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Avantor® Reports Third Quarter 2024 Results

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Net sales of $1.71 billion, decrease of 0.3%; organic decline of 0.7%Net income of $57.8 million; Adjusted EBITDA of $302.5 millionDiluted GAAP EPS of $0.08; adjusted EPS of $0.26Operating cash flow of $244.8 million; free cash flow of $204.0 million

RADNOR, Pa., Oct. 25, 2024 /PRNewswire/ — Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, today reported financial results for its third fiscal quarter ended September 30, 2024.

“Our team delivered another quarter of solid financial results, including outperformance in bioprocessing and a return to growth in our laboratory solutions segment. Our disciplined approach to working capital drove another quarter of best-in-class free cash flow conversion and we are raising our free cash flow guidance for the year,” said Michael Stubblefield, President and Chief Executive Officer.

“As we enter the fourth quarter, we remain on track to realize mid to high single-digit growth in our bioprocessing business, supported by continued momentum in order intake. Our cost transformation programs are running ahead of plan, and we are well positioned to achieve our full year guidance. Moving forward, we remain focused on delivering long-term growth for Avantor and differentiated value to our customers and shareholders,” Stubblefield concluded.

Third Quarter 2024

For the three months ended September 30, 2024, net sales were $1,714.4 million, a decrease of 0.3% compared to the third quarter of 2023. Foreign currency translation had a positive impact of 0.4%, resulting in a sales decline of 0.7% on an organic basis.

Net income decreased to $57.8 million from $108.4 million in the third quarter of 2023, and adjusted net income was $175.2 million as compared to $171.6 million in the comparable prior period. Net Income margin was 3.4%. Adjusted EBITDA was $302.5 million and Adjusted EBITDA margin was 17.6%. Adjusted Operating Income was $274.8 million and Adjusted Operating Income margin was 16.0%.

Diluted earnings per share on a GAAP basis was $0.08, while adjusted EPS was $0.26.

Operating cash flow was $244.8 million, while free cash flow was $204.0 million. Adjusted net leverage was 3.8x as of September 30, 2024.

Third Quarter 2024 – Segment Results

Laboratory Solutions

Net sales were $1,171.5 million, a reported increase of 1.1%, as compared to $1,159.1 million in the third quarter of 2023. Sales increased 0.6% on an organic basis.Adjusted Operating Income was $151.5 million as compared to $159.1 million in the comparable prior period. Adjusted Operating Income margin was 12.9%.

Bioscience Production

Net sales were $542.9 million, a reported decrease of 3.2%, as compared to $561.1 million in the third quarter of 2023. Sales declined 3.5% on an organic basis.Adjusted Operating Income was $138.1 million as compared to $148.2 million in the comparable prior period. Adjusted Operating Income margin was 25.4%.

Adjusted Operating Income is Avantor’s segment reporting profitability measure under generally accepted accounting principles and is used by management to measure and evaluate the performance of our Company’s business segments.

Conference Call
We will host a conference call to discuss our results today, October 25, 2024, at 8:00 a.m. Eastern Time. The live webcast and presentation, as well as a replay, will be available on the investor section of Avantor’s website.

About Avantor
Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit avantorsciences.com and find us on LinkedInX (Twitter) and Facebook.

Use of Non-GAAP Financial Measures
To evaluate our performance, we monitor a number of key indicators. As appropriate, we supplement our results of operations determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures that we believe are useful to investors, creditors and others in assessing our performance. These measures should not be considered in isolation or as a substitute for reported GAAP results because they may include or exclude certain items as compared to similar GAAP-based measures, and such measures may not be comparable to similarly titled measures reported by other companies. Rather, these measures should be considered as an additional way of viewing aspects of our operations that provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements included in reports filed with the SEC in their entirety and not rely solely on any one single financial measure or communication.

The non-GAAP financial measures used in this press release are sales growth (decline) on an organic basis, Adjusted Operating Income, Adjusted Operating Income margin, Adjusted EBITDA, Adjusted EBITDA margin, adjusted net income, adjusted EPS, adjusted net leverage, free cash flow and free cash flow conversion.

