MAINZ (dpa-AFX) - Pharmaceutical supplier Schott Pharma is lowering its expectations for the coming financial year due to reduced sales of syringes to a major customer. Sales are likely to increase by a high single-digit to low double-digit percentage on a currency-adjusted basis in the 2024/25 financial year starting on October 1, the Mainz-based company surprisingly announced on Tuesday evening. This is less than the market currently expects from the SDax company. Analysts surveyed by Bloomberg have so far assumed an average increase in turnover of around 17% in the coming financial year. The share lost 14 percent in after-hours trading on the Tradegate platform compared to the Xetra close.

Profitability, measured by the margin on earnings before interest, taxes, depreciation and amortization, is also likely to increase less than expected, according to Schott. For the coming year, experts had previously predicted an increase to an operating margin of around 29 percent. The reason for the expected development in the 2024/2025 financial year is the reduced purchase of syringes by a major customer, Schott said.

The company confirmed its medium-term forecast despite the temporary effects in the coming financial year. The current year up to the end of September is also expected to be as previously forecast. On a comparable basis, the management anticipates an increase in turnover of nine to eleven percent. A similar proportion of this should remain as earnings before interest, taxes, depreciation and amortization (EBITDA) as in the previous year (26.6%).

In the second quarter, sales at Schott Pharma increased by 5 percent to 234 million euros. However, the operating result fell by 35 percent to 44 million euros, mainly due to currency effects. "We are convinced that the long-term growth drivers in the market are intact and that we are well positioned with our strategy to continue to benefit from this," said CFO Almuth Steinkühler according to the press release. The company plans to present its detailed quarterly figures on June 27./men/he