SCHOTT Pharma continues growth path in the second quarter of fiscal year
2024

EQS-News: SCHOTT Pharma AG & Co. KGaA / Key word(s): Half Year Report/Half
Year Results
SCHOTT Pharma continues growth path in the second quarter of fiscal year
2024

27.06.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SCHOTT Pharma continues growth path in the second quarter of fiscal year
2024

* Q2 2024 revenues up 11% yoy to EUR 247m at constant currencies

* Q2 2024 EBITDA margin of 27.0% at constant currencies

  * Share of strong-margin high-value solutions (HVS) at 53% in the first
    half of FY 2024

* Guidance for fiscal year 2024 confirmed

SCHOTT Pharma, a pioneer in pharma drug containment solutions and delivery
systems, recorded good results in the second quarter and continued its
profitable growth trajectory in the fiscal year 20241. In Q2 2024, the
company's revenues grew by 11% to EUR 247m at constant currencies (Q2 2023:
EUR 224m). The company's EBITDA declined slightly compared to the prior year
as expected due to ramp-up cost from the continued investments in capacity
expansion and a strong comparable base resulting in an EBITDA margin of
27.0% (Q2 2023: 30.7%) at constant currencies. Revenues and EBITDA on a
reported basis were impacted by strong currency headwinds in the second
quarter of 2024. "Demand for our products has remained strong in the 2024
financial year to date. This underlines not only our growth ambitions but
also shows that the market dynamics are intact. Thanks to our long-standing
partnerships with customers and our broad portfolio, we're ideally
positioned to benefit from the attractive injectables market," said Andreas
Reisse, CEO of SCHOTT Pharma.

"We have achieved good quarterly results and are satisfied, especially with
the strong momentum in revenue growth. This is particularly true for the
high demand for our strong-margin high-value syringes, which has been a key
driver of our overall growth. With the first half of the year in the books,
we have increased our revenue share from HVS to 53% and are well on track to
exceed our guidance for 2024," said Dr. Almuth Steinkühler, CFO of SCHOTT
Pharma.

Further growth driven by strategy execution

In the second quarter of 2024, SCHOTT Pharma continued the execution of its
strategy focusing on innovation and expansion.

On the product innovation side, the company advanced a promising application
for prefillable polymer syringes, namely large volume drug administration.
This field is just one example of a broad range of applications that drive
further growth in this segment. The recent announcement of the collaboration
with KORU Medical Systems to advance large volume subcutaneous infusion
therapies is therefore another step to further expand SCHOTT Pharma's
leading position in the market. Together, the companies offer a pump system
with SCHOTT Pharma's large volume prefillable polymer syringes available in
formats ranging from 10mL to 50mL. The joint solution simplifies the
administration of treatments that require recurring dosing regimens, such as
chronic diseases or cancer. The collaboration underlines the broad demand
for applications, where high-quality prefillable polymer syringes are the
preferred drug delivery solution.

Further innovation efforts of the company included the introduction of a
broader service offering: with PartnerLab, SCHOTT Pharma is offering drug
developers a one-stop shop covering the full range of analytical tests
needed for drug submission. This helps customers to accelerate the complex,
time- and cost-intensive drug registration process and bring their products
to market faster. This broad service offering reiterates SCHOTT Pharma's
extensive scientific expertise and strengthens its role as a trusted partner
to the pharma industry. By working together closely from the very beginning,
the company deepens its collaboration with the pharma customers throughout
the entire lifecycle of the drug starting at the early development stages.

SCHOTT Pharma continues to expand its global production capacities in
response to continued high customer demand for solutions in both the Drug
Delivery Systems (DDS) and the Drug Containment Solutions (DCS) segments. In
March, the company announced its expansion into the U.S., one of its
strongest growth markets. With the USD 371m investment (approximately EUR
340m), SCHOTT Pharma wants to increase its manufacturing capabilities for
prefillable glass and polymer syringes required to safely store and deliver
critical medications and vaccines, including biologics, such as GLP-1 and
mRNA drugs. The new site in North Carolina will allow the company to triple
its contribution of glass and polymer syringes to the U.S. market by 2030,
thereby relieving stress on the entire pharmaceutical industry supply chain.

As part of its expansion strategy addressing the structural demand for HVS,
SCHOTT Pharma also inaugurated a new state-of-the-art production facility in
Lukacsházá, Hungary on June 11. With the commenced commercial production of
prefillable glass syringes, the company will strengthen its competitiveness
and serve the fast and dynamically growing global market.


High HVS demand and positive developments in DDS and DCS segments drive Q2
growth

The revenue growth in Q2 2024 was mostly driven by the strong performance of
SCHOTT Pharma's DDS segment. At constant currencies, DDS revenues accounted
for EUR 96m, an increase of 33% yoy due to high demand for prefillable
syringes and the ongoing expansion of capacities for HVS. As a result, the
cumulative share of HVS in total revenues was 53% in the first half of the
year and therefore -8 percentage points higher than in the previous year.
Revenues in the DCS segment developed as expected and amounted to EUR 151m
at constant currencies. With that, revenues were roughly in line with the
previous year and thus returned to the high level of Q2 2023.


Profitability remains strong despite strategic ramp-up costs

SCHOTT Pharma remained highly profitable in Q2 2024 with an EBITDA margin of
27.0% at constant currencies, which was below the previous year mainly due
to ramp-up costs for new production capacities. The DDS segment contributed
EUR 37m of EBITDA, an increase of 21% compared to the previous year at
constant currencies. This led to an EBITDA margin of 38.1%, which was
impacted by ramp-up costs for Hungary, as expected. At constant currencies,
EBITDA in DCS came in below prior year at EUR 31m and a margin of 20.6%. The
margin decline of more than 5 percentage points compared to the previous
years' quarter resulted from destocking for vials on the customer side and
planned ramp-up costs for capacity relocations to Serbia.

