Thu, Jul 25, 8:19 PM (44 days ago)
West Pharmaceutical Services, Inc. reported a decline in net sales for Q2 2024 by 6.9% to $702.1 million compared to Q2 2023, primarily due to reduced demand for high-value products and customer inventory management. Gross profit decreased by 21.1% to $230 million, with a margin drop from 38.7% to 32.8%, driven by lower sales volume and unfavorable product mix. Operating profit fell by 30.8% to $126.2 million. The effective tax rate decreased to 17.0% from 18.8%, influenced by a shift in geographic earnings mix. Cash and cash equivalents dropped significantly to $446.2 million from $853.9 million at year-end 2023, mainly due to capital expenditures and share repurchases. The company remains compliant with debt covenants and anticipates adequate liquidity from operations and available credit facilities.