QIAGEN delivers ahead of outlook for Q2 2023 with 9% CER sales growth in non-COVID products and updates 2023 full-year outlook

Original from: Qiagen

QIAGEN (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced results for the second quarter and first half of 2023.

·    Q2 2023: Net sales of $495 million (-4% at actual rates, -4% at constant exchange rates, CER); diluted EPS of $0.35 and adjusted diluted EPS of $0.51

    - Net sales at CER of $497 million ahead of outlook for at least $490 million CER and adjusted diluted EPS of $0.52 CER ahead of outlook for at least $0.50 CER

    - 9% CER sales growth in non-COVID product portfolio to $457 million, 10% CER sales growth in recurring consumables and related revenues

·    Full-year 2023: Outlook revised to net sales of at least $1.97 billion CER due to significant drop in COVID-19 demand and volatility in large-scale customer bulk orders in the OEM business; adj. diluted EPS revised to at least $2.07 CER

Net sales results of $497 million at constant exchange rates (CER) for Q2 2023 were above the outlook for at least $490 million CER, driven by 9% CER growth in the non-COVID-19 portfolio. Overall sales results for Q2 2023 declined 4% (-4% CER) to $495 million from Q2 2022, a period marked by significant COVID-19 sales. Adjusted diluted earnings per share (EPS) were $0.51, and results of $0.52 CER were above the outlook for at least $0.50 CER. 

QIAGEN has revised its full-year 2023 outlook for net sales of at least $1.97 billion (prior $2.05 billion CER) due mainly to the significant drop in COVID-19 test demand and volatility in large-scale customer bulk orders in the OEM (Original Equipment Manufacturer) business, which impacts both COVID and non-COVID sales results. Sales growth from the non-COVID product groups is now expected to be at least 8% CER, driven by ongoing solid consumables demand across the portfolio. Adjusted diluted EPS are now expected to be at least $2.07 CER (prior $2.10 CER). 

“Our teams at QIAGEN exceeded the outlook we set for both sales and profitability in the second quarter of 2023," said Thierry Bernard, Chief Executive Officer of QIAGEN. "This performance was especially important given the significant drop-off in COVID-19 testing and challenging macro environment.” 

“We are executing on a strategy to develop our portfolio across the Life Sciences and Molecular Diagnostics customer classes. The solid 9% CER sales growth in our non-COVID business shows the resilience of this portfolio, with 10% CER growth in our highly recurring consumables portfolio across all customer classes and led by QuantiFERON quarterly sales exceeding $100 million for the first time.  We are well-positioned to continue our track record of delivering solid sales growth trends well beyond 2023 as we as we move beyond the impact of COVID-19 headwinds.” 

Roland Sackers, Chief Financial Officer of QIAGEN, said: “Our results show the resilience of our portfolio due to the significant share of recurring consumables revenues. Despite making significant investments into the business, particularly R&D investments that were about 10% of sales in the first half of 2023, QIAGEN achieved an adjusted operating income margin above 27% of sales in the second quarter of 2023 as we exceeded our targets for both sales and adjusted EPS.”

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Source: QIAGEN delivers ahead of outlook for Q2 2023 with 9% CER sales growth in non-COVID products and updates 2023 full-year outlook