21 slides from West Pharmaceutical Services's earnings presentation, Feb 15, 2024
Slide 1: Fourth-Quarter 2023 and Full Year Results
Fourth-Quarter 2023 and Full Year Results Fourth Quarter Overall Net Sales Full Year Overall Net Sales “We had strong 2023 base organic sales growth, $732.0M | 3.3% $2.950B | 2.2% excluding the headwinds from lower pandemic- related sales, led by high-value product (HVP) Diluted Earnings Per Share:
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 Fourth-Quarter and Full Year Results 2023 Analyst Conference Call 9 a.m. Eastern Time | February 15, 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/BI4d8cc
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: 2023 Business Highlights
2023 Business Highlights Celebrated a remarkable Shipped over Marked 50-year 100-year 48+ billion components partnership with history of touching billions of patients Daikyo Growth & Innovation More than Introduced Opened new Vial2Bag Advanced® $2.75M donated to communities Maker Space 13mm Admixtur
Slide 6: Financial Highlights
Financial Highlights • Fourth quarter 2023 net sales of $732.0 million increased 3.3%; organic net sales growth was 1.4% • Fourth quarter 2023 reported-diluted EPS of $1.83 grew 34.6%; adjusted-diluted EPS of $1.83 grew 3.4% • Full year 2023 net sales of $2.950 billion grew 2.2%; organic net sales g
Slide 7: 2024 Full-Year Guidance
2024 Full-Year Guidance 2024 Full-Year Guidance Consolidated Net Sales $3.000 - $3.025 billion Adjusted-Diluted EPS $7.50 to $7.75 WST Q4/FY 2023 Earnings 7
Slide 8: Growth Drivers and Future Demand
Growth Drivers and Future Demand Our continued commitment and focus to deliver superior value to our customers and patients HVP Co m p o n e n t s HVP D ev i c e s Co n t r a c t Ma n u f a c t u r i n g Expansion at Grand Rapids, Michigan 8 WST Q4/FY 2023 Earnings
Slide 9: Fourth-Quarter 2023 Summary Results
Fourth-Quarter 2023 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended December 31 2023 2022 Reported Net Sales $732.0 $708.7 Gross Profit Margin 38.0% 37.0% Reported Operating Profit $160.9 $129.7 Adjusted Operating Profit (1) $159.9 $158.7 Reported Operating Prof
Slide 10: Fourth-Quarter 2023 Organic Net Sales Growth
Fourth-Quarter 2023 Organic Net Sales Growth Overall Organic Net Sales Growth: 1.4% (Q4 2023) Proprietary Products Q4 2023 organic net sales decrease of 0.3% with sales of high-value products generating low-single digit organic net sales growth BIOLOGICS GENERICS PHARMA CONTRACT MANUFACTURING (Low-S
Slide 11: Change in Consolidated Net Sales Fourth-quarter 2022 to 2023
Change in Consolidated Net Sales Fourth-quarter 2022 to 2023 ($ millions) WST Q4/FY 2023 Earnings 11
Slide 12: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended December 31, 2023 2022 Proprietary Products Gross Profit $253.4 $243.0 Proprietary Products Gross Profit Margin 42.7% 41.6% Contract-Manufactured Products Gross Profit $24.7 $19.1 Contract-Manufactured Products Gross Profit Margin 17.9% 15.4% Conso
Slide 13: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition YTD YTD December 31, December 31, Q4 2023 Q4 2022 2023 2022 Depreciation and Amortization $137.3 $120.6 Cash and Cash Equivalents $853.9 $894.3 Operating Cash Flow $776.5 $724.0 Debt $206.8 $208.9 Capital Expenditur
Slide 14: Committed to our collective purpose to improve patient health
Committed to our collective purpose to improve patient health Unique Value to Customers and Patients Global Operational Effectiveness Across the Network Capital Investments for Future Growth WST Q4/FY 2023 Earnings 14
Slide 15: Q&A
Eric M. Green Bernard J. Birkett Quintin Lai President and Senior VP and Chief Financial VP, Strategy & Investor Relations Chief Executive Officer, and Operations Officer Chair of the Board Q&A WST Q4/FY 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: Reconciliation of Reported and Adjusted Operating Profit, Net Income and EPS
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: Reconciliation of Reported and Adjusted Operating Profit, Net Income and EPS (2022)
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: Reconciliation of Net Sales to Organic Net Sales
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: Reconciliation of Net Sales to Organic Net Sales (2022)
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: Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance
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