Q1 2021 West Pharmaceutical Services Inc Earnings Call
Resection, on the company's website. Located at Westfarms this morning, CEO, Eric green, and CFO birkett will review our financial results.
Provide an update on our business and present an update on our full-year. 2021 Financial guidance. There's a slide presentation that accompanied today's call and a copy of that presentation is available on the investor section of our website.
On slide 4 is our Safe Harbor statement statements made by Management on this call and in the accompanying presentation contain forward-looking statements within the meaning of US federal law. These statements are based on our beliefs and assumptions current expectations estimates and forecasts the company's future results are influenced by many factors beyond the control company, actual results could differ materially from past results, as well as those expressed or implied in. Any forward-looking statement made here. Please refer to today's press release as well as any other disclosures made, by the company regarding the risk to which it is subject. Including our 10-K 10-q and 8-k reports
Conference call at this time, I'll participate in a listen-only mode. After the speaker's presentation. There will be a question-and-answer session to
Ask a question during the session. You when you press star one on your telephone good day. Please be advised that today. Thank you for six conferences. We're ending by recorded. We require any further assistance, please press * 0120, only one like a speaker, vice president of investor relations conference call. Go ahead.
during today's call management will make reference to non-gaap financial measures including
Happy Stephanie this time morning and welcome to West conference. Call Monday morning and the release has been just because posted in the investor section on the company's website, that will be located at West Palm trees are green and birkett financial results. Provide an update on our business, to our one and present an update on a telephone number for year 2020.
That's today, I am pleased to report that we had an exceptional first quarter. This was driven by strong or
Namic sales growth in both are based businesses and the accelerating demand for products associated with COVID-19, are high-value products continue to fuel, increase gross and operating margins together. This has resulted in record EPS for the first quarter.
The strength of our performance is demonstrated in our ability to execute the market-led strategy, Leverage The Power of our Global manufacturing Network and rally. As a one, West Palm, the increase market demand. I am proud of how our team members have focused on our priorities and emphasize the importance of our purpose and values. Often times turning to slide 6. We have highlighted, the key drivers of growth in q1, we continue to see strong uptake of hvp components, including Westar floortech, Envision, and novapure offerings as well as Crystal zenith.
Biologics customers are seeking to use these best in Industry components, to ensure the highest degree of quality and safety for the vaccines and injectable medicines.
This has resulted in strong double-digit growth, excluding COVID-19 sales and continued demand growth for Floor Tech and novapure in our biologics busy, through the first four months of 2021. Our participation rate in recently approved, new molecular entities in the US and Europe continues to be strong with over 95% of these approvals using either West or daikyo components.
In addition, we experienced strong growth and Westar ready-to-use components with customers. Seeking the value, quality and convenience of our Westar wash and sterilize Products off in four Envision. We also have significant growth with customers looking for a higher quality and better production yields by using our Envision inspected components.
Another highlight was strong sales growth and syringes and vials. Customers, prefers CZ for its compatibility with their sensitive molecules and it's a standing track record of quality and reliability.
Moving to slide seven, the power of our Global manufacturing Network continues to support our growth trajectory, we are uniquely positioned as a result of a global operations strategy implemented. A few years ago, it says enable the right capabilities scale and flexibility to keep in Pace with the increase in demand wage.
As a result of recent Capital Investments, we have expanded our manufacturing capacity across our high-value product portfolio with additional equipment and validated lines to support wage is HBP. Growth areas Westar Floor Tech in novapure.
we have a
Accelerated the timeline for capacity bills within our existing footprint by working closely with our equipment suppliers and staging installations around the 24, Seven plants, our first phase, which began at the start of the pandemic is about 75% installed in operational with expected completion in second. Half of the year off. Our second phase will see equipment arriving in the back end of the year and operational and twenty twenty-two. And we are evaluating additional Investments for a Thursday expansion phase in response to an increasing possibility of COVID-19 boosters and annual vaccinations required over the next few years. This occurs. We think that future COVID-19 vaccines could likely be fewer doses per vial and Orrin, single-dose, prefilled syringes as a result dead.
It may mean higher volume, demand of our hvp components compared to what we are experiencing today.
I'm pleased to share that for my recent visit to our Scottsdale Arizona, facility, we are on schedule with are fully automated line for insert needles syringes, we're in the process of validating the line which is targeted commence. Commercial production for our customers committed orders. During the third quarter of this year, this is our third automated line with another line scheduled for delivery in late 2021.
Turning to slide 8 to our values, is being a strong corporate citizen in 2019, we exceeded our initial five-year environmental package in governance or ESG initiatives set in 2017 and raise the bar higher with a new set of five year goals. I'm proud to say that we continue to make significant progress on our priorities with good momentum towards our stated reduction goals for waste energy and water usage. We continue to reaffirm our commitment to live by our one West team value that calls on us. To respect each other Drive collaboration and to embrace diversity inclusion in our workplace.
We continue to make strides in this area from new team members hired at all levels. In our manufacturing sites to the diverse representation, on our executive leadership, email off. And we continuously looking for ways to improve sustainability of our business and the rigor of r e s p. E, f, g reporting continues to evolve last year. Took a supplement or later this year. We will publish a supplement to our 2020 CR report incorporating. This as b e, s g standards. Now, turn it over to our CFO burner. Who will provide more detail on our financial performance burner. Thank you and good morning. Let's review the numbers in more detail. Will first look at 121,000 news and profits where we sell continued. Strong sales and EPS growth. They buy strong Revenue performance primarily in our biologics Pharma and generic Market units.
I will take you through the
Growth. We fill in the quarter as well as some balance sheet takeaways and finally we will provide an update for a 20 21 guide. First up q1 our financial results are summarized on slide nine and the reconciliation of non-gaap measures are described and slide Seventeen to twenty.
We recorded net sales of 670.7 million representing, organic sales growth of 31.1% COVID-19 related. Net revenues are asked to have been approximately 102.9 million dollars in the quarter. These net revenues include our assessment of components associated with vaccines treatment and diagnosis of COVID-19 patients offset by lower sales to customers affected by lower volumes due to the pandemic.
Looking at slide ten proprietary products, sales grew organically by 39.6% in the quarter high-value products which made up more than 70% of proprietary. A product sales in the court or who double-digits and had solid momentum across all Market units throughout q1. Looking at the performance of the market units, biologics Market Universe, very strong double-digit growth. We continue to work with many biotech and biopharma customers. We're using West and daikiel high value product offerings. The generic smart unit also experienced strong double-digit growth. They buy sales or flurotec components.
Or Pharma Market, units are strong double-digit growth with sales led by high-value products including Westar and flurotec components and contract manufacturing had mid single-digit. Organic sales growth for the first quarter LED once again by sales of Diagnostic and healthcare-related injection devices
We continue to see Improvement in gross profit. We record as 271.9 million dollars in gross profit 104.9 million or 62.8% off to one of last year and our gross profit margin of 40.5% was a 650 basis. Point expansion from the same period last year, we saw Improvement adjusted operating profits with 179.2 million dollars record at this quarter compared to eighty eight million in the same period last year for a 103.6% increase.
Or adjusted operating profit margin of 26.7%, an 880 basis point increase from the same period last year. Finally, adjusted diluted EPS, grew 103% 421, excluding stock-based, compensation tax benefit of fifteen cents in q1, EPS, grew by approximately 102%.
So let's review the growth drivers in both revenue and profits on flight eleven, we show the contributions to sales growth in the quarter volume and mix contributed 146 point. Six million dollars or twenty. Nine point eight percentage points of growth including approximately 102.9 million dollars of volume driven by COVID-19 related. Net demand wage
Sales.
Kris has contributed six million dollars or 1.2% points of growth and changes in foreign currency exchange rates, increase sales by twenty six point, five million dollars, or an increase of about 5.4 percentage. Point looking at margin performance slide twelve shows are Consolidated gross profit. Margin of 40.5% for q1021 up from 34% in q1 2020.
Proprietary products, first quarter, gross profit. Margin of 46.3% was a 610 basis points, above the margin achieved in the first quarter of 2028. The key drivers for the continued Improvement in proprietary products, gross profit margin, voir, favorable, mix of products, sold driven by growth and high-value products production. Efficiencies one-time fees associated with certain canceled COVID-19. Supply agreements of approximately 11.8 million dollars and sales. Price increases are actually are set off increased overhead costs, inclusive of compensation.
Contract manufacturing, first-quarter profit gross margin of 15.7% was the 140 basis points above the margin achieved in the first quarter of 2020, this is a, is a result of improved efficiencies and plant utilization.
Now, let's look at our balance sheet and review how we've done. And in terms of generating more cash for the business on site, thirteen, we have listed some key cash flow metrics operating. Cash flow was eighty eight point seven million dollars for the first quarter of twenty $21 an increase of 31.6 million compared to the same period last year or a 55.5% increase or first quarter 2021 Capital spending was fifty four point seven million dollars twenty two point six million higher than the same period last year and in line with guidance
Working capital of eight hundred forty. Four point two million dollars. March 3121 declined slightly by 26.1 million from December 31-26 or cash balance of March 31st. A four hundred eighty three point. Seven million dollars was 131.8 million less than or December 2020, balance primarily June or share repurchase program activity offset by the positive operating results.
Turning to guidance provides a high level summary full year 2021. Net sales are expected to be in a range of 2.63 billion. And two point five billion dollars compared to Prior guidance range of 2.5 billion, and 2.5 to $5 billion dollars. This guidance includes estimated net code with incremental revenues of approximately 345 million dollars,
There is an estimate.
The benefit of $75 million dollars. Based on current foreign exchange rates. We expect organic sales growth to be approximately 19 to 20%.
We expect our full year 2021. Adjusted diluted EPS guidance to be in a range of $6.95 to $7 10 compared to a prior range of $6 to 6:15.
We continue to expand or hvp manufacturing capacity at our existing sites to meet anticipated growth and COVID-19 demand. We are keeping our capex, Geico 230 to 240 million dollars, but continue to evaluate the levels needed to support our continued growth. There are some key elements. I want to bring your attention to page as you review. Our guidance estimated FX benefit on EPS has an impact of approximately $0.23 based on current foreign currency, exchange rates, and birth, guidance, excludes future, tax benefits from stock-based compensation,
So to summarize, the key takeaways for the first quarter strong top-line growth in proprietary gross profit margin Improvement. Growth in operating profit margin growth in a GPS and growth in operating and free-cash-flow delivering in line with our pillars of execute innovates and grow right now like to turn the call back. Oh, Eric thank you, Bernard to summarize and slide fifteen in this Dynamic changing environment. We remain committed to our customers and the patients we serve together wage Focus remains within the Strategic pillars which allow us to be more responsive leverage or assets, more effectively and support the trends that are happening in the industry today.
We're working from a position of strength and we believe we have a long Horizon of continued, organic sales growth and margin expansion today more than ever. We're not able in our customers ability to support patient health and it's not taken for granted West products are needed by patients across the globe. And in many cases for the administration of life-saving medicines as the market leader, we know that Wes will continue to play an integral role with our customers as they develop and bring new medicines to market for a brighter future. Stephanie we're ready to take questions. Thank you.
Can you as a reminder, if you would like to ask an audio question, please press star followed by the number one on your telephone keypad. Once again, that is star one to ask a question and your first question from the line of one of Bank of America.
Hi. Hello. Good morning. Congratulations on the quarter. I guess. My question was thank you. My first question was, you know, as we think about the Pediatric and potentially the, the booster opportunity, one of the most significant comments that you made on the call which confirms you know, one of our ideas of what was the ratio of packaging components three, doses dosages, perhaps being a little bit more one-to-one than versus the initial rollout. And so could you elaborate on, you know, the visibility on on on perhaps that that you have on on the packaging configuration for four boosters in the future and how how you see that operation revolving? Yeah, one, you're you're you're absolutely correct. When you state that there's we're in discussions with our customers as they look at the various um forms.
of of delivery and there is a
Obviously we're involved with discussions about smaller units of doses per vial and or moving towards the pre-filled syringe which, you know, in our business office that that would have a an impact on on the volume that we would produce and support our customers. Hence the some of the Investments that we're currently making the second thing I'll and that will bring one over the. You think about over the next several quarters is there's a lot there's still a lot of moving Parts. I think it's secondarily to that. We do have visibility of demand in Iraq, the vaccines that's pushing into the 2022 timeline. So we feel really good about where we are, but we know that we need to continuously pivot if necessary, as off the the number of doses per unit changes cuz it will require a slightly different product configuration.
Thanks, I appreciate that. And how would you characterize the inventory management across your COVID-19 vaccine? Customers specifically, do you have any concerns about customers stocking up? An inventory of packaging, components, any cool for words that you see, or would you say that your current sales are pretty well aligned with the pace of vaccine distribution one, within the vaccine distribution or our Paces. Well, in line fact, we are engaged with the the companies that came back scenes in the market, but also the firms that are working on development of getting approvals to be into the market shortly. And and those are regular basis. So we can stay jardim and what its weekly or monthly as we go forward. But I'm pleased on the team's response and we were able to keep up with the demand where we sit today.
Thank you. I'll get back in with you. I'll leave it there for now. Appreciate it again. Thank you. Your next question is from the line of Paul Knight with KeyBank.
Paul Gallen is open. Excuse me, please unmute.
Hi, can you hear me? Yes, hi Paul. Hey, how are you question on? Are you seeing orders on related products into 20? Mm, I mean, what's their duration? They, they want to look into at this point to Eric. Yep. All when we looked at our order book, roughly a third of it as COVID-19 related issue and it is extended into twenty twenty-two so it obviously of what we're doing today but the visibility we have is going into into the following year.
Okay.
And then how are you running on capacity at facilities? Globally? Are you hitting any ceilings yet? Eric
Well that's we are in in certain areas. We're getting close to that capacity level obviously, as you know, we're running twenty-four-seven multiple facilities sticking around with value products. However, we are, we're layering in various Capital Investments. The first wave is will be completed in the next month, a month. And that is a, it gives us significant lift around our hvp and we have another wave coming in over the next six to twelve months. So we're keeping up. But it does require the installation validation and, and moving to commercial production immediately with this new equipment, we have online. And then lastly, the core biologics demand, X COVID-19, obviously seems to be accelerating, could you talk to that? And, you know, what your outlook is there? Well, that's an area of birth.
Payment. I mean, obviously a lot of areas within our company but in the biologics area, It's a combination of two things. One is the number of new molecular entity just being approved in our participation rate continues to be very very strong and I'm pleased on. Howard teams are responding supporting our customers particularly in this time of loss during the pandemic. Also we're starting to see a the volume increase on a number of the biologics have been recently introduced in the marketplace, Ram pickup and therefore, the volume component on existing molecules in the marketplace Racine additional growth there will last comment I'll add just because we're seeing really good strong growth and biosynthesis in our asia-pacific region. So it's a combination of multiple aspects Paul. And this is of a very bright spot for us outside of the COVID-19. Conversation of our core based business,
Great. Okay. Thank you.
Your next question is in the line of John kreger with William Blair.
John your line is open Community. Please unmute.
John, your line is open.
Morning, Jaan.
We'll move to the next question. Our next question is from the line of Jacob Johnson, with Stephen.
Hey, good morning guys. Congrats on the quarter. I guess my first question to some guidance. If I analyze your first quarter revenues, I get this, something above your guidance for the year. You know, what puts her takes? Could there be in the fact that would result the revenues being below this first quarter, or maybe more simply just any seasonality, you call out this year as we think about modeling. Yeah, so we, we found out, you know, in the prepared comments, there was a one-timer in there approximately just closed about 12 million dollars, which related to some dead, you know, cancellations that we had in there and that was a one-time fee that we were able to recognize so that and that was primarily around COVID-19. So you you got it back. I you know when you're putting the run-rate together I think that that gets you pretty close to our guidance.
That makes sense for thank you.
And that a question, it seems like a lot of these codes vaccines are using, for attack or novapure, is the decision. They're just based on customer preference, or, or are there any particular types of vaccines that that require novapure vs Florida Tax? Yeah, the techs the vaccines that are on the market right now, do require that barrier coat, which is Thursday, which we in our partner, daikyo are very well known for in the industry with the floral, what we call the flurotec, so fluoropolymer barrier and that home has been comes the standard in the industry and therefore we're seeing that adoption obviously, with with the types of vaccines are in the market place and or the ones are being developed as we speak. In some cases, we're leveraging our novapure offering because our customers, want that Assurance of the highest quality product in in the marketplace. So dead.
That those are the key drivers of that decisions around the science and the technology than anything else.
Got it. Thanks for your questions. I'll leave it there. Thank you. Your next question is from the line of David windley with Jefferies.
Hi, good morning, one of the thank you for the work, you're doing. Your organization is doing to get vaccines in arms, I'm recipient and and Eric, congrats on the the ESG life. You know, Focus that you've put on. We noticed in our work that you're very, very highly rated in nesg, despite what I would think would be some business model headwinds to log in that regard. So, congrats on that. My question is around your hvp. I appreciate you. You guys always give the the, the market unit wage growth. It it makes me smile to hear Bernard emphasize strong double-digits in the context of a 30% top-line growth. I suspect it. It's very strong. I wondered I may strike out for us but I wondered if you if you guys would be willing to give maybe a little bit more Precision about what strong double-digits means, you know, again with 30% top-line growth.
Could be a three handle for handle, five handle. I'm just wondering if you, if you might give us a little bit more Precision about where those growth numbers are landing by Market unit.
I'll, I'll start the if you don't mind. And then, so, first of all, thanks for the comments. It takes the entire organization to Rally behind the G. But that's, it's part of the DNA of West for, for many, many years in regards to HPP, you're absolutely correct. Majority of the incremental growth that we're experiencing here at West fixing the last quarter's, but as we look forward is within the hvp portfolio, we tried to highlight that we're excited in in encouraged by the uptake of the higher end of that range. As you know, it has more attractive economic profile, four or less and and not to say it has a phenomenal performance for our customers. Name is from a value proposition but we're we're seeing, we're seeing over.
But over two-thirds of our growth.
Coming to high end of our hvp in. So you can kind of, think about do the math, from there to get to that. That number you reference, the 30% off is very strong growth it in, in the walls of West. We don't really talk about the percentages in these do lines like, no. We we we talked about the number of units and ugly how about double or triple that that portfolio in a very short period of time. So it's about as much context I can give I was burnt. Yeah, you know, I'd rather, you know, keep with the way we've been reporting is at today for today, you can to do that. A lot of were seeing a lot of strong growth and biologics and biologics is primarily high value growth product. And the bulbs are also seen as in, in generics and farm that, but, but not to the same extent, but primarily all of biologics is high-value product group.
Got it. So maybe that was a foul ball. I didn't completely miss the ball but in terms of of your your commentary on, on the high-end would be specific. You're talking no novapure the very highest one or you, you talking about a couple. I'm talking about, that's a good point. Dave, some talking about out from Dolby Vision, all all the way up to guys got it, got it. And then maybe another way to come at this is on the margin front. So, you know, going back years, we've talked about, you know, high value as a as an overall bucket being, you know, generating gross, margins, probably north of 50% versus standard, you know, maybe 30% or lower. Would you be willing to comment upon on kind of the overall gross margin in high-value and how that evolves as the the product demand moves up into the higher end of your high-value product portfolio.
Yeah. So when you know going back to your last comment as well as if you look at where we're investing and we're a lot of our capex, the incremental capex is going, it's going to a products like around flurotec and novapure so it is tracking to their higher-end, high-value products and to support that. And that now you're starting to see that come through and you can even see it in the margin expansion that we experienced, some are into one with proprietary. I think, in over forty 40% gross margin that probably for the first time that we've seen, that helps helps a little bit by that one off timer and that we called out on those cold related agreements that we had to account for. But yeah, you're, you're getting north of 50% on them know. And it, it has been progressed based on the Investments that we've made, and the growth that we see that that should continue and you know, this all feeds into dead.
Long-term contract that we rolled out there and that's why we continue to have confidence in that we are able to continuously, expand those margins and operating margins and all of this month.
