Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

Share Name	Share Symbol	Market	Type
Stevanato Group SpA	NYSE:STVN	NYSE	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.0725	-0.31%	23.5975	23.95	23.22	23.95	181,110	16:09:24

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024

Commission File Number: 001-40618

Stevanato Group S.p.A.

(Translation of registrant’s name into English)

Via Molinella 17

35017 Piombino Dese – Padua

Italy

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40‑F.

Form 20-F ☒ Form 40-F ☐

Stevanato Group S.p.A.

Interim report

for the three and the six months ended June 30, 2024

Table of Contents


	Page
Introduction	i
Cautionary Statements Regarding Forward-Looking Statements	ii
Unaudited Interim Condensed Consolidated Financial Statements	1
Management's Discussion and Analysis of Financial Condition and Results of Operations	37
Quantitative and Qualitative Disclosure About Market Risk	61
Controls and Procedures	65
Legal Proceedings	66
Risk Factors	66
Unregistered Sales of Equity Securities and Use of Proceeds	66
Defaults Upon Senior Securities	66
Other Information	66
Signatures	67

INTRODUCTION

The financial information of Stevanato Group included in this Interim Report is presented in Euro except that, in some instances, information is presented in U.S. Dollars. All references in this report to “Euro”, “EUR” and “€” refer to the currency introduced at the start of the third stage of European Economic and Monetary Union pursuant to the Treaty on the Functioning of the European Union, as amended, and all references to “U.S. Dollars”, “USD” and “$” refer to the currency of the United States of America (the “United States”).

Certain totals in the tables included in this document may not add due to rounding. The financial data in the Management Discussion and Analysis of Financial Condition and Results of Operations is presented in millions of Euro, while the percentages presented are calculated using the underlying figures in Euro.

This Interim Report is unaudited.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 6-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Stevanato Group S.p.A. (“we”, “our”, “us”, “Stevanato Group”, the “Company” and, together with its subsidiaries, the “Group”). These forward-looking statements include, or may include, words such as “believe”, “potential”, “increased”, “future”, “remain”, “growing”, “expect”, “foreseeable”, “expected”, “to be”, “estimated”, “assumes”, “would”, “anticipate”, “will”, “plan”, “may”, “forecast”, “result”, and other similar terminology. Forward-looking statements contained in this report include, but are not limited to, statements about: our future financial performance, including our revenue, operating expenses and our ability to maintain profitability and operational and commercial capabilities; our expectations regarding the development of our industry and the competitive environment in which we operate; the expansion of our plants and our expectations to increase production capacity; the global supply chain and our committed orders; customer demand and customers' ability to destock higher inventories accumulated during the COVID-19 pandemic; the success of our initiatives to optimize the industrial footprint, harmonize processes and enhance supply chain and logistics strategies; our geographical and industrial footprint; and our goals, strategies and investment plans. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Stevanato Group's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, inflation, the impact of the conflict between Russia and Ukraine, the evolving events in Israel and Gaza, supply chain and logistical challenges and other negative developments in Stevanato Group’s business or unfavorable legislative or regulatory developments. The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements: (i) our product offerings are highly complex, and, if our products do not satisfy applicable quality criteria, specifications and performance standards, we could experience lost sales, delayed or reduced market acceptance of our products, increased costs and damage to our reputation; (ii) we must develop new products and enhance existing products, adapt to significant technological and innovative changes and respond to introductions of new products by competitors to remain competitive; (iii) if we fail to maintain and enhance our brand and reputation, our business, results of operations and prospects may be materially and adversely affected; (iv) we are highly dependent on our management and employees. Competition for our employees is intense, and we may not be able to attract and retain the highly skilled employees that we need to support our business and our intended future growth; (v) our business, financial condition and results of operations depend upon maintaining our relationships with suppliers and service providers; (vi) our business, financial condition and results of operations depend upon the availability and price of high-quality materials and energy supply and our ability to contain production costs; (vii) significant interruptions in our operations could harm our business, financial condition and results of operations; (viii) as a consequence of the COVID-19 pandemic, sales of syringes and vials to and for vaccination programs globally increased resulting in a revenue growth acceleration. The demand for such products may shrink, as the need for COVID-19 related solutions continue to decline; (ix) our manufacturing facilities are subject to operating hazards which may lead to production curtailments or shutdowns and have an adverse effect on our business, results of operations, financial condition or cash flows; (x) our business, financial condition and results of operations may be impacted by our ability to successfully expand capacity to meet customer demand; (xi) the loss of a significant number of customers or a reduction in orders from a significant number of customers, including through destocking initiatives or lack of transparency of our products held by customers, could reduce our sales and harm our financial performance; (xii) we may face significant competition in implementing our strategies for revenue growth in light of actions taken by our competitors; (xiii) our global operations are subject to international market risks that may have a material effect on our liquidity, financial condition, results of operations and cash flows; (xiv) we are required to comply with a wide variety of laws and regulations and are subject to regulation by various federal, state and foreign agencies; (xv) given the relevance of our activities in the healthcare sector, investments by non-Italian entities in the Company, as well as certain asset disposals by the Company, may be subject to the prior authorization of the Italian Government (so called "golden powers"); (xvi) if relations between China and the United States deteriorate, our business in the United States and China could be materially and adversely affected; (xvii) cyber security risks and the failure to maintain the confidentiality, integrity and availability of our computer hardware, software and internet applications and related tools and functions, could result in damage to our reputation, data integrity and/or subject us to costs, fines or lawsuits under data privacy or other laws or contractual requirements; (xviii) our trade secrets may be misappropriated or disclosed, and confidentiality agreements with directors, employees and third parties may not adequately prevent disclosure of trade secrets and protect other proprietary information; (xix) if we are unable to obtain and maintain patent protection for our technology, products and potential products, or if the scope of the patent protection obtained is not sufficiently broad, we may not be able to compete effectively in our markets; (xx) we depend in part on proprietary technology licensed from others. If we lose our existing licenses or are unable to acquire or license additional proprietary rights from third parties, we may not be able to continue developing our potential products; and (xxi) we are obligated to maintain proper and effective internal controls over financial reporting. Our internal controls were not effective for the year ended December 31, 2023, and in the future may not be determined to be effective, which may adversely affect investor confidence in us and, as a result, the value of our ordinary shares. This list is not exhaustive. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.

These forward-looking statements speak only as at their dates. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of these factors. Further, the Company cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statements.

For a description of certain additional factors that could cause the Company’s future results to differ from those expressed in any such forward-looking statements, refer to the risk factors discussed under “Risk Factors” below and “Item 3D. Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission on March 7, 2024.

iii

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AT AND FOR THE THREE AND THE SIX MONTHS ENDED JUNE 30, 2024

Stevanato Group S.p.A.

Interim consolidated income statement

for the three and the six months ended June 30, 2024 and 2023

(Unaudited)


		For the three months ended June 30,					For the six months ended June 30,
		2024			2023		2024			2023
		(EUR thousand)					(EUR thousand)
	Notes
Revenue	9		259,579			255,305		495,573			493,297
Cost of sales	10		192,056			176,401		365,852			338,134
Gross Profit			67,523			78,904		129,721			155,163

Other operating income	11		941			4,019		2,285			5,233
Selling and marketing expenses	12		7,389			6,775		13,181			12,841
Research and development expenses	12		8,741			8,363		19,495			16,913
General and administrative expenses	12		24,365			22,921		46,071			45,129
Operating Profit			27,969			44,864		53,259			85,513

Finance income	13		2,696			6,723		6,846			11,127
Finance expense	14		1,494			7,278		5,258			16,281
Profit Before Tax			29,171			44,309		54,847			80,359

Income taxes	15		8,548			10,028		15,412			17,795
Net Profit			20,623			34,281		39,435			62,564

Net Profit attributable to:
Equity holders of the parent			20,625			34,241		39,439			62,506
Non-controlling interests			(2	)		40		(4	)		58
			20,623			34,281		39,435			62,564

Earnings per share
Basic earnings per ordinary share (in EUR)	16		0.08			0.13		0.15			0.24
Diluted earnings per ordinary share (in EUR)	16		0.08			0.13		0.15			0.24

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

Stevanato Group S.p.A.

Interim consolidated statement of comprehensive income

for the three and the six months ended June 30, 2024 and 2023

(Unaudited)


		For the three months ended June 30,						For the six months ended June 30,
		2024			2023			2024			2023
		(EUR thousand)						(EUR thousand)
	Notes
Net Profit			20,623			34,281			39,435			62,564

Gains/(losses) from remeasurement of employee defined benefit plans			137			(41	)		276			(122	)
Tax effect relating to those components of OCI			(9	)		(2	)		(19	)		19
Other comprehensive income/(loss) that will not be classified subsequently to profit or loss			128			(43	)		257			(103	)

Exchange difference on translation of foreign operations	26		(12,479	)		3,557			(5,105	)		7,506
Changes in the fair value of cash flow hedging instruments			(690	)		(1,577	)		(768	)		(649	)
Changes in the time value element - cost of hedge			(46	)		134			(61	)		(287	)
Tax effect relating to those components of OCI			171			409			216			13
Other comprehensive income that might be classified subsequently to profit or loss			(13,044	)		2,524			(5,718	)		6,583

Total other comprehensive income, net of tax			(12,916	)		2,480			(5,461	)		6,480

Total Comprehensive Income			7,707			36,761			33,974			69,044

Attributable to:
Equity holders of the parent			7,709			36,707			33,978			68,966
Non-controlling interests			(2	)		54			(4	)		78
			7,707			36,761			33,974			69,044

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

Stevanato Group S.p.A.

Interim consolidated statement of financial position

at June 30, 2024 and at December 31, 2023

(Unaudited)


		At June 30,		At December 31,
		2024		2023
		(EUR thousand)
Assets	Notes
Non-current assets
Goodwill			49,983		49,983
Intangible assets	17		32,197		30,985
Right of use assets	19		16,876		18,249
Property, plant and equipment	18		1,139,461		1,028,489
Financial assets - investments FVTPL			379		676
Other non-current financial assets	20		5,641		5,052
Deferred tax assets	15		82,827		76,251
			1,327,364		1,209,685
Current assets
Inventories	21		302,778		255,321
Contract assets	22		175,970		172,580
Trade receivables	22		236,976		301,769
Other current financial assets	20		2,321		4,382
Tax receivables	23		17,006		14,338
Other receivables	24		56,492		43,900
Cash and cash equivalents	25		78,146		69,602
			869,689		861,892
Total assets			2,197,053		2,071,577
Equity and liabilities
Equity
Share capital	26		22,232		21,698
Reserves and retained earnings	26		1,262,495		965,202
Net profit attributable to equity holders of the parent	26		39,439		145,631
Equity attributable to equity holders of the parent			1,324,166		1,132,531
Non-controlling interests	26		54		115
Total equity			1,324,220		1,132,646

Non-current liabilities
Non-current financial liabilities	27		252,373		255,639
Employees benefits	29		7,225		7,413
Non-current provisions	31		4,100		3,975
Deferred tax liabilities	15		10,564		9,624
Non-current advances from customers	34		47,667		39,418
Other non-current liabilities	32		51,342		48,474
			373,271		364,543
Current liabilities
Current financial liabilities	27		66,575		143,277
Current provisions	31		1,462		1,063
Trade payables	33		256,942		277,815
Contract liabilities	34		23,501		22,306
Advances from customers	34		11,130		22,892
Tax payables	23		52,283		30,798
Other current liabilities	33		87,669		76,237
			499,562		574,388
Total liabilities			872,833		938,931
Total equity and liabilities			2,197,053		2,071,577

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

Stevanato Group S.p.A.

Interim consolidated statements of changes in equity

for the six months ended June 30, 2024 and 2023

(Unaudited)


	Notes	Share capital		Share premium reserve			Treasury shares reserve			Cash flow hedge reserve			Cost of hedging reserve			Reserve for actuarial gains / (losses)			Foreign currency translation reserve			Retained earnings and other reserve			Equity attributable to equity holders of the parent			Non- controlling interests			Total equity
		(EUR thousand)
At January 1, 2024			21,698		389,312			(27,233	)		2,241			(83	)		(287	)		(10,976	)		757,859			1,132,531			115			1,132,646
Other comprehensive income	26		—		—			—			(567	)		(46	)		257			(5,105	)		—			(5,461	)		—			(5,461	)
Net profit	26		—		—			—			—			—			—			—			39,439			39,439			(4	)		39,435
Total comprehensive income			—		—			—			(567	)		(46	)		257			(5,105	)		39,439			33,978			(4	)		33,974
Dividends	26		—		—			—			—			—			—			—			(14,457	)		(14,457	)		—			(14,457	)
Change in the consolidated group			—		—			—			—			—			—			—			56			56			(56	)		—
Capital increase	26		534		174,376			—			—			—			—			—			—			174,910			—			174,910
Accessory costs to capital increase	26		—		(5,425	)		—			—			—			—			—			—			(5,425	)		—			(5,425	)
Taxes relating to capital increase costs	26		—		1,302			—			—			—			—			—			—			1,302			—			1,302
Share-based incentive plans	26		—		—			56			—			—			—			—			1,189			1,245			—			1,245
Other	26		—		—			—			—			—			—			—			25			25			—			25
Total effects			534		170,253			56			—			—			—			—			(13,187	)		157,657			(56	)		157,601
At June 30, 2024			22,232		559,565			(27,177	)		1,674			(129	)		(30	)		(16,081	)		784,111			1,324,166			54			1,324,220

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements


	Notes	Share capital		Share premium reserve		Treasury shares reserve			Cash flow hedge reserve			Cost of hedging reserve			Reserve for actuarial gains / (losses)			Foreign currency translation reserve			Retained earnings and other reserve			Equity attributable to equity holders of the parent			Non- controlling interests			Total equity
		(EUR thousand)
At January 1, 2023			21,698		389,312		(27,740	)		5,371			(179	)		(74	)		(15,611	)		623,353			996,130			(220	)		995,910
Other comprehensive income			—		—		—			(705	)		(218	)		(103	)		7,486			—			6,460			20			6,480
Net profit			—		—		—			—			—			—			—			62,506			62,506			58			62,564
Total comprehensive income			—		—		—			(705	)		(218	)		(103	)		7,486			62,506			68,966			78			69,044
Dividends	26		—		—		—			—			—			—			—			(14,294	)		(14,294	)		—			(14,294	)
Share-based incentive plans			—		—		—			—			—			—			—			3,060			3,060			—			3,060
Other			—		—		—			—			—			—			—			85			85			—			85
Total effects			—		—		—			—			—			—			—			(11,149	)		(11,149	)		—			(11,149	)
At June 30, 2023			21,698		389,312		(27,740	)		4,666			(397	)		(177	)		(8,125	)		674,710			1,053,947			(142	)		1,053,805

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

Stevanato Group S.p.A.

Interim consolidated statements of cash flows

for the six months ended June 30, 2024 and 2023

(Unaudited)


		For the six months ended June 30,
		2024			2023
		(EUR thousand)
	Notes
Operating activities
Profit before tax			54,847			80,359
Adjustments:
- depreciation and impairment of property, plant and equipment	18		34,749			30,154
- amortization of intangible assets and right of use assets	17, 19		7,763			7,728
- allowance for doubtful accounts			329			294
- net interest expense/(income)			1,333			1,261
- (gain)/loss from the disposal of non-current assets			(630	)		23
Change in other provisions			1,380			793
Change in employee benefits			118			(45	)
Other non-cash expenses, net			(5,747	)		7,733
Working capital changes:
- inventories and contract assets			(51,926	)		(86,567	)
- trade receivables and other assets			49,751			(33,506	)
- trade payables, contract liabilities, advances and other liabilities			5,210			58,006
Interest paid			(2,338	)		(1,421	)
Interest received			1,193			537
Income tax paid			(2,187	)		(3,840	)
Net Cash Flows from operating activities			93,845			61,509
Cash Flow from investing activities
Purchase of property, plant and equipment			(169,253	)		(219,916	)
Proceeds from sale of property plant and equipment			3,042			1
Purchase of intangible assets			(5,551	)		(2,568	)
Proceeds from investments in financial assets			325			(2,201	)
Proceeds from life insurance policies redemption			—			27,908
Acquisition of a subsidiary			(175	)		—
Net Cash Flows used in investing activities			(171,612	)		(196,776	)
Cash Flow from financing activities
Net proceeds from follow on offering of ordinary shares	25		169,817			—
Payment of principal portion of lease liabilities			(2,849	)		(3,202	)
Proceeds from borrowings			50,000			14,871
Repayments of borrowings			(129,477	)		(42,931	)
Net Cash Flows from/ (used in) financing activities			87,491			(31,262	)

Net change in cash and cash equivalents			9,724			(166,529	)
Net foreign exchange differences on cash and cash equivalents			(1,180	)		(990	)
Cash and cash equivalents at January 1			69,602			228,740
Cash and cash equivalents at June 30			78,146			61,221

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements

Stevanato Group S.p.A.

Notes to the Unaudited Interim Condensed Consolidated Financial Statements

(Unaudited)

Corporate information

Stevanato Group S.p.A. (herein referred to as the “Company” and together with its subsidiaries the “Group”) is headquartered in Italy and its registered office is located at via Molinella 17, Piombino Dese (Padova, Italy). The Group is active in the design, production and distribution of products and processes to provide integrated solutions for the bio-pharma and healthcare industries, leveraging on regular investment and the selected acquisition of skills and new technologies to maintain and enhance its status as a global leader in the bio-pharma industry. Principal products are containment solutions, drug delivery systems, medical devices, diagnostic and analytical services, visual inspection machines, assembling and packaging machines, and glass forming machines.

The Group has ten production plants for manufacturing and assembly of bio-pharma and healthcare products (in Italy, Germany, Slovakia, Brazil, Mexico, China, and the United States), four plants for the production of machinery and equipment (in Italy and Denmark), two sites for analytical services (in Italy and the United States) and two commercial offices (in Japan and the United States). The Group is expanding its global capacity primarily for its high-value solutions products. In Italy, the new facilities in Piombino Dese and in Latina started commercial production in 2023. In the United States, the Group is advancing the build out of its new EZ-fill® manufacturing hub in Fishers, Indiana. In late 2023, the plant launched customer validations which are expected to continue into 2026 as part of the planned multi-year ramp-up, with commercial operations expected to start in the second half of 2024. The global footprint allows the Group to sell products and provide services in more than 70 countries worldwide.

Stevanato Group S.p.A. is controlled by Stevanato Holding S.r.l. which holds 73.73% of its share capital.

On July 16, 2021, Stevanato Group began trading on the New York Stock Exchange under the STVN ticker.

Authorization of Unaudited Interim Condensed Consolidated Financial Statements and compliance with international financial reporting standards

These Unaudited Interim Condensed Consolidated Financial Statements of Stevanato Group S.p.A. were authorized for issuance on August 5, 2024 and have been prepared in accordance with IAS 34 - Interim Financial Reporting. These Unaudited Interim Condensed Consolidated Financial Statements should be read in conjunction with the Group’s consolidated financial statements at and for the year ended December 31, 2023 (the “Consolidated Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The accounting policies adopted are consistent with those used at December 31, 2023, except as described in Note 3 - Basis of preparation for the Unaudited Interim Condensed Consolidated Financial Statements “New standards, amendments and interpretations”.

Basis of preparation for Unaudited Interim Condensed Consolidated Financial Statements

The preparation of the Unaudited Interim Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities as well as disclosures of contingent liabilities. If in the future such estimates and assumptions, which are based on management’s best judgment at the date of these Unaudited Interim Condensed Consolidated Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. Reference should be made to the section “Use of estimates” in the Consolidated Financial Statements for a detailed description of the more significant valuation procedures used by the Group.

Impairment tests of non-current assets (including goodwill and assets with an indefinite useful life for which impairment tests are performed for the preparation of the annual Consolidated Financial Statements) are not performed for the preparation of the Unaudited Interim Condensed Consolidated Financial Statements unless impairment indicators have been identified.

The actuarial valuations that are required for the determination of employee benefit provisions are also usually carried out during the preparation of the annual consolidated financial statements, except in the event of significant market fluctuations or significant

plan amendments, curtailments or settlements. IAS 34 also requires the disclosure of the nature and amount of items affecting net income that are unusual due to their nature, size or significance.

These Unaudited Interim Condensed Consolidated Financial Statements include the interim condensed consolidated income statement, the interim condensed consolidated statement of comprehensive income, the interim condensed consolidated statement of financial position, the interim condensed consolidated statement of changes in equity, the interim condensed consolidated cash flow statement and the accompanying condensed notes. The Unaudited Interim Condensed Consolidated Financial Statements are presented in Euro, which is the functional and presentation currency of the Company, and amounts are stated in thousands of Euros, unless otherwise indicated.

