Q3 2022 Stevanato Group SpA Earnings Call
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Good afternoon. This is the chorus call conference operator, welcome and thank you for joining the civil Natural group third quarter 'twenty to 'twenty two financial results conference call.
As a reminder, all participants are in a listen only mode. After the presentation there would be an opportunity to ask questions should any wanted to assistance. During the conference call them is seeking out an operator by pressing star and zero on your telephone.
At this time I would like to turn the conference over to MS. Lisa miles Senior Vice President Investor Relations. Please go ahead Madam.
Good morning, and thank you for joining US with me today is Franco seven auto Executive Chairman Franco Morrow, Chief Executive Officer, and Mark Hood of Lago Chief Financial Officer.
Presentation illustrating today's results can be found on the IR section of our website.
As a reminder, some statements being made today will be forward looking in nature, such statements are only predictions actual events and results may differ materially as a result of risks we face, including those discussed in item three D entitled risk factors in the company's annual report on form 20-F for the fifth.
School year ended December 31st 2021, and filed with the Securities and Exchange Commission.
I encourage you to review the information contained in our earnings release in conjunction with our SEC filings and our latest form 20-F. The company does not assume any obligation to revise or update. These forward looking statements to reflect subsequent events or circumstances, except as required by law.
Today's presentation may contain non-GAAP financial information management uses this information in its internal analyses of results and believes this information may be informative to investors in gauging the quality of our financial performance identifying trends in our results and providing meaningful period to period comparisons.
For a reconciliation of non-GAAP financial measures. Please see the company's most recently.
The final months of Jackie. Thank you do we believe that this fundamental of our business remains strong with Fob horrible cycle that we've been growing nine basket, we are successfully executing.
Thanks to our long term stood at the edge and operational objectives.
You can put a demand trends remain healthy and we expect these to continue so as the global pipeline for new treatment and that keeps.
Keeps a record of 11.
Approximately 60% tied to injectable with anybody we believe the bias towards injectable delivery format is boosted by favorable macro trends such as the growth in biologics and the biopsy.
The rise of chronic diseases for myself, because you know Rachel and sensitive immune suppression of treatment.
We believe that our integrated end to end capability and robust portfolio of injectable product and ideally Street.
Actually this year in D C.
Both are highly sensitive to treatment such as jet fuel.
Today, we have neither in diabetes treatment and maintaining our significant presence in the adoption of Jetblue, one with business across both segments demonstrating the value of this offering.
Thanks to the scientific and technological cut that would be I thought walked us knowledge Excellence center, you'll support and counsel or.
Early stage of development of the new molecule.
<unk> auto book pipeline, but I'll make it simple for them to only be individually where company I won't call them alongside the pipeline, we have a unique and integrated value proposition.
We gotta, leveraging our proven expertise and leadership position ready to use <unk> and cost of juice to force novelty products such our Mexican generation is it is a massive block four.
All in all we believe we are well positioned to capitalize on the many opportunity hydro was absolutely drive durable organic growth and create long term shareholder value.
I will now hand, the call over to Franco.
Thank you Franco on slide seven for the third quarter of 'twenty to 'twenty, two we delivered another solid quarter of double digit revenue growth.
And achieved adjusted EBITDA margin of 26, 8%.
Well Avenue from our high value solutions.
54% to $74 4 million euros, representing 30% of total revenue in the third quarter of 2022.
Why do we are pleased with our financial results and increase in inflationary costs, particularly utility on logistics costs temper gross profit margin in the third quarter.
The fun utility prices have started to come down from recent highs and like everyone else. We are proactively managing the complexities, although me inflation and supply chain.
We implemented.
To mitigate the effects and we believe we are successfully navigating the comment that environment.
We remain optimistic on the demand landscape and our long term growth trajectory.
For the third quarter, New order intake totaled 247 million euros.
Year over year decrease was due to a significant drop in coffee to 19 orders.
