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Investing.com -- Shares of SCHOTT Pharma AG dropped 2.5% as the company confirmed its FY25 revenue guidance, with expectations of organic constant exchange rate (CER) revenue growth at the high-single-digit (HSD) range, slightly more optimistic than the previous high-single-digit to low-double-digit (HSD-LLD) forecast.
Despite this, the forecasted EBITDA margin remains at "Approx prior year level" to FY24’s value of around 26.9%, which is slightly below the consensus of 27.1%.
The company’s free cash flow (FCF) has been impacted by lower EBITDA and a temporary increase in working capital, with investments being seasonally back-end loaded. SCHOTT Pharma also reported that its expansion projects are advancing, with the majority of investments focused on expanding high-value solutions (HVS) capacity.
The ramp-up costs and underutilization linked to these projects have negatively affected EBITDA, although efficiency measures implemented by the company have provided some offset.
The pharmaceutical glass packaging firm anticipates a similar HVS share of revenues as in FY24, at 55%, aligning with consensus but falling short of Jefferies’ expectation of 57%.
Additionally, the company is looking forward to the commencement of commercial supply from its new production site in Serbia for ampoules and vials, which is slated to begin in the middle of the year.
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