The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Company’s management considers that there are currently no material uncertainties that may cast significant doubts over this assumption. Management has formed a judgment that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than one year after the date the financial statements are approved to be issued.

As the Group is not including the full set of disclosures, as required in a complete set of financial statements, the interim financial statements of the Group are regarded as ‘condensed’, as per IAS 34.

New standards, amendments and interpretations

The accounting policies adopted in the preparation of the Unaudited Interim Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Consolidated Financial Statements for the year ended December 31, 2023, except for the adoption of new standards and amendments effective from January 1, 2024. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

The following amendments and new standards effective from January 1, 2024 were adopted for the first time in 2024 and did not have a material impact on the Unaudited Interim Condensed Consolidated Financial Statements of the Group:

In January 2020, the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2024.

In September 2022, the IASB issued amendments to IFRS 16 — Leases: Liability in a Sale and Leaseback to improve the requirements for sale and leaseback transactions, which specify the measurement of the liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. These amendments are effective on or after January 1, 2024.

In October 2022, the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Non-current Liabilities with Covenants, that clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. These amendments are effective on or after January 1, 2024.

In May 2023, the IASB issued amendments to IAS 7 — Statement of Cash Flows and IFRS 7 — Financial Instruments: Disclosures: Supplier Finance Arrangements, that introduce new disclosure requirements to enhance the transparency and usefulness of the information provided by entities about supplier finance arrangements and are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The amendments are effective on or after January 1, 2024.

The standards, amendments and interpretations issued by the IASB that will have mandatory application in 2025 or subsequent years are listed below:

In August 2023, the IASB issued amendments to IAS 21 — The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, to clarify how an entity has to apply a consistent approach to assessing whether a currency is exchangeable into another currency and, when it is not, to determine the exchange rate to use and the disclosures to provide. These amendments are effective on or after January 1, 2025. The Group does not expect any material impact from the adoption of these amendments.

In April 2024, the IASB issued the new standard IFRS 18 — Presentation and Disclosure in Financial Statements, with the aim to give investors more transparent and comparable information about companies' financial performance through the introduction of three sets of new requirements: improved comparability in the income statement; enhanced transparency of management-defined

performance measures; more useful grouping of information in the financial statements. The new standard will affect all companies using IFRS Accounting Standards and will replace IAS 1 — Presentation of Financial Statements (while some of its requirements will be carried forward in IFRS 18). The standard is effective on or after January 1, 2027 but early adoption is possible.

In May 2024, the IASB issued amendments to IFRS 9 — Financial Instruments and IFRS 7 — Financial Instruments-Disclosure, with the aim to set financial liabilities using an electronic payment system and to assess contractual cash flow characteristics of financial assets, including those with environmental, social and governance (ESG)-linked features. They also amended disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income and added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs. The amendments are effective for annual reporting periods beginning on or after 1 January 2026, but early adoption is possible.

In July 2024, the IASB published 'Annual Improvements to IFRS Accounting Standards — Volume 11'. It contains amendments to five standards as result of the IASB's annual improvements project (IFRS 1 — First-time Adoption of International Financial Reporting Standards, IFRS 7 — Financial Instruments: Disclosures, IFRS 9 — Financial Instruments, IFRS 10 — Consolidated Financial Statements, IAS 7 — Statement of Cash Flows). The amendments are effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

Scope of consolidation

Stevanato Group S.p.A. is the parent company of the Group and it holds, directly and indirectly, interests in the Group’s operating companies. There are no changes in the scope of consolidation for the periods presented in this Unaudited Interim Condensed Consolidated Financial Statements.

Subsidiaries

The Unaudited Interim Condensed Consolidated Financial Statements of the Group include the following companies controlled by the parent company Stevanato Group S.p.A. directly or indirectly through the subsidiaries Stevanato Group International a.s., Balda Medical GmbH and Spami S.r.l.:


				% equity interest
Name	Segment	Description	Country of incorporation	Jun. 30, 2024	Dec. 31, 2023
Nuova Ompi S.r.l.	Biopharmaceutical and Diagnostic Solutions	Production of drug containment solutions and development of integrated solutions for the pharmaceutical industry	Italy	100%	100%
Spami S.r.l.	Engineering	Production plant and machinery	Italy	100%	100%
Perugini S.r.l.	Engineering	Production of consumables and mechanical components for industrial machines	Italy	100%	100%
Stevanato Group International a.s.	Holding	Service/Subholding company	Slovakia	100%	100%
Medical Glass a.s.	Biopharmaceutical and Diagnostic Solutions	Production of drug containment solutions	Slovakia	99.74%	99.74%
Stevanato Group N.A. S. de RL de CV	Biopharmaceutical and Diagnostic Solutions	Service company	Mexico	100%	100%
Ompi N.A. S. de RL de CV	Biopharmaceutical and Diagnostic Solutions	Production of drug containment solutions	Mexico	100%	100%
Ompi of America inc.	Biopharmaceutical and Diagnostic Solutions	Sale of drug containment solutions and analytical services	USA	100%	100%
Ompi do Brasil I. e C. de Em. Far. Ltda	Biopharmaceutical and Diagnostic Solutions	Production of drug containment solutions	Brazil	100%	100%
Ompi Pharm. Packing Techn. Co. Ltd	Biopharmaceutical and Diagnostic Solutions	Production of drug containment solutions	China	100%	100%
Stevanato Group Denmark A/S	Engineering	Production plant and machinery	Denmark	100%	100%
Medirio SA	Biopharmaceutical and Diagnostic Solutions	Research and development	Switzerland	100%	100%
Balda Medical Gmbh	Biopharmaceutical and Diagnostic Solutions	Production of in-vitro diagnostic solutions	Germany	100%	100%
Balda C. Brewer Inc.	Biopharmaceutical and Diagnostic Solutions	Production of in-vitro diagnostic solutions	USA	100%	100%
Balda Precision Inc.	Biopharmaceutical and Diagnostic Solutions	Production of metal components	USA	100%	100%
Ompi of Japan Co., Ltd.	Biopharmaceutical and Diagnostic Solutions	Sale of drug containment solutions	Japan	100%	100%

Non-controlling interests

The equity and the net profit attributable to non-controlling interests at June 30, 2024 relate to Medical Glass a.s. in which the Group holds a 99.74% interest.

Financial Risk Factors

The Group is exposed to the following financial risks connected with its operations:

•

financial market risk, mainly related to foreign currency exchange rates and interest rates;

•

liquidity risk, mainly related to difficulties in meeting the obligations associated with financial liabilities that are settled in cash or other financial assets, and to the availability of funds and access to the credit market, should the Group require it, and to financial instruments in general;

•

credit risk, arising both from its normal commercial relations with customers, and its financing activities;

•

commodity risk, arising from the fluctuation in commodities prices, driven by external market factors, especially for natural gas and electricity. Such fluctuations in commodities price can cause significant business challenges that can, in turn, affect production costs, product pricing, margins and cash flows, value of assets and liabilities.

These risks could significantly affect the Group’s financial position, results of operations and cash flows. Therefore, the Group identifies and monitors these risks to identify potential negative effects in advance and takes action to mitigate them, primarily

through its operating and financing activities and, if required, through the use of derivative financial instruments.

The Unaudited Interim Condensed Consolidated Financial Statements do not include all the information and notes on financial risk management required in the annual consolidated financial statements. For a detailed description of the financial risk factors and financial risk management of the Group, reference should be made to Note 38 of the Consolidated Financial Statements at and for the year ended December 31, 2023.

Foreign currency exchange

The principal foreign currency exchange rates used to translate other currencies into Euro were as follows:


COUNTRY	ISO CODE	Average for the six months ended June 30,		At June 30,		Average for the six months ended June 30,		At June 30,		At December 31,
		2024		2024		2023		2023		2023
CHINA	CNY		7.8011		7.7748		7.4894		7.8983		7.8509
UNITED STATES	USD		1.0813		1.0705		1.0807		1.0866		1.1050
MEXICO	MXN		18.5089		19.5654		19.6457		18.5614		18.7231
DENMARK	DKK		7.4580		7.4575		7.4462		7.4474		7.4529
BRAZIL	BRL		5.4922		5.8915		5.4827		5.2788		5.3618
SWITZERLAND	CHF		0.9615		0.9634		0.9856		0.9788		0.9260
JAPAN	JPY		164.4613		171.9400		145.7604		157.1600		156.3300

Seasonality of operations

The Group is not impacted by seasonality.

Segment Information

Management identifies two operating segments, based on the internal organization and reporting structure of the 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 S.p.A.) assigns resources and monitors performance. The two operating segments 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 complex and 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. This segment also delivers analytical and regulatory support services 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 our internal use and for external 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 that the machines are correctly calibrated and properly functioning. The after-sales services mainly consist of providing 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.


	As at and for the three months ended June 30, 2024
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		222,366		37,213		259,579		—			259,579
Inter-segment		664		42,351		43,015		(43,015	)		—
Revenue		223,030		79,564		302,594		(43,015	)		259,579
Cost of sales		161,337		71,353		232,690		(40,634	)		192,056
Gross Profit		61,693		8,211		69,904		(2,381	)		67,523

Other operating income		970		19		989		(48	)		941
Selling and marketing expenses		6,426		1,080		7,506		(117	)		7,389
Research and development expenses		6,720		1,632		8,352		389			8,741
General and administrative expenses		17,248		3,428		20,676		3,689			24,365
Operating Profit		32,269		2,090		34,359		(6,390	)		27,969

of which amortization and depreciation and impairment of PPE		19,275		1,064		20,339		509			20,848

Total assets		1,711,644		596,022		2,307,666		(110,613	)		2,197,053
Total liabilities		590,278		444,911		1,035,189		(162,356	)		872,833


	For the three months ended June 30, 2023
	Biopharmaceutical and Diagnostic Solutions		Engineering			Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		204,809		50,496			255,305		—			255,305
Inter-segment		435		42,957			43,392		(43,392	)		—
Revenue		205,244		93,453			298,697		(43,392	)		255,305
Cost of sales		140,360		72,452			212,812		(36,411	)		176,401
Gross Profit		64,884		21,001			85,885		(6,981	)		78,904

Other operating income		4,099		(1	)		4,098		(79	)		4,019
Selling and marketing expenses		2,719		936			3,655		3,120			6,775
Research and development expenses		6,021		1,784			7,805		558			8,363
General and administrative expenses		19,692		3,788			23,480		(559	)		22,921
Operating Profit		40,551		14,492			55,043		(10,179	)		44,864

of which amortization and depreciation		18,557		907			19,464		50			19,514


	As at and for the six months ended June 30, 2024
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		421,298		74,275		495,573		—			495,573
Inter-segment		1,156		82,631		83,787		(83,787	)		—
Revenue		422,454		156,906		579,360		(83,787	)		495,573
Cost of sales		306,686		135,321		442,007		(76,155	)		365,852
Gross Profit		115,768		21,585		137,353		(7,632	)		129,721

Other operating income		2,350		57		2,407		(122	)		2,285
Selling and marketing expenses		11,512		1,919		13,431		(250	)		13,181
Research and development expenses		12,691		5,450		18,141		1,354			19,495
General and administrative expenses		33,459		7,010		40,469		5,602			46,071
Operating Profit		60,456		7,263		67,719		(14,460	)		53,259

of which amortization and depreciation and impairment of PPE		40,311		2,064		42,375		138			42,513

Total assets		1,711,644		596,022		2,307,666		(110,613	)		2,197,053
Total liabilities		590,278		444,911		1,035,189		(162,356	)		872,833


	For the six months ended June 30, 2023
	Biopharmaceutical and Diagnostic Solutions		Engineering			Total segments		Adjustments, eliminations and unallocated items			Consolidated
	(EUR thousand)

External customers		400,358		92,939			493,297		—			493,297
Inter-segment		839		92,317			93,156		(93,156	)		—
Revenue		401,197		185,256			586,453		(93,156	)		493,297
Cost of sales		270,332		144,366			414,698		(76,564	)		338,134
Gross Profit		130,865		40,890			171,755		(16,592	)		155,163

Other operating income		5,361		(1	)		5,360		(127	)		5,233
Selling and marketing expenses		5,597		1,694			7,291		5,550			12,841
Research and development expenses		12,566		3,093			15,659		1,254			16,913
General and administrative expenses		38,763		7,612			46,375		(1,246	)		45,129
Operating Profit		79,300		28,490			107,790		(22,277	)		85,513

of which amortization and depreciation		36,003		1,817			37,820		63			37,883

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 equipment manufactured by the Engineering segment for use by the Biopharmaceutical and Diagnostic Solutions segment. “Adjustments, elimination and unallocated items” also includes some corporate residual costs not allocated to 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 three months ended June 30,						For the six months ended June 30,
	2024			2023			2024			2023
	(EUR thousand)
Segments Operating Profit		34,359			55,043			67,719			107,790
Finance income		2,696			6,723			6,846			11,127
Finance expense		1,494			7,278			5,258			16,281
Inter-segment elimination and unallocated items		(6,390	)		(10,179	)		(14,460	)		(22,277	)
Profit Before Tax		29,171			44,309			54,847			80,359

For the six months ended June 30, 2024, the Group served a customer who constituted 12.9% of consolidated revenue, equal to approximately EUR 63.7 million, realized both in the Biopharmaceutical and Diagnostic Solutions segment and in the Engineering segment.

For the six months ended June 30, 2023, the Group served a customer that constituted more than 10% of consolidated revenue, equal to EUR 62.5 million, realized both in the Biopharmaceutical and Diagnostic Solutions segment and in the Engineering segment.

Revenue from contracts with customers

Disaggregated revenue information

The table below shows the disaggregation of the Group’s revenue from contracts with external customers:


	For the three months ended June 30, 2024
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
	(EUR thousand)
Nature of goods and services
Revenue from high-value solutions		103,351		—		103,351
Revenue from other containment and delivery solutions		119,015		—		119,015
Revenue from engineering		—		37,213		37,213
Total revenue from contracts with customers		222,366		37,213		259,579

Geographical markets
EMEA		136,322		22,066		158,388
APAC		17,103		3,546		20,649
North America		61,731		9,651		71,382
South America		7,210		1,950		9,160
Total revenue from contracts with customers		222,366		37,213		259,579

Timing of revenue recognition
Goods and services transferred at a point in time		213,761		5,865		219,626
Goods and services transferred over time		8,605		31,348		39,953
Total revenue from contracts with customers		222,366		37,213		259,579


	For the three months ended June 30, 2023
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
	(EUR thousand)
Nature of goods and services
Revenue from high-value solutions		84,196		—		84,196
Revenue from other containment and delivery solutions		120,613		—		120,613
Revenue from engineering		—		50,496		50,496
Total revenue from contracts with customers		204,809		50,496		255,305

Geographical markets
EMEA		129,371		31,490		160,861
APAC		15,881		4,931		20,812
North America		53,277		12,582		65,859
South America		6,280		1,493		7,773
Total revenue from contracts with customers		204,809		50,496		255,305

Timing of revenue recognition
Goods and services transferred at a point in time		201,670		4,330		206,001
Goods and services transferred over time		3,139		46,166		49,305
Total revenue from contracts with customers		204,809		50,496		255,305


	For the six months ended June 30, 2024
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
	(EUR thousand)
Nature of goods and services
Revenue from high-value solutions		191,319		—		191,319
Revenue from other containment and delivery solutions		229,979		—		229,979
Revenue from engineering		—		74,275		74,275
Total revenue from contracts with customers		421,298		74,275		495,573

Geographical markets
EMEA		255,633		43,979		299,612
APAC		33,934		5,878		39,812
North America		119,318		21,117		140,435
South America		12,413		3,301		15,714
Total revenue from contracts with customers		421,298		74,275		495,573

Timing of revenue recognition
Goods and services transferred at a point in time		406,858		10,972		417,830
Goods and services transferred over time		14,440		63,303		77,743
Total revenue from contracts with customers		421,298		74,275		495,573


	For the six months ended June 30, 2023
	Biopharmaceutical and Diagnostic Solutions		Engineering		Total
	(EUR thousand)
Nature of goods and services
Revenue from high-value solutions		160,901		—		160,901
Revenue from other containment and delivery solutions		239,457		—		239,457
Revenue from engineering		—		92,939		92,939
Total revenue from contracts with customers		400,358		92,939		493,297

Geographical markets
EMEA		255,205		56,017		311,222
APAC		32,381		13,737		46,118
North America		101,038		21,510		122,548
South America		11,734		1,675		13,409
Total revenue from contracts with customers		400,358		92,939		493,297

Timing of revenue recognition
Goods and services transferred at a point in time		394,749		7,370		402,119
Goods and services transferred over time		5,609		85,569		91,178
Total revenue from contracts with customers		400,358		92,939		493,297

Revenue is disclosed by nature according to the goods and services provided by our operating segments. Revenue realized by the Biopharmaceutical and Diagnostic Solutions segment includes:

- High-value solutions: wholly owned, internally developed products, processes and services for which the Group holds intellectual property rights or has strong proprietary know-how and which are characterized by particular complexity or high performance; and

- Other containment and delivery solutions.

The reported geographical markets are EMEA (Europe, Middle East, Africa), North America (United States, Canada, Mexico), South America and APAC (Asia Pacific). Revenue by geographical markets is based on the end customer location.

Contract balances, Trade Receivables and Advances from Customers

The following table provides information on contractual assets and liabilities from contracts with customers as well as on trade receivables and advances from customers:


	At June 30,			At December 31,
	2024			2023
	(EUR thousand)
Trade receivables		236,976			301,769
Contract assets		175,970			172,580
Contract liabilities		(23,501	)		(22,306	)
Advances from customers		(11,130	)		(22,892	)
Non-current advances from customers		(47,667	)		(39,418	)

The contract assets mainly relate to the Group’s right to receive payment for production from construction contracts not yet invoiced as of the balance sheet date. The amounts recognized as contract assets are reclassified to trade receivable as soon as the Group has an unconditional right to receive payment.

10.

Cost of sales

Cost of sales are detailed as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2024		2023		2024		2023
	(EUR thousand)
Cost of materials		93,436		85,718		177,011		167,099
Direct industrial labor		39,396		38,444		77,152		75,221
Indirect industrial labor		21,098		17,967		41,955		35,167
Industrial depreciation and amortization		15,082		16,337		33,553		31,508
Impairment of PPE		2,611		—		2,611		—
Other costs of sales		20,433		17,935		33,570		29,139
Total Cost of sales		192,056		176,401		365,852		338,134

Cost of sales mainly pertains to the cost of materials, components and labor expenses related to the production and distribution of our goods and services. Cost of sales for the six months ended June 30, 2024 also included depreciation and amortization of EUR 33,553 thousand (EUR 31,508 thousand for the six months ended June 30, 2023), as well as industrial capitalized costs for the machinery and equipment built within the Group, subcontracting work and industrial overheads. For the six months ended June 30, 2024, cost of sales included EUR 2,611 thousand impairment loss related to a facility located in China as better described in Note 18.

In the second quarter 2024, the Group reassessed the expected useful life of certain machinery installed in the Italian facilities considering the low impact of extraordinary maintenance performed over time on these assets, their first installation and their continuing functioning. Based on a technical appraisal, the expected useful lives for the machinery pertaining to our bulk production and to our EZ-Fill® production were extended from 6.7 years to 15 years and 12 years, respectively. The change in the expected useful lives of the machinery was treated as a change in estimate starting from April 1, 2024. The reduction in depreciation expense in the second quarter 2024 approximated EUR 4.8 million.

For the six months ended June 30, 2023, cost of sales benefited from a EUR 2,808 thousand grant provided by the Italian government to help businesses offset the significant rise in utilities costs. The grants, which subsidized the price increases from electricity and natural gas consumed during the period, were in effect through the second quarter of 2023.

11.

Other operating income

Other operating income for the six months ended June 30, 2024 and 2023, amounted to EUR 2,285 thousand and EUR 5,233 thousand, respectively, relating mainly to (i) contributions received from customers and other business partners, in connection with collaboration agreements relating to development projects, where both parties share risks and benefits, (ii) certain insurance refunds, (iii) government grants, and (iv) lease income. Based on the assessment performed, the Group does not consider these transactions to be part of ordinary revenue generating activities.

12.