Excluding Colby new order intake increased by approximately 6% in the third quarter 'twenty to 'twenty, two compared to last year.
The underlying demand trends remain strong.
At the end of the third quarter.
Complete the backlog in 'twenty.
21%.
Just over 1 billion euro.
On slide eight.
We have recently announced the next evolution of our ready to use to buy a platform called easy few small.
R&D of continual innovation allow us to further improve our easy to use platform.
We've been collaboration we've got a shy now we implemented several of advancement.
First we increased the automation in the manufacturing process to drive up productivity.
The use of human error.
You'll see a nice platform features no glass to glass and no glass and that both comped up.
Which improves the quality and integrity of the buy yes.
The problem for lifecycle.
Second the team when we designed the nascent topic configuration.
Which significantly reduces the risk of a particle contamination during the feline finished glasses.
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Absolutely.
We are introducing and I do not see the.
Thereby organization muscle that is more environmentally friendly compared to conditional ethylene oxide.
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That is more environmentally friendly compared to the condition of ethylene oxide.
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Answer to improve sustainability.
Together all of these improvements are projected to further lowered the total cost of ownership increased quality and shorten lead times for customers.
Easily exceed flexible is a well established the panda and the industrial process for reading to use dog containment solutions.
Is it under revision.
Sure for seamless integration with the founder of the feeling and finishing operations.
And also cross promo.
Secure and marquee sourcing supply chain.
Our efforts to drive continuous innovation.
Squarely in line with our long term strategy of providing value added.
Great solution.
To our customers as we slowly defy our platform as a key partner to pharma and biotech.
On page nine we are making good progress not probably you already could projects in the U S, Italy and China.
I've got about I don't think the expansion plans.
In response to growing demand for high performance containment product to help ensure the integrity of the highly sensitive to treatment such as the Jetblue was monoclonal antibodies and I've never knee applications.
We have already received a warm reception from customers who.
We're pleased with the strategic investment novel easy to use technology.
Crude processing at the pharma see the Atmos.
And the commonality across our technology and quality standards worldwide.
In the United States construction on a new building in Indiana is well under way.
We still expect revenue generation to begin sometime in late 2023 to early 2024.
Uniquely renovation of all progressing you know Latina and the new building.
Isn't younger complete.
In the meantime, we are adding much needed capacity.
Our existing operations.
In China, we should talk to the preliminary work on the renovation of the facility while the design freeze is still ongoing.
We are focused on successfully executing on these projects.
If anything the regional organization loss plateaus.
The teams are doing an extra ordinarily job supporting the evolving needs of our customers they need the favorable demand.
On slide 10, I'm proud to announce that they might not the index on biomedical were awarded the 2022 partnership Innovation award by the parental drugs that I guess Association. These award recognizes innovative a management therapy, the laborer who stayed on.
Bobby the Liberty system.
We are working with Exxon to optimize the supercar Daniels the liberty of non opioid pain in men undergoing treatment that is specifically designed to have to prevent misuse to controlled dosing and extended the liberty eats.
It enables patients to manage their condition that tool, which lowers cost and improves patient care.
A wearable device features a reusable credo, reaching media minds is the impact of all the electronic environmental waste.
And why are these three countries and pre clinical stages.
Strategically important as the trend towards the South I mean that placeholder magazine evolves over the next decade.
I know and the call over to Monica.
Thanks, Brian .
On slide 12.
Revenue for the first quarter of 2022 increased 14% to $245 3 million over last year.
When the girl in the biopharmaceutical diagnostic solution segment and favorable currency translation.
On a constant currency basis.
Water revenue grew 11%.
As expected contribution from COVID-19 accounted for approximately 14% total revenue compared to approximately 16% for the same period last year.
Gross profit margin in the FERC Walther granted 22 increased 310 basis points to 31, 6%.
Simply driven by the strategic mix shift to more accretive high value solutions in both margin and the engineering segment and favorable currency translation.
