West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q2 2023 Earnings Presentation
21 slides from West Pharmaceutical Services's earnings presentation, Jul 27, 2023
Slide 1: Second-Quarter 2023
Second-Quarter 2023 Second Quarter Overall Net Sales $753.8M | 2.3% “We had a solid first-half of 2023, and with the momentum of our high-value product capacity expansion projects, we are well positioned Diluted Earnings Per Share: $2.06 for an even better second-half of the year. While COVID-19 rel
Slide 2: West Pharmaceutical Services, Inc. Analyst Conference Call
West Pharmaceutical Services, Inc. Eric M. Green President & CEO, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial and Operations Officer Second-Quarter 2023 Analyst Conference Call 9 a.m. Eastern Time | July 27, 2023
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/BIe7c54
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 to in management’s discussion of the Company’s managem
Slide 5: Financial Highlights
Financial Highlights • Second quarter 2023 net sales of $753.8 million declined 2.3%; organic net sales declined 2.5% • Second quarter 2023 reported-diluted EPS of $2.06 compared to $2.48 in the same period last year; adjusted-diluted EPS of $2.11 compared to $2.47 in the same period last year WST Q
Slide 6: Delivering unique value to Customers and Patients
Delivering unique value to Customers and Patients Execute. Innovate. Grow. HVP Co m p o n e n t s & Gl o b a l Ca p a c i t y D e l ive r y Sys t e m s Expansion 6 WST Q2 2023 Earnings
Slide 7: Keep Everlastingly At It
Keep Everlastingly At It™ 2022 Environmental Social Governance (ESG) Report published in June Progress Improvement Reduction in waste recycled and global in energy intensity in water intensity helping waste diversion at sites enabling us to be to make processes more more efficient sustainable 250+ 5
Slide 8: 2023 Full-Year Guidance
2023 Full-Year Guidance 2023 Full-Year Guidance Consolidated Net Sales $2.970 - $2.995 billion Adjusted-Diluted EPS $7.65 to $7.80 WST Q2 2023 Earnings 8
Slide 9: Second-Quarter 2023 Summary Results
Second-Quarter 2023 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended June 30 2023 2022 Reported Net Sales $753.8 $771.3 Gross Profit Margin 38.7% 41.7% Reported Operating Profit $182.5 $228.4 Adjusted Operating Profit (1) $185.0 $227.0 Reported Operating Profit M
Slide 10: Second-Quarter 2023 Organic Net Sales Growth
Second-Quarter 2023 Organic Net Sales Growth Overall Organic Net Sales Decline: 2.5% (Q2 2023) Proprietary Products Q2 2023 organic net sales declined 5.5% driven by a reduction in COVID-related sales of approximately $106 million. BIOLOGICS GENERICS PHARMA CONTRACT MANUFACTURING (Double Digit) High
Slide 11: Change in Consolidated Net Sales Second-Quarter 2022 to 2023
Change in Consolidated Net Sales Second-Quarter 2022 to 2023 ($ millions) WST Q2 2023 Earnings 11
Slide 12: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended June 30, 2023 2022 Proprietary Products Gross Profit $271.4 $302.3 Proprietary Products Gross Profit Margin 43.9% 46.2% Contract-Manufactured Products Gross Profit $20.9 $19.2 Contract-Manufactured Products Gross Profit Margin 15.4% 16.3% Reported
Slide 13: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition YTD YTD June 30, December 31, Q2 2023 Q2 2022 2023 2022 Depreciation and Amortization $65.7 $59.7 Cash and Cash Equivalents $796.3 $894.3 Operating Cash Flow $307.3 $324.3 Debt $207.8 $208.9 Capital Expenditures $15
Slide 14: Making a Difference to Patient Health over the next Century
Making a Difference to Patient Health over the next Century Execute. Innovate. Grow. Delivering Unique Value to Customers and Patients Global Operational Effectiveness Across the Network Accelerating Investments for the Future WST Q2 2023 Earnings 14
Slide 15: Q&A
Eric M. Green Bernard J. Birkett Quintin Lai President and Senior VP and Chief Financial VP, Corporate Strategy & Chief Executive Officer, and Operations Officer Investor Relations Chair of the Board Q&A WST Q2 2023 Earnings 15
Slide 16: 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 17: 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 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 Net Sales to O
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 Reported-Dilut
West Pharmaceutical Services — Q2 2023 Earnings Presentation on 6ix