Expenses

Expenses are detailed as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2024		2023		2024		2023
	(EUR thousand)
Selling and marketing expenses		7,389		6,775		13,181		12,841
Research and development expenses		8,741		8,363		19,495		16,913
General and administrative expenses		24,365		22,921		46,071		45,129
Total Expenses		40,495		38,059		78,747		74,883

Selling and marketing expenses are mainly related to personnel expenses for the sales organizations and to business development and events costs, travel expenses, and other marketing and strategic consultancies. Selling and marketing expenses include

depreciation of EUR 303 thousand for the six months ended June 30, 2024 (EUR 343 thousand for the six months ended June 30, 2023), and the accrual of a provision for bad and doubtful debts of EUR 343 thousand (compared to an accrual of EUR 305 thousand for the six months ended June 30, 2023).

Research and development expenses include costs for research and development activities to support the innovation of our products and components. Research and development expenses include amortization and depreciation for EUR 1,759 thousand for the six months ended June 30, 2024 (EUR 1,916 thousand for the six months ended June 30, 2023).

General and administrative expenses consist mainly of personnel expenses for administrative functions, consultancies, directors' compensation, rental fees, as well as, depreciation and amortization for EUR 4,287 thousand for the six months ended June 30, 2024 (EUR 4,115 thousand for the six months ended June 30, 2023).

For the six months ended June 30, 2024, general and administrative expenses and research and development expenses included restructuring costs and related charges amounting to EUR 3,124 thousand primarily related to severance payments linked to the reorganization of some business functions.

13.

Finance income

Finance income is as follows:


	For the three months ended June 30,					For the six months ended June 30,
	2024			2023		2024		2023
	(EUR thousand)
Interest income from banks deposits		974			292		1,109		478
Income from financial discounts		38			1		38		8
Other financial income		(35	)		—		46		51
Foreign currency exchange rate gains		1,157			3,704		4,765		6,882
Derivatives revaluation		(18	)		2,725		308		3,707
Other fair value adjustments		580			1		580		1
Total finance income		2,696			6,723		6,846		11,127

14.

Finance expense

Finance expenses are as follows:


	For the three months ended June 30,					For the six months ended June 30,
	2024			2023		2024		2023
	(EUR thousand)
Interest on debt and borrowings		671			524		1,987		1,374
Financial discounts and other expenses		18			8		67		24
Interest on lease liabilities		166			134		335		268
Financial component IAS 19		68			79		137		132
Foreign currency exchange rate losses		(892	)		5,636		589		13,105
Derivatives devaluation		1,123			821		1,793		1,239
Other fair value adjustments		340			76		350		139
Total finance expense		1,494			7,278		5,258		16,281

Finance expenses include bank interest on the Group’s financial debt and interest on leases related to the portion of financial expenses payable matured in the reporting period on the liabilities, recognized in accordance with IFRS 16 - Leases.

Foreign exchange differences are realized and unrealized gains and losses incurred on transactions in currencies other than the functional currency of the Group. The net foreign currency exchange impact, given by the sum of gains and losses, amounts to a net gain of EUR 4,176 thousand for the six months ended June 30, 2024, and a net loss of EUR 6,223 thousand for the six months ended June 30, 2023.

Derivatives revaluation and derivatives devaluation included changes in the fair values of the foreign currency forward contracts that have not been designated as hedge accounting relationships, as well as the ineffectiveness of the foreign currency forward contracts designated in a cash flow hedge.

15.

Income tax

Income tax expense amounted to EUR 15,412 thousand for the six months ended June 30, 2024, compared to EUR 17,795 thousand for the six months ended June 30, 2023.

The effective tax rate for the six months ended June 30, 2024, was 28.1% compared to 22.1% for the six months ended June 30, 2023. The increase in the effective tax rate is mainly attributable to the Italian legal entities and due to: (i) the abolition of the “ACE” tax benefit (linked to reinvestment of profits in the company), (ii) the less beneficial impact of a new tax benefit related to employment growth for the six months ended June 30, 2024 compared to the impact of ACE for the six months ended June 30, 2023, and (iii) the Italian tax energy bonuses and R&D tax credit which were recognized for the six months ended June 30, 2023 and whose effects did not repeat in the six months ended June 30, 2024. In addition, the consolidated effective tax rate was negatively affected by the significantly lower profit before taxes of the Chinese legal entity for the six months ended June 30, 2024 compared with the same period last year, for which a 15% tax rate applies.

The analysis of deferred tax assets and deferred tax liabilities at June 30, 2024 and at December 31, 2023 is as follows:


	At June 30,			At December 31,
	2024			2023
	(EUR thousand)
Intangible assets		(2,511	)		(1,649	)
Property, plant and equipment		32,543			30,150
Contract balances		(13,288	)		(13,552	)
Revaluations of investment properties to fair value		5,270			5,712
Expected credit losses		1,214			1,279
Derivatives		(486	)		(708	)
Leases		793			308
Long term incentives		12			12
Provisions		6,247			6,845
Accruals and other provisions		596			578
Tax losses carry forward		42,913			36,251
Unremitted earnings		(2,716	)		(2,260	)
Start up costs IPO SG spa		2,013			2,684
Other effects		1,204			977
Borrowing costs capitalization		(1,541	)		—
Deferred tax assets, net		72,263			66,627
Reflected in the statement of financial position as follows:
Deferred tax assets		82,827			76,251
Deferred tax liabilities		(10,564	)		(9,624	)
Deferred tax assets, net		72,263			66,627

The Group has applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS 12.

Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes. On December 28, 2023, the government of Italy, where the parent company is incorporated, enacted the Pillar Two income taxes legislation effective from January 1, 2024 (see Legislative Decree no. 209/2023, hereinafter “the Italian Pillar Two rules”). According to the Italian Pillar Two rules, Stevanato Holding S.r.l. qualifies as the ultimate parent entity (“UPE”) for Pillar Two purposes, as it consolidates Stevanato Group S.p.A. on a line-by-line basis. As a consequence, the Pillar Two perimeter would be identified with the perimeter of the consolidated financial statements of Stevanato Holding S.r.l., including all the entities which are consolidated on a line-by-line basis. As the UPE, Stevanato Holding S.r.l. will be in charge of the calculation of the jurisdictional effective tax rate according to the Pillar Two Rules. Stevanato Holding S.r.l. directly holds the controlling participation in Stevanato

Group S.p.A. with a 73.73% stake. Due to the apportionment of the profit rights related to the treasury shares held by Stevanato Group S.p.A., according to Article no. 2357-ter of the Italian Civil Code, the profit rights held by Stevanato Holding S.r.l. are equal to 81.84% based on the number of shares owned by Stevanato Holding S.r.l. over the total amount of the shares with rights to profits. As a consequence, Stevanato Group S.p.A. is a constituent entity for Pillar Two purposes.

Under the Italian Pillar Two rules, the UPE will be generally required to pay in Italy a top-up tax on profits of its subsidiaries that are taxed at an effective tax rate (determined in accordance with the Italian Pillar Two rules) of less than 15%. The Group has performed a preliminary calculation of the “Transitional Safe Harbours” for Pillar Two purposes ("TSH") on the basis of the OECD rules on “Safe Harbour and Penalty Relief” issued on December 20, 2022, which are intended as “qualifying international agreement on safe harbours” for the purposes of the EU Directive n. 2523/2022 (art. 32) and the Italian Pillar Two rules. This preliminary calculation is based on a forecasted fiscal year 2024. Based on the financial data of the second quarter 2024, the only jurisdictions in which an actual exposure to top-up tax may exist is China, as no TSH test would be met. However, as the effective tax rate calculated for TSH purposes is close to 15%, no significant impact in terms of potential top-up tax is determined. For the sake of completeness, we highlight that currently China has not implemented a local Qualified Domestic Top-up Tax within their domestic legislation.

16.

Earnings per Share

Basic earnings per share (EPS) is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of shares issued, net of the treasury shares, held by the Group.

For the three and the six months ended June 30, 2024 and 2023, the weighted average number of shares for diluted earnings per share was increased to take into consideration the dilutive effect of potential shares that would be assigned to the beneficiaries based on the Group’s equity incentive plans (see Note 30 for further details on the equity incentive plans).

The following table reflects the profit attributable to equity holders of the parent and shares data used in the basic and diluted EPS calculation:


	For the three months ended June 30,				For the six months ended June 30,
	2024		2023		2024		2023

Profit attributable to equity holders of the parent (in EUR thousand)		20,625		34,241		39,439		62,506

Weighted average number of shares for basic EPS		272,789,169		264,699,481		269,368,798		264,699,481
Effects of dilution from share-based incentive plans		16,798		714,245		21,252		714,245
Effects of dilution from remuneration in shares		2,649		6,208		3,630		6,208
Weighted average number of shares adjusted for the effect of dilution		272,808,616		265,419,934		269,393,680		265,419,934

	2024		2023		2024		2023
Basic earnings per ordinary share (in EUR)		0.08		0.13		0.15		0.24
Diluted earnings per ordinary share (in EUR)		0.08		0.13		0.15		0.24

17.

Intangible assets

Changes in intangible assets at June 30, 2024, are as follows:


	Development costs			Industrial patents and intellectual property rights			Concessions, licenses, trademarks and similar rights		Intangible fixed assets in process and advances			Other intangible assets		Total
	(EUR thousand)
Cost
At January 1, 2024		16,057			30,550			25,890		6,056			12,218		90,771
Additions		—			6			—		5,545			—		5,551
Reclassifications		—			305			86		(391	)		—		—
Exchange differences		(7	)		(73	)		14		(9	)		160		84
At June 30, 2024		16,050			30,787			25,990		11,202			12,378		96,407

Amortization
At January 1, 2024		13,967			19,940			17,270		—			8,609		59,786
Amortization		812			2,779			605		—			224		4,420
Exchange differences		(6	)		(67	)		3		—			74		4
At June 30, 2024		14,773			22,652			17,878		—			8,906		64,210

Net book value
At June 30, 2024		1,277			8,136			8,112		11,202			3,471		32,197
At December 31, 2023		2,090			10,610			8,620		6,056			3,609		30,985

Additions in intangible assets amounting to EUR 5,551 thousand for the six months ended June 30, 2024 were mainly related to: (i) the costs generated internally to support the development of a new packaging platform within the Engineering segment, amounting to EUR 3,775 thousand, and (ii) the costs associated with upgrading the ERP system and other software implementation.

At June 30, 2024, no impairment indicators have been identified for intangible assets and therefore no impairment losses have been accounted for.

18.

Property, plant and equipment

Changes in items of property, plant and equipment at June 30, 2024 are as follows:


	Land and buildings			Plant and machinery			Industrial and commercial equipment			Other tangible assets			Assets under construction and advances			Total
	(EUR thousand)
Cost
At January 1, 2024		203,620			615,788			60,012			16,503			612,688			1,508,611
Additions		56			5,906			654			19			135,624			142,259
Disposals		(3,281	)		(1,460	)		(21	)		(45	)		—			(4,807	)
Reclassifications		143,665			28,718			6,323			1,112			(179,818	)		—
Impairment		—			—			—			—			(2,611	)		(2,611	)
Exchange differences		(651	)		(4,152	)		(139	)		(290	)		8,177			2,945
At June 30, 2024		343,409			644,800			66,829			17,299			574,060			1,646,397

Depreciation
At January 1, 2024		84,011			335,731			48,123			12,257			—			480,122
Depreciation charge for the period		4,207			23,514			3,690			727			—			32,138
Disposals		(920	)		(1,409	)		(21	)		(45	)		—			(2,395	)
Exchange differences		(751	)		(1,887	)		(81	)		(210	)		—			(2,929	)
At June 30, 2024		86,547			355,949			51,711			12,729			—			506,936

Net book value
At June 30, 2024		256,862			288,851			15,118			4,570			574,060			1,139,461
At December 31, 2023		119,609			280,057			11,889			4,246			612,688			1,028,489

For the six months ended June 30, 2024, property, plant and equipment additions of EUR 142,259 thousand were mainly due to (i) the advancement of construction of the Group’s new facilities in the U.S. and the related production lines, (ii) the ongoing ramp-up and addition of new production lines in the new brownfield plant in Latina, Italy, (iii) the expansion of the Group’s headquarters and production facilities in Piombino Dese, Italy, and (iv) the acquisition of land in Mexico. Additions also included investments for new manufacturing equipment for the production of EZ-Fill® and bulk syringes, vials and cartridges and molding machines for container in vitro diagnostic solutions as the Group continues its global capacity expansion initiatives.

In the first half of 2024, the Group sold its facility in Brabrand, Denmark. All activities in Brabrand were transitioned and consolidated to the Group's location in Silkeborg, Denmark, to gain operational efficiencies, harmonize the industrial footprint and allocate all resources and competencies at the same location to optimize the Group's Danish operations. As a result of such sale, the net decrease in land and buildings amounted to a total of EUR 2,361 thousand.

At June 30, 2024 capital expenditures committed through orders with our suppliers relating to our ongoing investments were approximately EUR 143.9 million, net of the expected contribution from the U.S. government’s Biomedical Advanced Research and Development Authority ("BARDA"). As part of the investment for the construction of the new U.S. facility in Fishers, Indiana, in February 2022, Stevanato Group entered into an agreement with BARDA whereby BARDA agreed to make a multi-year contribution for up to approximately USD 95 million (or approximately EUR 85 million) for manufacturing capacity for standard and EZ-Fill® vials in support of U.S. national defense readiness and preparedness programs for current and future public health emergencies.

At June 30, 2024, the Group recorded an impairment loss of EUR 2,611 thousand resulting from the write-down of a facility in Zhangjiagang, China, that was acquired in 2021 and still included among assets under construction, to its estimated recoverable amount. The trigger event for the impairment was identified considering the further postponement of the EZ-Fill® capacity expansion investment due to the diversion of a customer's EZ-Fill® project to the Group's facility in Latina, Italy, and to put more focus on the current capacity expansion projects in the U.S. and Italy. This write down was recognized in the consolidated income statement as cost of sales. The recoverable amount of EUR 10,819 thousand as at June 30, 2024 was based on the fair value of the building resulting from a technical asset appraisal.

In the second quarter 2024, the Group reassessed the expected useful life of certain machinery installed in the Italian facilities

considering the low impact of extraordinary maintenance performed over time on these assets, their first installation and their continuing functioning. Based on a technical appraisal, the expected useful lives for the machinery pertaining to our bulk production and to our EZ-Fill® production were extended from 6.7 years to 15 years and 12 years, respectively. The change in the expected useful lives of the machinery was treated as a change in estimate starting from April 1, 2024. The reduction in depreciation expense in the second quarter 2024 approximated EUR 4.8 million.

19.

Right of Use assets

Movements in the leased Right of Use assets for the first six months of 2024 are shown below:


	Buildings			Plant and machinery			Industrial equipment		Other tangible assets			Total
	(EUR thousand)
Cost
At January 1, 2024		23,020			9,888			346		13,255			46,509
Additions		981			17			—		840			1,838
Disposals		(63	)		—			—		(104	)		(167	)
Exchange rate differences		314			11			—		(35	)		290
At June 30, 2024		24,252			9,916			346		13,956			48,470

Depreciation
At January 1, 2024		11,264			7,291			322		9,383			28,260
Depreciation charge for the year		1,722			740			6		875			3,343
Disposals		(23	)		—			—		(88	)		(111	)
Reclassifications		—			(18	)		18		—			—
Exchange rate differences		112			6			—		(16	)		102
At June 30, 2024		13,075			8,019			346		10,154			31,594

Net book value
At June 30, 2024		11,177			1,897			—		3,802			16,876
At December 31, 2023		11,756			2,597			24		3,872			18,249

20. Other Financial assets

The following table details the composition of other financial assets:


	At June 30,		At December 31,
	2024		2023
	(EUR thousand)
Fair value of derivatives financial instruments		254		577
Non-current secured notes at FVTPL		3,786		3,182
Other non-current financial assets		1,601		1,293
Other non-current financial assets		5,641		5,052

Fair value of derivatives financial instruments		2,321		3,633
Other current financial assets		—		749
Other current financial assets		2,321		4,382

Other Financial Assets		7,962		9,434

At June 30, 2024 and at December 31, 2023, other non-current financial assets mainly included guarantee deposits and a secured senior convertible promissory note amounting to EUR 3,786 thousand and EUR 3,182 thousand respectively. The note has principal

balance equal to the consideration paid by Stevanato Group for the note and accrues interest at 5% per annum from June 14, 2023 through November 27, 2023, and 6% per annum thereafter. The then outstanding principal and unpaid accrued interest of the note may be converted, at the option of the holder, in whole or in part, into conversion shares upon the closing of any sale by the issuing company of its equity securities primarily for equity fundraising purposes. The note is measured at fair value to profit and loss since the contractual cash flows do not consist solely of payments of principal and accrued interest on the amount of principal to be repaid, but provide for the possible acquisition of equity instruments of the issuing company. Refer to Note 28 for further details on the fair value measurement.

At June 30, 2024 and at December 31, 2023, other non-current financial assets and other current financial assets included also the fair value of derivatives financial instruments.

The following table sets forth the analysis of derivative assets and liabilities at June 30, 2024 and at December 31, 2023.


	At June 30,						At December 31,
	2024						2023
	Carrying amount			Fair value			Carrying amount			Fair value
	(EUR thousand)
Non-Current financial assets
Interest Rate Swap - hedging instruments		254			254			577			577

Current financial assets
Foreign exchange forward contracts - trading derivatives		—			—			204			204
Foreign exchange forward contracts - hedging instruments		—			—			1,056			1,056
Interest Rate Swap - hedging instruments		1,975			1,975			2,373			2,373
Commodity Swap - hedging instruments		346			346			—			—

Non-Current financial liabilities
Interest Rate Swap - hedging instruments		—			—			(488	)		(488	)

Current financial liabilities
Foreign exchange forward contracts - trading derivatives		(430	)		(430	)		—			—
Foreign exchange forward contracts - hedging instruments		(962	)		(962	)		—			—
Commodity Swap - hedging instruments		(20	)		(20	)		(20	)		(20	)

At June 30, 2024 and at December 31, 2023 part of the derivatives on currency risk have not been designated as hedging instruments and reflect the change in the fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected sales. The change in the fair value of the derivatives not designed as hedging instruments is booked among finance income and finance expense.

Derivatives designated as hedging instruments reflect the change in fair value of:

•

the interest rate swap contracts, designated as cash flow hedges to hedge fluctuations in variable interest rate on loans;

•

the foreign exchange forward contracts, designed as cash flow hedges to hedge highly probable forecast sales in U.S. Dollars;

•

the commodity swap contracts, designed to hedge against price swings in the market for natural gas and electricity.

The change in the fair value of the derivatives designed as hedging instruments is booked in a separate component of equity (cash flow hedge reserve). The amount recorded in the cash flow hedge reserve will be recognized in the consolidated income statement according to the timing of the cash flows of the underlying transaction.

21.

Inventories

Inventories, shown net of an allowance for obsolete and slow-moving goods, can be analyzed as follows:


	At June 30,			At December 31
	2024			2023
	(EUR thousand)
Raw materials		136,706			122,083
Semifinished products		51,610			38,347
Finished products		133,552			113,033
Provision from slow moving and obsolescence		(19,089	)		(18,142	)
Total inventories		302,778			255,321

Inventories at June 30, 2024 amounted to EUR 302,778 thousand compared to EUR 255,321 thousand at December 31, 2023, which reflects an increase in finished products for the establishment of inventories in new plants and the manufacture of products that are expected to be delivered to customers in future quarters.

The provision for slow moving and obsolete inventories at June 30, 2024, and at December 31, 2023, amounted to EUR 19,089 thousand and EUR 18,142 thousand, respectively, with an accrual of EUR 960 thousand recognized within cost of sales and other changes due to utilization and exchange rate movements for EUR 12 thousand for the six months ended June 30, 2024. For the six months ended June 30, 2023 the accrual for slow moving and obsolete inventories recognized within cost of sales amounted to EUR 221 thousand.

22.

Trade receivables and contract assets

Trade receivables and contract assets are analyzed as follows:


	At June 30,			At December 31,
	2024			2023
	(EUR thousand)
Trade receivables		243,967			308,425
Allowance for expected credit losses		(6,991	)		(6,656	)
Total trade receivables		236,976			301,769

Trade receivables are non-interest bearing and generally have a term of 60 to 90 days. The Group is not exposed to significant concentration of third-party credit risk. Trade receivables are stated net of an allowance for expected credit losses which has been determined in accordance with IFRS 9 amounting to EUR 6,991 thousand and EUR 6,656 thousand at June 30, 2024 and at December 31, 2023, respectively.

