Stevanato Group S.p.A. (STVN) 8 Mar 222021 Q4 Earnings call transcript

Hello and welcome to today's Stevanato full-year results. My name is Elliott and I'll be coordinating your call today. [Operator Instructions]. I would now like to hand over to our host, Lisa Miles, Head of Investor Relations. Please go ahead.

you us. thank and morning for joining Good With Moro, Dal Chief is Franco Lago, Chairman; Franco Stevanato, Executive Executive Financial me Officer. today Chief Officer; and Marco made a I'd of everyone to be that like statements in remind being today nature. will forward-looking number such that predictions. only are statements remember Please December we entitled on Actual and ended Risk the fiscal the annual report risks Factors XX-F with differ those for discussed year a result materially in XXXX events including as in Form SEC. the may of results filed face, XX, Item XD company's We in encourage filings. in our information you to review SEC our conjunction the contained associated today earnings release with company does these events update reflect The or subsequent assume not or circumstances, to required revise statements as to obligation forward-looking except any law. by non-GAAP information. financial contain presentation Today's may its our of this analyses meaningful this and Management quality results to in in in uses may period-to-period information our gauging information trends results, believes of identifying investors the informative be providing comparisons. performance, and financial internal

of call presented earnings press non-GAAP reconciliation for quarterly with I'll that, For measures And to recent document, the Franco hand in please the opening Stevanato most release. a the over see company's remarks. this

a Lisa. underscored the and Stevanato of for Thank XXXX by capability landmark value our Group integrated you, power proposition. was year

demand the customer deliver was and excluding COVID, matched increasing For a prior expanding year, XXXX, raising double-digit with compared rate margins solutions value mix to we revenue execution. as growth of first high

new region. and year-end, investment supply exceeded environment. new met offering in backlog approach balance At invest well future confirm us, BARDA of and behind our or had ample strategic cash, With XXXX with in further global our we IPO the broaden Stevanato strategic from million pipeline a full-year robust as XXXX intake to a We announced metric chain illustrate the in platform. growth sheet €XXX to the complexity of fund and as financial The strong our and successful our this opportunity. the flexible recently order current than finished reputation solid more performance investment in liquidity a US despite

macro record track to our strengthen business financial in on our advance strategic priority operational strong deliver capability high resonated the with three-year to Our delivery as revenue customer objective. long-term favorable growth, value. our demonstrates to we our we solutions, of trend, drive fundamental Amid our shareholder aim demand. Today, expand capitalize consistent as integrated increase and steadily of margins customers mix value continues double-digit and

Thank you, Franco.

and in for the successful operational organic performance sets XXXX foundation sustainable Our financial growth.

mix prospects favorable of our growth over a order measure the growth trends new both to to ongoing committed approximately For the these segments tackle in grew of quarter market by indicators chronic €XXX demand and million backlog as important €XXX.X We of intake driven future key last represent the an approximately represent value revenue new and for full-year solutions. as care. with customer XX.XX% and advance We year, patient XXXX XXXX, closed increasing performance of million. fourth view and and high come diseases treatments

in the strong quarter, of the year. Turning XX% mix to full-year fourth to to last compared was High revenue Value helped from slide which Revenue XX% Solutions X. boost XXXX

experienced of and The flexibility. continue expect monoclonal suited syringes increase These driven performance. their because vaccines, the high-sensitive and to gaining doubled like prior include to technology total quality for to XXXX, of proteins This compared syringes increase Alba treatment traction. rising by high Nexa use last antibodies, platform customers' platform our superior to compared in and for and ready ownership, where customer drugs, faster they We the year. choose XXXX year. demand and our market the reduce performance, are platforms ideally as syringe and products trend advanced proprietary this ready-to-use to cost In because we was get orders mRNA that biologic recombinant platform

We expect XXXX. beyond the Solution evolution The trend primary extends High packaging. Value our in will into continue this

and dose We pen continue marks step novelty our designed Alina which presence we regiments and compatible of In and for We drug to injectors, variable continue of as expanded diabetes. pods. and to within the agreement injector, the a XXXX, pan the product therapies January pen with broader expansion Alina family. beyond to expand our we Haselmeier our integrated dose us the related established and capabilities this another developed wearable drug platform, with important delivery is in therapeutic areas fixed auto to support expand diversify exclusivity our opportunities the injector injectors, proprietary therapeutic granting range space This diabetes.

