Avantor Inc (AVTR) Reports Q3 2023 Earnings: Net Sales Down 7.3%, Net Income of $108.4 Million
Avantor Inc (NYSE:AVTR) reported Q3 2023 net sales of $1.72 billion, a decrease of 7.3% year-over-year.
The company's net income for the quarter was $108.4 million.
Adjusted EBITDA stood at $317.8 million with a free cash flow of $193.0 million.
Avantor Inc (NYSE:AVTR) has repaid more than $650 million of debt in the first three quarters of 2023.
Avantor Inc (NYSE:AVTR), a leading global provider of mission-critical products and services, released its Q3 2023 earnings report on October 27, 2023. The company reported net sales of $1.72 billion, marking a decrease of 7.3% compared to the same period in 2022. The net income for the quarter was $108.4 million, down from $167.0 million in Q3 2022.
Financial Highlights
Avantor's adjusted EBITDA for the quarter was $317.8 million, and the adjusted EBITDA margin was 18.5%. The company's diluted earnings per share on a GAAP basis was $0.16, while the adjusted EPS was $0.25. Operating cash flow in the quarter was $230.7 million, while free cash flow was $193.0 million. As of September 30, 2023, the company's adjusted net leverage was 3.9X. Avantor has repaid more than $650 million of total debt in the first three quarters of 2023.
Segment Results
In the Americas, net sales were $1,019.2 million, a decrease of 9.3% compared to Q3 2022. In Europe, net sales were $579.8 million, a decrease of 2.6% compared to the same period in 2022. In the AMEA region, net sales were $121.2 million, a decrease of 12.3% compared to Q3 2022.
Company's Outlook
Michael Stubblefield, President and Chief Executive Officer of Avantor, expressed confidence in the company's long-term outlook. He stated,
Our focus on productivity and operational excellence, balanced with investments in our growth strategy, including proprietary product innovation and the formation of our Scientific Advisory Board, has positioned Avantor to emerge stronger from the current environment."
Financial Tables
The company's balance sheet shows total assets of $12.8 billion as of September 30, 2023, and total liabilities of $7.7 billion. The total stockholders' equity stood at $5.1 billion. The company's cash and cash equivalents were $236.9 million.
The cash flow statement shows a net cash provided by operating activities of $230.7 million for the quarter and a free cash flow of $193.0 million. The company used $37.0 million in investing activities and $188.4 million in financing activities.
Explore the complete 8-K earnings release (here) from Avantor Inc for further details.
This article first appeared on GuruFocus.