Contract assets

Contract assets relate to ongoing customer-specific construction contracts within the Engineering segment and from the in-vitro diagnostic and DDS businesses, which are part of the Biopharmaceutical and Diagnostic Solutions segment. As such, the balances of this account vary and are dependent on the number of ongoing construction contracts at the end of the period.

The Group had contract assets of EUR 175,970 thousand at June 30, 2024, and EUR 172,580 thousand at December 31, 2023. Contract assets gross amounted to EUR 368,445 thousand (EUR 360,433 thousand at December 31, 2023), net of advance invoices issued of EUR 192,475 thousand (EUR 187,853 thousand at December 31, 2023).

23.

Tax receivables and tax payables

At June 30, 2024 tax receivables amounted to EUR 17,006 thousand, compared to EUR 14,338 thousand at December 31, 2023, and tax payables amounted to EUR 52,283 thousand, compared to EUR 30,798 thousand at December 31, 2023. The total net balance at June 30, 2024, was a payable amounting to EUR 35,277 thousand, compared to a payable amounting to EUR 16,460 thousand at December 31, 2023.

The increase in net balance was mainly due to the increased payable resulting from accruals of the Corporate Income Tax for the six months ended June 30, 2024 for the Italian legal entities, without tax advanced payments offsetting (which were paid at the beginning of July 2024).

24.

Other receivables

At June 30, 2024 other receivables amounted to EUR 56,492 thousand, compared to EUR 43,900 thousand at December 31, 2023. Other receivables mainly included VAT receivables.

25.

Cash and cash equivalents

At June 30, 2024 cash and cash equivalents amounted to EUR 78,146 thousand, compared to EUR 69,602 thousand at December 31, 2023. On March 26, 2024, Stevanato Group closed its upsized underwritten follow-on public offering of an aggregate of 14,605,000 of its ordinary shares, including the full exercise of the underwriters’ option to purchase 1,905,000 additional ordinary shares, at a public offering price of USD 26.00 per share. Stevanato Group sold 7,302,500 ordinary shares (the "Company's Offering"), and Stevanato Holding S.r.l., sold 7,302,500 ordinary shares (the "Selling Shareholder's Offering"). The total gross proceeds from the follow-on offering, before deducting underwriting discounts and commissions and offering expenses, amounted to USD 189,865 thousand from each of the Company's Offering and the Selling Shareholder's Offering. Stevanato Group did not receive any proceeds from the Selling Shareholder's Offering. For the six months ended June 30, 2024 the cash flow generated from the net proceeds from the follow-on offering after deducting underwriting discounts and commissions and offering expenses amounted to EUR 169,817 thousand.

26.

Equity

The main objective of the Group’s capital management is to maintain a solid credit rating and adequate financial ratios to support business activity and maximize value for shareholders.

Movements in the shareholders equity are reported in the Interim Consolidated Statements of Changes in Equity; comments on the main changes occurred in the period are provided below.

Share capital

At June 30, 2024, the Company paid-in share capital amounted to EUR 22,232 thousand divided into 302,842,536 shares without par value, including 49,560,947 ordinary shares and 253,281,589 Class A multiple voting shares. At December 31, 2023, the Company paid-in share capital amounted to EUR 21,698 thousand divided into 295,540,036 shares without par value, including 34,870,467 ordinary shares and 260,669,569 Class A multiple voting shares.

On March 22, 2024, the Board of Directors partially executed the delegation of authority granted by the extraordinary shareholders' meeting held on October 4, 2023 pursuant to Article 2443 of the Italian Civil Code, resolving to increase the share capital, from EUR 21,698,480 to EUR 22,231,562 by issuing up to 7,302,500 new ordinary shares.

The dual class structure of Stevanato Group's shares includes ordinary shares and Class A shares. Class A shares have the same characteristics and grant the shareholders the same rights as the ordinary shares, except in terms of voting rights. Holders of ordinary shares are entitled to one vote per share, while holders of Class A shares (held solely by Stevanato Holding S.r.l. or held in treasury by the Company) are entitled to three votes per share. Class A shares are automatically converted (without the need for a resolution by a special meeting of the shareholders holding Class A shares or by a shareholders’ meeting) into ordinary shares, at a ratio of one ordinary share for each Class A share, in the event of transfer to parties other than Stevanato Family members, or other than companies or other entities controlled, including jointly, directly or indirectly, by one or more members of the Stevanato Family, or by trusts (or, alternatively, by the relevant trustees) set up by members of the Stevanato Family, provided that the relevant beneficiaries are (or may be) one or more members of the Stevanato Family. Class A shares are convertible into ordinary shares, at a ratio of one ordinary share for each Class A share, in whole or in part and even in several tranches, at the simple request of each holder, to be submitted by means of a communication sent by registered letter, e-mail or any other means capable of providing proof

of receipt to the Chairman of the Board of Directors of the Company, with a copy to the chairman of the Audit Committee. Ordinary shares cannot be converted into Class A shares.

Share Premium Reserve

The share premium reserve includes the additional paid-in capital raised during the Initial Public Offering and the upsized underwritten follow-on public offering of ordinary shares, net of the listing costs pertaining to the public subscription offers to the extent they were incremental costs directly attributable to the equity transaction that otherwise would have not been incurred. At June 30, 2024 and December 31, 2023 the share premium reserve amounted to EUR 559,565 thousand and EUR 389,312 thousand, respectively. The share premium reserve increased after the completion of the upsized underwritten follow-on public offering of ordinary shares on March 26, 2024.

Treasury Reserve

At December 31, 2023, a total of 30,073,093 of the Company's Class A shares were held in treasury for a total cost of EUR (27,233) thousand. At June 30, 2024, following the conversion of 85,480 Company's Class A shares into ordinary shares awarded to the beneficiaries of certain share-based incentive plans and other benefits, a total of 29,987,613 of the Company's Class A shares were held in treasury for a total cost of EUR (27,177) thousand.

Foreign currency translation reserve

The foreign currency translation reserve includes the cumulative foreign currency translation differences arisen from the translation of financial statements denominated in currencies other than Euro. At June 30, 2024 the foreign currency translation reserve was EUR (16,081) thousand, compared to EUR (10,976) thousand at December 31, 2023. At June 30, 2023, it amounted to EUR (8,125) thousand, compared to EUR (15,611) thousand at December 31, 2022. The change in the foreign currency translation reserve was mainly due to the depreciation against the Euro of the Mexican Peso and the Brazilian Real, partially offset by the appreciation of the US Dollar against the Euro, which occurred in the first six months of 2024. These are the primary currencies in which the net assets of the Group's companies are denominated.

Retained Earnings and Other Reserves

Retained earnings and other reserves included:

•

a legal reserve of EUR 4,340 thousand at June 30, 2024 and at December 31, 2023 respectively;

•

other reserves of EUR 87,339 thousand at June 30, 2024 (EUR 65,237 thousand at December 31, 2023). The increase was due to (i) the allocation of the prior year net profit for EUR 20,887 thousand, (ii) the accrual of the fair value of personnel cost related to share-based incentive plans and related effects of the share awards for EUR 1,189 thousand and (iii) other effects for EUR 25 thousand;

•

retained earnings of the consolidated companies net of the effects of consolidation adjustments of EUR 652,995 thousand (EUR 542,652 thousand at December 31, 2023); and

•

net profit attributable to equity holders of the parent of EUR 39,439 thousand at June 30, 2024 (EUR 145,631 thousand at December 31, 2023).

Dividends

On May 22, 2024, Stevanato Group shareholders approved the distribution of EUR 14,457 thousand in dividends (EUR 0.053 per share) from the net profits realized in the previous financial year. The dividend was payable on July 15, 2024 to shareholders of record at June 4, 2024. In July 2024 the Company distributed EUR 2,622 thousand to shareholders, and the remaining balance, which relates to dividends payable to the controlling shareholder Stevanato Holding S.r.l., will be paid in the following quarters of 2024.

On May 24, 2023, Stevanato Group shareholders approved the distribution of EUR 14,294 thousand in dividends (EUR 0.054 per share) from the net profits realized in the previous financial year. The dividend was payable on July 17, 2023 to shareholders of record at June 6, 2023. In July 2023 the Company distributed EUR 3,842 thousand to shareholders, and the remaining balance, which related to dividends payable to the controlling shareholder Stevanato Holding S.r.l., was paid in the fourth quarter of 2023.

Non-controlling interests

Non-controlling interests amounted to EUR 54 thousand at June 30, 2024 (EUR 115 thousand at December 31, 2023).

27.

Financial liabilities

Total financial liabilities were EUR 318,948 thousand and EUR 398,916 thousand at June 30, 2024, and at December 31, 2023, respectively; the balances in financial liabilities are as follows:


	At June 30,		At December 31,
	2024		2023
	(EUR thousand)
Lease liabilities		5,826		5,841
Bank overdrafts and short-term loan facilities		341		84,005
Bank loans		57,354		51,592
Fair value of derivatives		1,412		20
Financial payables for shares acquisition		—		175
Financial liabilities for accrued interests		1,642		1,644
Total current financial liabilities		66,575		143,277

Lease liabilities		11,867		13,104
Bank loans		190,748		192,304
Notes		49,758		49,743
Fair value of derivatives		—		488
Total non-current financial liabilities		252,373		255,639

Financial Liabilities		318,948		398,916

Financial liabilities mainly include bank loans (current and non-current portions), lease liabilities (current and non-current portions) and notes.

Financial liabilities are recognized according to the amortized cost method and require compliance with certain financial covenants on the Group consolidated figures, more specifically the following ratios are monitored: Net Debt on EBITDA, Net Debt on Equity and EBITDA on Financial Charges. Net Debt and EBITDA are calculated as defined in the contract. The ratios are calculated on an annual basis. In particular, Net Debt on EBITDA ratio must be lower or equal to 3.5. At June 30, 2024 and at December 31, 2023, all financial covenants were complied with.

At June 30, 2024, bank loans amounted to a total of EUR 248,102 thousand compared to EUR 243,896 thousand at December 31, 2023. The increase was mainly due to the draw down on the loan with BPER bank for a total of EUR 30,000 thousand. This loan is a five-year loan, with two years of interest-only payments and three years of amortizing period, with quarterly repayment of the installments at constant principal portion.

For the six months ending June 30, 2024, the Group reimbursed bank loans for EUR 25,831 thousand.

The decrease in bank overdrafts and short-term loan facilities was mainly due to the reimbursement of EUR 103,646 thousand short-term financing.

The following table sets forth the reconciliation of total borrowings:


	At December 31,		Cash flows								Non-cash changes							At June 30,
	2023		Proceeds		Repayments			Accrued interest paid in the period			Exchange rate			Amortized Cost		Accrued interest in the period		2024
	(EUR thousand)
Bank loans		245,448		30,000		(25,831	)		(1,553	)		—			37		1,501		249,602
Bank overdrafts and short-term facilities		84,096		20,000		(103,646	)		(91	)		(18	)		—		141		482
Notes		49,743		—		—						—			15		—		49,758
Total Borrowings		379,287		50,000		(129,477	)		(1,644	)		(18	)		52		1,642		299,842

The following table shows maturities and average interest rates for liabilities to banks and other lenders:

At June 30, 2024


	Local Currency	Amount in Local Currency			Maturity	Average Interest Rate			Amount in EUR
Bank Loans	EUR		25,832		2024		1.93	%		25,833
	EUR		56,893		2025		3.91	%		56,893
	EUR		70,821		2026		3.80	%		70,821
	EUR		63,925		2027		3.43	%		63,925
	EUR		30,833		2028		2.31	%		30,833
Amortized Cost			(203	)	2024-2028					(203	)
Total Bank Loans										248,102

Notes	EUR		25,000		2027		1.40	%		25,000
	EUR		25,000		2028		1.40	%		25,000
Amortized Cost	EUR		(242	)	2024-2028					(242	)
Total Notes										49,758

Overdrafts and other short-term facilities	DKK		2,546		2024		5.15	%		341
Total Overdrafts and other short-term facilities										341

Total Bank Loans and Overdrafts										298,201

At December 31, 2023


	Local Currency	Amount in Local Currency			Maturity	Average Interest Rate			Amount in EUR
Bank Loans	EUR		51,664		2024		3.45	%		51,664
	EUR		56,893		2025		3.86	%		56,893
	EUR		60,821		2026		3.81	%		60,821
	EUR		53,925		2027		3.42	%		53,925
	EUR		20,833		2028		2.12	%		20,833
Amortized Cost	EUR		(240	)	2024-2028					(240	)
Total Bank Loans										243,896

Notes	EUR		25,000		2027		1.40	%		25,000
	EUR		25,000		2028		1.40	%		25,000
Amortized Cost	EUR		(257	)	2024-2028					(257	)
Total Notes										49,743

Overdrafts and other short-term facilities	DKK		198,811		2024		4.90	%		26,005
	EUR		58,000		2024		4.05	%		58,000
Total overdrafts and other short-term facilities										84,005

Total Bank Loans and Overdrafts										377,644

28.

Fair Value Measurement

The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at June 30, 2024, and at December 31, 2023:

At June 30, 2024:


		Fair value measurement using
	Notes	Total		Level 1		Level 2		Level 3
		(EUR thousand)
Cash and cash equivalents			78,146		78,146		—		—
Financial assets - investments FVTPL - traded			284		284		—		—
Financial assets - investments FVTPL - not traded			95		—		—		95
Non-current financial assets - derivatives	20		254		—		254		—
Current financial assets - derivatives	20		2,321		—		2,321		—
Non-current secured notes at FVTPL	20		3,786		—		—		3,786
Total assets			84,886		78,430		2,575		3,881

Current financial liabilities - derivatives	20		1,412		—		1,412		—
Total liabilities			1,412		—		1,412		—

At December 31, 2023:


		Fair value measurement using
	Notes	Total		Level 1		Level 2		Level 3
		(EUR thousand)
Cash and cash equivalents			69,602		69,602		—		—
Financial assets - investments FVTPL - traded			240		240		—		—
Financial assets - investments FVTPL - not traded			436		—		—		436
Non-current financial assets - derivatives	20		577		—		577		—
Current financial assets - derivatives	20		3,633		—		3,633		—
Other current financial assets	20		749		—		749		—
Non-current secured notes at FVTPL	20		3,182		—		—		3,182
Total assets			78,420		69,842		4,959		3,618

Current financial liabilities - derivatives	20		20		—		20		—
Non-current financial liabilities - derivatives	20		488		—		488		—
Total Liabilities			508		—		508		—

The fair value of current financial assets and other financial liabilities is measured by taking into consideration market parameters at the balance sheet date, using valuation techniques widely accepted in the financial business environment.

The fair value of foreign currency derivatives (forward contracts, currency swaps and options) is determined by considering the present value of future cash flows based on the forward exchange rates at the reporting date. The fair value of interest rate swaps is determined by considering the present value of the estimated future cash flows based on observable yield curves. The fair value of commodity swaps is tied to the market price of the underlying commodities Italian electricity “Prezzo Unico Nazionale” (PUN) and natural gas “Punto di Scambio Virtuale” (PSV-Day Ahead Price - Heren) at the balance sheet date.

The fair value of non-current secured notes at fair value through profit or loss (FVTPL) has been determined as the sum of (i) the fair value of the “naked bond” represented by the net present value (discounted) of the expected future coupon flows, which are discounted on the basis of a risk-free interest rate curve adjusted for the issuer's credit risk, and (ii) the fair value of the “embedded option” to convert the par value of the bond into a certain number of shares.

The fair value of the “naked bond” was measured using independently developed pricing models and based on the following market data:

•

for the EUR zero-coupon rate curve:

•

short-term interest rates quoted on the interbank market;

•

forward quotations of deposit rates (6-18 months- Forward Rate Agreement);

•

long-term interest rates (2-40 years- Swap Rates);

•

credit spreads, and specifically sectoral Credit Default Swaps (CDS) and country risk (U.S.);

•

spot quotation of the EUR/USD exchange rate (ECB fixing);

•

interest rate swap on the USD interbank market;

•

historical volatility on a daily basis for a range of peer comparable listed companies.

With reference to the fair value of the “embedded option”, the equity value of the issuer was calculated using the multiple EV/Revenue (enterprise value over revenue). The future equity value of the issuer was determined using stochastic simulation with the Monte Carlo method which, based on appropriate assumptions, has made it possible to define a substantial number of alternative scenarios over the time frame considered. The simulation, reflecting the characteristics of “no arbitrage” and “risk neutral framework”, was carried out using the following market data:

•

issuer's bond yield: two-year growth rate derived from the risk-free curve i.e. the rates USD interest rate swap in the interbank market and equal to 4.898%;

•

volatility of the issuer's stock: reasonable estimate of historical volatility on a calculated daily basis, (volatility determined with reference to a sample of peers) with a time horizon of two years and equal to 39.83%.

The fair value of the investments FVTPL - traded is based on the quoted market prices at the end of the reporting period; the fair value of investments FVTPL - not traded is measured at cost as an estimate of fair value, as permitted by IFRS 9, for equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value.

The value of cash and cash equivalents usually approximates fair value due to the short maturity of these instruments, which consist of bank current accounts.

No borrowings of the Group are listed debt.

The following table presents the changes in level 3 instruments for the six months ended June 30, 2024:


	Financial assets - investments FVTPL - not traded			Non-current secured notes at FVTPL		Total

	(EUR thousand)
At December 31, 2023		436			3,182		3,618
Acquisitions		9			—		9
Fair value adjustments		(350	)		604		254
At June 30, 2024		95			3,786		3,881

The changes in level 3 instruments for the six months ended June 30, 2024 are mainly due to fair value adjustments.

There were no transfers between Level 1, Level 2 and Level 3 during the six months ended June 30, 2024 and the year ended December 31, 2023.

The fair value of the loans accounted for at amortized cost approximates their carrying amounts at June 30, 2024 and at December 31, 2023.

29.

Employee benefits

Employee benefits are analyzed as follows:


	At June 30,		At December 31,
	2024		2023
	(EUR thousand)
Employee severance indemnity		5,558		5,677
Jubilee benefits		228		228
Other post-employment plans		1,159		1,228
Stock grant plan 2021-2027		280		280
Total employee benefits		7,225		7,413

30.

Share-based compensation

On December 15, 2022, the Board of Directors of the Company approved a Long Term Incentive Plan including two sub-plans, the Restricted Shares Plan 2023-2027 and the Performance Shares Plan 2023-2027, with a duration of 5 years, running from January 1, 2023 until December 31, 2027. Both sub-plans are divided into three cycles, from January 2023 to December 2025 (“First Vesting Period”); from January 2024 to December 2026 (“Second Vesting Period”); and from January 2025 to December 2027 (“Third Vesting Period”).

On January 3, 2023 and on January 3, 2024 the beneficiaries of the new Long Term Incentive Plan received a letter that granted them the right to obtain the transfer free of charge of a certain number of shares for the First Vesting Period and the Second Vesting Period, respectively, if the underlying conditions were met.

The Restricted Shares Plan forms part of Stevanato Group’s long-term remuneration policy wherein Restricted Shares represent, for the First and Second Vesting Periods, 50% of a beneficiary's grant target pay opportunity, while Performance Shares represent the other 50% of the beneficiary's grant target pay opportunity. For the Third Vesting Period, the Company will determine the specific mix of Performance and Restricted Shares.

For each vesting period, the granting of awards under the Restricted Shares Plan is subject to the satisfaction of the following presence condition: shares shall not vest unless, at the end of the presence period related to each installment (3 equal annual installments), the relationship between the participant and Stevanato Group is still in existence, unless otherwise determined by the Chief Executive Officer. The presence period for each participant varies according to each participant's vesting schedule and is identified with the period between the grant of rights date and each installment-vesting schedule.

The right to the award of shares under the Performance Shares Plan, for each vesting period (3 years cliff vesting), is subject to the positive outcome of the determination of the Board of Directors relating to two different performance targets:

I. Revenue Growth Performance Criterion: 50% of the target number of shares shall vest if the Group achieves the targets in relation to the revenue growth performance criterion;

II. ROIC Performance Criterion: 50% of the target number of shares shall vest if the Group achieves the targets in relation to the ROIC Performance Criterion. ROIC is calculated as Net Operating Profit After Taxes divided by Average Invested Capital (average of the beginning and end of each fiscal year).

The performance target level, minimum target, overachievement target and maximum target of each performance criterion, for each vesting period, were communicated to the beneficiaries with the grant letter. In case of overperformance, the percentage of share-vested could be up to 200%.