slide to the of turn X presentation. Let's

in our domestic agreement to capabilities Research Indiana Under an first strengthen up fill Biomedical increase programs and future the Defense BARDA. Authority, Development BARDA We Preparedness for are health will $XX and agreement, and in manufacturing with Advanced emergencies. invest approximately capacity US the will Government the government US for National announce for and public standard vials. excited million support help to both to Readiness EZ current or This

important We we fortify and as US supply pharmaceutical to pleased scale build from be are government's to rapidly very our the capacity Indiana chain. help selected investment for this in BARDA

are to Solutions. for up forward incremental our an the moving add particularly or modular to over capacity Italy facilities with Value incrementally has in and still go industrial to demands. our early XXXX track. to until In further to investment XXXX. Indiana startup global demand The match believe we plans The to facility flexibility customer evolving generation X. are High US modify through approach slide by on the with and expected buildout sometime capacity in XXXX We necessary to BARDA continue China investment increased validation, have expect late into shore of year, pace expand leading our between to construction and meantime, dovetails we revenue followed capacity We the the remains market our Turning that our the In live. needs. satisfy response, our of last will that

investments solutions value the organic Our coupled a Value create hit sustainable chain. that that our quality, treatments elements We new are to believe come up capabilities, are market capital to to drive further and with growth as our high Solutions, shareholder High integrated require high value. intended important performance

Turning X. slide to

keeping to effectively in on-time the on and present pandemic While remain the chains. world, sharp to the inventory now impact We inflation the businesses resolute XXXX supply management, we we challenges around to manufacturing, the around continues the delivery customers. focus in to worked managing hard complexity to and and are a business manage

we variant, rise increases facilities. January late accordingly. returning of We slowed prices of we have February. production have more and to of not higher were began in rates productivity to and some experienced And while of raised Omicron We in staffing normalized our to by and capturing in immune absenteeism cost temporarily the been levels rapid mid was January, European

following business the its and potential Ukraine We situation are in carefully also impact. the

are chain, chain China enhance expansion the headwinds footprint demand We and customers focused pipeline to our to proximity biologics XXXX, weighted R&D strategic the persist of financial in position, costs against and on year. life accelerate closely we more in across plans And perseverance. finally, to in our where inflationary operational throughout the executing customers, building with investment managing anticipate in capacity value performance as are continue over call industrial degree entire to that the rising move our to high adding customers rising remain we our in our and multi-year for expect the now on and Marco high as drug a market the advancing opportunities Italy to capitalize up hand of cover our see these demand to detail. supply I we continuing and to incremental growing US we demand of cycle. evenly response In will a diversify trends the support We discipline products. priorities market-leading solutions, increase and the in our pipeline a our

Thanks, Franco.

pleased are results, estimates. top which full-year deliver quarter We financial our another very helped to solid of

€XXX.X another quarter from industry was segment strong XX.X% better over For by part was in customers deployment Engineering the quarter capital XXX, and demand. prior to our than revenue the the grew expected This ongoing of by driven to fourth year. to due million satisfy

XX.X% quarter, revenue. COVID For approximately of fourth the represented

As BDS full we quarter approximately which to of fourth the revenue concentrated €XX call, recognition related our but last fourth revenue. our year our benefit XXXX segment of million a the in impact in the included earnings in quarter, mentioned the no revenue, on timing of had XXXX

growth For XX.X% year, full in both over year, €XXX.X increased by driven segments. million the last to revenue

approximately As XX.X% revenue of XXXX. year represented expected, fiscal for COVID

grew slide turn Please XXXX. XX.X% revenue COVID, Excluding over XX. year approximately to

approximately from XX.X% million to expected, Solutions consolidated compared revenue. in As fourth quarter the last High €XX.X contribution approximately representing increased XX.X% of to year, Value

consolidated approximately our trajectory over the last XX% full-year Solution For €XXX.X revenue. over the investors contributed year, bringing to anticipate to mix of XXXX, the long High by long-term should unchanged, full of term. expansion million, target And mix fluctuations, quarterly EBITDA the to grew approximately of a while mid-XX% with Value year margin reach remains XX.X%

increase contributed efficiency manufacturing profit XX. slide margins. initiatives our to and in and High accretive gained profit The from more Moving Solutions operating Value operating ongoing gross to Lean increased

