SCHOTT Pharma AG & Co KgaA Q3 2025 Earnings Call Transcript

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

Question: Zhang Wenjie - Citigroup - Analyst : Hopefully, you can hear me. I have two three questions, please. The first question is around the DCS and specifically on HVS products within DCS. You guys delivered another quarter of strong demand. Can you comment on the order dynamics going forward in this aspect? I remember a quarter ago, there was some hesitancy around whether we should see the strength continued and we definitely did. How sustainable do you think this demand is as you look into fiscal year '20? I'll ask my second question after this.

Question: Zhang Wenjie - Citigroup - Analyst : That is clear. And then my second question is around the efficiency gains in the quarter. Can you quantify the contribution to margin that you saw? And can you comment on any expectations from the magnitude of savings going forward? And just as a very quick follow-up, can you provide some examples of what is being done in the business? 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 12, 2025 / 9:00AM, 1SXP.DE - Q3 2025 SCHOTT Pharma AG & Co KgaA Earnings Call

Question: Falko Friedrichs - Deutsche Bank AG - Analyst : My first question is on your polymer syringe business. When can we expect this business to return to growth? And does the fourth quarter still save a tougher comp? Then my second question is on your DCS margin, which was extremely strong in the third quarter. How should we think about demand margin entering the fourth quarter and also entering next year? And then my third question is a bigger picture one on the overall end markets. How are all of these geopolitical points affecting your end markets at the moment? What are the headwinds and is this destocking now completely over?

Question: Falko Friedrichs - Deutsche Bank AG - Analyst : Okay. And maybe on the DCS margin?

Question: Falko Friedrichs - Deutsche Bank AG - Analyst : Correct.

Question: Falko Friedrichs - Deutsche Bank AG - Analyst : DCS margin now that they've been so strong in Q3, I was wondering how we should think about it in the fourth quarter.

Question: Olivier Calvet - UBS AG - Analyst : Maybe I'll take them one by one. First question on succession. So good to see Reinhard joining the company. Just wanted to ask you, Andreas, we've seen your mandate extended to, I believe, April next year. Could you give us some thoughts on how to think about that timeline, flexibility for you to extend beyond that and all the state of the search for a successor? That would be the first one. 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 12, 2025 / 9:00AM, 1SXP.DE - Q3 2025 SCHOTT Pharma AG & Co KgaA Earnings Call

Question: Olivier Calvet - UBS AG - Analyst : Okay. Makes sense. The second question was just on the -- so maybe one for you, Reinhard. The DCS -- within DCS, so bulk credit yes, was it in constant currency positive or not in the third quarter? I see around basically close to 10% year on year decline reported. I just wanted to get a sense of whether it was positive or not in local currency.

Question: Olivier Calvet - UBS AG - Analyst : Okay. And your expectation is that bulk this year is positive year on year in Q4 or ?

Question: Olivier Calvet - UBS AG - Analyst : Yes, exactly. That was going to be my next question, but I wanted to ask about core specifically in this DCS. But maybe just also to ask that, I mean you're clearly saying around 6% organic growth in -- over the full year, and you've done 5% in the nine months. You -- so an acceleration here and at the same time, a sort of deceleration on the EBITDA margin because, say, around 28%, but you've done close to 29% in nine months. So I just wanted to get a better sense of if you're expecting a strong recovery at the both containment in Q4? Are you just being cautious on the margin side? Just some color there would be helpful.

Question: Olivier Calvet - UBS AG - Analyst : Okay. And the final one, just in the slides. You mentioned this is just a small one, but customer loyalty index. I'm not sure how you define that. That's something along the lines of the share of sales with existing customers or is that not really the way to read it?

Question: Olivier Calvet - UBS AG - Analyst : I was just wondering if that -- I understand from what you're saying that it's not what it means, but I was wondering if it may basically the share of sales with existing customers from.

Question: Ed Hall - Stifel, Nicolaus & Company Inc - Analyst : I have a couple. Firstly, just on the US, could you just expand on the US revenues and the sequential change there? And sort of why is there a drop now? I think previous seasonality hasn't shown that. I think that would be my first question. And then I think expanding on cartridges obviously looking really, really strong. I think how could we look at the current order book specifically for cartridges? And how should we think of pricing in this versus potentially bulk cartridges? And then maybe just finally, just a clarification on the guide. Obviously, you mentioned it ties to global policy discussions and sentiment. But my understanding was that lead times for quite a lot of your at least HVS products are quite long. So has it -- could you confirm if there's been any cancellation of orders through the year or through this quarter that has led to the revised guidance?

Question: Ed Hall - Stifel, Nicolaus & Company Inc - Analyst : Maybe just to follow up on the US question. Just if we -- if we look at seasonality in 2024, I mean, it improved sequentially between 2Q and 3Q. Is that just from a steady ramp up? Or is that -- do you normally expect 3Q to be EUR14 million lower than the prior year just to make sure?

Question: Ed Hall - Stifel, Nicolaus & Company Inc - Analyst : That's very clear. And maybe just a follow-up, final question. Just on the sort of the compounding pharmacies in the US I mean, how material is the revenue contribution from these customers in this quarter or maybe the first nine months? I don't know if there's a quantum you could give, that would be really helpful.

Question: Curtis Moiles - Exane SA - Analyst : I have a few here, please. First, I just wanted to clarify a little bit the comments that you made earlier on polymer syringes. I just wanted to understand how are you thinking about that in Q4 and into 2026? Is it going to be still declining a little bit? Or is there kind of room to start growing from the level that we're currently at? 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 12, 2025 / 9:00AM, 1SXP.DE - Q3 2025 SCHOTT Pharma AG & Co KgaA Earnings Call And then secondly, I wanted to see if we can maybe get a little bit more color on how much vials grew in the quarter? I know that I think the sterile was very strong, but in particular, the core vials, have you seen some growth there? And any kind of context would be appreciated. And then last but not least, for that large volume sterile cartridge autoinjector that you developed with SHL Medical. I just wanted to understand, can you discuss maybe the opportunity there a little bit? You already have some customers or drugs lined up for that product? Or how are you thinking about that?