SCHOTT Pharma AG & Co KgaA Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Vane-Tempest - Jeffreys International Limited - Analyst : Hi, thanks for taking my questions. If I may please, firstly, just on 2024, given we're one month away from your fiscal year end, 9% to 11% growth does give quite a wide range for Q4. So I'm just curious why you're not in a position narrow that further at this stage. And of the EUR10 million to EUR15 million ramp up spend and how much would you complete it at nine months? My second question is earlier this year, you gave full year '25 guidance of high single digit to low double digit. But that was admitted today. I understand this is based off the prior full year '24 guidance. And so I know you're going to give -- four year '25 guidance a full year. But should we think that the growth rate is essentially lower, given the higher base? So we land roughly in the same place on an absolute basis in full year '25 at this stage. And then my final question is Lily recently announced single dose files for [zebound]. I know you can't comment on any individual clients or potential clients, but from a market perspective, how do you think this will impact the GLP-1 market shares as the containment players given relative competitive strengths? Thank you.

Question: James Vane-Tempest - Jeffreys International Limited - Analyst : Thank you.

Question: Olivier Calvet - UBS - Analyst : Thank you. Good morning. I have a few questions. So, so basically starting off with, you know, you mentioned the combination through and COVID vaccine. You know, obviously not commenting on a specific customer, but I was just curious as to whether you're still optimistic on long term volumes for these vaccines, in particular. I'm curious if you could give us a qualitative sense of how much of the EUR700 million accumulated MRNA revenue over 2024 to 2030, discuss that IPO would be related to these types of vaccines. Secondly, also on the [IPSOS] those you mentioned in the release, that is the first prefiled and preloaded device on the market. I just wanted to confirm whether that asset is approved now. And if you have a good sense of the potential market for us as well. Thirdly, I just wanted to ask on sort of FX if you could give us a rough sense of how much of the DCS segments FX had wins in Q3 was in bulk violence as opposed to high value solutions. And I know you flagged positive amples and cartridges development if you could break out the growth rates of the bulk files business in particular, that would be very helpful, messed up here and, and get the queue for the rest of them.

Question: Olivier Calvet - UBS - Analyst : Can I just -- just as a SCHOTT follow up on this one, would you expect some volumes to start next year or next year?

Question: Olivier Calvet - UBS - Analyst : Okay. Thank you. Yeah.

Question: Olivier Calvet - UBS - Analyst : Okay, thank you.

Question: Curtis Moiles - BNP Paribas Exane - Analyst : Hi, yes. Thank you for taking my questions. I have a few, please. The first one is regarding the summer shut down in Q4, can you give us a little bit of color around, will that the magnitude of that impact be the same on DCS and DDS or would you expect one to be impacted more than the other? And then next on the DDS segment. Can you maybe give us an idea of the difference in growth rate between glass and polymer syringes in Q3 and how you see that going forward? And then, but not least, I think previously there was some commentary that in terms of demand, South America and Asia were faring a bit better than North America and EMEA, I just wanted to see is there a particular reason for that? And maybe other consumers or drug products that are driving growth in those regions versus other regions? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 29, 2024 / 9:00AM, 1SXP.DE - Q3 2024 SCHOTT Pharma AG & Co KgaA Earnings Call

Question: Curtis Moiles - BNP Paribas Exane - Analyst : Okay. Thank you.

Question: Victoria Lambert - Berenberg Bank - Analyst : Hi, thanks for taking my questions. My first one is just about your treatment of hyperinflation especially in some of the South American countries. What benefit did this have for constant currency growth during the quarter? And how should we think about that in Q4? And then was there any contribution during Q3 from the take or pay benefit that was expected from the mRNA contract cancellation? And if you didn't get the benefit in Q3, is some benefit expected in Q4 or is this all going to be paid next year? Thank you.

Question: Victoria Lambert - Berenberg Bank - Analyst : Okay. Thank you.

Question: Edward Hall - Stifel Financial Corp - Analyst : Good morning guys, and thank you for taking my questions. I just have a couple, I guess. Firstly, on files, I think you mentioned the recovering vials from destocking and normal growth rate, definitely next year, I guess my question is, is this a physical year or calendar year? I guess just given the lead times of orders placed today are likely to play a role in your physical year '25. So is this an assumption you guys are stating based on ordering patterns you've seen or is this or is this separate to this? And can you talk on, let's say ordering patterns for the last couple of months sequentially versus Q2. So that'd be my first question and the second question would be sort of any sense of pricing, mix growth versus volume that you have for the first nine months. And any sort of pricing growth or declines you see for 2025 I appreciate it's early, but any color would be great. And then final question would just be sort of the free cash flow profile for Q4, I guess, given the summer shutdowns for EBITDA and sort of a CapEx weighted Q4, is there a possibility of a negative free cash flow here? How should we look at it? Thanks.

Question: Edward Hall - Stifel Financial Corp - Analyst : Perfect. Thank you very much, guys.

Question: Olivier Calvet - UBS - Analyst : Yeah, thanks for taking my follow ups. I just some of this might have been covered, but I'm not sure if I got it acoustically. Could you just clarify whether you have returned to growth in both wires in North America and EMEA? And then I just wanted to get a sense of whether you have exposure in DDS in South America as well as in Asia and South Pacific at this point?

Question: Olivier Calvet - UBS - Analyst : Okay. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 29, 2024 / 9:00AM, 1SXP.DE - Q3 2024 SCHOTT Pharma AG & Co KgaA Earnings Call