XX.X%, €XX.X increased reflect while margin to premium products This platforms the a up last resulted points XX.X% increased to innovation fill margin mostly to investment profit Operating profit basis XX in XXX of basis profit points diluted to gross in margins by operating quarter, BDS. share. per fourth year. million or earnings profit the €X.XX For R&D, in compared net related advancement in was including and EZ

million diluted full grew earnings number XXXX higher zero €X.XX. year. the in to quarter the and per outstanding shares expected, €XX adjusted profit impacted and of share Adjusted net As XX.X% was the

year For quarter, over XX.X%. the prior margin EBITDA XX.X% grew adjusted and was adjusted EBITDA fourth the

margin to EBITDA of diluted share. profit of XX.X% compared net EPS resulted to XXXX margin segment €XXX.X year resulting year. to €X.XX net diluted year for fiscal increased to million million Adjusted earnings in XXXX. and operating XX.X%, XX.X% Adjusted a profit XX.X%. Please grew This turn increased €XXX.X for EBITDA basis in XXXX, per was adjusted slide gross to XX.X% XXX full-year fiscal the adjusted profit For €XXX.X points while million, margin or was profit results. for of XX last €X.XX

quarter, to last the compared the period year. segment BDS X.X% fourth For revenue same €XXX.X to increased million

mainly core XXXX, driven to accretive were quarter For to due Period-to-period XX.X% full revenue mix importantly, increased revenue increase year the BDS more segment in million. Solutions. increases in Value both for products, by High fiscal the our segment and growth and €XXX of year

led results. business increased revenue financial and profit parties As operating XXX of This XX.X% prior points to full-year the expanded expected, basis XX.X% million profit gross for grew basis, shift approximately benefited segment. segment €XX.X the in year to fiscal Solutions accounted quarter quarter in for delivered and year. The fiscal mix XX.X% BDS margin a another margin to quarter derived XX.X% million growth over the lines year from fourth basis in €XXX.X Engineering margin all On grew to fourth Revenue periods. third XX.X% XXXX. Value the of the High from both points XXXX. for for to in The solid and segment XX.X% XXX increased

For the gross profit the was year, was profit XX.X% operating and margin XX.X%. full margin

Let's slide to XX. move

balance And a net cash healthy totaled €XXX.X million. positive a have cash We equivalent and and of financial had €XXX as million we sheet. position December XX,

were plans. the €XXX.X support full and ongoing million expenditure to expansion capital For our used year,

drill of On net which cash approximately timing XXXX. sustainable our that our into million. estimated with was expenditures. €XXX.X is working spend spend initial cash free in previously CapEx we shifting of slide to growth, than finished approximately into We million, expectation, and XX, the and CapEx XXXX capital due activity to increased €XXX.X was XXXX of as was included build continued XXXX, CapEx occur in of This was flow to We we'll from the million €XX.X million. details lower XXXX, fiscal capital For now budget. operating year down €XX expected generated reflects mostly

incremental demand. we we Franco also some meet capacity rising more as As to add anticipate the noted, expenditure Italy in

estimating are XXXX of the XX% expenditure capital and approximately XX% of year expenditure and million with will together fiscal CapEx XXXX shift for incremental Italy, €XX the capital into approximately we for between range So, revenue. of

which investments capital plans we capital Our growing vital unchanged. Therefore. our Value drive will our revenue, of Solutions shareholder mix and create value. High overall are and expanding remain all of allocation to believe long-term increasing margins,

growth. ongoing number our one investing that demand and capacity aimed priority market our organic First, plans are satisfy drive against expansion is to executing in and

our on our we we Second, technical research focused and development sustainable our to long-term flexibility position, invest dynamics advantages execute address consider to third, maintain broaden plans. drive and for now, needs our our squarely demand nutshell, may financial competitive in future opportunistic growth the and capital believe ample balance we a expanding us to a knowhow meet have In the And strong international our footprint. investment business. capital organic and M&A we With organic growth. to to sheet are liquidity in core and But by offering, innovation. capacity gives strategic

The backlog. Moving strength that guidance. to framed XX, our by guidance company XXXX is slide the of and visibility is establishing

full backlog. that the we expect revenue in €XXX €XXX forecasted our million. we revenue form estimate midpoint in cents, adjusted range the in $XXX For to guidance, the and have adjusted committed of Using to between year revenue the XX% range in of million $X.XX of approximately XXXX, million, now $XXX of EBITDA $X.XX diluted million the range the we EPS of

revenue the a from assumes continued the revenue. contribution Our of guidance percentage COVID total in to with as respect mid-teens also durability

temporary year chain. in year. Thank fiscal We and expect revenue aligns bring to Our Moro to to the you. capacity first higher also the of for the considers guidance that pass as supply I to compared the comments. industrial be second of the call half year inflation half fiscal to XXXX XXXX. headwind Franco This closing of our online back currently more the will we continue during course will plans, related

