Avantor raises full-year guidance as revenue decline narrows
The company reported net sales of $1,692.3 million for the second quarter.
Avantor (AVTR), the provider of mission-critical products and services to the life sciences and healthcare industries, reported a narrowing decline in organic revenue for the second quarter.
The results marked a shift in the company's growth trajectory. Organic revenue growth improved to a 0.4% decline in the second quarter, compared to a 4.1% decline in the first quarter.
Net sales rose 0.5% year-over-year to $1,692.3 million. Net income decreased to $38.1 million from $64.7 million in the same period last year. Adjusted EBITDA margin compressed to 15.0% from 16.6% in the second quarter of 2024.
Performance diverged across business segments. VWR Distribution & Services returned to positive organic revenue growth of 1.7%, a reversal from a 4.8% organic decline in the first quarter. Conversely, Bioscience & Medtech Products saw organic sales decline 5.6% year-over-year, accelerating a 2.0% organic drop recorded in the first quarter.
Avantor raised its full-year 2024 organic revenue growth guidance to a range of -0.5% to +0.5%, up from a previous range of -2.5% to -0.5%. The company also raised its adjusted EPS guidance to a range of $0.80–$0.83 from $0.77–$0.83.
Free cash flow increased to $142.8 million in the second quarter from $125.4 million a year earlier, and rose from $25.2 million in the first quarter. The company used that cash flow to repay $112.1 million of debt during the period.