The fair values of the Restricted Share Unit (RSU) and Performance Share Unit (PSU) awards were measured using the share price on the grant date adjusted for expected annual dividend yield of 0.30% and 0.25%, respectively, for the First Vesting Period and the Second Vesting Period, as these RSU and PSU awards do not have the right to receive ordinary dividends prior to vesting.


	Long Term Incentive Plan 2023 -2027	Long Term Incentive Plan 2023 -2027	Long Term Incentive Plan 2023 -2027 - further assignment
	Granted in 2023	Granted in 2024	Granted in 2024
Performance Share Units (PSUs)	EUR 16.44	EUR 23.03	EUR 16.92
Restricted Share Units (RSUs) - I Installment	EUR 16.54	EUR 23.16	EUR 17.03 - 18.67
Restricted Share Units (RSUs) - II Installment	EUR 16.49	EUR 23.11	EUR 16.98 - 18.62
Restricted Share Units (RSUs) - III Installment	EUR 16.44	EUR 23.03	EUR 16.92 - 18.56

Changes to the outstanding number of PSU and RSU awards under the equity incentive plans of the Group are as follows:


number of shares	Outstanding PSUs			Outstanding RSUs
At January 1, 2023		—			—
Granted (*)		145,670			145,670
Forfeited		(1,390	)		(1,390	)
At December 31, 2023		144,280			144,280
Granted (**)		84,321			97,259
Forfeited		(36,033	)		(35,520	)
Vested (***)		—			(40,484	)
At June 30, 2024		192,568			165,535

*Granted under the Performance Shares Plan 2023-2027 and the Restricted Shares Plan 2023-2027 for the First Vesting Period

**Granted under the Performance Shares Plan 2023-2027 and the Restricted Shares Plan 2023-2027 for the Second Vesting Period

***The vested shares related to the RSUs I Installment were awarded to the beneficiaries on June 10, 2024

At the Company's shareholders' meeting held on May 22, 2024, the shareholders passed certain resolutions relating to the remuneration of the Company's Board of Directors, with the exception of Mr. Franco Moro, which will include, a component in kind represented by the award of ordinary shares of the Company provided that the relevant directors are still in office as of the date of

the shareholders' meeting approving the financial statements of the Company for the fiscal year ending December 31, 2024. The fair value of the shares granted to the Board members amounted to EUR 17.85 and was measured using the share price on the grant date adjusted for the present value of the dividend, which they will not receive during the vesting period.

Changes to the outstanding number of shares for the share-based compensation of Board members are as follows:


number of shares	Outstanding RSUs
At January 1, 2024		44,996
Granted (*)		22,750
Vested (**)		(44,996	)
At June 30, 2024		22,750

* Granted on May 22, 2024

**The vested shares were granted to Board members in 2022 and 2023 and were subject to the condition of tenure until the date of approval of the financial statements of the Company as at December 31, 2023. The vested shares were awarded to the beneficiaries on June 10, 2024.

For the six months ended June 30, 2024 and 2023 the Company recognized EUR 1,245 thousand and EUR 1,323 thousand respectively as share-based compensation expense and an increase to other reserves within equity in relation to shares awards (including the stock compensation granted to certain employees in addition to the share-based incentive plans described above).

31.

Provisions

The balances at June 30, 2024, are detailed below:


	Provision for Warranty			Decommissioning		Provision for legal and sundry risks			Provision for agents and directors severance indemnity		Total
	(EUR thousand)
At January 1, 2024		1,429			659		2,570			380		5,038
Accrued during the period		458			14		—			—		472
Releases		—			—		(52	)		—		(52	)
Exchange rate differences		(1	)		21		84			—		104
At June 30, 2024		1,886			694		2,602			380		5,562

Current		1,462			—		—					1,462
Non-current		424			694		2,602			380		4,100

32.

Other non-current liabilities

Other non-current liabilities at June 30, 2024, and at December 31, 2023, amounted to EUR 51,342 thousand and EUR 48,474 thousand, respectively. Other non-current liabilities at June 30, 2024 mainly related to (i) an advance payment from BARDA of EUR 38,947 thousand, which reflects a partial payment for installing machinery in Fishers, Indiana, to help strengthen domestic capabilities in the U.S. for national defense readiness and preparedness programs for current and future public health emergencies; and (ii) an advance payment from the city of Fishers for certain costs at the site in the amount of EUR 2,254 thousand. These advance payments are expected to be recognized over the useful life of the element of property, plant and equipment to which are related. For further details on BARDA contribution refer to Note 18.

In addition to the above, other non-current liabilities included holiday pay for our Danish company’s employees following the transition to the new Danish Holiday Act that started in 2019 and deferred income related to the grant of land by the city of Fishers.

33.

Trade payables and other current liabilities

Trade payables amounted to EUR 256,942 thousand at June 30, 2024 compared to EUR 277,815 thousand at December 31, 2023 and other current liabilities amounted to EUR 87,669 thousand at June 30, 2024 compared to EUR 76,237 thousand at December 31, 2023, and are due within one year. Other current liabilities mainly include payables to personnel, deferred income and prepayments, payables for taxes on salaries and wages, and allowance for future expected customers returns. At June 30, 2024, other current liabilities also included the payables for dividends amounting to EUR 14,457 thousand that were unpaid at that date.

The carrying amount of trade payables is considered to be equivalent to their fair value.

34.

Contract liabilities and advances from customers

Contract liabilities and advances from customers are as follows:


	At June 30,		At December 31,
	2024		2023
	(EUR thousand)
Contract liabilities		23,501		22,306
Current advances from customers		11,130		22,892
Non-current advances from customers		47,667		39,418
Total contract liabilities and advances from customers		82,298		84,616

Contract liabilities relate to ongoing customer-specific construction contracts in the Engineering segment and in the In-vitro diagnostic and DDS businesses, which are part of the Biopharmaceutical and Diagnostic Solutions segment. The Group had contract net liabilities of EUR 23,501 thousand and EUR 22,306 thousand at June 30, 2024, and at December 31, 2023, respectively. Contract liabilities gross amounted to EUR 53,531 thousand (EUR 76,853 thousand at December 31, 2023), net of advance invoices issued of EUR 77,032 thousand (EUR 99,159 thousand at December 31, 2023).

Advances from customers relate to sales whose revenue are recognized at a point in time.

35.

Related party disclosures

According to IAS 24, the related parties of the Group are entities and individuals capable of exercising control, joint control or significant influence over the Group and its subsidiaries, companies belonging to the Stevanato Group S.p.A., and the controlling shareholder Stevanato Holding S.r.l. In addition, members of Stevanato Group’s Board of Directors and executives with strategic responsibilities and their families are also considered related parties. The Group carries out transactions with related parties on commercial terms that are in line with market practices in the respective markets, considering the characteristics of the goods or services involved.

Note 4 provides information about the Group’s structure, including details of the subsidiaries and the holding company. Transaction with related parties refer to:

•

for the six months ended June 30, 2023 service fees and rentals paid to Winckler & Co Ltd., the company whose owner held minority interests in the subsidiary Ompi of Japan Co. Ltd. up to July 31, 2023;

•

rentals paid to SFEM Italia S.r.l., controlled by the Stevanato family;

•

the purchase of products from Società Agricola Stella S.r.l., 51% controlled by Stevanato Holding S.r.l. and 49% controlled by SFEM Italia S.r.l.;

•

for the six months ended June 30, 2024 the revenue from the sale of consumables to Società Agricola Stella S.r.l.;

•

consulting services provided by Studio Legale Spinazzi Azzarita Troi, whose beneficial owner is a Board member in Stevanato Group S.p.A.;

•

industrial rentals paid to E & FKH Ejendomme ApS, whose beneficial owners are family members of a Board member in the subsidiary SG Denmark A/S in charge up to February 29, 2024;

•

revenue from the sale of drug containment systems to Incog BioPharma Services, Inc, a U.S.-based biopharma services company, in which by SFEM Italia S.r.l. holds a controlling stake;

•

receivables and payables to Stevanato Holding S.r.l. related to the national tax consolidation regime;

•

receivables to Stevanato Holding S.r.l. related to the recharge of the costs pertaining to the secondary component of the upsized follow-on underwritten offering of ordinary shares;

•

payables to Stevanato Holding S.r.l. for dividends.

Transactions with related parties also include compensation to directors and managers with strategic responsibilities.

The amounts of transactions with related parties recognized in the Unaudited Interim Condensed Consolidated Income Statement and the related assets and liabilities are as follows:


	For the three months ended June 30,								For the six months ended June 30,
	2024				2023				2024				2023
	Revenues		Costs		Revenues		Costs		Revenues		Costs		Revenues		Costs
	(EUR thousand)
Parent company
Stevanato Holding S.r.l.		238		—		—		—		238		—		—		—
Other related parties		847		2,783		84		2,068		882		5,280		178		3,757
Total transactions with related parties		1,085		2,783		84		2,068		1,120		5,280		178		3,757


	As of June 30,								As of December 31,
	2024								2023
	Trade receivables		Trade payables		Other assets		Other liabilities		Trade receivables		Trade payables		Other assets		Other liabilities
	(EUR thousand)								(EUR thousand)
Parent company
Stevanato Holding S.r.l.		—		—		8,915		52,008		—		—		4,020		—
Other related parties		778		112		25		3		636		271		2,034		1,210
Total transactions with related parties		778		112		8,940		52,011		636		271		6,054		1,210

36.

Events after the reporting period

The Group has evaluated subsequent events through August 5, 2024, which is the date the Unaudited Interim Condensed Consolidated Financial Statements were authorized for issuance and concluded that there is nothing material to report.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to numerous risks and uncertainties and are made in light of information currently available to us. Many important factors may adversely affect our results as indicated in forward-looking statements.

For additional information, refer to the risk factors discussed under “Risk Factors” below and in our other filings with the U.S. Securities and Exchange Commission. You should read this discussion and analysis completely and with the understanding that our actual future results may be materially different and worse from what we expect.

Overview

We are a leading global provider of drug containment, drug delivery and diagnostic solutions to the pharmaceutical, biotechnology and life sciences industries. We deliver an integrated, end-to-end portfolio of products, processes and services that address customer needs across the entire drug life cycle at each of the development, clinical and commercial stages. Our core capabilities in scientific research and development, our commitment to technical innovation and our engineering excellence are central to our ability to offer value added solutions to our clients.

We have secured a leadership position within the drug development and delivery value chain through our investment in research and development and the expansion of our global footprint and capabilities. Over our 70-year history, we have earned a leading reputation for high quality and reliability that has enabled us to become a partner of choice for more than 700 companies globally, including all of the top 25 pharmaceutical companies and eight of the top ten in-vitro diagnostic companies, as measured by 2022 revenue, according to data collected by Pharmacircle and public companies’ information. We also serve seven of the top ten biotechnology companies by market capitalization in the NASDAQ Biotechnology Index and over 100 biotechnology customers in total.

Our priority is to provide flexible solutions that preserve the integrity of pharmaceutical products and enable our customers to deliver safe and effective treatments to patients while reducing time to market, total cost of ownership (i.e., logistics, drug product waste, storage and personnel costs) and supply chain risk. We achieve this by developing our products in close collaboration with our customers, leveraging our scientific research capabilities, technical expertise and engineering and manufacturing excellence to meet their quality requirements.

Our solutions are highly integrated with the development, production and commercialization processes of our customers. In addition to manufacturing drug containment and delivery solutions, we provide a full set of services across all stages of drug development, from pre-clinical to clinical and commercialization. We also engineer machinery and equipment for the production of drug containment and delivery systems that can be integrated into both our customers’ and our own manufacturing processes. Our involvement at each stage of a drug’s life cycle, together with the breadth of our offering, enables us to serve as a one-stop-shop for our customers, which we believe represents a significant competitive advantage.

We operate across the healthcare industry and serve some of its fastest growing segments, including biologics (including GLP-1s, monoclonal antibodies and mRNA applications), biosimilars, vaccines and molecular diagnostics. As a result of how closely integrated we are in the drug production and delivery supply chain, we are well-positioned to benefit from multi-year, secular trends within our target industries, such as increases in demand resulting from pharmaceutical innovation, acceleration and expansion of vaccination programs, growth in biologics/biosimilars, self-administration of medicines, aging demographics, increasing quality standards and regulation and a shift towards outsourcing non-core functions by our customers.

We estimate that our total addressable market, based on our current offering, exceeded $15 billion in terms of revenue generated by all market participants in 2023, and consists of biopharmaceutical injectables and in-vitro diagnostic products. The addressable market estimation is based on revenue from all market players in 2023; if revenue from 2023 is not available, revenue for 2022 is used applying market growth rates from third parties such as IQVIA, Roots Analysis, Markets and Markets Research, and Alira Health. Within each of these markets, we operate in some of the fastest growing segments, including pre-fillable syringes, drug delivery systems, molecular diagnostics and assembly equipment.

We believe there are opportunities to further expand our addressable markets, including by targeting (i) complementary containment solutions; (ii) additional delivery systems; (iii) complementary engineering solutions; and (iv) after sales support and services.

We operate our business in two segments:

•

We refer to our premium products in the Biopharmaceutical and Diagnostic Solutions segment as our “high-value” solutions. High-value solutions are wholly owned, internally developed products, processes and services for which we hold intellectual property rights or have strong proprietary know-how, and that are characterized by particular complexity and high performance. Our high-value solutions deliver significant benefits to customers including higher quality, reduced time-to-market and reduced total cost of ownership. Presently, only about 5% of the vial market and less than 5% of the cartridge market has transitioned to a ready-to-use format, while 95% of the syringe market has transitioned to a ready-to-use pre-fillable syringes. However, we are currently experiencing a desire by customers to transition to ready-to-use formats to benefit from one or more of the above mentioned efficiencies to different extents. Among our key high-value solutions is our EZ-Fill® line of ready-to-fill injectable products, which can be customized to meet clients’ needs. For additional information on EZ-Fill® see “Business Overview—Business Segments—Biopharmaceutical and Diagnostic Solutions— Drug Containment Solutions (DCS)” of our Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission on March 7, 2024.

We have ten production plants for manufacturing and assembling pharmaceutical and healthcare products across Europe (Italy, Germany and Slovakia) and the rest of the world (Brazil, China, Mexico and the United States), four plants for the production of machinery and equipment (Italy and Denmark), two sites for analytical services (Italy and the United States) and two commercial offices (Japan and the United States). Our manufacturing facilities in Mexico (serving the U.S. market), China and Brazil are greenfield operations established by us. Our manufacturing facilities in Slovakia, Denmark, Germany and the United States were acquired in strategic transactions over the past 15 years. Our global footprint, together with our proprietary, highly standardized manufacturing systems and processes, allow us to provide quality consistent products and services to our customers in more than 70 countries. We are expanding our global industrial footprint with capacity expansions in Fishers, Indiana, U.S., and in Latina, Italy, primarily to add capacity in our premium EZ-Fill® products to diversify our product supply and improve proximity to customers. In 2023, we elected to slow down our capacity expansion in China in order to focus efforts and resources on the ramp up of our manufacturing facilities in the U.S. and Italy where demand outpaced initial expectations. In the second quarter of 2024, the further postponement of the EZ-Fill® capacity expansion investment in China due to the diversion of a customer's EZ-Fill® project to the Group's facility in Latina, Italy, led to the recognition of an impairment loss from the write-down of the facility in Zhangjiagang, China, that was acquired in 2021 and still included among assets under construction, to the recoverable amount.

Highlights

Interim Consolidated Income Statement Data


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,					Change			For the six months ended June 30,					Change
	2024			2023		%			2024			2023		%
Revenue		259.6			255.3		1.7	%		495.6			493.3		0.5	%
Gross Profit		67.5			78.9		(14.4	)%		129.7			155.2		(16.4	)%
Operating Profit		28.0			44.9		(37.7	)%		53.3			85.5		(37.7	)%
Profit Before Tax		29.2			44.3		(34.2	)%		54.8			80.4		(31.7	)%
Net Profit attributable to:
Equity holders of the parent		20.6			34.2		(39.8	)%		39.4			62.5		(36.9	)%
Non-controlling interests		(0.0	)		0.0		(105.8	)%		(0.0	)		0.1		(107.2	)%
Basic earnings per ordinary share (in EUR)		0.08			0.13		(38.5	)%		0.15			0.24		(37.5	)%
Diluted earnings per ordinary share (in EUR)		0.08			0.13		(38.5	)%		0.15			0.24		(37.5	)%
Dividend approved per share (in EUR) (1)		0.053			0.054		(1.9	)%		0.053			0.054		(1.9	)%
Dividend approved per share (in USD)		0.057			0.058		(1.7	)%		0.057			0.058		(1.7	)%

(1) At the Annual General Meeting of the Shareholders held on May 22, 2024, the shareholders approved a dividend distribution of EUR 0.053 per outstanding share, corresponding to a total distribution of approximately EUR 14.5 million. This distribution was made from the net profits realized in the previous financial year. In July 2024 the Company paid EUR 2.3 million to shareholders of record at June 4, 2024 and the remaining balance, which relates to dividends payable to the controlling shareholder Stevanato Holding S.r.l., will be paid in the following quarters of 2024.

At the Annual General Meeting of the Shareholders held on May 24, 2023, the shareholders approved a dividend distribution of EUR 0.054 per outstanding share, corresponding to a total distribution of approximately EUR 14.3 million. This distribution was made from the net profits realized in the previous financial year. In July 2023 the Company paid EUR 3.8 million to shareholders of record at June 6, 2023 and the remaining balance, which relates to dividends payable to the controlling shareholder Stevanato Holding S.r.l. was paid in the fourth quarter of 2023.

For further information on Earnings per hare calculation, see “16. Earnings per Share” in the Unaudited Interim Condensed Consolidated Financial Statements.

Interim Consolidated Statement of Financial Position Data


	(Amounts in EUR million, except as indicated otherwise)
	At June 30,		At December 31,		Change
	2024		2023		EUR
Assets
Total current assets		869.7		861.9		7.8
Total non-current assets		1,327.4		1,209.7		117.7
Total assets		2,197.1		2,071.6		125.5

Liabilities and equity
Total current liabilities		499.6		574.4		(74.8	)
Total non-current liabilities		373.3		364.5		8.7
Total liabilities		872.8		938.9		(66.1	)
Total Equity		1,324.2		1,132.6		191.6
Total liabilities and equity		2,197.1		2,071.6		125.5

2024 first six months challenges

During the COVID-19 pandemic, high demand and long lead times for glass vials created an industry-wide temporary imbalance of supply and demand for glass vials, and customers stockpiled glass vials (both standard and ready-to-use) to mitigate risk and secure their supply chains. As a result of increased customer inventories for glass vials, the industry is now experiencing a slowdown in demand for glass vials as market participants continue to work down their inventories. As a consequence of our customers' inventory destocking, we experienced lower volumes and revenue attributable to glass vials. The lower revenue from vials (both standard and

ready-to-use), coupled with the underutilization of vial production lines, adversely impacted gross profit and operating profit margins. These effects began in 2023 and have carried over into the first half of 2024. The Group expects a more gradual recovery in vials and anticipates that orders may begin to pick up at the end of 2024 and into 2025, with bulk vials expected to recover first. As a result, considering the high marginality of ready-to-use glass vials and the impact on the mix of high-value solutions, the Group expects that this will unfavorably temper gross profit margin in 2024.

The Group is also experiencing temporary inefficiencies tied to the ramp-up phase of its capacity expansion projects, both in Italy and in the U.S., tempering gross profit margin, operating profit margin and EBITDA margin in 2024. Such inefficiencies reflect higher costs during the initial ramp-up phase and temporary under absorption of costs as volumes and revenue begin to increase during the ramp-up phase. These costs include the fixed assets and infrastructure, implementation of industrial processes, hiring and training of new employees, the qualification and validation activities of new production lines, as well as the time ordinarily needed by newly validated lines to progressively increase productivity to reach target level. Moreover, as anticipated, throughout the ramp-up phase depreciation of new assets has further tempered gross profit margin and operating profit margin, as the productivity of the new assets has not yet reached target level. The Group expects that as the ramp-up activities progress, and get completed, those anticipated temporary inefficiencies will terminate.

