RADNOR, PA — Avantor, Inc. (NYSE: AVTR) has announced its financial outcomes for the third quarter of 2024, revealing both challenges and areas of growth. The company reported net sales of $1.71 billion, marking a slight decline of 0.3% compared to the same quarter last year, with an organic sales drop of 0.7%. Despite these figures, Avantor saw positive impacts from foreign currency translation, contributing a 0.4% increase.
Net income fell significantly to $57.8 million from $108.4 million in the third quarter of 2023. However, adjusted net income rose slightly to $175.2 million from $171.6 million in the previous year. The company’s net income margin stood at 3.4%, with an adjusted EBITDA of $302.5 million and a margin of 17.6%. Earnings per share on a GAAP basis were $0.08, while adjusted EPS was $0.26.
Avantor’s operating cash flow reached $244.8 million, and the company achieved a free cash flow of $204.0 million, reflecting a disciplined approach to managing working capital. The company adjusted its net leverage to 3.8x as of September 30, 2024.
Segment Breakdown
In the Laboratory Solutions segment, Avantor posted net sales of $1.171 billion, a 1.1% increase over the same period last year. On an organic basis, sales grew by 0.6%. The segment’s adjusted operating income was $151.5 million, with a margin of 12.9%.
Conversely, the Bioscience Production segment experienced a decline, with net sales dropping 3.2% to $542.9 million. On an organic basis, sales decreased by 3.5%. The adjusted operating income for this segment was $138.1 million, showing a margin of 25.4%.
Michael Stubblefield, Avantor’s President and CEO, highlighted the company’s strong performance in bioprocessing and a return to growth in laboratory solutions as positive notes in an otherwise challenging quarter. He emphasized the company’s focus on long-term growth and delivering differentiated value to customers and shareholders.
As Avantor moves into the final quarter of the year, the company remains confident in achieving its full-year financial guidance, supported by ongoing cost transformation initiatives and strong order intake momentum.
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