board Q&A WST Q2 2024 Earnings 16
Slide 17: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP For the purpose of aiding the comparison of our The Non-U.S. GAAP financial measures are year-over-year results, we may refer to net sales and incorporated into our discussion and analysis as other financial results excluding the effects of management uses them in evaluating o
Slide 18: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and A
Slide 19: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and A
Slide 20: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to O
Slide 21: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to O
Slide 22: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Dilut
West Pharmaceutical Services — Q2 2024 Earnings Presentation on 6ix