Q4 2024 Avantor Inc Earnings Call Transcript
Key Points
- Avantor Inc (AVTR) achieved high single-digit organic growth in its bioprocessing business for the fourth consecutive quarter.
- The company expanded its adjusted EBITDA margin to 18.2%, the highest level in over a year, driven by an improved mix and cost transformation initiatives.
- Avantor Inc (AVTR) generated $222 million in free cash flow in Q4 and $768 million for the year, representing over 110% free cash flow conversion.
- The laboratory solutions segment showed resilience with sequential organic growth and new contract wins.
- Avantor Inc (AVTR) made significant strides in its long-term growth strategy by introducing new products and services, including leveraging digital tools and AI for operational efficiency.
- Reported revenue for the full year 2024 was $6.78 billion, representing a 2% organic revenue decline versus the prior year.
- The laboratory solutions segment experienced a 1% organic revenue decline in Q4 compared to the prior year.
- The company faced headwinds from the divestiture of its clinical services business, impacting gross profit and margins.
- Avantor Inc (AVTR) anticipates a 2% headwind from FX and a 2% headwind from the clinical services divestiture in 2025.
- The semiconductor market, a small part of Avantor Inc (AVTR)'s business, experienced a significant decline, impacting the company's overall performance.
Hello everybody, and a warm welcome to Avantor's fourth-quarter 2024 earnings call. My name is Emily and I coordinating your call today. (Operator Instructions) I will now turn the call over to Allison Hosak, Senior Vice President of Global Communications. Miss Hosak, you may begin your conference.
Good morning and thank you for joining us. Our speakers today are Michael Stubblefield, President and Chief Executive Officer; and Brent Jones, Executive Vice President and Chief Financial Officer. The press release and the presentation accompanying this call are available on our Investor Relations website at ir.avantorsciences.com. A replay of this webcast will also be made available on our website after the call.
Following our prepared remarks, we will open the line for questions. During this call, we will be making forward-looking statements within the meaning of the US federal securities laws, including statements regarding events or developments that we believe or anticipate may occur in the future
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