Thanks, Marco.

belief can deliver continue XXXX guidance our we long-term reinforces on that our Our objectives. to

diagnostic leader our engineering, packaging lead treatments, to safety have reputation and in a serving and administration therapies. effective premium We earned of as tests as injectable the a drug vital customers' a and

strong with relentless meeting drug and in constant growth innovation, innovation the and into a growing delivering of supply secular driving some market focus increase us vaccination Operator. conditions, pharmaceutical and well with demand, these value. deliver self-administration in of trends R&D, with delivery shareholder margin that biologics chain, and and we of the we expansion macro demands. products, quality growth, favorable scientific long-term and We medicine, on technical of programs, population reputation, quality expansion all, market offering position acceleration and suite quality have believe tailwinds, and support biosimilars, and including our revenue benefit and serve production are favorable segments Above aging an standards double-digit products, in continued to high regulation. integrated high turn, from our We multi-year coupled chronic fastest

question. for line the to up open Let's

[Operator Instructions].

from question first today Jefferies. comes Windley from Our David

was Value housekeeping start I EZ dollar of percentage want the just questions. or tell hoping us couple your type that could with you not to the value in what a of of kind from High you're Marco, Solutions. I revenue fill products including

in are We after fill. going rapidly EZ

both same our As year. Anyhow, I in Solution sales And tell Solution. that XX% went we more up went High Value practice, up you year-over-year. less the that or Value fill can provide High the range at segments in and EZ

talk absorbed? between any the the things about factors pricing quarter inflation you're the kind pickup quantify there sort. that the lag the supply of watching mentioned of the you the pricing? Maybe costs fourth you're any on that negative Can P&L incurring? Is you that versus of impact Secondly, and pricing chain, taking, unexpected that timing

Yes.

As industry. industry, the facing inflation anybody in pressure, like other we are else any

we some We mentioned cost logistical have QX, increase. experienced, in

our have our model price we XXXX. We our to we growth the Franco frequently taking cost other recalculating XXXX out manufacturing expect put and and some inflation increase from price And cost. Overall, total double-digit rising was compared models in also saying, organic in accordingly. for are as

around The last question your I have is capacity.

spend. of the and that impacting just I guess, your confirm And capacity the some shift on. I you and ability flipping any the buildout that's bringing accelerate the not does first of that of question mentioned greenfield? then, all, of want of You Indiana timing in BARDA asking opposite pace the give the CapEx you're kind maybe your to investment way, And to coin validation the of

part third Since capacity. capacity the of grew our from plan expected. more about the question original for we than the Starting expansion, your demand have

to to match a Italy. modular That new demand. the availability boost to plan second The involves the waiting our and in capacity possibility part the of can expand investment the about to took approach USA BARDA. we the BARDA to China. Back multi-year capacity responsive the upside the your capacity. in way of agreement question for decision and reactive be we in make the So, bridge is And to

our For sure, but of a of plan, not short it acceleration is part the for initial sort of is time.

Our Knight next from Paul from question KeyBanc. comes

Could you update planning us China the on as well? the on expansion

Yes.

Our are changed not all. at plans

proceeding. are We

allocation, are construction to the the and we incentives, to in data. to first but and both line mentioned, improve, XXXX. in of people to that ready with spent training the already capital work we having is As on half optimize starting we this designing get activities some people, second the We time appropriate in first happening right revenues for also financial and the hiring first and mentioned half

COVID looks the better moving think? industry and like lower per to vial do you than It at this little doses non-COVID point, COVID a with grew expected. Is

of single the move see syringe There impacts are both the in to We dose for produce areas continuation both vial. a and you multi-dose this volume syringe to that both trend needed because opportunities from well in we that aware and vial. is the market,

also to terms proven distribution. the is cold suitability in syringe right with chain of Our solution be

monitor trends no the about impact expansion. planning in is and these our capacity there So, we

from Our Bank next of Derik question comes from America. Bruin De

the One housekeeping question, guidance your for top what's line? in embedded FX in

Derek, let me clarify. just

are the are our what in You're embedded translation wondering currency that rates guidance?

for revenue the question headwinds? growth guide currency about total The What organic before the we – model what's should bit.

