West Pharmaceutical Services Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a slight decline in net sales and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $746.9 million, a marginal decrease from $747.4 million in the prior year. For the nine-month period, net sales totaled $2,144.4 million, down from $2,217.8 million in 2023.
Gross profit for the third quarter was $264.7 million, down from $288.3 million, while for the nine months, it decreased to $724.9 million from $851.0 million. This decline in gross profit was reflected in the gross profit margins, which fell to 35.4% for the third quarter and 33.8% for the nine months, compared to 38.4% in the previous year.
Operating profit also saw a decline, with $161.3 million reported for the third quarter, down from $177.3 million, and $410.3 million for the nine months, compared to $515.1 million in 2023. Net income for the third quarter was $136.0 million, a decrease from $161.3 million, while for the nine months, net income fell to $362.6 million from $456.4 million. Basic diluted earnings per share (EPS) were $1.85 for the third quarter and $4.91 for the nine months, both lower than the previous year's figures.
The company’s Proprietary Products segment experienced a decline in sales, with net sales of $601.4 million for the third quarter, down from $602.5 million, and $1,720.6 million for the nine months, compared to $1,803.6 million in 2023. The decrease was attributed to lower sales of high-value products, including FluroTec® and Westar® components, although sales of self-injection device platforms increased.
In terms of strategic developments, West Pharmaceutical Services continued its share repurchase program, having repurchased 1,409,786 shares at a total cost of $506.5 million during the nine months ended September 30, 2024. The company also reported a significant increase in long-term debt, with borrowings of $164.7 million for the nine months, compared to no borrowings in the same period last year.
Cash and cash equivalents decreased to $490.9 million as of September 30, 2024, down from $853.9 million at the end of 2023. The company’s total assets also declined to $3,675.1 million from $3,829.5 million, while total equity decreased to $2,752.1 million from $2,881.0 million. The company remains in compliance with all financial covenants related to its debt agreements.
About WEST PHARMACEUTICAL SERVICES INC
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