Organic net sales growth (decline) eliminates from our reported net sales change the impacts of revenues from acquisitions and divestitures that occurred in the last year and changes in foreign currency exchange rates. We believe that this measurement is useful to investors as a way to measure and evaluate our underlying commercial operating performance consistently across our segments and the periods presented. This measure is used by our management for the same reason.Adjusted Operating Income is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) losses on extinguishment of debt, (v) charges associated with the impairment of certain assets, (vi) and certain other adjustments. Adjusted Operating Income margin is Adjusted Operating Income divided by net sales as determined under GAAP. We believe that these measures are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measures are used by our management for the same reason. Additionally, Adjusted Operating Income is our segment reporting profitability measure under GAAP.Adjusted EBITDA is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) depreciation expense, (v) losses on extinguishment of debt, (vi) charges associated with the impairment of certain assets, (vii) and certain other adjustments. Adjusted EBITDA margin is Adjusted EBITDA divided by net sales as determined under GAAP. We believe that these measures are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measures are used by our management for the same reason.Adjusted net income is our net income or loss first adjusted for the following items: (i) amortization of acquired intangible assets, (ii) losses on extinguishment of debt, (iii) charges associated with the impairment of certain assets, (iv) and certain other adjustments. From this amount, we then add or subtract an assumed incremental income tax impact on the above-noted pre-tax adjustments, using estimated tax rates, to arrive at Adjusted Net Income. We believe that this measure is useful to investors as a way to analyze the business consistently across the periods presented. This measure is used by our management for the same reason.Adjusted EPS is our adjusted net income divided by our diluted GAAP weighted average share count adjusted for anti-dilutive instruments. We believe that this measure is useful to investors as an additional way to analyze the underlying trends in our business consistently across the periods presented. This measure is used by our management for the same reason.Adjusted net leverage is equal to our gross debt, reduced by our cash and cash equivalents, divided by our trailing 12-month Adjusted EBITDA (excluding stock-based compensation expense and including the expected run-rate effect of cost synergies and the incremental results of completed acquisitions and divestitures as if those acquisitions and divestitures had occurred on the first day of the trailing 12-month period). We believe that this measure is useful to investors as a way to evaluate and measure the Company’s capital allocation strategies and the underlying trends in the business. This measure is used by our management for the same reason.Free cash flow is equal to our cash flows from operating activities, less capital expenditures, plus the direct costs to close acquisitions and divestitures (including income tax effects, if any) in the period. Free cash flow conversion is free cash flow divided by adjusted net income. We believe that these measures are useful to investors as they provide a view on the Company’s ability to generate cash for use in financing or investment activities. These measures are used by our management for the same reason.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.

Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, including our cost transformation initiative, objectives, future performance and business. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “assumption,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “likely,” “long-term,” “near-term,” “objective,” “opportunity,” “outlook,” “plan,” “potential,” “project,” “projection,” “prospects,” “seek,” “target,” “trend,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning.

Forward-looking statements are inherently subject to risks, uncertainties and assumptions; they are not guarantees of performance. You should not place undue reliance on these statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that our assumptions made in connection with the forward-looking statements are reasonable, we cannot assure you that the assumptions and expectations will prove to be correct. Factors that could contribute to these risks, uncertainties and assumptions include, but are not limited to, the factors described in “Risk Factors” in our most recent Annual Report on Form 10-K, and subsequent quarterly reports on Form 10-Q, as such risk factors may be updated from time to time in our periodic filings with the SEC.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this press release. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.

Investor Relations Contact
Christina Jones
Vice President, Investor Relations
Avantor
+1 805-617-5297
Christina.Jones@avantorsciences.com

Media Contact
Eric Van Zanten
Head of External Communications
Avantor
+1 610-529-6219
Eric.Vanzanten@avantorsciences.com 

 

Avantor, Inc. and subsidiaries

Unaudited condensed consolidated statements of operations

(in millions, except per share data)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Net sales