in to model. material changes XXXX don't our expect We compared

to do is, business COVID I higher? question if would get your the to in weren't basically is, COVID trying where business, having due work, line have COVID non-core to your with you're to to turning sort the basically guess are are. work? That doing what's delaying look core or are you business guiding of at like you It's even you I expectations When business underlying demand? we the away like, be

capacity consistent As to because reasonably order we areas. with speculate and term. look feel in think we of – after mentioned, harder and future we very COVID we near interaction that the make visibility because therapeutic the about position the good the times strong good the us with any dependent visibility customer COVID possible It's And several match our will But have also the COVID. we is revenue of order have we in business backlog a not to intake. we is remain free can fresh that believe different confident the demand in in

to guidance. we mentioned the the just And for form XXXX in that visibility midpoint backlog XX% fact complement, of our in revenue of

So, also to for XXXX Franco speculate obviously beyond. clear we about and difficult more it's again, And COVID saying, as have visibility XXXX. was for

Basically, Just to fiscal I think we should XXXX, per know about not How for number year? Solutions average one High we XX% at question, exiting the by another final but it's about on three increase to linear, point be XXXX? percentage going mid-XXs Value think XXXX. should that two

noticed, XXXX. we you were we XXXX, range see We XX% are close in in to going to and XX% in As XXXX, on. XX% the trajectory

have expectation meet robust range high XXXX, for backlog trajectory visibility. to and and XX% by We our with And XXXX. XX% we see a consistent

Speyer question comes next Our Citi. from from Lizzie

Patrick. for on I'm

prior that's €XXX think for I Can ramped covered as to touched million you just earlier, talk this XXXX that years? more to year. XX% how about backlog, compares you on

compared backlog. much had XX stronger year is where to million ago approximately backlog €XXX months The this we

this The less same more both much backlog the compared months segments. or two the have segments. We see ago. robust in is year more visibility XX to we percentage So, in

clear and advance. have plan we visibility ability to in So,

talk three you broadly, and can going the and outlook US in regions Europe, is XXXX? about performed these APAC regions guess, between for what into your just how I you and guys

have you seen, particularly, we in regions, grown as Both in have XXXX. Asia-Pacific,

We in Europe in expect growing growth we XXXX. a important America both Asia-Pacific than those those Europe. still but North and very more for for robust us, regions is regions market see

Wells from question Daley comes next Tim Fargo. from Our

sort percent backlog, a as start heading the you of a what revenues of guess, sort of and lead bit lead things is, and question that some we about the and should happens in captured expecting we I throughout guess, into the times? book-to-bills Are the normalization digging booking should trajectory of Any normalizing go how the first we times I about, when, think thinking provide year XXXX? more how and you backlog My around are backlog more bit detail in into be and everything trends forward? can these

are so supply booking a way, significantly we couple grow reasons their as to have of in for the over easy filling are Stevanato demand not Franco the why is going we beside been Group in the one our what's to so really business. able we customers In advance in capacity to saying, But not see, we And very future. backlog capacity as mentioned future. speculate a experienced, this the times, It's happen the to chain. secure was of worried robust growing about our market,

vein I are sales backlog. In you similar XXXX noted of a that for the there, captured XX% know in

guidance here, For €XXX there so per works or Or into the million €XXX COVID assumptions are million of is the that in captured baked number? year much around backlog? how that expected any of

percentage. Yeah, less the of coverage. more The or XX% same

is on margin. one final My

in guess, going on for hedging into right year the volatility around the of What energy? especially around any the for, I Europe baked So, you in expenses mechanisms assumptions have account place And now? guidance obviously, spent going front, of your energy energy are lots EBITDA do noise how were macro much macro prices. the on to in this prices,

Those frequently talking industry. we are facing this say a in manufacturing Again, any are is cost. about are total everybody costs the we are our we situation when recalculating

accordingly. cost we customers increasing understand our minimize try Obviously, but Our it. we to the are increase, price

that, Marco on organic year, double-digit increases anticipate up year you still mentioned to follow exclude previously, cost we as if to the just Tim, growth.

energy place costs? mechanisms hedging in any there Are for

what also in but in no mechanism. with that they the situation are to customer the It's market. we with relationship think really clauses allows the is understand going generally agreement on us customer, and is share There embedded not can our the the the

protection of Italy. to an is know here in have Italy our due utilities we agreement production have part some probably we in long-term you where with the important And

comes next Stanley. Drew question from Our Ranieri Morgan from

starting grew for the in your areas into business, XX% about on Or can kind XXXX. to are as little growth of talk a just your guidance? businesses rate of detail of maybe this the should to then, step little see just half ex-COVID down. commentary moment, conservatism the the type you taking ramp business you more first Just year? relative phasing the any like you're XXXX? half and the looks year, just And you can slower about back on between XXXX at Is how a guidance modeling on it's you bit where give there over us looking a

