Stevanato Group S.p.A. (NYSE:STVN) Q2 2023 Earnings Call Transcript

Franco Moro: Yeah, Derik I can complement what Marco said. I say that we don’t have the view you reported, because in an interaction we have with customer, we are planning according to their need for the future and we have a very important opportunity for growth in that space. And also you can recall that, that we have a specific insight in CapEx decision about the customer, because we are serving them with our Engineering segment, the fact that we are improving business in Engineering is an evidence that we base our expectation on a very solid ground.

Derik de Bruin: Thank you. Thanks for the answer. That was very helpful. Have a great day.

Lisa Miles: Thanks, Derik. Operator, next question, please.

Operator: The next question is from Drew Ranieri from Morgan Stanley. Please go ahead.

Drew Ranieri: Hi, thanks for taking the questions. For Franco, maybe first you. And you said in your prepared remarks that you’re seeing kind of new opportunities in the US market, and I can appreciate the growth you’re seeing in biologics and GLP1s [technical difficulty] But can you give a little bit more detail on this and just maybe how that could potentially translate into actual like new customer relationships or anything that we should be thinking about in terms of future growth?

Franco Moro: Drew, you know that we are in also almost all the Big Pharma. So talking about a new customer, we have enough big customer today to have insight in their needs on an established portfolio of opportunities that we are supporting with our tech centers, not only with our CapEx, for their commercial volume in the future. So, we invest – are investing in the US because we expected to serve dozens of different opportunities, mostly in the biotech space. We continue to increase our pipeline or new opportunities. And for the short-term, you may recall that, that part of the utilization of these new facility will come up from the transfer of some commercial volume for the European plants to the new US plan. So the short answer is that, our decision to accelerate investment is based on a very good insights on customer needs. And we are executing on a – with our modular approach, ready to adjust those in terms of possible future upside.

Drew Ranieri: Got it. Thanks. And maybe for Marco. When you’re kind of backing out COVID for the year and specifically the back half. I mean, it looks like your guidance is calling for a back half acceleration. So can you help us kind of parse this out in terms of what we should be thinking about for BDS and for Engineering in the back half of the year and maybe heading into 2024 if you’d like to give just high level details there? Thanks.

Marco Dal Lago: Well, for 2023, you are right, we decreased a little bit our guidance for COVID. Nevertheless, we are confirming the overall guidance, because we can shift to another therapeutic areas. What we can see today is, in organic double-digit growth in both segments in this momentum, so this is how we are thinking our guidance for the year. About 2024 is a little bit late to communicate any guidance.

Operator: [Operator Instructions] Ms. Miles, gentleman, there are no more questions registered at this time. Do you perhaps have any closing comments? – I’m sorry we have a last minute registration coming from Matt Larew from William Blair. Please go ahead.

Matt Larew: Okay. Yeah, thanks. You know could you help me just frame a couple of metrics around Fishers and Latina? Maybe just remind us how much HVS capacity expansion they’re going to provide on a relative basis? And then given that the modular approach, maybe how much of that will be available immediately relative to sort of that 2027 or longer-term timeframe?