SOMERSET, N.J.–(BUSINESS WIRE)–Catalent, Inc. (NYSE: CTLT), the leader in enabling the development and supply of better treatments for patients worldwide, today announced financial results for the first quarter of fiscal 2025, which ended September 30, 2024.
“Our first quarter fiscal 2025 results reflect the continued momentum in our business and underscore our customers’ continued confidence in Catalent. Financial highlights in the quarter included double-digit year-over-year growth in both non-COVID revenue and adjusted EBITDA, while also delivering positive free cash flow,” said Alessandro Maselli, President and Chief Executive Officer of Catalent, Inc.
Commenting on Catalent’s pending transaction with Novo Holdings A/S (“Novo Holdings”), which is expected to close towards the end of calendar year 2024, subject to customary closing conditions, including receipt of required regulatory approvals, Mr. Maselli said, “We are confident in the pro-competitive nature of our transaction with Novo Holdings and continue to work cooperatively with regulators towards transaction close. As a private company under Novo Holdings’ ownership, Catalent will continue to operate nearly 50 global sites and serve as a leading global, independent, full-service CDMO. Post-closing, we believe Catalent will be even better positioned to develop and expand the supply of innovative treatments and cures for patients, ensure unparalleled service for our customers, and create new jobs.”
First Quarter 2025 Consolidated Results
Net revenue of $1.02 billion increased 4% as reported and in constant currency, from the $982 million reported for the first quarter a year ago. After excluding COVID-related revenue of approximately $30 million in the first quarter of fiscal 2025 and approximately $100 million in first quarter of fiscal 2024, net revenue increased 13%.
Net loss and loss per basic and diluted share was $(129) million, or $(0.71) per basic and diluted share, compared to net loss of $(759) million, or $(4.19) per basic and diluted share, in the first quarter a year ago.
EBITDA (loss) from operations(1) was $56 million, an increase of $683 million from the $(627) million reported in the first quarter a year ago. First quarter fiscal 2025 Adjusted EBITDA(1) was $125 million, or 12.2% of net revenue, compared to $112 million, or 11.4% of net revenue, in the first quarter a year ago. This represents an increase of 11% as reported and an increase of 10% on a constant-currency basis, compared to the fiscal 2024 period.
Adjusted Net Loss(1) was $(24) million, or $(0.13) per diluted share, compared to Adjusted Net Loss(1) of $(24) million, or $(0.13) per diluted share, in the first quarter a year ago.
(1) See “Non-GAAP Financial Measures” below and the GAAP to non-GAAP reconciliation provided later in this release.
First Quarter 2025 Segment Review
|
(Dollars in millions) |
Three Months Ended |
|
Constant |
|||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Change % |
|
|
Biologics |
|
|
|
|
|
|||||
|
Net revenue |
$ |
461 |
|
|
$ |
448 |
|
|
3 |
% |
|
Segment EBITDA |
|
48 |
|
|
|
49 |
|
|
(3 |
)% |
|
Segment EBITDA margin |
|
10.5 |
% |
|
|
11.0 |
% |
|
|
|
|
Pharma and Consumer Health |
|
|
|
|
|
|||||
|
Net revenue |
|
563 |
|
|
|
534 |
|
|
5 |
% |
|
Segment EBITDA |
|
117 |
|
|
|
101 |
|
|
15 |
% |
|
Segment EBITDA margin |
|
20.8 |
% |
|
|
18.9 |
% |
|
|
|
|
Inter-segment revenue elimination |
|
(1 |
) |
|
|
— |
|
|
(60 |
)% |
|
Unallocated costs (1) |
|
(109 |
) |
|
|
(777 |
) |
|
86 |
% |
|
Combined totals |
|
|
|
|
|
|||||
|
Net revenue |
$ |
1,023 |
|
|
$ |
982 |
|
|
4 |
% |
|
EBITDA (loss) from operations |
$ |
56 |
|
|
$ |
(627 |
) |
|
* |
|
|
(1) |
For the three months ended September 30, 2023, unallocated costs include $689 million of non-cash goodwill impairment charges. |
|
|
* Not meaningful |
||
|
Biologics segment |
2024 vs. 2023 |
||||
|
|
Three Months Ended |
||||
|
Year-Over-Year Change |
September 30, |
||||
|
|
Net Revenue |
|
Segment EBITDA |
||
|
Organic |
3 |
% |
|
(3 |
)% |
|
Constant-currency change |
3 |
% |
|
(3 |
)% |
|
Foreign exchange translation impact on reporting |
— |
% |
|
1 |
% |
|
Total % change |
3 |
% |
|
(2 |
)% |
|
Pharma and Consumer Health segment |
2024 vs. 2023 |
||||
|
|
Three Months Ended |
||||
|
Year-Over-Year Change |
September 30, |
||||
|
|
Net Revenue |
|
Segment EBITDA |
||
|
Organic |
5 |
% |
|
15 |
% |
|
Constant-currency change |
5 |
% |
|
15 |
% |
|
Foreign currency translation impact on reporting |
— |
% |
|
1 |
% |
|
Total % change |
5 |
% |
|
16 |
% |
Segment Net Revenue as a % of Total Net Revenue
|
|
Three Months Ended |
|||||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|||||
|
Biologics |
45 |
% |
|
46 |
% |
|
43 |
% |
|
43 |
% |
|
46 |
% |
|
Pharma and Consumer Health |
55 |
% |
|
54 |
% |
|
57 |
% |
|
57 |
% |
|
54 |
% |
|
Net Revenue |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
Balance Sheet and Liquidity
As of September 30, 2024, Catalent had $4.93 billion in total debt compared to $4.91 billion as of June 30, 2024 and $4.95 billion as of September 30, 2023. As of September 30, 2024, Catalent had $4.60 billion in total debt net of cash and cash equivalents, compared to $4.62 billion as of June 30, 2024 and $4.74 billion as of September 30, 2023.
Catalent’s ratio of First Lien Debt over LTM Adjusted EBITDA was 2.8x at September 30, 2024. Catalent’s senior secured credit agreement requires that this ratio remain below 6.5x.
Catalent’s net leverage ratio(1) as of September 30, 2024 was 6.4x, compared to 6.6x at June 30, 2024 and 7.6x as of September 30, 2023.
|
(1) |
See “Non-GAAP Financial Measures” below and the GAAP to non-GAAP reconciliation provided later in this release. |
About Catalent, Inc.
Catalent, Inc. (NYSE: CTLT), is the global leader in enabling pharma, biotech, and consumer health partners to optimize product development, launch, and full life-cycle supply for patients around the world. With broad and deep scale and expertise in development sciences, delivery technologies, and multi-modality manufacturing, Catalent is a preferred industry partner for personalized medicines, consumer health brand extensions, and blockbuster drugs. Catalent helps accelerate over 1,500 partner development programs and launch over 150 new products every year. Its flexible manufacturing platforms at over 50 global sites supply nearly 70 billion doses of nearly 8,000 products annually. Catalent’s expert workforce of approximately 17,000 includes more than 3,000 scientists and technicians. Headquartered in Somerset, New Jersey, the company generated approximately $4.4 billion in revenue in its 2024 fiscal year. For more information, visit www.catalent.com.
