Q4 2022: Net sales of $498 million (-14% at actual rates, -9% at constant exchange rates, CER); diluted EPS of $0.39 and adjusted diluted EPS of $0.53
Net sales at CER of $531 million vs. outlook for at least $520 million CER, adjusted diluted EPS of $0.55 CER vs. outlook for at least $0.50 CER
15% CER growth in non-COVID product portfolio to $432 million
Full-year 2022: Net sales decline 5% (0% CER) to $2.14 billion; diluted EPS of $1.84 and adjusted diluted EPS of $2.38 ($2.46 CER) - results exceed outlook
14% CER growth in non-COVID product portfolio to $1.67 billion
Operating cash flow rises 12% to $715 million; free cash flow up 30% to $586 million
2023 outlook initiated for at least $2.05 billion net sales CER, including double-digit CER growth in non-COVID products vs. 2022; adj. diluted EPS of at least $2.10 CER
VENLO, NetherlandsQIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced results for the fourth quarter and full-year 2022.
Net sales for Q4 2022 declined 14% to $498 million from Q4 2021. Sales at CER were $531 million, a decline of 9% and above the outlook for at least $520 million CER. These results were primarily driven by 15% CER growth in the non-COVID-19 portfolio to $432 million. COVID-19 product group sales fell 61% CER to $66 million amid significantly reduced demand. Adjusted diluted earnings per share (EPS) were $0.53 ($0.55 CER), and ahead of the outlook for at least $0.50 CER.
QIAGEN has initiated its full-year 2023 outlook for net sales of at least $2.05 billion CER and adjusted diluted EPS of at least $2.10 CER. This is based on expectations for ongoing double-digit CER growth in the non-COVID product groups, while expecting a decline in COVID-19 product group sales.
“Our solid results for the fourth quarter of 2022 closed out another year with a strong performance driven by continued execution in double-digit CER sales growth of our non-COVID product groups coupled with delivering on improvements in our Sample to Insight portfolio,” said Thierry Bernard, Chief Executive Officer of QIAGEN N.V. “We saw broad-based strength during 2022 across our balanced activities serving customers in Life Sciences and Molecular Diagnostics and in many countries around the world. We are especially pleased with the progress in our Five Pillars of Growth strategy, which also involves focusing our portfolio on areas with significant growth potential. We have positioned QIAGEN to navigate a volatile macro environment in 2023 and continue to focus on the growth of the non-COVID product portfolio that positions QIAGEN well for the future.”
Roland Sackers, Chief Financial Officer of QIAGEN N.V., said: “We are pleased to have delivered another year of solid sales trends and profitability in 2022, which provide a foundation for achieving our goals for 2023. We have made progress in strengthening our business – in particular by expanding production capacity, adding menu to our instruments and broadening our geographic presence – while also supporting our employees with one-time payments for high inflation. We will continue our disciplined capital allocation strategy in 2023. This involves leveraging our strong cash flow to invest in initiatives across QIAGEN, while also evaluating opportunities to create value through targeted acquisitions – such as our recent acquisition of Verogen in human identification and forensics – as well as other ways to increase returns to shareholders.”
Please find a PDF of the full press release incl. tables here.
Investor presentation and conference call
A conference call is planned for Wednesday, February 8, at 15:00 Frankfurt Time / 14:00 London Time / 9:00 New York Time. A live audio webcast will be made available in the investor relations section of the QIAGEN website, and a replay will also be made available after the event. A presentation is planned to be available before the conference call at https://corporate.qiagen.com/investor-relations/events-and-presentations/default.aspx.
Use of adjusted results
QIAGEN reports adjusted results, as well as results on a constant exchange rate (CER) basis, and other non-U.S. GAAP figures (generally accepted accounting principles), to provide additional insight into its performance. These results include adjusted net sales, adjusted gross income, adjusted gross profit, adjusted operating income, adjusted operating expenses, adjusted operating income margin, adjusted net income, adjusted net income before taxes, adjusted diluted EPS, adjusted EBITDA, adjusted EPS, adjusted income taxes, adjusted tax rate, and free cash flow. Free cash flow is calculated by deducting capital expenditures for Property, Plant & Equipment from cash flow from operating activities. Adjusted results are non-GAAP financial measures that QIAGEN believes should be considered in addition to reported results prepared in accordance with GAAP but should not be considered as a substitute. QIAGEN believes certain items should be excluded from adjusted results when they are outside of ongoing core operations, vary significantly from period to period, or affect the comparability of results with competitors and its own prior periods. Furthermore, QIAGEN uses non-GAAP and constant currency financial measures internally in planning, forecasting and reporting, as well as to measure and compensate employees. QIAGEN also uses adjusted results when comparing current performance to historical operating results, which have consistently been presented on an adjusted basis.
QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows. QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human healthcare) and Life Sciences (academia, pharma R&D and industrial applications, primarily forensics). As of December 31, 2022, QIAGEN employed approximately 6,200 people in over 35 locations worldwide. Further information can be found at http://www.qiagen.com.
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products, including those products used in the response to the COVID-19 pandemic, timing for launch and development, marketing and/or regulatory approvals, financial and operational outlook, growth and expansion, collaborations, markets, strategy or operating results, including without limitation its expected adjusted net sales and adjusted diluted earnings results, are forward-looking, such statements are based on current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's products (including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors' products; market acceptance of QIAGEN's new products and the integration of acquired technologies and businesses; actions of governments, global or regional economic developments, weather or transportation delays, natural disasters, political or public health crises, including the breadth and duration of the COVID-19 pandemic and its impact on the demand for our products and other aspects of our business, or other force majeure events; as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected; and the other factors discussed under the heading “Risk Factors” contained in Item 3 of our most recent Annual Report on Form 20-F. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission.