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)

Segment Information

Segment Information

12 Months Ended

Dec. 31, 2023

Disclosure of operating segments [abstract]

5. Segment Information

Management identifies two operating segments, based on the internal organization and reporting structure of Stevanato Group. The criteria used to identify the Group’s operating segments are consistent with the way the chief operating decision-maker (identified in the Chief Executive Officer of Stevanato Group) assigns resources and monitors performances. They are:

Biopharmaceutical and Diagnostic Solutions, which includes the products, processes and services developed and provided in connection with the containment and delivery of pharmaceutical and biotechnology drugs and reagents (such as vials, cartridges, syringes and drug delivery systems like pen injectors, auto injectors and wearables), as well as the production of diagnostic consumables. This segment deals mainly with the development and manufacturing of Drug Containment Solutions (DCS), In-Vitro Diagnostic Solutions (IVD) and Drug Delivery Systems (DDS). The business model is particularly complex as it requires constant cooperation with each customer for the development of the specific products they need, and it is based on sophisticated technical and industrial processes. It comprises also analytical services and regulatory support that the Group provides to its customer focused on investigating the physiochemical properties of primary packaging materials and components and studying the interactions between drug containment solutions and the drugs they will contain.

Engineering, which includes the equipment and technologies developed and provided to support the end-to-end pharmaceutical, biotechnology and diagnostic manufacturing processes (assembly, visual inspection, packaging and serialization and glass converting). The Engineering Segment designs, develops and produces equipment and machinery for both in-house use and the sale to customers. The Group assembles equipment and machinery and develops the software necessary for its functioning in addition to working closely with the customers to install the machinery and equipment in their production sites, ensuring they are correctly calibrated and properly functioning. The after-sales services, mainly consists in the provision of spare parts for our machinery and equipment as well as maintenance activity on the machines sold.

The operating segments described above are also identified as reportable segments.


	At and for the year ended December 31, 2023
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		879,288		206,066		1,085,354		—			1,085,354
Inter-segment		2,049		166,741		168,790		(168,790	)		—
Total revenue		881,337		372,807		1,254,144		(168,790	)		1,085,354
Cost of sales		591,107		294,550		885,657		(140,196	)		745,461
Gross Profit		290,230		78,257		368,487		(28,594	)		339,893

Other operating income		10,630		16		10,646		(223	)		10,423
Selling and marketing expenses		20,970		3,948		24,918		60			24,978
Research and development expenses		27,653		7,420		35,073		599			35,672
General and administrative expenses		64,658		13,290		77,948		10,998			88,946
Operating Profit		187,579		53,615		241,194		(40,474	)		200,720

of which amortization and depreciation		75,320		3,821		79,141		(661	)		78,480

Total assets		1,614,801		539,598		2,154,399		(82,822	)		2,071,577
Total liabilities		658,954		398,044		1,056,998		(118,067	)		938,931


	At and for the year ended December 31, 2022
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		799,652		184,028		983,680		—			983,680
Inter-segment		1,585		115,472		117,057		(117,057	)		—
Total revenue		801,237		299,500		1,100,737		(117,057	)		983,680
Cost of sales		526,370		234,826		761,196		(97,317	)		663,879
Gross Profit		274,867		64,674		339,541		(19,740	)		319,801

Other operating income		18,985		13		18,998		(148	)		18,850
Selling and marketing expenses		12,287		2,430		14,717		11,369			26,086
Research and development expenses		25,169		6,542		31,711		2,676			34,387
General and administrative expenses		73,816		14,431		88,247		(2,500	)		85,747
Operating Profit		182,580		41,284		223,864		(31,433	)		192,431

of which amortization and depreciation		62,401		3,591		65,992		(1,170	)		64,822

Total assets		1,259,124		370,851		1,629,975		29,723			1,659,698
Total liabilities		511,022		256,835		767,857		(104,069	)		663,788


	At and for the year ended December 31, 2021
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		694,038		149,882		843,920		—			843,920
Inter-segment		1,134		68,979		70,113		(70,113	)		—
Total revenue		695,172		218,861		914,033		(70,113	)		843,920
Cost of sales		465,304		176,604		641,908		(63,393	)		578,515
Gross Profit		229,868		42,257		272,125		(6,720	)		265,405

Other operating income		9,386		—		9,386		—			9,386
Selling and marketing expenses		7,736		3,196		10,932		9,516			20,448
Research and development expenses		23,467		4,263		27,730		1,886			29,616
General and administrative expenses		58,996		11,898		70,894		(8,392	)		62,502
Operating Profit		149,055		22,900		171,955		(9,730	)		162,225

of which amortization and depreciation		54,487		3,656		58,143		(1,760	)		56,383

Inter-segment revenue and costs are eliminated upon consolidation and reflected in the “adjustments, elimination and unallocated items” column. The most relevant adjustment in revenue relates to the sales of the Engineering’s equipment to the Biopharmaceutical and Diagnostic Solutions. “Adjustments, elimination and unallocated items” also includes some corporate residual costs not allocated to the Biopharmaceutical and Diagnostic Solutions Segment and Engineering Segment.

The reconciliation from total segments operating profit to consolidated profit before tax is as follows:


	For the year ended December 31,
	2023			2022			2021
	(EUR thousand)
Segments Operating Profit		241,194			223,864			171,955
Finance income		20,250			25,050			21,709
Finance expense		31,417			29,840			18,808
Share of profit of an associate		—			—			547
Inter-segment elimination and unallocated items		(40,474	)		(31,433	)		(9,730	)
Profit Before Tax		189,553			187,641			165,673

For the year ended December 31, 2023, the Group served a customer who constituted 11.4% of consolidated revenue, equal to EUR 123.6 million, realized both in the Biopharmaceutical and Diagnostic Solutions Segment and in the Engineering Segment.

For the years ended December 31, 2022 and 2021, no external customer exceeded 10% of group’s revenue.