growth sales we doing, mentioned, Value as to of High our We compared the to the In boosted segment, by of initially expect when Value EZ half year increasing nice capacity up double-digit mainly XX%. fill Solutions. you the year compared are second the XXXX, we in modeling in deployment capital because first can almost For of that Solutions. half also are Engineering, XXXX expect single-digit growth we tell strong went BDS we in a High we

a sense expansion better levels XXXX drive gross High or margin Just you'll of to your consistent margins get think it inflationary the be think with this little should On shift benefits? actually a about expand and touched see XXXX? kind the in more we Value some Or will we of mix you to Solutions really environment, but bit, on able trying here. pricing gross will should

the growth think is strong, fill also and particularly robust very Nexa demand that the our market. the of But High with for market Value And in [indiscernible] very grow I back EZ to driver demand. demand fast. our enjoy growing is syringes very Alba vials Solution products, The is our

this to we the So, our portfolio. by because Solutions investment we direction, of capital High are step in growing deploying Value share main increase the is in our driver. And step that the are putting

it the is these coming demand market. [indiscernible] efforts the result on from the So, of

a to XXXX revenue, kind you're of COVID put way what there any number Just for about just of lastly, contribution? out potential on is COVID thinking related

neutral point for that there view. could are many economic they new of from from dose in providing be numbers variants, mentioned of the There XXXX. foreground playing many single on variables to the the and multidose any shifted favorable from speculate [indiscernible] many, factors on presence that are cannot We We before XXXX. understood to

question comes from from Our UBS. John Sourbeer next

in roughly that guess new XX% what pretty quarter of was I guess, year-over-year. solid the HVS HVS growing I any customers with percentage from growth around specifically, update customers? new

not what will can for and there therapeutic these linked is to disclose Value We that biotech specifically in I drugs, say But very new High space. figures. demand huge new a Solution is

the is our in this So, of one of main driver emerging business that space.

as just are our a contracts reminder, many customers of with agreements. our John, under nondisclosure

able type regular would that information be on therefore, that provide so, And won't we of be to the a basis.

any impact in should on cadence the I how XQ due to see Europe the guidance? on guess the quantify just there, the we the January absenteeism as spike, to increased Omicron a way follow-up, comments the in with in for XQ just

people in more of absenteeism rate Europe, variant incentive people When that an countermeasure with and Europe, at have of we to we Omicron to took the in from were terms shifts happy face in increased facility hit had having also our and work.

impact. to to expect in what I going and quantify productivity, But is We are this term we back term to of can late normalized not of in continue to direction. say that condition the the February, came mid we staffing,

Our headwind. guidance includes this

from final Kreger comes from John Our William Blair. question

in first growth Maybe revenue quarter positive year? we compared to Do just last first surge? Should clarify one the a be to the expect try quarter bit assume Omicron outlook. down to more in you to the given

range growth. earnings double-digit of produce significant expect the in We to growth

Marco, first full the year? in for is is that that the or quarter

segments, than revenues lower year-over-year. expect growth we expect quarter, First inorganic QX double-digit in but both nevertheless, in we

Another question.

let's orders to all? like words, year had compare how now Are constrained you've where does say, time orders. your a was, to you capacity complete Sounds it In strong ago? at other

First the very, High for demand our of remains all, Value Solution very strong.

we So, match factor expand will continue best vital. the expectation the execution in capacity, is recognize needs their a the obviously something the time and is that is the that to the our space to plan shortest put possible. effort vital We to match to customer

one. last One

You us to revenues? is you XXXX. in you of part remind much is what be noted understand that to higher CapEx supposed relative think should Can a be push CapEx XXXX. ratio spending longer-term from I your

we expected peak the for XXXX is the year of launched. be initiative CapEx because to

expect Europe XXXX China. We the completed machinery and the CapEx high also as buildings US, we for in and

year As the followed CapEx. capacity range future what normalized medium this level see for to But CapEx, on concentrate expect of in we have and existing we driving We double-digit. revenue leverage we more when the The execution. years some in capacity of is where is can keep term by growing normalized something just mind. the installing we of on X% are

We've our come to for hand back team remarks. closing I will to Stevanato management Q&A. now end the the of

thank We us We call. your a want for time and the fourth appreciate joining quarter Group everyone to earnings good have full-year Stevanato day. today for and Bye. XXXX

We This for thank concludes you joining. call. today's

may You now lines. disconnect your