$   1,714.4

$   1,720.2

$   5,097.0

$   5,244.4

Cost of sales

1,150.0

1,141.6

3,380.6

3,451.0

Gross profit

564.4

578.6

1,716.4

1,793.4

Selling, general and administrative expenses

439.8

368.4

1,269.7

1,119.5

Impairment charges

160.8

Operating income

124.6

210.2

446.7

513.1

Interest expense, net

(48.7)

(72.4)

(173.9)

(219.5)

Loss on extinguishment of debt

(2.1)

(2.0)

(6.5)

(5.9)

Other income, net

0.7

0.7

3.4

3.3

Income before income taxes

74.5

136.5

269.7

291.0

Income tax expense

(16.7)

(28.1)

(58.6)

(68.4)

Net income

$        57.8

$      108.4

$      211.1

$      222.6

Earnings per share:

Basic

$        0.08

$        0.16

$        0.31

$        0.33

Diluted

$        0.08

$        0.16

$        0.31

$        0.33

Weighted average shares outstanding:

Basic

680.3

676.0

679.3

675.4

Diluted

683.0

678.5

682.1

678.1

 

Avantor, Inc. and subsidiaries

Unaudited condensed consolidated balance sheets

(in millions)

September 30, 2024

December 31, 2023

Assets

Current assets:

Cash and cash equivalents

$                  285.3

$                  262.9

Accounts receivable, net

1,087.7

1,150.2

Inventory

779.6

828.1

Other current assets

135.6

143.7

Assets held for sale

216.5

Total current assets

2,504.7

2,384.9

Property, plant and equipment, net

722.8

737.5

Other intangible assets, net

3,522.7

3,775.3

Goodwill, net

5,670.6

5,716.7

Other assets

419.8

358.3

Total assets

$             12,840.6

$             12,972.7

Liabilities and stockholders’ equity

Current liabilities:

Current portion of debt

$                  229.7

$                  259.9

Accounts payable

673.5

625.9

Employee-related liabilities

183.3

133.1

Accrued interest

39.9

50.2

Other current liabilities

401.7

411.2

Liabilities held for sale

101.7

Total current liabilities

1,629.8

1,480.3

Debt, net of current portion

4,691.4

5,276.7

Deferred income tax liabilities

547.3

612.8

Other liabilities

418.9

350.3

Total liabilities

7,287.4

7,720.1

Stockholders’ equity:

Common stock including paid-in capital

3,924.5

3,830.1

Accumulated earnings

1,702.6

1,491.5

Accumulated other comprehensive loss

(73.9)

(69.0)

Total stockholders’ equity

5,553.2

5,252.6

Total liabilities and stockholders’ equity

$             12,840.6

$             12,972.7

 

Avantor, Inc. and subsidiaries

Unaudited condensed consolidated statements of cash flows

(in millions)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Cash flows from operating activities:

Net income

$      57.8

$    108.4

$    211.1

$    222.6

Reconciling adjustments:

Depreciation and amortization

102.4

98.0

304.6

301.7

Impairment charges

160.8

Stock-based compensation expense

11.9

9.8

35.7

31.7

Non-cash restructuring charges

16.4

16.4

Provision for accounts receivable and inventory

16.3

19.4

55.8

62.5

Deferred income tax benefit

(22.6)

(29.4)

(75.3)

(94.1)

Amortization of deferred financing costs

2.8

3.2

8.6

9.9

Loss on extinguishment of debt

2.1

2.0

6.5

5.9

Foreign currency remeasurement (gain) loss

(0.1)

(3.0)

3.0

(3.1)

Changes in assets and liabilities:

Accounts receivable

34.2

47.2

34.2

55.1

Inventory

(7.3)

10.8

(21.5)

9.1

Accounts payable

(4.0)

(21.4)

41.9

(95.8)

Accrued interest

(16.2)

(9.7)

(16.5)

(10.3)

Other assets and liabilities

56.6

(4.2)

63.0

(38.5)

Other

(5.5)

(0.4)

0.9

Net cash provided by operating activities

244.8

230.7

667.5

618.4

Cash flows from investing activities:

Capital expenditures

(40.8)

(37.7)

(121.3)

(95.8)

Other

0.3

0.7

1.7

2.1

Net cash used in investing activities

(40.5)

(37.0)

