Avantor, Inc. (AVTR) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 28, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Harry and I will be your conference operator today. At this time, I would like to welcome everyone to Avantor's Third Quarter 2022 Earnings Results Conference Call. [Operator Instructions].

I'd now like to turn the call over to Christina Jones, Vice President of Investor Relations. Mrs. Jones, you may begin the conference.

Christina Jones

Good morning. Thank you for joining us. Our speakers today are Michael Stubblefield, President and Chief Executive Officer, and Tom Szlosek, Executive Vice President and Chief Financial Officer.

The press release and a presentation accompanying this call are available on our Investor Relations website at ir.avantorsciences.com. A replay of this webcast will also be made available on our website after the call. Following our prepared remarks, we will open the line for questions.

During this call, we will be making some forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we believe or anticipate may occur in the future.

These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings. Actual results might differ materially from any forward-looking statements that we make today.

These forward-looking statements speak only as of the date that they are made. We do not assume any obligation to update these forward-looking statements as a result of new information, future events or other developments.

This call will include a discussion of non-GAAP measures. A reconciliation of these non-GAAP measures can be found in the supplemental disclosures package on our IR website.

With that, I will now turn the call over to Michael..

Michael Stubblefield

Thank you, CJ. Good morning, everyone. I appreciate you joining us today. I'm starting on slide 3. As noted in the press release that went out earlier this morning, our third quarter financial results came in modestly ahead of the updated guidance provided in early September, driven primarily by the ongoing strength of our core business.

In the quarter, we realized core organic revenue growth of 7.8%, led by strong performance in biopharma and advanced technologies and applied materials. Within biopharma, our bioproduction business remained strong, delivering approximately 30% core organic revenue growth.

We expanded adjusted EBITDA margin by more than 100 basis points, reflecting contributions from our 2021 acquisitions, the favorable impact from growth of proprietary products, and our sustained focus on commercial excellence.