That that has been part of the narrative for a long time and now you're seeing it comes to fruition on a continuous on a more sustainable basis.
You got it. Thank you. I'll I'll drive back in the queue but thanks for the answers. I appreciate it.
Okay, and at this time, we have no further questions. I was trying to call back over to Quintin.
Thank you, Stephanie, and we apologize to John kreger William Blair for his technical, having technical issues and we'll sort that out later. Thank you for joining us on today's conference call and online. Archive of the broadcast will be available on our website at Westfarms in the investors section. Additionally, you may access a replay to Thursday May 6th by using the dial in numbers and Conference ID. Provided at the end of today's earnings release that concludes this call, have a nice day. Thank you. Today's conference call. You may now disconnect
Thursday, Thursday, Thursday, Thursday.
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Good day and thank you for standing by. Welcome to the q1 2021. West pharmaceutical Services earnings conference. Call at this time, all participants are in a listen-only mode. After his presentation, there will be a question-and-answer session to ask a question during the session. You will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press * 0, I would like to have these conference over to your speaker, Quintin Lai vice president of investor relations. Please go ahead. Thank you Stephanie. Good morning and welcome to West first quarter 2021 conference call. We issued our financial results. This morning and the release has been posted in the investor section on the company's website. Located at West Palm.
this morning, CEO Eric
Green and CFO birkett will review. Our financial results. Provide an update on our business and present an update on our full-year. 2021 Financial guidance, took a slide presentation that accompany today's call. And a copy of that presentation is available on the investor section of our website.
154 is our Safe Harbor statement. Statements made by Management on this call. And in the accompanying presentation contain forward-looking statements within the meaning of US federal wage law. These statements are based on our beliefs and assumptions current expectations estimates and forecasts the company's future results are influenced by many factors beyond the control company, actual results could differ materially from past results, as well as those expressed or implied in. Any forward-looking statement made here. Please refer to today's press release em. Well, as any other disclosures made, by the company regarding the risk to which it is subject, including our 10-K 10-q. And 8-k reports during today's call management will make reference to non-gaap financial measures including organic sales growth, adjusted operating profit adjusted operating profit margin and adjusted diluted eps.
Reconciliations and limitations of the non-gaap financial measures to the most comparable Financial results prepared in Conformity to Gap are provided in this morning's earnings release and now I'm trying to call over to West CEO and president. Eric green great, thank you. Quiton and good morning everyone and thank you for joining us today report that we had an exceptional first quarter. This was driven by strong organic sales growth in both are based business and the accelerating demand for products associated with COVID-19 off our high-value products continue to fuel, increase gross and operating margins together. This has resulted in record EPS for the first quarter.
The strength of our performance is demonstrated in our ability to execute the market-led strategy, Leverage The Power of our Global manufacturing Network and rally. As a 1 a.m. to meet the increased market demand. I am proud of how our team members have focused on our priorities and emphasize the importance of our purpose and values. During these times turning to slide 6, we have highlighted, the key drivers of growth in q1. We continue to see strong uptake of hvp. It's including Westar floortech, Envision and novapure offerings as well as Crystal zenith.
Biologics customers are seeking to use these best in Industry components, to ensure the highest degree of quality and safety for the vaccines and injectable medicines.
This.
This resulted in strong double-digit growth excluding COVID-19 sales and continued demand growth for Floor Tech and Nova Pierre. In our biologics business walk through the first four months of 2021. Our participation rate in recently approved, new molecular entities, in the US and Europe continues to be strong with over 95% of these approvals using either West or daikyo components.
In addition, we experienced strong growth and Westar ready-to-use components with customers. Seeking the value, quality and convenience of our Westar wash and sterilize Products off important Vision. We also have significant growth with customers looking for a higher quality and better production yields by using our Envision inspected components.
Another highlight was strong sales growth and syringes and vials. Customers, prefers CZ for its compatibility with their sensitive molecules and it's just standing track record of quality and reliability.
Moving to slide seven, the power of our Global manufactured Network continues to support our growth trajectory, we are uniquely positioned as a result of a global operations strategy implemented. A few years ago, this says enable the right capabilities scale and flexibility to keep in Pace with the increase in demand.
