Avantor, Inc. (NYSE:AVTR) Q3 2023 Earnings Call Transcript

So it’s all come in under a year. And I would say the overwhelming majority of our customers find themselves in that we’re right where we want to be or less than three months of excess inventory that’s in their stock. So I would say just the absence of customers that are sitting on more than a year of inventory is a real bright spot for us and the fact that almost all of the customers are now signaling less than three months, if not already where they want to be is another data point fueling our optimism for a recovery here in the coming quarters.

Catherine Schulte: And then if you go back to the prior question, if you look at the delta between excipients and other products going into biologics and then single-use where you’ve seen more inventory destocking. Has that performance spread narrowed at all? How has the items that didn’t see stocking performed? And what does that tell you in terms of underlying activity levels?

Michael Stubblefield: So that was one of the surprises, I think that we talked a little bit about in the second quarter was kind of a turn down in some of the excipients and process ingredients, which were really linked to our customers starting to more aggressively manage there end product revenues and not really linked to stocking of our products. And we’ve seen that continue in the third quarter, and our anticipation is that continues in the fourth quarter as well and certainly how we’ve guided the quarter. So I wouldn’t say that the spread has changed as we’ve moved through the third quarter or into the fourth quarter. I think we’re – the way we’ve called this here, as you see us reaffirming our revenue guide has things relatively stable at the moment.

Catherine Schulte: Great. Thank you.

Operator: Those are all the questions we have time for today. So I’ll turn the call back over to Michael for any closing remarks.

Michael Stubblefield: All right. Yeah. Thank you all for participating in our call today. We certainly look forward to updating you at our Investor Day on December 8. I hope many of you can join us at that event and until then, be well, everyone.

Operator: Thank you, everyone.