As a globally operating company with production and sales activities in
various markets, SCHOTT Pharma is exposed to foreign currency effects, which
the company hedges to a large extent. In Q2 2024, however, strong currency
headwinds impacted reported results, more than offsetting the positive
currency effects from Q1 2024. Currency effects had an impact of EUR 23m on
Q2 2024 reported EBITDA. The company's profit for Q2 2024 declined to EUR
25m, which was mainly impacted by the adverse currency effects.

In line with the strategy, the majority of the total investments of EUR 57m
in H1 2024 were growth investments. Despite those investments in the first
half of fiscal year 2024, free cash flow remained strong at EUR 34m in the
first half of the year.


Outlook

Based on the first half of fiscal year 2024, SCHOTT Pharma is well on track
to achieve its full year guidance of 9% to 11% revenue growth and an EBITDA
margin approximately at prior year's level, both at constant currencies. The
most important growth drivers for SCHOTT Pharma remain major pharma trends
that the company meets with its products. These include primarily GLP-1,
mRNA, homecare, ADCs, subcutaneous administration of drugs, and the
ready-to-use manufacturing transformation of pharma companies, additionally
supported by the recent revision of the EU GMP Annex-1. Moreover, the
company continues the development of new solutions to ensure the safe and
easy storage and administration of injectable drugs to patients all over the
world.

SCHOTT Pharma remains committed to its guidance for fiscal year 2024 and
mid-term outlook of organic revenue growth above 10% CAGR and an EBITDA
margin in the low 30% range at constant currencies.

For additional news about SCHOTT Pharma please visit our media center.


Key figures Q2 2024

    (in EUR m)                    Q2    Q2     yoy  Q2 24  yoy
                                  23    24           (cc2) (cc2)
    Revenues                      224   234    +5%    247   +11%
    HVS revenue share             44%   52%   +8pp
    EBITDA                        69    44    -35%    67    -3%
    EBITDA margin (in %)         30.7- 18.9- -11.8p- 27.0% -3.7pp
                                   %     %      p
    EBIT                          62    28    -54%
    EBIT margin (in %)           27.6- 12.2- -15.5p-
                                   %     %      p
    Earnings per share (in EUR)  0.32  0.17   -48%
    Cash flow from operating      70    25     -45
    activities
    Cash flow from investing      33    29     -5
    activities
    Free cash flow                37    -3     -40
    Total cash CAPEX              33    28     -5

Key figures H1 2024

    (in EUR m)                    H1    H1    yoy  H1 24  yoy
                                  23    24          (cc2) (cc2)
    Revenues                      449   466   +4%    489   +9%
    HVS revenue share             45%   53%   +8pp
    EBITDA                        132   117   -11%   134   +2%
    EBITDA margin (in %)         29.4- 25.1- -4.3p- 27.4% -2.0pp
                                   %     %     p
    EBIT                          112   87    -23%
    EBIT margin (in %)           25.1- 18.5- -6.5p-
                                   %     %     p
    Earnings per share (in EUR)  0.58  0.46   -20%
    Cash flow from operating      98    91     -7
    activities
    Cash flow from investing      54    57     3
    activities
    Free cash flow                44    34    -10
    Total cash CAPEX              -54   -57    -3

1The fiscal year runs from October to September. Q2 2024 therefore relates
to the period from January 2024 to March 2024.
2CC = at constant currencies


Webcast

Andreas Reisse (CEO) and Dr. Almuth Steinkühler (CFO) will speak at an
analyst and investor conference call at 11:00 a.m. CET on 27 June 2024 to
discuss the Q2 2024 results. The audio webcast can be followed via a
conference call. The accompanying presentation can also be downloaded on the
IR website: https://www.schott-pharma.com/investor-relations/

About SCHOTT Pharma

Human health matters. That is why SCHOTT Pharma designs solutions grounded
in science to ensure that medications are safe and easy to use for people
around the world. The portfolio comprises drug containment solutions and
delivery systems for injectable drugs ranging from prefillable glass and
polymer syringes to cartridges, vials, and ampoules. Every day, a team of
over 4,600 people from over 60 nations works at SCHOTT Pharma to contribute
to global healthcare. The company is represented in all main pharmaceutical
hubs with 16 manufacturing sites in Europe, North and South America, and
Asia. With over 1,000 patents and technologies developed in-house and a
state-of-the-art R&D center in Switzerland, the company is focused on
developing innovations for the future. SCHOTT Pharma AG & Co. KGaA is
headquartered in Mainz, Germany and listed on the Frankfurt Stock Exchange
as part of the SDAX. It is part of SCHOTT AG, which is owned by the Carl
Zeiss Foundation. In light of this spirit, SCHOTT Pharma is committed to
sustainable development for society and the environment and has the
strategic goal of becoming climate-neutral by 2030. Currently, SCHOTT Pharma
has over 1,800 customers including the top 30 leading pharma manufacturers
for injectable drugs and generated revenue of EUR 899 million in the fiscal
year 2023.

Press contact

Joana Kornblum
Media Relations
Tel.: +49 151/29223552
E-Mail: joana.kornblum@schott.com

Jasko Terzic, CFA
Senior Manager Investor Relations
E-Mail: ir.pharma@schott.com


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27.06.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        SCHOTT Pharma AG & Co. KGaA
                   Hattenbergstraße 10
                   55122 Mainz
                   Germany
   ISIN:           DE000A3ENQ51
   WKN:            A3ENQ5
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate
                   Exchange; Vienna Stock Exchange
   EQS News ID:    1933829

End of News EQS News Service
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1933829 27.06.2024 CET/CEST