Stevanato Group S.p.A. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Revenues from Contract with Customers

Revenues from Contract with Customers

12 Months Ended

Dec. 31, 2021

Revenue [Abstract]

Revenues from contract with customers

6. Revenues from contract with customers

Disaggregated revenue information

The table below shows the disaggregation of the Group’s revenue from contracts with external customers:


	For the year ended December 31, 2021
(EUR thousand)	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
Type of goods or service
Revenues from high-value solutions		207,815		—		207,815
Revenues from other containment and delivery solutions		486,223		—		486,223
Revenues from engineering		—		149,882		149,882
Total revenue from contracts with customers		694,038		149,882		843,920

Geographical markets
EMEA		415,489		77,985		493,474
APAC		79,463		38,284		117,747
North America		175,231		31,730		206,961
South America		23,855		1,883		25,738
Total revenue from contracts with customers		694,038		149,882		843,920

Timing of revenue recognition
Goods and services transferred at a point in time		667,717		35,477		703,194
Goods and services transferred over time		26,321		114,405		140,726
Total revenue from contracts with customers		694,038		149,882		843,920


	For the year ended December 31, 2020
(EUR thousand)	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
Type of goods or service
Revenues from high-value solutions		146,332		—		146,332
Revenues from other containment and delivery solutions		418,599		—		418,599
Revenues from engineering		—		97,106		97,106
Total revenue from contracts with customers		564,931		97,106		662,037

Geographical markets
EMEA		338,564		59,575		398,139
APAC		54,433		12,702		67,135
North America		151,418		23,501		174,919
South America		20,516		1,328		21,844
Total revenue from contracts with customers		564,931		97,106		662,037

Timing of revenue recognition
Goods and services transferred at a point in time		553,789		38,417		592,207
Goods and services transferred over time		11,142		58,689		69,830
Total revenue from contracts with customers		564,931		97,106		662,037


	For the year ended December 31, 2019
(EUR thousand)	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
Type of goods or service
Revenues from high-value solutions		90,700		—		90,700
Revenues from other containment and delivery solutions		364,341		—		364,341
Revenues from engineering		—		81,498		81,498
Total revenue from contracts with customers		455,041		81,498		536,539

Geographical markets
EMEA		270,339		52,485		322,824
APAC		41,129		14,393		55,522
North America		119,054		13,381		132,435
South America		24,519		1,239		25,758
Total revenue from contracts with customers		455,041		81,498		536,539

Timing of revenue recognition
Goods and services transferred at a point in time		455,041		33,684		488,725
Goods and services transferred over time		—		47,814		47,814
Total revenue from contracts with customers		455,041		81,498		536,539

The Group revenues are divided into two main segments:

Biopharmaceutical and Diagnostic Solutions: this segment includes all the products and services developed and provided for containment and delivery of pharmaceutical drugs and diagnostic reagents. This segment is further divided into two sub-categories:

High-value solutions: wholly owned, internally developed products, processes and services for which the Group hold intellectual property rights or have strong proprietary know-how and are characterized by particular complexity or high performance;

Other containment and delivery solutions.

Engineering: this segment includes all the equipment and technologies developed and provided to support the end-to-end pharmaceutical and diagnostic manufacturing processes.

Consolidated revenues at current exchange rates increase by EUR 181,883 thousand, or 27.5%, to EUR 843,920 thousand for the year ended December 31, 2021, compared to EUR 662,037 thousand for the year ended December 31, 2020, which in turn increase by EUR 125,498 thousand, or 23.4%, compared to EUR 536,539 thousand for the year ended December 31, 2019. Currency movements in USD had a negative impact in 2021. Excluding this effect, consolidated revenues at constant currency exchange rates increase by 28.2% for the year ended December 31, 2021.

With reference to Biopharmaceutical and Diagnostic Solutions segment, revenues in high-value solutions increase by EUR 55,632 thousand, or 61.3% to EUR 146,332 thousand for the year ended December 31, 2020, compared to EUR 90,700 thousand for the year ended December 31, 2019; revenues on high-value solutions further increase by EUR 61,483 thousand or 42.0% to EUR 207,815 thousand for the year ended December 31, 2021. Revenues in other containment and delivery solutions increase by EUR 54,258 thousand, or 14.9%, from EUR 364,341 thousand for the year ended December 31, 2019 to EUR 418,599 thousand for the year ended December 31, 2020 and by further EUR 67,624 thousand, or 16.2%, to EUR 486,223 thousand for the year ended December 31, 2021.

Engineering segment revenues from contracts with external customers increase by EUR 15,608 thousand, or 19.1%, to EUR 97,106 thousand for the year ended December 31, 2020 compared to EUR 81,498 thousand for the year ended December 31, 2019; revenues further increase by EUR 52,776 thousand, or 54.3%, to EUR 149,882 thousand for the year ended December 31, 2021.

For the year ended December 31, 2021, revenues show an increase in all the geographic markets with the higher growth in the APAC market (+75.4%). Revenues increase by 18.3% in North America, by 17.8 % in South America and by 23.9% in EMEA, the Group traditional market.

For the year ended December 31, 2021, revenues related to goods and services transferred over time increase by EUR 15,179 thousand, or 136.2%, in the In-Vitro Diagnostic business. Revenues recognized over time increase also in the Engineering segment by EUR 55,716 thousand, or 94.9%, mainly due to the increasing progress on orders where enforceable right is ensured by contractual conditions.

Contract balances

The following table provides information on contractual asset from contracts with customer:


	At December 31,			At December 31,
(EUR thousand)	2021			2020
Trade Receivables		165,259			127,818
Contract Assets		62,133			39,430
Contract Liabilities		(18,771	)		(5,031	)
Advances From Customers		(23,616	)		(48,361	)
Total		185,005			113,856

The contract assets mainly relate to the Group’s right to consideration for productions from construction contract not yet invoiced as of the balance sheet date. The amount recognized as contract assets are reclassified to trade receivable as soon as the Groups has an unconditional right to consideration.

Revenue recognized in the current reporting period relates to carried-forward contract liabilities amount to EUR 11,736 thousand in 2021 (respectively EUR 19,765 thousand in 2020 and EUR 17,218 thousand in 2019). As of December 31, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligation is EUR 74,996 thousand (EUR 56,417 thousand as of December 31, 2020) and the Group will recognize this revenue as projects are completed, which is expected to occur over the next 12–18 months.