The following is a summary of the Sotera Health Company (SHC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Sotera Health reported a revenue increase of 12.5% compared to Q1 2023, totaling $248 million.
Adjusted EBITDA saw a 13.7% growth compared to the first quarter of 2023 reaching $112 million.
Total company adjusted EBITDA margins climbed to 45.1%, and gross margin percentages were also up 50 basis points from Q1 2023.
Revenues of Sterigenics, Nordion, and Nelson Labs increased by 4.1%, 181%, and 10.8%, respectively.
Despite these improvements, the adjusted EPS remained at $0.13 per share, consistent with the same period last year.
Business Progress:
All three business units of Sotera Health, namely Sterigenics, Nordion, and Nelson Labs, achieved growth in Q1 2024.
The company expressed confidence regarding pending lawsuits and preparedness for updated emission standards without significant additional capital expenditure.
They reaffirmed their 2024 outlook with expected revenue and adjusted EBITDA growth in the range of 4% to 6% compared to 2023.
Investment acceleration in Sterigenics' capacity expansions, Nordion's cobalt development programs, and US Ethylene Oxide (EO) facility enhancements is underway.
Improvements are forecasted for Nelson Labs' core testing, Sterigenics volumes, and across their operational excellence in managing supply in tight markets.
Capacity expansions are being implemented, with each set to start operations at different times over the next two years.
More details: Sotera Health Company IR
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