On February 7, 2023 QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) reported results for the fourth quarter and full-year 2022 (Press release, Qiagen, FEB 7, 2023, View Source [SID1234626926]).
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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."
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 View Source
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.