Avantor® Reports Fourth Quarter and Full-Year 2024 Financial Results
Avantor®, a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, has announced its financial results for the fourth fiscal quarter and the full year ending December 31, 2024.
CEO’s Statement on Performance and Strategic Outlook
Michael Stubblefield, President and Chief Executive Officer of Avantor, expressed confidence in the company’s financial and operational performance. He highlighted the company’s ability to navigate a dynamic market environment while maintaining a commitment to commercial intensity and operational discipline.
“Our fourth-quarter results underscore our team’s unwavering dedication to driving commercial success, enhancing operational efficiencies, and supporting breakthrough scientific advancements,” said Stubblefield. “As expected, we returned to growth in the fourth quarter, achieving sequential and year-over-year increases in adjusted EBITDA margin, adjusted EPS, and strong free cash flow conversion. Our bioprocessing platform experienced high-single-digit growth, and we anticipate continued strength fueled by focused execution and improving market conditions.”
Looking ahead, Stubblefield emphasized Avantor’s strategic initiatives, stating, “We are entering 2025 with significant momentum and a clear focus on fostering innovation-driven revenue growth, expanding margins, and further deleveraging our balance sheet. Our new operating model enhances efficiency, and our cost transformation program is progressing ahead of schedule. With an industry-leading portfolio, a robust supply chain, and an unwavering commitment to operational excellence, we are well-positioned to achieve our short-term and long-term financial objectives.”
Fourth Quarter 2024 Financial Highlights
For the three months ended December 31, 2024, Avantor reported:
- Net Sales: $1,686.6 million, a 2% decline compared to Q4 2023. Excluding the impact of foreign currency translation and the divestiture of Clinical Services, sales grew 1% on an organic basis.
- Net Income: Increased significantly to $500.4 million, up from $98.5 million in Q4 2023.
- Adjusted Net Income: $183.9 million, up from $166.7 million in the prior-year period.
- Net Income Margin: 29.7%.
- Adjusted EBITDA: $307.7 million, with an Adjusted EBITDA margin of 18.2%.
- Adjusted Operating Income: $279.4 million, reflecting an Adjusted Operating Income margin of 16.6%.
- Diluted EPS (GAAP): $0.73, while Adjusted EPS was $0.27.
- Operating Cash Flow: $173.3 million.
- Free Cash Flow: $222.1 million.
Full Year 2024 Financial Performance
For the fiscal year ended December 31, 2024, Avantor reported:
- Net Sales: $6,783.6 million, representing a 3% decline compared to 2023. Excluding foreign currency translation benefits and the Clinical Services divestiture, organic sales declined 2%.
- Net Income: $711.5 million, up from $321.1 million in 2023.
- Adjusted Net Income: $677.7 million, compared to $720.1 million in the previous year.
- Net Income Margin: 10.5%.
- Adjusted EBITDA: $1,198.8 million, with an Adjusted EBITDA margin of 17.7%.
- Adjusted Operating Income: $1,089.8 million, reflecting an Adjusted Operating Income margin of 16.1%.
- Diluted EPS (GAAP): $1.04, while Adjusted EPS was $0.99.
- Operating Cash Flow: $840.8 million.
- Free Cash Flow: $768.3 million.
- Adjusted Net Leverage: 3.2x as of December 31, 2024.
Fourth Quarter 2024 – Segment Performance
Laboratory Solutions
- Net Sales: $1,125.8 million, a 5% decline compared to Q4 2023.
- Organic Sales Decline: 1%, factoring in foreign currency impact and the Clinical Services divestiture.
- Adjusted Operating Income: $147.4 million, down from $157.3 million in the prior-year period.
- Adjusted Operating Income Margin: 13.1%.
Bioscience Production
- Net Sales: $560.8 million, a 4% increase from Q4 2023.
- Organic Sales Growth: 4%.
- Adjusted Operating Income: $149.2 million, up from $132.0 million in the prior-year period.
- Adjusted Operating Income Margin: 26.6%.
Full Year 2024 – Segment Performance
Laboratory Solutions
- Net Sales: $4,610.1 million, a 3% decline compared to 2023.
- Organic Sales Decline: 2%, impacted by foreign currency translation and the Clinical Services divestiture.
- Adjusted Operating Income: $598.0 million, down from $668.3 million in the previous year.
- Adjusted Operating Income Margin: 13.0%.
Bioscience Production
- Net Sales: $2,173.5 million, a 3% decline compared to 2023.
- Organic Sales Decline: 3%.
- Adjusted Operating Income: $558.2 million, down from $601.9 million in 2023.
- Adjusted Operating Income Margin: 25.7%.
Financial Strategy and Future Growth Prospects
Avantor continues to prioritize strategic growth initiatives that enhance operational efficiency, expand margins, and drive revenue. The company has made significant strides in its cost transformation program, which is progressing ahead of schedule, leading to enhanced profitability. Additionally, its resilient supply chain and best-in-class execution ensure that Avantor remains well-positioned in the market.
“With a strong foundation in place, we are focused on scaling our operations and driving consistent, long-term growth. We remain committed to investing in innovative solutions and optimizing our portfolio to better serve our customers in the life sciences and advanced technology industries,” said Stubblefield.
Avantor’s bioprocessing segment is expected to remain a key growth driver, benefiting from increasing demand for advanced biopharmaceutical solutions and improving end-market conditions. The company’s investment in innovation, coupled with disciplined execution, is expected to contribute to sustained financial performance.
Conference Call Information
Avantor® is a global leader in providing mission-critical products and services for customers in the life sciences, advanced technologies, and applied materials industries. With a broad portfolio of solutions, Avantor enables innovation across research, development, and production workflows. The company is dedicated to advancing science and improving patient outcomes through cutting-edge technology, efficient supply chain management, and sustainable business practices.
