RADNOR, Pa. - Avantor, Inc. (NYSE: NYSE:AVTR), a prominent global provider of mission-critical products and services to the life science and advanced technology sectors, announced its financial outcomes for the second quarter ended June 30, 2024.
The company reported a second-quarter GAAP EPS of $0.14, which surpassed the analyst estimate of $0.23. However, net sales saw a slight decline, coming in at $1.7 billion, aligning with the consensus estimate but marking a 2.4% decrease compared to the same period last year.
Avantor's performance in the second quarter reflects an organic sales decline of 2.0%, with foreign currency translation negatively impacting sales by 0.4%. Despite the decrease in net sales, the company's net income showed a notable improvement, rising to $92.9 million from a loss of -$7.3 million in the second quarter of 2023. Adjusted EBITDA for the quarter stood at $305.6 million, with an adjusted EBITDA margin of 17.9%.
President and CEO Michael Stubblefield highlighted the company's sequential improvements across key financial metrics, attributing the success to a favorable mix from increased bioprocessing revenue and the accelerated impact of cost transformation initiatives. He also noted the company's disciplined capital management, which led to a free cash flow conversion above 100%.
Looking ahead, Avantor reaffirmed its fiscal year 2024 guidance, emphasizing the company's commitment to its long-term growth strategy and value delivery for customers and shareholders. Stubblefield expressed confidence in the company's direction, stating, "We are reaffirming our fiscal year 2024 guidance and remain focused on executing our long-term growth strategy and delivering value to our customers and shareholders."
The company's financial health was further evidenced by a strong operating cash flow of $281.1 million and free cash flow of $235.3 million. Adjusted net leverage stood at 3.9x as of June 30, 2024.
Avantor's segment results for the second quarter showed a reported decrease of 3.2% in Laboratory Solutions net sales and a 0.5% reported decrease in Bioscience Production net sales. Adjusted Operating Income for Laboratory Solutions was $150.9 million, while Bioscience Production recorded $144.0 million.
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