Avantor Q4 net sales down 5.9% to $1.80B; core organic growth +2.7%; adj. EBITDA margin 20.0%

For the full-year ended December 31, 2022, net sales were $7.51 billion, an increase of 1.7% compared to 2021. Foreign currency translation had an unfavorable impact of 4.3% with M&A adding 3.6%, resulting in organic sales growth of 2.4% and core organic sales growth of 6.0% (excluding COVID-19 headwinds). Net income increased to $686.5 million from $572.6 million in 2021 and adjusted net income was up 10.6% from the comparable prior period, excluding foreign exchange headwinds. Adjusted EBITDA was $1,570.7 million, an increase of 11.8% from 2021, excluding foreign exchange headwinds. Adjusted EBITDA margin expanded by approximately 110 basis points to 20.9%. Diluted earnings per share on a GAAP basis for 2022 was $1.01, while adjusted EPS was $1.41.

For the three months ended December 31, 2022, net sales were $1.80 billion, a decrease of 5.9% compared to the fourth quarter of 2021. Foreign currency translation had an unfavorable impact of 4.5% with M&A adding 0.7%, resulting in an organic sales decline of 2.1% and core organic sales growth of 2.7% (excluding COVID-19 headwinds). Net income increased to $141.7 million from $94.0 million in the fourth quarter of 2021 and adjusted net income was $214.0 million as compared to $229.2 million in the comparable prior period. Adjusted EBITDA was $359.5 million and adjusted EBITDA margin expanded by more than 60 basis points to 20.0%. Diluted earnings per share on a GAAP basis was $0.21, while adjusted EPS was $0.32.