(119.6)

(93.7)

Cash flows from financing activities:

Debt repayments

(214.3)

(197.6)

(585.0)

(657.9)

Payments of debt refinancing fees and premiums

(2.3)

Proceeds received from exercise of stock options

16.5

9.4

67.3

14.1

Shares repurchased to satisfy employee tax
     obligations for vested stock-based awards

(0.8)

(0.2)

(8.2)

(13.5)

Net cash used in financing activities

(198.6)

(188.4)

(525.9)

(659.6)

Effect of currency rate changes on cash and cash equivalents

7.9

(5.4)

0.6

(1.3)

Net change in cash, cash equivalents and restricted cash

13.6

(0.1)

22.6

(136.2)

Cash, cash equivalents and restricted cash, beginning of period

296.7

260.8

287.7

396.9

Cash, cash equivalents and restricted cash, end of period

$    310.3

$    260.7

$    310.3

$    260.7

 

Avantor, Inc. and subsidiaries

Reconciliations of non-GAAP measures

 

Adjusted EBITDA and Adjusted EBITDA Margin

(dollars in millions, %
     based on net sales)

Three months ended September 30,

Nine months ended September 30,

2024

2023

2024

2023

$

%

$

%

$

%

$

%

Net income

$   57.8

3.4 %

$ 108.4

6.3 %

$ 211.1

4.1 %

$ 222.6

4.2 %

Amortization

75.4

4.3 %

75.4

4.4 %

225.6

4.4 %

232.7

4.4 %

Loss on extinguishment of debt

2.1

0.1 %

2.0

0.1 %

6.5

0.1 %

5.9

0.1 %

Integration-related expenses1

— %

0.2

— %

— %

8.3

0.2 %

Restructuring and severance charges2

49.4

2.9 %

6.1

0.4 %

82.3

1.7 %

18.0

0.3 %

Transformation expenses3

17.1

1.0 %

— %

46.6

0.9 %

— %

Reserve for certain legal matters4

7.9

0.5 %

3.0

0.1 %

7.9

0.2 %

4.0

0.1 %

Other5

0.4

— %

(0.4)

— %

(0.4)

— %

(2.2)

— %

Impairment charges6

— %

— %

— %

160.8

3.1 %

Income tax benefit 
     applicable to pretax
     adjustments

(34.9)

(2.0) %

(23.1)

(1.3) %

(85.8)

(1.7) %

(96.7)

(1.8) %

Adjusted net income

175.2

10.2 %

171.6

10.0 %

493.8

9.7 %

553.4

10.6 %

Interest expense, net

48.7

2.8 %

72.4

4.2 %

173.9

3.4 %

219.5

4.2 %

Depreciation

27.0

1.6 %

22.6

1.4 %

79.0

1.5 %

69.0

1.3 %

Income tax provision
     applicable to
     Adjusted Net income

51.6

3.0 %

51.2

2.9 %

144.4

2.9 %

165.1

3.1 %

Adjusted EBITDA

$ 302.5

17.6 %

$ 317.8

18.5 %

$ 891.1

17.5 %

$ 1,007.0

19.2 %

____________________

Represents direct costs incurred with third parties and the accrual of a long-term retention incentive to integrate acquired companies. These expenses represent incremental costs and are unrelated to normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition.Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. The expenses recognized in 2024 represent costs incurred to achieve the Company’s publicly-announced cost transformation initiative.

Represents incremental expenses directly associated with the Company’s publicly-announced cost transformation initiative, primarily related to the cost of external advisors.

Represents charges and legal costs in connection with certain litigation and other contingencies that are unrelated to our core operations and not reflective of on-going business and operating results.Represents net foreign currency (gain) loss from financing activities and other stock-based compensation expense (benefit).Related to impairment of the Ritter asset group.

