West Pharmaceutical Services reported third-quarter 2024 net sales of $746.9 million, a slight decrease from $747.4 million in the prior-year period. Despite this, organic net sales declined by a modest 0.5%, which was better than some expectations. The company's Proprietary Products segment, representing the majority of sales, saw net sales of $601.4 million.
Within Proprietary Products, High-Value Products (HVP) accounted for over 75% of segment sales, driven by customer demand for self-injection device platforms. However, the Biologics and Generics market units experienced low-single digit and mid-single digit organic declines, respectively, while the Pharma unit achieved mid-single digit organic growth. The Contract-Manufactured Products segment reported a 0.4% increase in net sales to $145.5 million, with organic sales consistent year-over-year, primarily due to growth in self-injection devices for obesity and diabetes.
Consolidated gross profit margin for the quarter was 35.4%, down from 38.6% in the third quarter of 2023. Reported-diluted EPS was $1.85, a decrease from $2.14 in the prior-year period, and adjusted-diluted EPS also decreased to $1.85 from $2.16. Despite these mixed quarterly results, West Pharmaceutical Services raised its full-year 2024 profit forecast, exceeding Wall Street estimates for quarterly revenue and profit, banking on rising demand for cartridges and syringes.
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