As a result of recent Capital Investments, we have expanded or manufacturing capacity across our high-value product portfolio with additional equipment and validated lines to support wage is HBP. Growth areas Westar Floor Tech in novapure.
We have accelerated the timeline for capacity bills within our existing footprint by working closely with our equipment suppliers and staging installations around the 24-month plan schedules. Our first phase, which began at the start of the pandemic is about 75% installed in operational with expected completion in second. Half of the Year. Our second phase will see equipment arriving in the back end of the year in operational and 2022. And we are evaluating additional Investments for the third expansion phase in response to an increasing possibility of COVID-19 boosters and annual vaccinations required over the next few years. When this occurs, we think that future COVID-19 vaccines could likely be fewer doses per vial and Orrin. Single-dose prefilled syringes as dead.
It may mean higher volume, demand of our hvp components compared to what we are experiencing today.
I'm pleased to share that from my recent visit to our Scottsdale Arizona. Facility, we are on schedule with are fully automated line for inserting needles, syringes, we're in the process of validating the line which is targeted to commence commercial production for our customers committed orders. During the third quarter of this year, this is our third automated line with another line scheduled for delivery in late 2021.
Turning to slide 8 to our values at West is being a strong corporate citizen in 2019, we exceeded our initial five-year environmental social governance or ESG initiatives set in 2017 and raise the bar higher with a new set of five year goals. I'm proud to say that we continue to make significant progress on our priorities with good momentum towards our stated reduction goals for waste energy and water usage. We continue to reaffirm our commitment to live by our one West team value that calls on us. To respect each other Drive collaboration and to embrace diversity inclusion in our workplace.
We continue to make strides in this area from new team members hired at all levels. In our manufacturing sites to the diverse representation, on our executive leadership, email off. And we continuously looking for ways to improve sustainability of our business and the rigor of resp ESG reporting continues to evolve. Last year, I published a supplement or later this year. We will publish a supplement to our 2020 CR report incorporating. This as b e s g standards now. Turn over to our CFO, Bernard birkett page will provide more detail on our financial performance burner. Thank you and good morning. Let's review the numbers in more detail with a first look at 121,000 news and profits where we sell continued, strong sales and EPS growth. They buy strong Revenue performance primarily in our biologics Pharma and generic Market units,
I will take you through the margin growth, we saw in the quarter as well as some balance sheet takeaways and finally, we will provide an update for a 20 21 guide. First up to one month or financial results are summarized on slide nine and the reconciliation of non-gaap measures are described in slide Seventeen to twenty.
We recorded net sales of 670.7 million representing, organic sales growth of 31.1%.
Cold Blood related. Net, revenues are estimated to have been approximately 102.9 million dollars in the quarter. These net revenues include our assessment of components associated with vaccines treatment and diagnosis of COVID-19 patients are set by lower sales to customers affected by lower volumes due to the pandemic.
Looking at.
Like 10 proprietary products, sales grew organically by 39.6% in the quarter high-value products, which made up more than 70% of proprietary products sales in the corner who's double-digits and had solid momentum across all Market units, throughout few one. Looking at the performance of the market units, biologics Market, unit delivered, strong double-digit growth. We continue to work with Manny biotech and biopharma customers, we're using West and daikiel high-value product offerings. The generics Market unit also experienced strong double-digit growth made by sales of flurotec components
Or Pharma Market, units are strong double-digit growth with sales led by high-value products including Westar and flurotec components and contract manufacturing has mid single-digit. Organic sales growth for the first quarter LED once again by sales of Diagnostic and healthcare-related injection device
We continue to see Improvement in gross profit. We record as 271.9 million dollars in gross profit 104.9 million or 62.8% off to one of last year and our gross profit margin of 40.5% was a 650 basis. Point expansion from the same period last year, we saw Improvement adjusted operating profits with 179.2 million dollars record at this quarter compared to eighty eight million in the same period last year for a 103.6% increase.
Or adjusted operating profit margin of 26.7%, an 880 basis point increase from the same period last year. Finally, adjusted diluted EPS, grew 103% for q1 excluding stock-based. Compensation tax payment.