Stratec reported preliminary sales of 125.0 million euros in the first half of 2023, a decrease of 8.9% or 9.1% in constant currency compared to the previous year.
The adjusted EBIT margin for the first six months of 2023 is expected at 5.6% compared to 15.4% in the prior year.
Overall, the results for the first half of 2023 are slightly lower than the most recent expectations of the company. Among other factors, this is due to lower demand for those products which benefited from significant additional demand during the coronavirus pandemic, as well as to a reduction in sales with veterinary diagnostic solutions.
Stratec still expects its sales to gain fresh momentum in the second half of the year. Overall, however, the company no longer expects to achieve the volume of sales originally planned.
Stratec cut guidance for the 2023 financial year.
On a constant-currency basis, Stratec now expects its consolidated sales to remain stable or grow slightly compared with the prior year. Previously, it expected constant-currency sales growth of 8.0% to 12.0%.
The adjusted EBIT margin is now expected at around 10.0% to 12.0% compared to the prior outlook of around 12.0% to 14.0%.
Given the unexpectedly swift and steep reduction in COVID-19 test volumes and the manifold knock-on effects in terms of developments in demand for in-vitro diagnostics solutions, the Board of Management expects customer order behavior to remain volatile. The assumptions underlying the above guidance are therefore subject to greater uncertainties than usual. These factors are countered by medium to long-term market trends, which remain as positive as ever, as well as the growth potential for the company harbored by its strong development pipeline.
The company said it will publish the final figures for the first half of 2023 on August 9, 2023.
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