Lastly, the Engineering Segment experienced a period of record orders in the second half of 2022. The operations scaled up to support this large volume of work and long lead times for components created execution challenges for the Group since last year. The challenges are predominantly isolated to its Denmark operations where the Group has experienced increased costs on certain highly customized projects in the later stages of development. The Group is implementing remedial actions including industrial footprint optimization, harmonization of some industrial processes, and revision of certain supply and logistic strategies. For example, the Group recently consolidated the Danish operations of two different production sites into a single location, focused on assembly and packaging technologies. In parallel, the Group is implementing a sound operational cross-site plan to further support the Danish teams in progressing visual inspection lines with the specialists from the Italian sites. This is expected to further support the ongoing projects aimed at increasing the standardization of the Segments' processes and technology base. The Group believes those initiatives will help the Group achieve a more optimized operational structure to maximize efficiencies to secure the success of projects going forward, but expects that these initiatives will take time as we strive to advance our projects in progress.

Components of Our Results of Operations

The following discussion sets forth certain components of our statements of operations as well as factors that impact those items. Results discussed in this section do not include the Company’s inter-segment items other than where we specifically note otherwise.

Revenue and Segment Reporting

Our business operations are divided into two main segments:

(i)

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, as well as the production of diagnostic consumables. This segment is split into two sub-categories:

•

high-value solutions; and

•

other containment and delivery solutions.

(ii)

Engineering: which includes the equipment and technologies developed and provided to support the end-to-end biopharmaceutical and diagnostic manufacturing processes (machinery for assembly, visual inspection, packaging and serialization and glass converting). We believe operating in this segment differentiates us from our competitors, and enables us to provide integrated end-to-end solutions, reduce time to market and improve the quality of our products.

Revenue for the three months ended June 30, 2024, and 2023, amounted to EUR 259.6 million and EUR 255.3 million, respectively. Revenue for the six months ended June 30, 2024, and 2023, amounted to EUR 495.6 million and EUR 493.3 million, respectively.

For the six months ended June 30, 2024, and 2023, we generated 85% and 81% of total revenue from our Biopharmaceutical and Diagnostic Solutions segment, respectively, and 15% and 19% from our Engineering segment, respectively.

The following tables set forth the results of our business operations for the aforementioned segments, which include inter-segment items, and the reconciliation with the consolidated figures, for the three and the six months ended June 30, 2024, and 2023.

Revenue for each segment is divided into “External Customers”, representing revenue from third party sales, and “Inter-Segment”, representing the revenue from the sales generated from the transactions with other segments, and is then reconciled with the consolidated revenue which does not include inter-segment items.

Gross Profit margin is calculated by dividing Gross Profit for a period by total revenue for the same period. Operating Profit margin is calculated by dividing Operating Profit for a period by total revenue for the same period. Gross Profit margin and Operating profit margin for both Biopharmaceutical and Diagnostic Solutions segment and Engineering segment include the effect of inter-segment transactions.


	For the three months ended June 30, 2024
	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions			Engineering			Adjustments, eliminations and unallocated items			Consolidated

External Customers		222.4			37.2			—			259.6
Inter-Segment		0.6			42.4			(43.0	)		—
Revenue		223.0			79.6			(43.0	)		259.6

Gross Profit		61.7			8.2			(2.4	)		67.5
Gross Profit Margin		27.7	%		10.3	%					26.0	%

Operating Profit		32.3			2.1			(6.4	)		28.0
Operating Profit Margin		14.5	%		2.6	%					10.8	%


	For the three months ended June 30, 2023
	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions			Engineering			Adjustments, eliminations and unallocated items			Consolidated

External Customers		204.8			50.5			—			255.3
Inter-Segment		0.4			43.0			(43.4	)		—
Revenue		205.2			93.5			(43.4	)		255.3

Gross Profit		64.9			21.0			(7.0	)		78.9
Gross Profit Margin		31.6	%		22.5	%					30.9	%

Operating Profit		40.6			14.5			(10.2	)		44.9
Operating Profit Margin		19.8	%		15.5	%					17.6	%


	For the six months ended June 30, 2024
	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions			Engineering			Adjustments, eliminations and unallocated items			Consolidated

External Customers		421.3			74.3			—			495.6
Inter-Segment		1.2			82.6			(83.8	)		—
Revenue		422.5			156.9			(83.8	)		495.6

Gross Profit		115.8			21.6			(7.6	)		129.7
Gross Profit Margin		27.4	%		13.8	%					26.2	%

Operating Profit		60.5			7.3			(14.5	)		53.3
Operating Profit Margin		14.3	%		4.6	%					10.7	%


	For the six months ended June 30, 2023
	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions			Engineering			Adjustments, eliminations and unallocated items			Consolidated

External Customers		400.4			92.9			—			493.3
Inter-Segment		0.8			92.3			(93.2	)		—
Revenue		401.2			185.3			(93.2	)		493.3

Gross Profit		130.9			40.9			(16.6	)		155.2
Gross Profit Margin		32.6	%		22.1	%					31.5	%

Operating Profit		79.3			28.5			(22.3	)		85.5
Operating Profit Margin		19.8	%		15.4	%					17.3	%

For further information on Revenue, Gross Profit and Operating Profit, see “Results of Operations”, below.

Results of Operations

Three months ended June 30, 2024 versus three months ended June 30, 2023

The following tables set forth our results of operations for the three and the six months ended June 30, 2024 and 2023.


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,										Change			Change
	2024		% of revenue			2023		% of revenue			€			%
Revenue		259.6		100.0	%		255.3		100.0	%		4.3			1.7	%
Cost of sales		192.1		74.0	%		176.4		69.1	%		15.7			8.9	%
Gross Profit		67.5		26.0	%		78.9		30.9	%		(11.4	)		(14.4	)%
Other operating income		1.0		0.4	%		4.0		1.6	%		(3.0	)		(76.6	)%
Selling and Marketing expenses		7.4		2.8	%		6.8		2.7	%		0.6			9.1	%
Research and Development expenses		8.8		3.4	%		8.4		3.3	%		0.4			4.5	%
General and Administrative expenses		24.4		9.4	%		22.9		9.0	%		1.5			6.3	%
Operating Profit		28.0		10.8	%		44.9		17.6	%		(16.9	)		(37.7	)%
Finance income		2.7		1.0	%		6.7		2.6	%		(4.0	)		(59.9	)%
Finance expense		1.5		0.6	%		7.3		2.9	%		(5.8	)		(79.5	)%
Profit Before Tax		29.2		11.2	%		44.3		17.4	%		(15.1	)		(34.2	)%
Income taxes		8.5		3.3	%		10.0		3.9	%		(1.5	)		(14.8	)%
Net Profit		20.6		7.9	%		34.3		13.4	%		(13.7	)		(39.8	)%

Revenue

Revenue increased by EUR 4.3 million, or 1.7%, to EUR 259.6 million for the three months ended June 30, 2024, compared to EUR 255.3 million for the three months ended June 30, 2023. This was driven by a revenue increase of EUR 17.6 million from the Biopharmaceutical and Diagnostic Solutions Segment which offset a revenue decline of EUR 13.3 million in the Engineering Segment. For the three months ended June 30, 2024, high-value solutions increased to 39.8% of our total revenue, compared with 33.0% for the three months ended June 30, 2023, resulting primarily from increased customer demand for high performance syringes, which offset soft demand in ready-to-use vials which continues to be adversely impacted by destocking of excess customer inventories arising during the pandemic. On a constant currency basis revenue increased 1.7% for the three months ended June 30, 2024.

Biopharmaceutical and Diagnostic Solutions


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,				Change			Change
	2024		2023		€			%

Type of goods or service
Revenue from high-value solutions		103.4		84.2		19.2			22.8	%
Revenue from other containment and delivery solutions		119.0		120.6		(1.6	)		(1.3	)%
Total Revenue from Biopharmaceutical and Diagnostic Solutions		222.4		204.8		17.6			8.6	%

Revenue generated by the Biopharmaceutical and Diagnostic Solutions segment increased by EUR 17.6 million, or 8.6%, to EUR 222.4 million for the three months ended June 30, 2024, compared to EUR 204.8 million for the three months ended June 30, 2023. Revenue growth on constant currency basis was 8.5% for the three months ended June 30, 2024.

For the three months ended June 30, 2024, revenue growth of 8.6% was driven by revenue increases in syringes, drug delivery systems and in-vitro diagnostics. This increase was offset by a 40% revenue decline in standard and ready-to-use glass vials due to temporary soft vial demand related to elevated customer inventories.

For the three months ended June 30, 2024, revenue growth from high-value solutions offset the revenue decrease in other containment and delivery solutions. Despite the revenue decline related to EZ-Fill® vials, revenue generated from our high-value solutions increased by EUR 19.2 million, or 22.8%, to EUR 103.4 million for the three months ended June 30, 2024, compared to EUR 84.2 million for the three months ended June 30, 2023, reflecting the increased demand for other products, such as high performance syringes. Revenue generated by other containment and delivery solutions decreased by EUR 1.6 million, or 1.3%, to EUR 119.0 million for the three months ended June 30, 2024, compared to EUR 120.6 million for the three months ended June 30, 2023. The

decrease in revenue generated by other containment and delivery solutions was mainly attributable to the lower demand for standard vials.

On a constant currency basis, revenue generated from high-value solutions increased by EUR 19.0 million, or 22.6%, to EUR 103.2 million for the three months ended June 30, 2024, compared to EUR 84.2 million for the three months ended June 30, 2023, while revenue generated by other containment and delivery solutions decreased by EUR 1.5 million, or 1.3%, to EUR 119.1 million for the three months ended June 30, 2024, compared to EUR 120.6 million for the three months ended June 30, 2023.

Engineering

Revenue generated by the Engineering segment, decreased by EUR 13.3 million, or 26.3%, to EUR 37.2 million for the three months ended June 30, 2024, compared to EUR 50.5 million for the three months ended June 30, 2023, mainly driven by lower revenue attributable to pharmaceutical visual inspection systems.

The Group is continuing to focus on executing a large volume of work currently in progress. Since 2019, the Engineering segment has experienced significant growth, with revenue more than doubling over the last four years. This high demand, coupled with long lead times in electronic components, led to a backlog of work. The Group added more personnel and resources to complete the work in process and is implementing initiatives to optimize the industrial footprint, harmonize processes and enhance some supply chain and logistics strategies.

Revenue Breakdown by Geographical Markets

The following table presents revenue by geographical markets for the three months ended June 30, 2024, and 2023. Revenue by geographical markets is based on the end customer location. The reported geographical markets are EMEA (Europe, Middle East, Africa), North America (United States, Canada, Mexico), South America and APAC (Asia Pacific).


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,										Change			Change
	2024		% on Revenue			2023		% on Revenue			€			%

Geographical markets
EMEA		158.4		61.0	%		160.8		63.0	%		(2.4	)		(1.5	)%
APAC		20.6		8.0	%		20.8		8.2	%		(0.2	)		(0.8	)%
North America		71.4		27.5	%		65.9		25.8	%		5.5			8.4	%
South America		9.2		3.5	%		7.8		3.0	%		1.4			17.8	%
Total Revenue		259.6		100.0	%		255.3		100.0	%		4.3			1.7	%

Cost of Sales

Cost of sales increased by EUR 15.7 million, or 8.9%, to EUR 192.1 million for the three months ended June 30, 2024, compared to EUR 176.4 million for the three months ended June 30, 2023. The increase in cost of sales was mainly due to (i) higher industrial costs, such as labor and materials, tied to the ongoing start-up of our new manufacturing plants in the U.S. and Italy in our Biopharmaceutical and Diagnostic Solutions segment and (ii) higher costs on certain complex and highly customized projects in process in our Engineering segment.

In the second quarter of 2024, the Group reassessed the expected useful life of certain machinery installed in the Italian facilities considering the low impact of extraordinary maintenance performed over time on these assets, their first installation and their continuing functioning. Based on a technical appraisal, the expected useful lives for the machinery pertaining to our bulk production and to our EZ-Fill® production were extended from 6.7 years to 15 years and 12 years, respectively. The change in the expected useful lives of the machinery was treated as a change in estimate starting from April 1, 2024. The reduction in depreciation expense in the second quarter 2024 approximated EUR 4.8 million.

As a percentage of revenue, cost of sales was 74.0% for the three months ended June 30, 2024 compared to 69.1% for the three months ended June 30, 2023.

For the three months ended June 30, 2024, cost of sales included EUR 2.7 million of start-up costs mostly related to the new facility in Indiana, U.S. compared to EUR 3.4 million of start-up costs for the three months ended June 30, 2023 related to the new faclities in Indiana, U.S., and Latina, Italy. These costs are primarily related to labor costs incurred prior to commercial operation, namely recruiting, hiring, training and travel expenses of personnel.

Gross Profit

For the three months ended June 30, 2024, gross profit decreased by EUR 11.4 million, or 14.4%, to EUR 67.5 million, compared to EUR 78.9 million for the three months ended June 30, 2023. Gross profit margin decreased to 26.0% for the three months ended June 30, 2024, compared to 30.9% for the same period last year, resulting from a decrease in gross profit margin from both the Biopharmaceutical and Diagnostic Solution segment and the Engineering segment.

For the three months ended June 30, 2024, gross profit margin for the Biopharmaceutical and Diagnostic Solutions segment amounted to 27.7% compared to 31.6% for the three months ended June 30, 2023. The decrease in gross profit margin was primarily due to: (i) destocking including the lower revenue related to EZ-fill® vials which negatively impacted the mix within high-value solutions, and the underutilization of standard and ready-to-use glass vial production lines and the associated labor costs, and (ii) the expected temporary inefficiencies due to the ramp-up of the new manufacturing plants in the United States and Italy. This decrease was partially offset by the mix shift to high-value solutions, which was accretive to the gross profit compared to the same period last year.

For the three months ended June 30, 2024, gross profit margin for the Engineering segment decreased to 10.3% compared to 22.5% for the three months ended June 30, 2023. The decrease in gross profit margin was driven by increased costs on certain highly customized projects in the later stages of development. These projects are proceeding slower than anticipated despite an increase in personnel and resources.

Other operating income

Other operating income is a component of income which varies yearly depending on the specific contracts in place at the time and mainly includes (i) contributions received from customers and other business partners, in the context of collaboration agreements related to development projects, where both parties share in the risks and benefits, (ii) government grants, and (iii) lease income. Based on the assessment performed, the Group does not consider these transactions to be part of the ordinary revenue generating activities.

Other operating income decreased by EUR 3.0 million, or 76.6%, to EUR 1.0 million for the three months ended June 30, 2024, compared to EUR 4.0 million for the three months ended June 30, 2023.

Selling and Marketing expenses

Selling and marketing expenses increased by EUR 0.6 million, or 9.1%, to EUR 7.4 million for the three months ended June 30, 2024, compared to EUR 6.8 million for the three months ended June 30, 2023. These expenses are mainly related to personnel expenses for our sales organization, business development and events costs, travel expenses, and other marketing and strategic consultancies. The increase in selling and marketing expenses was mainly due to the increase in personnel expenses and, to a lesser extent, an increase of the accrual of a bad and doubtful debt provision amounting to EUR 0.5 million for the three months ended June 30, 2024 (EUR 0.3 million for the three months ended June 30, 2023). This increase was partially offset by lower costs for business development and industry events and strategic marketing.

As a percentage of revenue, selling and marketing expenses was 2.8% for the three months ended June 30, 2024 and was consistent with 2.7% for the three months ended June 30, 2023.

Research and Development expenses

Research and development expenses increased by EUR 0.4 million, or 4.5%, to EUR 8.8 million for the three months ended June 30, 2024, compared to EUR 8.4 million for the three months ended June 30, 2023. Such expenses include costs for research and development activities to support the innovation of our product range and components as well as amortization and depreciation for EUR 0.9 million for the three months ended June 30, 2024 (EUR 1.0 million for the three months ended June 30, 2023).

The increase is mainly due to restructuring and related charges of EUR 0.4 million, including severance payments, as well as higher personnel costs related to new hires to support strategic R&D activities launched at the Group level.

As a percentage of revenue, research and development expenses were 3.4% for the three months ended June 30, 2024 compared to 3.3% for the three months ended June 30, 2023.

General and Administrative expenses

General and administrative expenses increased by EUR 1.5 million, or 6.3%, to EUR 24.4 million for the three months ended June 30, 2024, compared to EUR 22.9 million in the three months ended June 30, 2023. These expenses mainly comprise corporate personnel costs, directors compensation, consultancy costs, rentals, as well as depreciation and amortization of EUR 2.1 million (compared to EUR 2.0 million for the three months ended June 30, 2023). The increase in general and administrative expenses was mainly attributable to higher personnel expenses linked to (i) severance payments, (ii) new hires to support business growth, (iii) salary increases primarily due to the Company's long-term equity incentive program as outlined under the SGP 2023-2027, merit increases and mandatory increases under national collective agreements. This increase was partially offset by a reduction in D&O insurance expense and in certain consultancy costs.

For the three months ended June 30, 2024, general and administrative expenses included EUR 0.3 million of start-up costs principally related to the new facilities in Fishers, Indiana, and EUR 1.8 million for restructuring and related charges, which include the aforementioned severance payments.

As a percentage of revenue, general and administrative expenses was 9.4% for the three months ended June 30, 2024, compared to 9.0% for the three months ended June 30, 2023.

Operating Profit

As a result of the foregoing, operating profit decreased by EUR 16.9 million, or 37.7%, to EUR 28.0 million for the three months ended June 30, 2024, compared to EUR 44.9 million for the three months ended June 30, 2023. Operating profit margin for the three months ended June 30, 2024, decreased to 10.8% compared to 17.6% for the three months ended June 30, 2023, mostly due to the reduction of gross profit margin and, to a lesser extent, to the reduction of other operating income and a lower absorption of selling, general and administrative expenses.

For the three months ended June 30, 2024, the operating profit margin for the Biopharmaceutical and Diagnostic Solution segment was 14.5%, compared to 19.8% for the three months ended June 30, 2023. The decrease in operating profit margin was primarily due to the reduction in gross profit margin and, to a lesser extent, to the decrease of other operating income.

For the three months ended June 30, 2024, Engineering operating profit margin was 2.6%, compared to 15.5% for the three months ended June 30, 2023. The decrease in operating profit margin was mainly driven by the decrease in gross profit margin.

Net Finance expenses

Finance expenses, net of finance income, decreased by EUR 1.8 million to EUR 1.2 million net income for the three months ended June 30, 2024, from EUR 0.6 million net expense for the three months ended June 30, 2023. Finance expenses include bank interest on the Group’s financial debt and interest on leases, recognized in accordance with IFRS 16-Leases, derivatives change in fair value as well as exchange rate gains and losses.

Net finance expenses decreased mainly due to (i) a net foreign currency exchange rate impact, amounting to a net gain of EUR 2.0 million for the three months ended June 30, 2024, compared to a net loss of EUR 1.9 million for the three months ended June 30, 2023, (ii) the fair value adjustment related to trading derivatives amounting to a net devaluation of EUR 1.1 million for the three months ended June 30, 2024, compared to a net revaluation of EUR 1.9 million for the three months ended June 30, 2023, and, (iii) to a lesser extent, the increase in the interest earned in cash holdings in bank accounts. The net foreign currency exchange rate impact was the result of the strengthening of the U.S. Dollar against the Euro and the Mexican Peso for the three months ended June 30, 2024.

Profit Before Tax

Profit before tax decreased by EUR 15.1 million, or 34.2%, to EUR 29.2 million for the three months ended June 30, 2024, compared to EUR 44.3 million for the three months ended June 30, 2023.

Income taxes

Income taxes decreased by EUR 1.5 million, or 14.8%, to EUR 8.5 million for the three months ended June 30, 2024, compared to EUR 10.0 million for the three months ended June 30, 2023.

The effective tax rate for the three months ended June 30, 2024, was 29.3% compared to 22.6% for the three months ended June 30, 2023. The increase in the effective tax rate is mainly attributable to the Italian legal entities and due to the (i) the abolition of the “ACE” tax benefit (linked to reinvestment of profits in the company) and the introduction of a tax benefit related to employment growth, whose impact was less beneficial in the three months ended June 30, 2024 compared to the former tax benefit impacting the three months ended June 30, 2023, (ii) the Italian tax energy bonuses and R&D tax credit which were recognized for the three months ended June 30, 2023 and which did not repeat for the three months ended June 30, 2024. In addition, the consolidated effective tax rate was negatively affected by the significantly lower profit before taxes of the Chinese legal entity for the three months ended June 30, 2024 compared with the same period last year, for which a 15% tax rate applies.

Net Profit

Net profit decreased by EUR 13.7 million, or 39.8%, to EUR 20.6 million (or EUR 0.08 of Diluted EPS or EUR 0.09 of Adjusted Diluted EPS) for the three months ended June 30, 2024, compared to EUR 34.3 million (or EUR 0.13 of Diluted EPS or EUR 0.14 of Adjusted Diluted EPS) for the three months ended June 30, 2023.

For non-GAAP financial measures reconciliation refer to “Key Indicators of Performance and Financial Condition - Non-GAAP Measures - Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Income Taxes, Adjusted Net Profit and Adjusted Diluted EPS”.

Six months ended June 30, 2024 versus six months ended June 30, 2023


	(Amounts in EUR million, except as indicated otherwise)
	For the six months ended June 30,										Change			Change
	2024		% of revenue			2023		% of revenue			EUR			%
Revenue		495.6		100.0	%		493.3		100.0	%		2.3			0.5	%
Cost of sales		365.9		73.8	%		338.1		68.5	%		27.8			8.2	%
Gross Profit		129.7		26.2	%		155.2		31.5	%		(25.5	)		(16.4	)%
Other operating income		2.3		0.5	%		5.2		1.1	%		(2.9	)		(56.3	)%
Selling and Marketing expenses		13.2		2.7	%		12.8		2.6	%		0.4			2.6	%
Research and Development expenses		19.5		3.9	%		16.9		3.4	%		2.6			13.2	%
General and Administrative expenses		46.1		9.3	%		45.1		9.1	%		1.0			2.0	%
Operating Profit		53.3		10.7	%		85.5		17.3	%		(32.2	)		(37.7	)%
Finance income		6.8		1.4	%		11.1		2.3	%		(4.3	)		(38.5	)%
Finance expense		5.3		1.1	%		16.3		3.3	%		(11.0	)		(67.7	)%
Profit Before Tax		54.8		11.1	%		80.4		16.3	%		(25.6	)		(31.7	)%
Income taxes		15.4		3.1	%		17.8		3.6	%		(2.4	)		(13.4	)%
Net Profit		39.4		8.0	%		62.6		12.7	%		(23.2	)		(37.0	)%

Revenue

Revenue increased by EUR 2.3 million, or 0.5%, to EUR 495.6 million for the six months ended June 30, 2024, compared to EUR 493.3 million for the six months ended June 30, 2023. This was driven by a revenue increase of EUR 20.9 million from the Biopharmaceutical and Diagnostic Solutions Segment, which offset a revenue decline of EUR 18.6 million in the Engineering Segment. For the six months ended June 30, 2024, revenue from high-value solutions increased to 38.6% of our total revenue, compared with 32.6% for the six months ended June 30, 2023, resulting primarily from increased customer demand for high performance syringes, which offset soft demand in ready-to-use vials which continues to be adversely impacted by destocking of excess customer inventories arising during the pandemic. On a constant currency basis revenue increased 0.7% for the six months ended June 30, 2024.

Biopharmaceutical and Diagnostic Solutions


	(Amounts in EUR million, except as indicated otherwise)
	For the six months ended June 30,				Change			Change
	2024		2023		EUR			%

Type of goods or service
Revenue from high-value solutions		191.3		160.9		30.4			18.9	%
Revenue from other containment and delivery solutions		230.0		239.5		(9.5	)		(4.0	)%
Total Revenue from Biopharmaceutical and Diagnostic Solutions		421.3		400.4		20.9			5.2	%

Revenue generated by the Biopharmaceutical and Diagnostic Solutions segment increased by EUR 20.9 million, or 5.2%, to EUR 421.3 million for the six months ended June 30, 2024, compared to EUR 400.4 million for the six months ended June 30, 2023. Revenue growth on constant currency basis was 5.5% for the six months ended June 30, 2024.

For the six months ended June 30, 2024, revenue growth of 5.2% was driven by revenue increases in syringes, drug delivery systems and in-vitro diagnostics. Segment growth was offset by a 41% revenue decline in standard and ready-to-use glass vials due to temporary soft vial demand related to elevated customer inventories.

For the six months ended June 30, 2024, increased revenue from high-value solutions offset the revenue decrease in other containment and delivery solutions. Despite the decrease in revenue attributable to EZ-Fill® vials, revenue generated from our high-value solutions increased by EUR 30.4 million, or 18.9%, to EUR 191.3 million for the six months ended June 30, 2024, compared to EUR 160.9 million for the six months ended June 30, 2023, reflecting the increased demand related to other products, such as

high performance syringes. Revenue generated by other containment and delivery solutions decreased by EUR 9.5 million, or 4.0%, to EUR 230.0 million for the six months ended June 30, 2024, compared to EUR 239.5 million for the six months ended June 30, 2023. The decrease in revenue generated by other containment and delivery solution was predominately attributable to the lower demand for standard vials.

On a constant currency basis, revenue generated from high-value solutions increased by EUR 31.2 million, or 19.4%, to EUR 192.1 million for the six months ended June 30, 2024, compared to EUR 160.9 million for the six months ended June 30, 2023, and revenue generated by other containment and delivery solutions decreased by EUR 9.3 million, or 3.9%, to EUR 230.2 million for the six months ended June 30, 2024, compared to EUR 239.5 million for the six months ended June 30, 2023.

Engineering

Revenue generated by the Engineering segment, decreased by EUR 18.6 million, or 20.1%, to EUR 74.3 million for the six months ended June 30, 2024, compared to EUR 92.9 million for the six months ended June 30, 2023, mainly driven by the decrease in revenue attributable to pharmaceutical visual inspection systems.

Revenue Breakdown by Geographical Markets


	(Amounts in EUR million, except as indicated otherwise)
	For the six months ended June 30,										Change			Change
	2024		% on Revenue			2023		% on Revenue			EUR			%

Geographical markets
EMEA		299.6		60.5	%		311.2		63.1	%		(11.6	)		(3.7	)%
APAC		39.8		8.0	%		46.1		9.3	%		(6.3	)		(13.7	)%
North America		140.5		28.3	%		122.6		24.9	%		17.9			14.6	%
South America		15.7		3.2	%		13.4		2.7	%		2.3			17.2	%
Total Revenue		495.6		100.0	%		493.3		100.0	%		2.3			0.5	%

Cost of Sales

Cost of sales increased by EUR 27.8 million, or 8.2%, to EUR 365.9 million for the six months ended June 30, 2024, compared to EUR 338.1 million for the six months ended June 30, 2023. The increase in cost of sales was mainly due to an (i) increase in industrial costs, such as labor and materials, tied to the ongoing start-up of our new manufacturing plants in the U.S. and Italy and to (ii) higher costs on certain complex and highly customized projects in process in our Engineering segment. The increase also resulted from higher depreciation expense due to the availability for use of the machinery installed in the previous months to increase the production capacity, particularly for high-value solutions (EUR 33.6 million for the six months ended June 30, 2024 compared to EUR 31.5 million for the six months ended June 30, 2023). In addition, for the six months ended June 30, 2023, cost of sales was positively affected by EUR 2.8 million subsidies granted by the Italian government aimed at mitigating the rise in utility costs affecting businesses and whose effects did not repeat for the six months ended June 30, 2024.

In the second quarter 2024, the Group reassessed the expected useful life of certain machinery installed in the Italian facilities

As a percentage of revenue, cost of sales was 73.8% for the six months ended June 30, 2024 compared to 68.5% for the six months ended June 30, 2023.

For the six months ended June 30, 2024, cost of sales included EUR 5.3 million of start-up costs related to the new facilities in Indiana, U.S., and in Latina, Italy, compared to EUR 5.9 million of start-up costs for the six months ended June 30, 2023. These costs are primarily related to labor costs incurred prior to commercial operation, namely recruiting, hiring, training and travel expenses of personnel.

Gross Profit

For the six months ended June 30, 2024, gross profit decreased by EUR 25.5 million, or 16.4%, to EUR 129.7 million, compared to EUR 155.2 million for the six months ended June 30, 2023. Gross profit margin decreased to 26.2% for the six months ended June 30, 2024, compared to 31.5% for the same period last year, resulting from a decrease in gross profit margin from both Biopharmaceutical and Diagnostic Solution segment and Engineering segment.

For the six months ended June 30, 2024, gross profit margin for the Biopharmaceutical and Diagnostic Solutions segment amounted to 27.4% compared to 32.6% for the six months ended June 30, 2023. The decrease in gross profit margin was primarily due to (i) destocking including the lower revenue related to EZ-fill® vials which negatively impacted the mix within high-value solution, and the underutilization of standard and ready-to-use glass vial production lines and the associated labor costs, and (ii) the expected temporary inefficiencies due to the ramp-up of the new manufacturing plants in the United States and Italy, and (iii) higher depreciation. Additionally, during the six months ended June 30, 2023, the Company benefited from government grants to subsidize the rise in utility costs which did not repeat for the six months ended June 30, 2024.

For the six months ended June 30, 2024, gross profit margin for the Engineering segment decreased to 13.8% compared to 22.1% for the six months ended June 30, 2023. The decrease in gross profit margin was driven by increased costs on certain highly customized projects in the later stages of development. These projects are proceeding slower than anticipated despite an increase in personnel and resources.

Other operating income

Other operating income is a component of income which varies yearly depending on the specific contracts in place at the time and mainly includes (i) contributions received from customers and other business partners, in the context of collaboration agreements related to development projects, where both parties share in the risks and benefits, (ii) certain insurance refunds, (iii) government grants and (iv) lease income. Based on the assessment performed, the Group does not consider these transactions to be part of the ordinary revenue generating activities.

Other operating income decreased by EUR 2.9 million, or 56.3%, to EUR 2.3 million for the six months ended June, 2024, compared to EUR 5.2 million for the six months ended June 30, 2023.

Selling and Marketing expenses

Selling and marketing expenses increased by EUR 0.4 million, or 2.6%, to EUR 13.2 million for the six months ended June 30, 2024, compared to EUR 12.8 million for the six months ended June 30, 2023. The increase in selling and marketing expenses was mainly due to the increase in personnel expenses partially offset by lower costs for business development and industry events and strategic marketing.

As a percentage of revenue, selling and marketing expenses was 2.7% for the six months ended June 30, 2024 compared with 2.6% for the six months ended June 30, 2023.

Research and Development expenses

Research and development expenses increased by EUR 2.6 million, or 13.2%, to EUR 19.5 million for the six months ended June 30, 2024, compared to EUR 16.9 million for the six months ended June 30, 2023. Research and development expenses include costs for research and development activities to support the innovation of our product range and components as well as amortization and depreciation for EUR 1.8 million for the six months ended June 30, 2024 (EUR 1.9 million for the six months ended June 30, 2023).

The increase in research and development expenses is mainly related to higher personnel costs to support strategic R&D activities launched at the Group level, particularly within the Engineering segment, as well as severance payments.

For the six months ended June 30, 2024 research and development expenses included EUR 1.1 million for restructuring and related charges, which contained the aforementioned severance payments.

As a percentage of revenue, research and development expenses was 3.9% for the six months ended June 30, 2024 compared to 3.4% for the six months ended June 30, 2023.

General and Administrative expenses

General and administrative expenses increased by EUR 1.0 million, or 2.0%, to EUR 46.1 million for the six months ended June 30, 2024, compared to EUR 45.1 million in the six months ended June 30, 2023. These expenses mainly comprise corporate personnel costs, directors compensation, consultancy costs, rentals, as well as depreciation and amortization of EUR 4.3 million (compared to EUR 4.1 million for the six months ended June 30, 2023). The increase in general and administrative expenses was mainly attributable to the increase in personnel expenses linked to (i) severance payments, (ii) new hires to support business growth, (iii) salary increases primarily due to the Company's long-term equity incentive program as outlined under the SGP 2023-2027, merit increases and mandatory increases under national collective agreements. This increase was partially offset by the reduction in D&O insurance expense.

For the six months ended June 30, 2024, general and administrative expenses included EUR 0.4 million of start-up costs principally related to the new facility in the U.S., and EUR 2.0 million for restructuring and related charges, which include the aforementioned severance payments.

As a percentage of revenue, general and administrative expenses was 9.3% for the six months ended June 30, 2024, compared to 9.1% for the six months ended June 30, 2023.

Operating Profit

Operating profit decreased by EUR 32.2 million, or 37.7%, to EUR 53.3 million for the six months ended June 30, 2024, compared to EUR 85.5 million for the six months ended June 30, 2023. Operating profit margin for the six months ended June 30, 2024, decreased to 10.7% compared to 17.3% for the six months ended June 30, 2023, mostly due to the reduction of gross profit margin and, to a lesser extent, to the reduction of other operating income and a lower absorption of selling, general and administrative and R&D expenses.

For the six months ended June 30, 2024, the operating profit margin for the Biopharmaceutical and Diagnostic Solution segment was 14.3%, compared to 19.8% for the six months ended June 30, 2023. The decrease in operating profit margin was primarily due to the reduction in gross profit margin.

For the six months ended June 30, 2024, Engineering operating profit margin was 4.6%, compared to 15.4% for the six months ended June 30, 2023. The decrease in operating profit margin was mainly driven by the decrease in gross profit margin and the increase in research and development expenses.

Net Finance expenses

Finance expenses, net of finance income, decreased by EUR 6.7 million to EUR 1.5 million net income for the six months ended June 30, 2024, from EUR 5.2 million net expense for the six months ended June 30, 2023.

Net finance expenses decreased mainly due to (i) the net foreign currency exchange rate impact, amounting to a net gain of EUR 4.2 million for the six months ended June 30, 2024, compared to a net loss of EUR 6.2 million for the six months ended June 30, 2023, which were mainly affected by the strengthening of the U.S. Dollar against the Euro and the Mexican Peso during the period, to (ii) the fair value adjustment related to trading derivatives amounting to a net devaluation of EUR 1.5 million for the six months ended June 30, 2024, compared to a net revaluation of EUR 2.5 million for the six months ended June 30, 2023, and (iii) to a lesser extent, to the interest income from bank deposits amounting to EUR 1.1 million for the six months ended June 30, 2024, compared to EUR 0.5 million for the six months ended June 30, 2023.

Profit Before Tax

Profit before tax decreased by EUR 25.6 million, or 31.7%, to EUR 54.8 million for the six months ended June 30, 2024, compared to EUR 80.4 million for the six months ended June 30, 2023.

Income taxes

Income taxes decreased by EUR 2.4 million, or 13.4%, to EUR 15.4 million for the six months ended June 30, 2024, compared to EUR 17.8 million for the six months ended June 30, 2023. The effective tax rate for the six months ended June 30, 2024, was 28.1% compared to 22.1% for the six months ended June 30, 2023. The increase in the effective tax rate is mainly attributable to the Italian legal entities and due to: (i) the abolition of the “ACE” tax benefit (linked to reinvestment of profits in the company) and the introduction of a tax benefit related to employment growth, whose impact was less beneficial in the six months ended June 30, 2024 compared to the former tax benefit impacting the six months ended June 30, 2023, and (ii) the Italian tax energy bonuses and R&D tax credit which were recognized for the six months ended June 30, 2023 and which did not repeat for the six months ended June 30, 2024. In addition, the consolidated effective tax rate was negatively affected by the significantly lower profit before taxes of the Chinese legal entity for the six months ended June 30, 2024 compared with the same period last year, for which a 15% tax rate applies.

Net Profit

Net profit decreased by EUR 23.2 million, or 37.0%, to EUR 39.4 million (or EUR 0.15 of Diluted EPS or EUR 0.17 of Adjusted Diluted EPS) for the six months ended June 30, 2024, compared to EUR 62.6 million (or EUR 0.24 of Diluted EPS or EUR 0.25 of Adjusted Diluted EPS) for the six months ended June 30, 2023.

Liquidity and Capital Resources

We finance our operations mainly through cash generated by our operating activities, debt financing and equity financing. Our primary requirements for liquidity and capital are to finance capital expenditures, working capital (which is the difference of current assets and current liabilities—net of current financial assets, current financial liabilities, cash and cash equivalents), and general corporate purposes.

Our primary sources of liquidity include our cash and cash equivalents, short-term loan facilities, medium and long-term loans from a number of financial institutions and equity markets. At June 30, 2024, we had cash and cash equivalents of EUR 78.1 million (compared to EUR 69.6 million at December 31, 2023). Our cash and cash equivalents primarily consist of cash held in bank accounts and highly liquid investments, such as short-term deposits, which are unrestricted from withdrawal or use, or which have original maturities of three months or less when purchased.

We believe that our total available liquidity (defined as cash and cash equivalents, plus undrawn committed credit lines), in addition to funds generated from operating activities, and the potential access to additional capital through the equity markets or through additional loan or debt agreements, will enable us to satisfy the requirements of our investing activities and working capital needs for at least the next 12 months and ensure an appropriate level of operating and strategic flexibility.

Our total current liabilities were EUR 499.6 million at June 30, 2024 (compared to EUR 574.4 million at December 31, 2023), which primarily includes EUR 256.9 million trade payables, EUR 23.5 million contract liabilities, EUR 11.1 million advances from customers, EUR 60.7 million financial liabilities, EUR 52.3 million tax payables, EUR 5.8 million lease liabilities, EUR 1.5 million current provision for warranty and EUR 87.7 million other liabilities mainly relating to payables to personnel and social security institutions as well as allowance for future expected customer returns.

Financing activities

We employ a disciplined approach in managing our working capital and balance sheet to support our business and operations.

On March 26, 2024, Stevanato Group closed its upsized underwritten follow-on public offering of an aggregate of 14,605,000 of its ordinary shares, including the full exercise of the underwriters’ option to purchase 1,905,000 additional ordinary shares, at a public offering price of USD 26.00 per share. For the six months ended June 30, 2024 the cash flow generated from the net proceeds from the follow-on offering after deducting underwriting discounts and commissions and offering expenses amounted to EUR 169.8 million.

On January 18, 2024, and on March 5, 2024, Stevanato Group entered into two unsecured term loan agreements totaling EUR 80.0 million to support the expansion of production capacity. The first loan agreement was financed by BPER Banca for EUR 30.0 million and the second loan for EUR 50.0 million was financed by Banca Intesa Sanpaolo. Both financings have a five-year tenor, with two years of interest-only payments and three years of amortizing period, with quarterly repayment of installments at a constant principal portion. At June 30, 2024, only the loan financed by BPER Banca was fully drawn down.

Capital Expenditures

During the six months ended June 30, 2024, EUR 128.1 million of capital expenditures have been allocated to growth and capacity expansion, which included: (i) EUR 96.2 million for the new EZ-Fill® production lines and related buildings expansion, principally in Fishers, Indiana (EUR 68.4 million), and in Latina, Italy (EUR 23.0 million); (ii) EUR 18.2 million for the completion of vials and cartridges capacity expansion; and (iii) EUR 13.7 million mainly related to Engineering capacity expansion, new machinery for high precision plastic injection molding and assembly for container in vitro diagnostic solutions and molds.

In the U.S., construction of the new facility in Fishers, Indiana continues to progress. We have launched validation activities in late 2023 and expect to start commercial operations in the second half of 2024.

At June 30, 2024 committed orders from our suppliers related to the ongoing investments amounting to approximately EUR 143.9 million, net of the expected contribution from BARDA.

Capital expenditures for maintenance, to increase quality and improve our IT systems as well as the efficiency of our production processes and the safety of our plants and production sites amounted to EUR 14.0 million. Capital expenditures for research and development, including laboratory equipment, molds and other related equipment, amounted to EUR 5.7 million.

Cash Flow

The following table presents the summary consolidated cash flow information for the periods presented.


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,						Change			For the six months ended June 30,						Change
	2024			2023			€			2024			2023			EUR
Cash flows from operating activities		22.3			24.4			(2.1	)		93.8			61.5			32.3
Cash flows used in investing activities		(69.5	)		(81.9	)		12.4			(171.6	)		(196.8	)		25.2
Cash flows (used in)/ from financing activities		(59.4	)		(39.3	)		(20.1	)		87.5			(31.3	)		118.8
Net change in cash and cash equivalents		(106.6	)		(96.9	)		(9.7	)		9.7			(166.5	)		176.2

Cash generated from operating activities

For the three months ended June 30, 2024, net cash generated from operating activities was EUR 22.3 million, compared to EUR 24.4 million net cash generated from operating activities for the three months ended June 30, 2023.

For the three months ended June 30, 2024, the net cash generated from operating activities was primarily the result of (i) profit before taxes of EUR 29.2 million adjusted for EUR 20.8 million of expense related to the depreciation and impairment of PPE and amortization of intangible assets, (ii) EUR 19.7 million cash generated from the change in trade payables, contract liabilities, advances and other liabilities and (iii) EUR 1.0 million of interest received, (iv) EUR 0.5 million from the change in provisions. These cash inflows were partially offset by (i) EUR 17.7 million of cash absorbed from the net change in inventories and contract assets, (ii) EUR 23.8 million cash absorbed from the change in trade receivables and other assets, (iii) EUR 3.6 million net other non-cash expenses, (iv) EUR 1.7 million net finance interests paid and (v) EUR 2.0 million in income tax paid.