This was partially offset by higher inflationary costs, especially utilities and logistics.
Were to call the majority of this golf.
This adjustment in respect of Vishal recoveries in future periods.
There may be a delay in the timing of price adjustment and we estimate that these all favorably impacted gross profit margin by 1% in the third quarter.
For the first quarter of 'twenty 'twenty dual operating profit margin was 19, 4%.
Excluding certain start up costs adjusted operating profit margin improved to 20% compared to 17% for the same period last year.
This was driven by higher gross profit and then increasing other income which included legal fees from a previously disclosed contract modification.
For the first quarter of 2022 this resulted in them.
Net profit of $36 3 million or 14 science of diluted that in English.
Adjusted net profit of $37 7 million or adjusted diluted EPS of 14, saying so.
The adjusted EBITDA of $65 take me, they'll which reflects an adjusted EBITDA margin of 26, 8%.
He is the likes of the four segment resolved.
Bio pharmaceutical and diagnostic solutions segment, they leave up another solid quarter, often on a chevy solved.
The FERC cool that'll 2022, alright, and increased 20% to $207 1 million compared to the same period last year.
Then by stronger all in our core drug containment, but all of those as new capacity comes online.
On a constant currency basis. This segment grew 15%.
Revenue from high value solutions increased 54% to $74 4 million compared to last year.
These represent a 36% of segment revenue in the first quarter of 2022.
Revenue from our other containment delivery solutions increased 7% to $132 7 million deal.
For the third quarter acquainted blanket to gross profit margin increased 150 basis points to 32, 7% compared to last year.
Driven by favorable mix shift to high value solutions, and currency effects, which have offset inflationary cost.
But I think profit margin in the third quarter of 2022 increased 22, 8% compared to $18. One for the same period last year.
This improvement was driven by higher gross profit lower G&A and then even crazy now that income.
By Marcia resolved for the engineering segment were as expected.
The third quarter 'twenty to 'twenty two.
It is 9% to $58 two medium compared to the same period last year.
Mostly due to timing and progression of projecting chef and business lines.
For the third quarter totaled 2022 gross profit margin increased to 21, 5% compared to $15 four last year.
Driven by an increase in make sure that in your for a more accretive business lives and don't go optimization at fault.
And is that a child the operating profit margin in the third quarter 2022 increased to 14% due to improved gross profit and lower G&A expenses.
On slide 14 months.
Our balance sheet remains strong.
We believe we have ample liquidity to fund our investments in organic growth platforms.
As of September 30, we had positive net financial position of $49 6 million in cash and cash equivalents of $159 90.
In the third quarter capital expenditures were 71 point driving me, though as we continue to invest in our strategic global expansion browse.
For the third quarter net cash used for operating activities was $3 8 million, mostly due to increasing working capital to support our strategic initiatives to drive sustainable growth.
And by getting the interest to mitigate the supply chain issues in the current environment.
One of the main reasons for the negative free cash flow of $46 3 million email in the third quarter was cash used for investing activities of $43 2 million.
On page 15.
We are increasing our 2022 guidance, mostly due to currency effects.
Our updated guidance also considers that we're operating in a dynamic environment.
We are feeling our order book is a avenue from call it comes down.
The mix shift to high value solutions.
Actions taken to accelerate efficiencies and initiatives to keep a tight rein on costs.
Other helping to offset some of the things like shutting but.
We are prudently managing the business and remain focused on our long term growth objectives.
As a disaster, we now expect them.
Revenues in the range of 961 million to 971 meal.
Adjusted diluted EPS in the range of 52 to 54 sensor.
And adjusted EBITDA in the range of $254 5 million to handling 60 medium.
I will hand over the call back to Franco for closing comments.
Thanks, Michael.
In closing we are executing the fourth pillar of our strategic and operational priorities.
To advance our global capacity expansion.
The mix of the high value solutions.
Invest in R&D and build a multiyear pipeline of new opportunities.
We are excited about the future growth prospects and yen port opportunities in front of us.
Device and biologics and Biosimilars.
Staying with the macro trend of the aging population.
The increasing incidence of chronic disease.
And the sheep towards the self administration of magazines.
Our customers are making groundbreaking price and treatments to improve patient care.
Supporting our customers in Korea, and delivery data Center solutions.
Central to our philosophy and vision.
Our strategic priorities are designed to capitalize on these favorable trends support customers and exploit our full potential to our unique end to end capabilities.
And with that let's open it up for questions.
Thank you. This is the chorus call conference operator, we will now begin the question and answer session.
Anyone who wishes to ask a question you May press star and one.
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Start.
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First question is from Patrick Donnelly with Citi. Please go ahead.
Hi, Good morning, this is Mike.
Thank you so much for taking my question, So I guess first for them.
Hum.
Okay.
Hum when our revenue for the year just wondering at all if.
If anything has changed there and then I have a.
One follow up thanks.
Hi, Lindsay it's weeks I'm, having a little bit of difficulty hearing you I believe you asked if COVID-19 was still expected to be 10% for the year and then can you ask your second question again.
Sure.
Can you just remind us on the trajectory there or is it still supposed to be around mid thirties.
I know a few years out as well given out on 30% of revenues until this quarter. It gets it gets about you're seeing there as well. Thank you.
Yes, so just to round out the question Mark I will take it to give you the confirmation of Covid revenue for 2022, and we will provide you the commentary on high value solutions expectations for 'twenty, two and a long term trajectory.
Yeah.
Yeah. So short answer is yes, we still expect 10%, though that in your call and your support of me.
And the volatile there just shouldn't show we are pretty happy we'd be able to show we have a strong backlog to the last part going to be glad to do it and we have now moving our guide on strong 29% to 30% above the cause of that.
Uh huh.
We have seen a vertical trajectory.
Okay.
Solution. She has between 29, 30% and recipes.
I think the online with our trajectory to reach our mid 30% by 'twenty 'twenty six.
Thank you.
Thanks Lindsay next question. Please. The next question is from Derik de Bruin with Bank of America. Please go ahead.
Hi, good morning, and thank you for taking my questions.
So.
So there is.
There's been a lot of confusion and I think people questioning.
Because of some of the good results from some of the others.
See demos in the space and.
Some of the other components acquires.
Can you just talk about the demand for.
Underlying non COVID-19 related products.
Looks like your backlog is increasing.
General commentary on what you're seeing.
In the market with demand continuing demand.
And I've got a follow up.
Yeah.
Our view on the market is the demand is so strong.
And the increased order intake a year over year due to the base business is an evidence that their growth is consistent that continues to be in the directional. So two approval of the need of a high value solution that we are putting on the market.
Excuse me and a very warm welcome from our customers.
We can understand that there is going to go down too.
Due to Covid, but we believe that these limited to that kind of business.
And we are now focused on the expansion of our capacity.
Europe , and the U S, but to provide the watered out costs I'm not asking for that is more of a high value solution.
We see these as a consistent brand, but in the short term and even longer on.
Great and then just if you could offer some thoughts on what you think the Caribbean contribution could be.
2023 revenues and also your thoughts on what the overall FX <unk>.
The impact will be on the top line.
For the fourth quarter and any initial thoughts on 2022. So we can help triangulate our models. Thank you.
But for sure we are appropriately.
Appropriately we provide the guidance for the 23 in the next Oh, My God, they're trying to.
Revenue coming from Covid during the year, there's already a topic that we called out last quarter and this quarter, we still expect to be in line with our previous guidance for the year and time of the Brooklyn.
But what I want to stress that the use of our.
Capacity is not linked to COVID-19 in any way because we are flexible.
I want to invest in our leading to high value solutions, mostly in all kinds of percent and these capacity either not dedicated to a single therapeutic area, we are providing being woken up a customer need for mainly therapeutic areas in a very high for mining business and get a pretty good.
Like any application on like just the why is there. So we are really engaged in.
The strong type of line haul costs and focused on the execution of our Capex for the next month.
And about the foreign exchange a sector, we have in our model for 2022 about Duane before neither of them stayed winter related to foreign exchange effects.
And I think that's worth making.
Based on Q4 expectations.
Thank you very much.
Okay.
Thanks, Eric next question. Please. The next question is from Paul Knight with Keybanc. Please go ahead.
Claudia Franco can you talk to the garish primer easy fuel smart collaboration will you both generate revenue independently.
The joint venture how we should we think about the structure of that.
Product revenue record recognition.
Thank you Paul for Christina you May recall that the for the easy feel what is the current does it feel to go to Shanghai.
It was one of the partner we license our IP in that Boston deal to deal.
The agreement in place looking at the future, we decided to develop these technologies to transform our backing to stay loyal to together with the go to China to combine our best expertise in there you've talked about Cosmos. This is the reason why we developed.
Intellectual property and other main model is it feels mark that is the next generation of distillate configuration provide doesn't copies.
In terms of the revenues.
We will be independent completely independent time, although revenue for the sake of easy fees rather.
Obviously, each case that we really liked the new technologies to further Bob is we really share their license for Pete.
None of the business that we read out on me independent and the reason why we.
Thanks, and this cooperation is to partially adoption of this kind of in the market and to even though right. The answer to the needs of our cost down to what the market will source and the best solution and from all the quality announcements.
And Franco with 6% order growth at 21%.
Increase in backlog are you, having some products you're having to.
Trouble meeting demand for is that what I would oh.
Zoom or is it just product for later in the year, what what's the dynamic behind the significant 21% backlog growth.
Yeah speaking I request, our vector is growing it's about won't be there.
I can tell you, we're pretty happy with the shifting to what I value solution that are representing anything crazy.
Shout them out of backlog.
Okay. Thank you.
Yeah.
Thanks, Paul next question please.
Question is from Dave Windley with Jefferies. Please go ahead.
Hi, Good morning, good afternoon, Thanks for taking my question.
I'm curious first if you could talk to.
What specific products if any in your high value solutions portfolio are seeing the most uptake.
And then Relatedly you've mentioned several times on the call G. L. P. One specifically.
Can we infer from that that your your respect in on G O P ones and and participating in that.
And that growth arena and those commercial products.
Yes, that's the first part of aircraft.
The portfolio of high value solutions is growing rapidly, but we don't have specific a driver because we are expanding our production on both the series is barnhouse golf is is we have some very good prospects for the future and some of the conversion of the market provides us an cockpit as maybe we will.
Take a major part in the next year, but today, we are well represented in our portfolio with a good very good.
Kris.
All of the business.
The line.
He's done all the therapeutic area I can't confirm that the we have kind of a very well balanced portfolio.
Could you kind of got different therapeutic areas and different geography.
There are some trends that are very heavy many in the market today being too specific technologies like mrna.
Or a therapeutic line like a.
And you basically just the one we are engaged with most of the most important pharma company, who said with big players in the market. So we are not we have multiple projects with several customers.
Okay.
Before I go on the AR on the first question I was hoping to get at things like.
Are you seeing nexsan Alba uptake in terms of kind of a hierarchy.
Of high value solutions is that also something that you don't want to talk about specifically or would you be willing to talk about.
You know kind of some of those.
Products that have the more significant IP wrapped around them.
How are you.
Our capex is bigger for us because we have put all our money in high budget solution and some opportunities as we are investing a lot in the new alliance.
Almost all dedicated to Mexico or out of the configuration, we have put the alignment of new lines for this kind of product and we believe that the other day.
Can become one of the standout in the market in time also ranges in the meantime, we are also investing.
It is if you buy them not only for the technology to transform Bakken to survive, but also because we believe that our container solution the biogas.
At this time feature <unk>.
Volatility high mechanical resistance.
Our success will now and can.
It can be even more successful for the future.
Yeah.
Got it in terms of.
The engineering business hasn't been touched on very much you saw some decrease there.
Wondering to the extent that we've seen across the industry.
A number of manufacturers, including contract manufacturers put a lot of capacity in place and spend a lot of capex themselves.
Was that a driver of.
Engagement and activity for your engineering services business.
And.
Do we need to anticipate a you know a.
Essentially tough comps there or a lull following a lot of pull forward of capital expansion by manufacturers.
This gave them.
We have a variety of solutions in our portfolio.
We are a leader in visual inspection, but that we have a very strong technology Assembly.
Assembly lines. So in the obviously in the form of lives.
They'll know how from the very beginning of the company. So the.
Can be some fluctuation.
It's a single product line, but overall, we continue to see very strong demand.
Innovation in these product lines, we mentioned several times the artificial intelligence as a driver for our leadership position. I mean, these are spec to them that is not the only option we have.
Okay. Thank you for the answers.
Thank you David Operator next question. Please the next question is from Matt <unk>.
William Blair. Please go ahead.
This is not one moment.
Sort of piggybacking on the question I have COVID-19 orders come down and they're replaced by non Covid high value solution orders, how do you see that impacting the margin dynamics is there a margin difference in terms of the products that are being ordered for COVID-19 versus the non COVID-19 high values.
And can you sort of speak to that a little bit and see how to speak to how that you see that impacting margins going forward.
We mentioned in the past the fact that in call with the business. We had about the same mix, we already know the cut off filter goutish or the percentage of high value solution called it will seem a lot of the overall company.
But.
And also we haven't experienced any sort of margin and call it compared to the Argos get up that'd be counted so even notch. It the short answer is no.
On the other side. The good news is that we are replacing the call really dialed that up go to cat M. Because we don't have any capacity constrained in doing that so you can see strong demand.
And matter of fact, so we ought to execute in our economy.
Okay. Thank you.
Thank you next question. Please the next question is from Tim Willi with Wells Fargo. Please go ahead.
Yeah.
Great. Thanks.
So just wanted to dig a bit into the margin dynamics for Edr.
Better than expected.
You called out a 100 basis points of price cost timing lag them. By contrast engineering was better unexpected seems like there's more margin deliveries being delayed so how should we think about these normalizing into next quarter and then on top of those kind of one off factors one was the energy impacted the margin.
Think about it on a year over year.
And how are you thinking about energy impacts to margin in the fourth quarter in 2023, and I think you guys detailed that you've taken some actions around securing your energy sort of thing if you could.
To provide more details there that'd be really helpful.
Yes. Thanks for the question. So in Q3, we estimate the inflationary pressure sure Keith.
Our gross profit for about a 1% type things that we had about $2 five $2. Six media you have been able to pass the floor webcast announcing price increases.
<unk> was the shopping cart or using the end of July and August .
But all gas price in Europe .
And that's excluding that's the game that you do that.
And then 1% volume growth.
Yeah.
For the future or what we can see now is that it.
The gas pricing in Europe , wind down and Oh.
All of that I am beginning of November .
Do we have in front of us in order to manage these these basically any calculating frequently all water cost or price.
They meet with our customers.
And on top of it obviously, we have many tools in place to minimize the impact through automation and cost efficiency.
We are managing the situation seems so.
Some months ago and this is how we will keep on growing.
Alright, no appreciate that detail and then my second question thinking about.
Expansion plans.
The Indiana facility.
<unk> seen a lot of slack in the construction markets in the U S. So that would suggest that there's a potential acceleration of timelines in terms of the.
Doors opening ribbon cutting.
Revenue is getting recognized there faster than expected so.
You are able to achieve better construction timelines.
It would be any reason that you wouldnt would be not able to I guess achieve revenue recognition earlier there.
From a you know, whether it's pricing or anything like that.
For the time appreciate it.
Yeah I have to confirm that we are on track with our plan.
The construction of that facility is an important piece, but also the delivery on the lines is on track that is very important and we are well satisfied but the action taken to prepare their crew.
They have the staff that is already in Italy for training and in the meantime, we have also prepared the Ghanaian stop to join the American one tool for the startup of the facility. So I can confirm that we are in line with.
Our plan.
And though we don't have.
And NASA.
Possible impact in the near term.
Thank you.
Next question please.
Our next question comes from the line of John Sour beer with UBS. Please go ahead.
Hi, Thanks for taking the questions first one here just on pricing given some of the inflationary costs are you receiving any pushback from customers on pushing price increases and do you expect some of this pricing too.
Flow through and should continue to get price increases in 2023.
Yes, good option too.
Describe our approach to pricing and created because of it.
Lastly on doing these.
Cost of two hour Katherine about the looking at the order of peaks of our relationship with customer and we decided to have the approach for.
For the long run in order for the immediate the advantage of it. So this approach may this time that you do see that fact in Panama multi knowledge because of Republic Costa.
Without the ethane marginality on debt and what they do.
These debates that are looking into the future.
We will be back to the normal blocking to calculate kosta and having the normal margin obviously on that theory.
It's something that.
Through our very easily make the relationship with the customer and we are progressing to come online in any change in the timeline there.
Thanks.
That's what I anticipate in Miami.
Comment that he made a comment.
We started with some work in the facility for their event.
As a nation of the facility, even though that is that brownfield is not a greenfield and every time we are progressing.
With.
Our design activity as you know.
We have a we several times is that we are we have a modular approach to those investments or we are ready to adjust for the least amount of our investment to the to our needs and.
Demand, but that is something that we look at carefully everywhere every time before is a single project.
Thanks for taking my question.
Again.
You'll recall that we have expectation to stop our revenue generation.
In one half 'twenty four.
It remains unchanged.
Got it thanks for the questions.
Thanks, Shaun I, Virginia had one more question please.
Question is from drew Ranieri with Morgan Stanley . Please go ahead.
Hi, Franco and Marco this is Jacob on for drew.
Thanks for taking the questions I'll ask my two questions upfront.
I know you mentioned you won't be able to provide too much color, but thinking ahead to 'twenty three given the current environment are you comfortable with consensus revenue slightly over 1 billion Euro an EPS of <unk> 54 cents.
And then my second question, how are you thinking about the evolution of Capex spend them.
Over full year 2022 and into the next couple of years ahead.
Thanks again for taking the questions.
But today the color. We can provide is about our existing backlog we are happy with the backlog, we gotta be need for water.
22 first of all but also for 2023.
We have a little more specialty it sounded to me Neal for 2023, and so we had a beat me the backlog for 2024.
So.
We are not providing guidance today about 'twenty 'twenty three but those are only talking about our backlog.
Because I don't recall the second part of your question.
Okay trend of Capex is let's say, we spent about 200 and to me. They have seen the first three quarter. We now expect between 300 million three onto therapy D. G. You had in 2022.
And as anticipated, we expect that to be an important year for capex or so 'twenty 'twenty three as we complete that it'd be down something three facilities.
And then we expect to enter into a more normalized pace stopping from 'twenty to 'twenty four.
This is exactly what we expected.
Before the IPO and the use of applying 94 season.
Thanks to our next question please.
For any further questions you May press star and one on your telephone.
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Let me Smile gentlemen, there are no more questions registered at this time.
Thank you Jamie I just wanted to say, thank you to everyone for joining us today for the seven nano group.
Third quarter 2022 earnings call and we look forward to speaking with you in the future. Thank you very much.
Ladies and gentlemen, thank you for joining the conference is now over you may disconnect your telephones.
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