Marco Dal Lago: Well, again, this is not the only tool of visibility we have, we have also forecast from our customer that will be translated into orders in line with our model. I also want to reiterate the fact that we see a different order partner from our customers compared to the pandemic. During the pandemic, our customers used to order much in advance in advance compared to the lead time of the delivery to secure the supply chain. This is the main reason you see the orders flat in ’23 compared to ’22. We got €1.73 billion in ’23 compared to €1.16 ’22. But the reality, the €1.16 in ’22 was much higher than our revenue. So the book-to-bill was high due to the habit of our customer to secure the supply chain; so it’s not a one-to-one equation.
Franco Moro: Then we have also the possibility to have more order for is in the second half of the year compared to the first half of the year. But as Marco was saying, the lead time is in terms of the average lead time on the order book is shortening. So it reflect faster than during pandemic in actual revenues.
Lisa Miles: And Dave, that specific comment within our prepared remarks was actually related to the vial recovery.
David Windley: Sorry for all the questions. But on Fishers, your prepared remarks say later in the year and more material ramp in Fishers revenue in 2025. Is that basically the same as you were thinking before? Or is that a later start to Fisher’s activity than what kind of the midyear ’24 comments that you had provided before?
Franco Moro: No, no. We are in line with the previous expectations. Obviously, we are talking about a complex project with validation activities with many variables in place but we are in line with our projects and expectation in terms of revenues.
Operator: The next question is from John Sourbeer UBS.
John Sourbeer: First one here, just on the Engineering segment specifically, any color on just what the lead times there look like today for installing equipment? And how would you expect that to be normalized throughout the year? Or what would be a normal range there?
Franco Moro: Obviously, John, we are looking at a segment that is not only one single product. So we have a very huge complex assembly line that they serve at even 2 years for the full completion of the project and we have the more simple vision inspection system that may ask for some months in terms of delivery time. So in terms of the mix, now we are considering early time that is longer than in the past because of the situation in terms of electronic components availability is now reliable but the delivery time are longer than before the pandemic. So we are considering something more than in the past at the end. But the situation is much more under control now compared to 2 years ago.
John Sourbeer: Appreciate that. And on your prepared remarks, I think you mentioned 28% of ADS is within biologic products. Just a point of clarification. Are you including GLP-1 under biologics? And just any thoughts on outlook for those products and what’s included in guidance in ’24?
Franco Moro: No, you are right. GLP-1s are biologics tale the driver we are looking at. So they are included both in our share of impact of biologics on our readiness and also in our guidance.
John Sourbeer: Any color on the outlook for those products or what your assumptions are for 2024 guys?
Franco Moro: In terms of the share, we are in the process to understand which could be the final number. Obviously, we can update you in the next call. But we see more material impact in ’25 and beyond. As I stated in my commentary about fishers where our high-value solution capacity is overweighed in biologics but we expect to have a material impact in revenues mostly in 2025 and beyond.
Lisa Miles: And John, that’s not a KPI that we guide to. And one other clarification on the numbers embedded in the press release. Please note that, that’s some Biologics revenue for the BDS segment, excluding COVID.
Operator: Our last question comes from Paul Knight, KeyBanc.
Paul Knight: Franco, I think you may have seen something like this in the past where an acquisition like Novo and Catalent occur. Do you think the presence of Novo owning a fill/finish group of businesses in the world. Is that help your visibility? And also they have more cash to spend on investment and sure I know what Catalent did. Does that help it as well in terms of how you think about how quickly your business accelerates. Does it change your thinking on — is there more visibility now for your business with Novo better capitalization company in the field?
Franco Moro: Paul, you know that I cannot answer the this about any information we can have from a single customer because we are bound by confidentiality agreement. In terms of the landscape, I believe that this emerging situation in some capacity linked to the single player, provide more opportunity than risk for us because there is a reaction in terms of new capacity needed by other players. So it means more investment, more opportunities for the Engineering segment. And later on, we are dealing with the biggest player in the market to have the first share of opportunities in the emerging biologics and specifically in GLP-1. So overall, we expect a positive impact on us but I cannot comment any more specific detail.
Operator: There are no more questions registered at this time. I turn the conference back to you for any closing remarks.
Lisa Miles: Thank you for joining us today for Stevanato Group’s fourth quarter and year-end fiscal ’23 earnings call. And we look forward to further engagement in the future.
Operator: Ladies and gentlemen, thank you for joining. The conference is now over and you may disconnect your telephones.
