West Pharmaceutical Services : Q3 2024 Earnings Conference Call Presentation

Published: 2024-10-24 07:54:47 ET WST

Third-Quarter 2024

Third Quarter Overall Net Sales $746.9M | 0.1%

Diluted Earnings Per Share: $1.85

Adjusted Diluted Earnings Per Share: $1.85

"We are pleased to report solid third quarter results. Our West team across the globe continues to execute at a high-level, motivated by our purpose of improving patient lives. A key aspect of our strategy is West's team of scientific thought leaders and technical experts who continue to drive strong partnership and close collaboration with our customers. This reinforces my confidence in West's execution capabilities, as we continue to deliver our proven market-led strategy and attractive long-term potential."

Eric M. Green

President and Chief Executive Officer

Chair of the Board

West Pharmaceutical Services, Inc.

Cautionary Statement Under the Private Securities Litigation Reform Act of 1995

This presentation and any accompanying management commentary contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about product development and operational performance. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates. We caution investors that the risk factors listed under "Cautionary Statement" in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, therefore you should not rely on these forward-looking statements as representing our views as of any date other than today.

Non-U.S. GAAP Financial Measures

Certain financial measures included in these presentation materials, or which may be referred to in management's discussion of the Company's results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), and therefore are referred to as non- U.S. GAAP financial measures. Non-U.S. GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with U.S. GAAP. Please refer to "Reconciliation of Non-U.S. GAAP Financial Measures" at the end of these materials for more information.

WST Q3 2024 Earnings

West Pharmaceutical Services, Inc.

Eric M. Green

President & CEO, Chair of the Board

Bernard J. Birkett

Senior VP & Chief Financial Officer

Third-Quarter Results 2024 Analyst Conference Call 9 a.m. Eastern Time | October 24, 2024

West Analyst Conference Call

9 a.m. Eastern Time October 24, 2024

A webcast of today's call can be accessed in the "Investors" section of the Company's website: www.westpharma.com

To participate on the call by asking questions to Management, please register in advance at:

https://register.vevent.com/register/BI13834a517d804f6781f3

3c4642cc94ab

Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call.

A replay of the conference call and webcast will be available on the Company's website for 30 days.

These presentation materials are intended to accompany today's press release announcing the Company's results for the third quarter 2024 and management's discussion of those results during today's conference call.

WST Q3 2024 Earnings

Safe Harbor Statement

WST Q3 2024 Earnings

Cautionary Statement Under the Private Securities Litigation Reform Act of 1995

We caution investors that the risk factors listed under our "Forward Looking Statements" in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, therefore you should not rely on these forward-looking statements as representing our views as of any date other than today.

Non-U.S. GAAP Financial Measures

Certain financial measures included in these presentation materials, or which may be referred to in management's discussion of the Company's results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), and therefore are referred to as non-U.S. GAAP financial measures. Non-U.S. GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with U.S. GAAP. Please refer to "Reconciliation of Non-U.S. GAAP Financial Measures" at the end of these materials for more information.

Trademarks

Trademarks and registered trademarks used in this report are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless noted otherwise.

Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.

Financial Highlights

WST Q3 2024 Earnings

Our Growth Drivers in the Near- and Mid-Term

Biologics is the

fastest growing sub-

segment of

injectable medicines.

West is the market

leader in this

injectable segment.

We are investing in

growth capital

expansions of our network, to support global volume growth of injectable drugs especially with regulatory changes.

We are leveraging our

HVP Proprietary

portfolio with our Glass

partners to offer comprehensive integrated systems.

HVP mix-shiftwith

new drug launches, growth of recently launched drugs and conversion of existing commercialized drugs driven by regulatory

changes

Driving Operational Excellence with LEAN

programs, automation and capital expansion within our existing infrastructure

Revenue/Market Growth

Margin Expansion

WST Q3 2024 Earnings

Third-Quarter 2024 Summary Results

($ millions, except earnings-per-share (EPS) data)

Three Months Ended

September 30,

2024

2023

Reported Net Sales

$746.9

$747.4

Gross Profit Margin

35.4%

38.6%

Reported Operating Profit

$161.3

$177.3

Adjusted Operating Profit (1)

$160.6

$180.8

Reported Operating Profit Margin

21.6%

23.7%

Adjusted Operating Profit Margin (1)

21.5%

24.2%

Reported-Diluted EPS

$1.85

$2.14

Adjusted-Diluted EPS (1)

$1.85

$2.16

WST Q3 2024 Earnings

Third-Quarter 2024 Organic Net Sales

BIOLOGICS

(Low-Single Digit)

Organic sales decline driven by lower sales

of FluroTec®, Westar® and

NovaPure® products, offset by

an increase in sales of self- injection device platforms

WST Q3 2024 Earnings

Overall Organic Net Sales Decline: 0.5% (Q3 2024)

Proprietary Products Q3 2024 organic net sales decreased by 0.5% driven by destocking of high-value products

GENERICS

PHARMA

CONTRACT

MANUFACTURING

(Mid-Single Digit)

Mid-Single Digit

Flat

Organic sales decline driven

Organic sales growth driven by

Growth in self-injection devices

by lower volumes

an increase in sales of

for obesity and diabetes, offset

of NovaBrand products

NovaBrand products and

by a decrease in sales of

Administrative Systems

healthcare diagnostic devices

Change in Consolidated Net Sales Third-quarter 2023 to 2024

($ millions)

WST Q3 2024 Earnings

Gross Profit Update ($ millions)

Three Months Ended

September 30,

2024

2023

Proprietary Products Gross Profit

$235.7

$261.4

Proprietary Products Gross Profit Margin

39.2%

43.4%

Contract-Manufactured Products Gross Profit

$29.0

$26.9

Contract-Manufactured Products Gross Profit Margin

19.9%

18.6%

Consolidated Gross Profit

$264.7

$288.3

Consolidated Gross Profit Margin

35.4%

38.6%

WST Q3 2024 Earnings

Disclaimer

West Pharmaceutical Services Inc. published this content on October 24, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 24, 2024 at 11:53:05.590.