Avantor, Inc. (AVTR) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 28, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Emily and I'll be your conference operator today. At this time, I would like to welcome everyone to Avantor's 2023 Second Quarter Earnings Results Conference call. After the prepared remarks, there will be the opportunity for any questions. [Operator Instructions]

I will now 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, and good morning, everyone. I appreciate you joining us today. I'm starting on Slide 3. Our second quarter core organic revenue declined 6.5%. Relative to the first quarter market trends weakened sequentially particularly in biopharma where mid to large pharma customers moderated their spend and continued to reduce inventory and ongoing funding constraints for small biotech persisted.

Sales in our Advanced Technology and Applied Materials end market were impacted by sharp declines in sales of formulated solutions to semiconductor customers. We also experienced sequential weakness in sales of equipment and instrumentation associated with tighter capital budgets across all end markets. The sustained momentum in our biomaterials and education end markets partially offset these declines and we are encouraged by the double-digit growth in our medical-grade silicone platform, as well as continued mid-single-digit growth in Education and Government.