 

Avantor, Inc. and subsidiaries

Reconciliations of non-GAAP measures (continued)

 

Adjusted Operating Income and Adjusted Operating Income Margin

(dollars in millions, %
     based on net sales)

Three months ended September 30,

Nine months ended September 30,

2024

2023

2024

2023

$

%

$

%

$

%

$

%

Net income

$  57.8

3.4 %

$ 108.4

6.3 %

$ 211.1

4.1 %

$ 222.6

4.2 %

Interest expense, net

48.7

2.8 %

72.4

4.2 %

173.9

3.4 %

219.5

4.2 %

Income tax expense

16.7

1.0 %

28.1

1.6 %

58.6

1.2 %

68.4

1.3 %

Loss on extinguishment of debt

2.1

0.1 %

2.0

0.1 %

6.5

0.1 %

5.9

0.1 %

Other income, net

(0.7)

— %

(0.7)

— %

(3.4)

(0.1) %

(3.3)

— %

Operating income

124.6

7.3 %

210.2

12.2 %

446.7

8.7 %

513.1

9.8 %

Amortization

75.4

4.3 %

75.4

4.4 %

225.6

4.4 %

232.7

4.4 %

Integration-related expenses1

— %

0.2

— %

— %

8.3

0.2 %

Restructuring and severance charges2

49.4

2.9 %

6.1

0.4 %

82.3

1.7 %

18.0

0.3 %

Transformation expenses3

17.1

1.0 %

— %

46.6

0.9 %

— %

Reserve for certain legal matters4

7.9

0.5 %

3.0

0.1 %

7.9

0.2 %

4.0

0.1 %

Other5

0.4

— %

0.1

— %

1.4

— %

0.1

— %

Impairment charges6

— %

— %

— %

160.8

3.1 %

Adjusted Operating Income

$ 274.8

16.0 %

$ 295.0

17.1 %

$ 810.5

15.9 %

$ 937.0

17.9 %

_____________________

Represents direct costs incurred with third parties and the accrual of a long-term retention incentive to integrate acquired companies. These expenses represent incremental costs and are unrelated to normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition.Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. The expenses recognized in 2024 represent costs incurred to achieve the Company’s publicly-announced cost transformation initiative.Represents incremental expenses directly associated with the Company’s publicly-announced cost transformation initiative, primarily related to the cost of external advisors.Represents charges and legal costs in connection with certain litigation and other contingencies that are unrelated to our core operations and not reflective of on-going business and operating results.Represents other stock-based compensation expense (benefit).Related to impairment of the Ritter asset group.

 

Avantor, Inc. and subsidiaries

Reconciliations of non-GAAP measures (continued)

Earnings per share

(shares in millions)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Diluted earnings per share (GAAP)

$      0.08

$      0.16

$      0.31

$      0.33

Dilutive impact of convertible instruments

Fully diluted earnings per share (non-GAAP)

0.08

0.16

0.31

0.33

Amortization

0.11

0.11

0.33

0.34

Loss on extinguishment of debt

0.01

0.01

Integration-related expenses

0.01

Restructuring and severance charges

0.07

0.01

0.12

0.03

Transformation expenses

0.03

0.07

Reserve for certain legal matters

0.01

0.01

0.01

Other

Impairment charges

0.24

Income tax benefit applicable to pretax adjustments

(0.05)

(0.03)

(0.13)

(0.14)

Adjusted EPS (non-GAAP)

$      0.26

$      0.25

$      0.72

$      0.82

Weighted average shares outstanding:

Diluted (GAAP)

683.0

678.5

682.1

678.1

Incremental shares excluded for GAAP

Share count for Adjusted EPS (non-GAAP)

683.0

678.5

682.1

678.1

 

Free cash flow

(in millions)

Three months ended
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

Net cash provided by operating activities

$    244.8

$    230.7

$    667.5

$    618.4

Capital expenditures

(40.8)

(37.7)

(121.3)

(95.8)

Free cash flow (non-GAAP)

$    204.0

$    193.0

$    546.2

$    522.6

 

Adjusted net leverage

(dollars in millions)

September 30,
2024

Total debt, gross1

$      5,001.6

Less cash and cash equivalents

(285.3)

$      4,716.3

Trailing twelve months Adjusted EBITDA

$      1,193.2

Trailing twelve months ongoing stock-based compensation expense

43.9

$      1,237.1

Adjusted net leverage (non-GAAP)

              3.8 x

____________________

Includes $51.4 million of Finance lease liabilities attributed to Clinical Services business and classified as held for sale.

