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

Franco Moro: I can – what I can say is that, if you compare the current capacity in the view of our industrial plan, we expect to more than double capacity for syringes. And to multiply several times our production capacity for EZ-fill vials and cartridges. There is a split obviously in between the different facilities, but we cannot deliver metrics about that. In terms of the modularity, we talk about the expansion of Fisher in a range of four, five years depending if you include the ‘23 or not. And you can look at not – is not the completely regular ramp up, but is a well distributed along those years.

Matt Larew: Okay, thanks. And then [inaudible] anything in terms of, you know, expected payback period or returns on capital for some of these newer capacity expansions highly focused on HVS relative to perhaps CapEx investments you might have made five years ago, 10 years ago and some sort of payback periods for those type of investments?

Marco Dal Lago: Well, what we can tell you is that, we are investing in EZ-fill mainly, almost everything is EZ-fill. And most of them are a high-value solution. So we expect a pretty high return. When we look at our past data in EZ-fill plant here in Piombino Dese, the internal rate of return is well above 20%. And our goal is to replicate this level of return for the two new Greenfield facilities.

Matt Larew: Okay, thank you.

Operator: There are no more questions at this time.

Lisa Miles: Thank you, operator. We want to thank everyone for joining us today for Stevanato Group’s second quarter financial results. And we look forward to speaking with you in the future. Thank you.

Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.