 

Avantor, Inc. and subsidiaries

Reconciliations of non-GAAP measures (continued)

 

Net sales by segment

(in millions)

September 30,

Reconciliation of net sales growth
(decline) to organic net sales growth
(decline)

Net sales
growth
(decline)

Foreign
currency
impact

Organic
net sales
growth 
(decline)

2024

2023

Three months ended:

Laboratory Solutions

$   1,171.5

$   1,159.1

$        12.4

$          5.3

$          7.1

Bioscience Production

542.9

561.1

(18.2)

1.9

(20.1)

Total

$   1,714.4

$   1,720.2

$        (5.8)

$          7.2

$      (13.0)

Nine months ended:

Laboratory Solutions

$   3,484.3

$   3,555.9

$      (71.6)

$          8.9

$      (80.5)

Bioscience Production

1,612.7

1,688.5

(75.8)

3.6

(79.4)

Total

$   5,097.0

$   5,244.4

$    (147.4)

$        12.5

$    (159.9)

(dollars in millions, % based on net sales)

September 30,

Reconciliation of net sales growth
(decline) to organic net sales growth
(decline)

Net sales
growth
(decline)

Foreign
currency
impact

Organic
net sales
growth
(decline)

2024

2023

$

$

%

%

%

Three months ended:

Laboratory Solutions

$   1,171.5

$   1,159.1

1.1 %

0.5 %

0.6 %

Bioscience Production

542.9

561.1

(3.2) %

0.3 %

(3.5) %

Total

$   1,714.4

$   1,720.2

(0.3) %

0.4 %

(0.7) %

Nine months ended:

Laboratory Solutions

$   3,484.3

$   3,555.9

(2.0) %

0.3 %

(2.3) %

Bioscience Production

1,612.7

1,688.5

(4.5) %

0.2 %

(4.7) %

Total

$   5,097.0

$   5,244.4

(2.8) %

0.2 %

(3.0) %

 

Adjusted Operating Income by segment

(dollars in millions, %
represent Adjusted
Operating Income margin)

Three months ended September 30,

Nine months ended September 30,

2024

2023

2024

2023

$

%

$

%

$

%

$

%

Laboratory Solutions

$ 151.5

12.9 %

$ 159.1

13.7 %

$ 450.7

12.9 %

$ 511.0

14.4 %

Bioscience Production

138.1

25.4 %

148.2

26.4 %

409.0

25.4 %

469.9

27.8 %

Corporate

(14.8)

— %

(12.3)

— %

(49.2)

— %

(43.9)

— %

Total

$ 274.8

16.0 %

$ 295.0

17.1 %

$ 810.5

15.9 %

$ 937.0

17.9 %

 

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SOURCE Avantor and Financial News

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BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept

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BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure

BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
 BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
 Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.

VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).

The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.

“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”

South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative

BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.

The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.

Built on Kaia Mainnet

A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.

Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.

By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.

QSSN as the Security Layer

The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.

BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.

Addressing the Harvest-Now, Decrypt-Later Risk

The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.

BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.

Expanding BTQ’s Korean Ecosystem

BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.

The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.

About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/

About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.

Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/

About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: Website | LinkedIn | X/Twitter

ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE BTQ Technologies Corp.

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Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference

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WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).

A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.

About Zimmer Biomet 
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. 

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.

Contacts:

 

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

troy.kirkpatrick@zimmerbiomet.com

david.demartino@zimmerbiomet.com

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

kirsten.fallon@zimmerbiomet.com

zach.weiner@zimmerbiomet.com

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SOURCE Zimmer Biomet Holdings, Inc.

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NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools

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New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing

Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment

ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.

The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health. 

The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.

NextLadder’s Focus Areas for Investment

Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations. 

As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.

“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”

NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.

The fund’s active investment areas include:

Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.

NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.

In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.

NextLadder’s Co-Founder Leadership Team

NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.

“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”

Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.

“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”

Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.

“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”

To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.

About NextLadder Ventures

NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.

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SOURCE NextLadder Ventures

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