For the six months ended June 30, 2024, net cash generated from operating activities was EUR 93.8 million, compared to EUR 61.5 million net cash generated from operating activities for the six months ended June 30, 2023.

For the six months ended June 30, 2024, the net cash generated from operating activities was primarily the result of (i) profit before taxes of EUR 54.8 million adjusted for EUR 42.5 million of expense related to the depreciation and impairment of PPE and amortization of intangible assets and EUR 1.3 million of net finance expense, (ii) EUR 1.4 million from change in provisions, (iii) EUR 49.7 million cash generated from the change in trade receivables and other assets, (iv) EUR 5.2 million cash generated from the change in trade payables, contract liabilities, advances and other liabilities, and (v) EUR 1.2 million of interest received. These cash inflows were partially offset by (i) EUR 51.9 million of cash absorbed from the net change in inventories and contract assets, (ii) EUR 5.7 million net other non-cash expenses, (iii) EUR 2.3 million net finance interests paid and (iv) EUR 2.2 million in income tax paid.

Cash used in investing activities

Net cash used in investing activities was EUR 69.5 million for the three months ended June 30, 2024 (compared to EUR 81.9 million cash used in investing activities for the three months ended June 30, 2023), as we continued to invest in our strategic global expansion.

For the three months ended June 30, 2024 net cash used in purchasing property and equipment as well as intangible assets amounted to EUR 72.1 million while the proceeds from the sale of property, plant and equipment, related to the disposal of a building in Denmark, amounted to EUR 3.0 million.

For the three months ended June 30, 2024 the net cash used for the investments in financial assets amounted to EUR 0.4 million.

Net cash used in investing activities was EUR 171.6 million for the six months ended June 30, 2024 (compared to EUR 196.8 million cash used in investing activities for the six months ended June 30, 2023), as we continued to execute our strategic investments in capacity expansion for high-value solutions to meet customer demand.

For the six months ended June 30, 2024 net cash used to acquire property and equipment as well as intangible assets amounted to EUR 174.8 million net of the advance payment of approximately EUR 1.4 million received from the U.S. Biomedical Advanced Research and Development Authority (BARDA) which reflects a partial payment for installing machinery in Fishers, Indiana, to

help strengthen domestic capabilities in the U.S. for national defense readiness and preparedness programs for current and future public health emergencies.

For the six months ended June 30, 2024 the net cash spent as price adjustment to acquire Perugini S.r.l. was EUR 0.2 million.

These cash outflows were partially offset by the proceeds from the sale of property, plants and equipment (primarily related the disposal of a building in Denmark) and from the investments in financial assets for a total of EUR 3.4 million.

Cash used in/ generated from financing activities

Net cash flows used in financing activities was EUR 59.4 million for the three months ended June 30, 2024 (compared to EUR 39.3 million used in financing activities for the three months ended June 30, 2023).

For the three months ended June 30, 2024, the net cash used in financing activities was primarily related to the repayment of borrowings for EUR 57.1 million, to the payment of the principal portion of lease liabilities for EUR 1.6 million and to the payment of consultancy costs and other costs related to our upsized follow-on underwritten public offering of ordinary shares for EUR 0.7 million.

Net cash flows generated from financing activities was EUR 87.5 million for the six months ended June 30, 2024 (compared to EUR 31.3 million used in financing activities for the six months ended June 30, 2023).

For the six months ended June 30, 2024, the net cash generated from financing activities was primarily related to the net proceeds generated from the completion of our upsized follow-on underwritten public offering of ordinary shares for EUR 169.8 and from borrowings for EUR 50.0 million. These cash inflows were partially offset by EUR 129.5 million repayments of borrowings and by EUR 2.8 million payment of the principal portion of lease liabilities.

Net change in cash and cash equivalents

The net change in cash and cash equivalents was EUR (106.6) million for the three months ended June 30, 2024, compared to EUR (96.9) million for the three months ended June 30, 2023.

The net change in cash and cash equivalents was EUR 9.7 million for the six months ended June 30, 2024, compared to EUR (166.5) million for the six months ended June 30, 2023.

Key Indicators of Performance and Financial Condition

Non-GAAP Financial Measures

We monitor and evaluate our operating and financial performance using several non-GAAP financial measures, including: Constant Currency Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Income Taxes, Adjusted Net Profit, Adjusted Diluted EPS, CAPEX, Free Cash Flow, Net Cash/(Debt) and Capital Employed. We believe that these non-GAAP financial measures provide useful and relevant information regarding our performance and improve our ability to assess our financial condition. While similar measures are widely used in the industry in which we operate, the financial measures we use may not be comparable to other similarly titled measures used by other companies, nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.

Constant Currency Revenue

Constant Currency Revenue is defined as revenue excluding the impact of fluctuations in currency exchange rates occurring when the financial results of foreign subsidiaries are converted into the Group's primary currency (i.e., Euro). Constant Currency Revenue is presented to aid management in their analysis of the performance of the Group and to assist in the comparison of our performance with the prior periods. We believe providing constant currency information provides valuable supplemental information regarding our results of operations. We calculate constant currency amounts by converting our current period local currency revenue using the prior period foreign currency average exchange rates and comparing these adjusted amounts to our prior period reported results. This

calculation may differ from similarly titled measures used by others and, accordingly, the constant currency presentation is not meant to substitute recorded amounts presented in conformity with IFRS as issued by the IASB, nor should such amounts be considered in isolation. The following tables set forth the calculation of Constant Currency Revenue for the three and the six months ended June 30, 2024 and provide a reconciliation to the most comparable IFRS measure, Revenue.


	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions								Engineering		Consolidated
For the three months ended June 30, 2024	High-Value Solutions			Other containment and delivery solutions		Total Biopharmaceutical and Diagnostic Solutions			Total Engineering		Total Consolidated
Revenue		103.4			119.0		222.4			37.2		259.6
Effect of changes in currency translation rates		(0.1	)		0.1		(0.1	)		—		(0.1	)
Constant Currency Revenue		103.2			119.1		222.3			37.2		259.5


	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions									Engineering			Consolidated
Change in revenues at constant currency	High-Value Solutions			Other containment and delivery solutions			Total Biopharmaceutical and Diagnostic Solutions			Total Engineering			Total Consolidated
Constant Currency Revenue for the three months ended June 30, 2024		103.2			119.1			222.3			37.2			259.5
Revenue for the three months ended June 30, 2023		84.2			120.6			204.8			50.5			255.3
Change in revenue at constant currency		19.0			(1.5	)		17.5			(13.3	)		4.2
% Change in revenue at constant currency		22.6	%		(1.3	)%		8.5	%		(26.2	)%		1.7	%


	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions						Engineering		Consolidated
For the six months ended June 30, 2024	High-Value Solutions		Other containment and delivery solutions		Total Biopharmaceutical and Diagnostic Solutions		Total Engineering		Total Consolidated
Reported revenue		191.3		230.0		421.3		74.3		495.6
Effect of changes in currency translation rates		0.8		0.2		1.0		—		1.0
Constant Currency Revenue		192.1		230.2		422.3		74.3		496.6


	(Amounts in EUR million, except as indicated otherwise)
	Biopharmaceutical and Diagnostic Solutions									Engineering			Consolidated
Change in revenue at constant currency	High-Value Solutions			Other containment and delivery solutions			Total Biopharmaceutical and Diagnostic Solutions			Total Engineering			Total Consolidated
Constant Currency Revenue for the six months ended June 30, 2024		192.1			230.2			422.3			74.3			496.6
Revenue for the six months ended June 30, 2023		160.9			239.5			400.4			92.9			493.3
Change in revenue at constant currency		31.2			(9.3	)		21.9			(18.6	)		3.3
% Change in revenue at constant currency		19.4	%		(3.9	)%		5.5	%		(20.0	)%		0.7	%

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

EBITDA is defined as net profit before income taxes, finance income, finance expense, depreciation and amortization and impairment of PPE. Adjusted EBITDA is defined as EBITDA as adjusted for certain income and costs that are unrelated to the underlying performance of the business, and that management considers not reflective of ongoing operational activities of the Company. EBITDA is presented to aid management in their analysis of the performance of the Group and to assist in the comparison of our performance with that of our competitors. Adjusted EBITDA is provided in order to present how the underlying business has

performed excluding the impact of certain infrequently occurring items, which may alter the underlying performance and impair comparability of results between periods.

The following table sets forth the calculation of EBITDA and Adjusted EBITDA for the three and the six months ended June 30, 2024, and 2023, and provides a reconciliation of these non-GAAP measures to the most comparable IFRS measure, Net Profit. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for a period by total revenue for the same period.


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,						Change			For the six months ended June 30,						Change
	2024			2023			%			2024			2023			%
Net Profit		20.6			34.3			(39.8	)%		39.4			62.6			(37.0	)%
Income taxes		8.5			10.0			(14.8	)%		15.4			17.8			(13.4	)%
Finance income		(2.7	)		(6.7	)		(59.9	)%		(6.8	)		(11.1	)		(38.5	)%
Finance expense		1.5			7.3			(79.5	)%		5.3			16.3			(67.7	)%
Operating Profit		28.0			44.9			(37.7	)%		53.3			85.5			(37.7	)%
Depreciation and amortization and impairment of PPE		20.8			19.5			6.8	%		42.5			37.9			12.2	%
EBITDA		48.8			64.4			(24.2	)%		95.8			123.4			(22.4	)%
Adjusting items		5.2			3.8			37.2	%		8.8			6.7			31.9	%
Adjusted EBITDA		54.0			68.2			(20.8	)%		104.6			130.1			(19.6	)%

Revenue		259.6			255.3						495.6			493.3
Net Profit Margin (Net Profit/ Revenue)		7.9	%		13.4	%					8.0	%		12.7	%
Adjusted EBITDA Margin (Adjusted EBITDA/ Revenue)		20.8	%		26.7	%					21.1	%		26.4	%

Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Income Taxes, Adjusted Net Profit and Adjusted Diluted EPS

Adjusted Operating Profit, Adjusted Income Taxes, Adjusted Net Profit and Adjusted Diluted EPS represent respectively Operating Profit, Income Taxes, Net Profit and Diluted EPS as adjusted for certain income and costs expected to occur infrequently, and that management considers not reflective of ongoing operational activities. Adjusted Operating Profit, Adjusted Income Taxes, Adjusted Net Profit and Adjusted Diluted EPS are provided in order to present how the underlying business has performed excluding the impact of the adjusting items, which may alter the underlying performance and impair comparability of results between the periods.

The following tables set forth the reconciliation of EBITDA, Operating Profit, Income Taxes, Net Profit, Diluted EPS with Adjusted EBITDA, Adjusted Operating Profit, Adjusted Income Taxes, Adjusted Net Profit and Adjusted Diluted EPS for the three and the six months ended June 30, 2024, and 2023.


	(Amounts in EUR million, except as indicated otherwise)
For the three months ended June 30, 2024	EBITDA		Operating Profit		Income Taxes (3)		Net Profit		Diluted EPS
Reported		48.8		28.0		8.5		20.6		0.08
Adjusting items:
Start-up costs new plants (1)		3.0		3.0		0.8		2.2		0.01
Restructuring and related charges (2)		2.2		2.2		0.5		1.7		0.00
Adjusted		54.0		33.2		9.9		24.5		0.09


	(Amounts in EUR million, except as indicated otherwise)
For the three months ended June 30, 2023	EBITDA		Operating Profit		Income Taxes (3)		Net Profit		Diluted EPS
Reported		64.4		44.9		10.0		34.3		0.13
Adjusting items:
Start-up costs new plants (1)		3.7		3.7		1.0		2.8		0.01
Restructuring and related charges (2)		0.1		0.1		0.0		0.1		0.00
Adjusted		68.2		48.7		11.0		37.0		0.14


	(Amounts in EUR million, except as indicated otherwise)
For the six months ended June 30, 2024	EBITDA		Operating Profit		Income Taxes (3)		Net Profit		Diluted EPS
Reported		95.8		53.3		15.4		39.4		0.15
Adjusting items:
Start-up costs new plants (1)		5.7		5.7		1.5		4.2		0.02
Restructuring and related charges (2)		3.1		3.1		0.8		2.4		0.01
Adjusted		104.6		62.1		17.7		46.0		0.17


	(Amounts in EUR million, except as indicated otherwise)
For the six months ended June 30, 2023	EBITDA		Operating Profit		Income Taxes (3)		Net Profit		Diluted EPS
Reported		123.4		85.5		17.8		62.6		0.24
Adjusting items:
Start-up costs new plants (1)		6.6		6.6		1.8		4.8		0.01
Restructuring and related charges (2)		0.1		0.1		0.0		0.1		0.00
Adjusted		130.1		92.2		19.6		67.4		0.25

(1)

During the three and the six months ended June 30, 2024, the Group recorded EUR 3.0 million and EUR 5.7 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, and in Latina, Italy. During the three and the six months ended June 30, 2023, the Group recorded EUR 3.7 million and EUR 6.6 million, respectively, of start-up costs for the new plants in Fishers, Indiana, United States, and in Latina, Italy. These costs are primarily related to labor costs incurred prior to commercial operation that are associated with recruiting, hiring, training and travel expenses of personnel.

(2)

During the three and the six months ended June 30, 2024, the Group recorded EUR 2.2 million and EUR 3.1 million, respectively, of restructuring and related charges among general and administrative expenses and research and development expenses. During the three and the six months ended June 30, 2023, the Group recorded EUR 0.1 million of restructuring and related charges among general and administrative expenses. These are mainly employee costs related to the reorganization of some business functions.

(3)

The income tax adjustment is calculated by multiplying the applicable nominal tax rate to the adjusting items.

The following table sets forth the calculation of Adjusted Operating Profit Margin and provides a reconciliation of these non-GAAP measures to the most comparable IFRS measure, Operating Profit Margin. Adjusted Operating Profit margin is calculated by dividing Adjusted Operating Profit for a period by total revenue for the same period.


	(Amounts in EUR millions, except as indicated otherwise)
	For the three months ended June 30,						For the six months ended June 30,
	2024			2023			2024			2023
Revenue		259.6			255.3			495.6			493.3
Operating Profit Margin (Operating Profit/ Revenue)		10.8	%		17.6	%		10.7	%		17.3	%
Adjusted Operating Profit Margin (Adjusted Operating Profit/ Revenue)		12.8	%		19.1	%		12.5	%		18.7	%

CAPEX

Capital Expenditure, or CAPEX, is the sum of investment amounts in property, plant and equipment and intangible assets during the period (excluding right-of-use assets recognized during the period in accordance with IFRS 16 Leases). These investment activities consist of acquisitions of property, plant and equipment and intangible assets, excluding the grants which may take the form of a transfer of a non-monetary asset (such as land).

The following table sets forth the CAPEX for the three and the six months ended June 30, 2024 and 2023:


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,				Change			For the six months ended June 30,				Change
	2024		2023		€			2024		2023		€
Addition to Property, plants and equipment		72.6		136.7		(64.1	)		142.3		248.8		(106.5	)
Addition to Intangible Assets		3.3		1.5		1.8			5.5		2.6		2.9
CAPEX		75.9		138.2		(62.3	)		147.8		251.4		(103.6	)

See Note 17 “Intangible Assets” and Note 18 “Property, plant and equipment” to the Unaudited Interim Condensed Consolidated Financial Statements for additional details.

For further information on Capital Expenditure see “Liquidity and Capital Resources - Capital Expenditure” above.

Free Cash Flow

Free Cash Flow is defined as cash flows from operating activities excluding interests paid and received, less investments in property, plant and equipment and intangible assets on a paid-out cash basis.

The following table sets forth the calculation of Free Cash Flow for the three and the six months ended June 30, 2024, and 2023:


	(Amounts in EUR million, except as indicated otherwise)
	For the three months ended June 30,						Change			For the six months ended June 30,						Change
	2024			2023			€			2024			2023			€
Net cash flow from operating activities		22.3			24.4			(2.1	)		93.8			61.5			32.3
Interest paid		1.7			0.5			1.2			2.3			1.4			0.9
Interest received		(1.0	)		(0.3	)		(0.7	)		(1.2	)		(0.5	)		(0.7	)
Purchase of property, plant and equipment		(68.7	)		(92.2	)		23.5			(169.2	)		(219.9	)		50.7
Proceeds from sale of property plant and equipment		3.0			—			3.0			3.0			—			3.0
Purchase of intangible assets		(3.4	)		(1.5	)		(1.9	)		(5.5	)		(2.6	)		(2.9	)
Free Cash Flow		(46.1	)		(69.1	)		23.0			(76.8	)		(160.1	)		83.3

For further information on cash flow see “Liquidity and Capital Resources” and “Cash Flow” above.

Net (Debt)/ Cash

The following table sets forth the calculation of Net (Debt)/ Cash, which is a metric used by management to analyze the financial stability of our business. Net (Debt)/ Cash is calculated as the sum of current and non-current financial liabilities, less the sum of the other current financial assets, other non-current financial assets - Fair value of derivatives financial instruments and cash and cash equivalents.


	(Amounts in EUR million, except as indicated otherwise)
	At June 30,			At December 31,
	2024			2023
Non-current financial liabilities		(252.4	)		(255.6	)
Current financial liabilities		(66.5	)		(143.3	)
Other non-current financial assets - Fair value of derivatives financial instruments		0.3			0.6
Other current financial assets		2.3			4.4
Cash and cash equivalents		78.1			69.6
Net (Debt)/ Cash		(238.2	)		(324.4	)

Capital Employed

The following table sets forth the reclassified consolidated statements of financial position which is presented to aid management in their analysis of the Capital Employed to generate profits. Capital Employed is determined as the sum of non-current assets (excluding the fair value of derivatives financial instruments) and net working capital, less the sum of provisions and non-current liabilities (excluding non-current advances from customers). Net working capital is the difference between current assets and current liabilities, excluding current financial assets, current financial liabilities and cash and cash equivalents, plus non-current advances from customers.



	(Amounts in EUR million, except as indicated otherwise)
	At June 30,			At December 31,
	2024			2023
- Goodwill and Intangible assets		82.2			81.0
- Right of use assets		16.9			18.2
- Property, plant and equipment		1,139.5			1,028.5
- Financial assets - investments FVTPL		0.4			0.7
- Other non-current financial assets		5.4			4.5
- Deferred tax assets		82.8			76.3
Non-current assets excluding FV of derivative financial instruments		1,327.1			1,209.2

- Inventories		302.8			255.3
- Contract assets		176.0			172.6
- Trade receivables		237.0			301.8
- Trade payables		(256.9	)		(277.8	)
- Advances from customers		(11.1	)		(22.9	)
- Non-current advances from customers		(47.7	)		(39.4	)
- Contract liabilities		(23.5	)		(22.3	)
Trade working capital		376.6			367.2

- Tax receivables and Other receivables		73.5			58.2
- Tax payables and Other current liabilities		(140.0	)		(107.0	)
- Current provisions		(1.5	)		(1.1	)
Net working capital		308.6			317.4

- Deferred tax liabilities		(10.6	)		(9.6	)
- Employees benefits		(7.2	)		(7.4	)
- Non-current provisions		(4.1	)		(4.0	)
- Other non-current liabilities		(51.3	)		(48.5	)
Total non-current liabilities and provisions		(73.2	)		(69.5	)

Capital Employed		1,562.4			1,457.1

Net (Debt)/ Cash		(238.2	)		(324.4	)

Total Equity		(1,324.2	)		(1,132.6	)

Total Equity and Net (Debt)/ Cash		(1,562.4	)		(1,457.1	)

Quantitative and Qualitative Disclosures About Market Risk

The Group is exposed to the following financial risks connected with its operations:

•

financial market risk, mainly relating to foreign currency exchange rates and interest rates;

•

liquidity risk, mainly relating to difficulties in meeting the obligations associated with financial liabilities that are settled by cash or another financial asset; particularly with respect to the availability of funds and the possibility to access the credit market, should the Group require it, and to financial instruments in general;

•

credit risk, arising both from its normal commercial relations with customers, and its financing activities.

•

commodity risk, arising from the fluctuation in commodities prices, driven by external market factors, especially for natural gas and electricity. Such fluctuations in commodities prices can cause significant business challenges that can, in turn, affect production costs, product pricing, company margins and cash flows, value of assets and liabilities.

These risks could significantly affect our financial position, results of operations and cash flows, and for this reason we identify and monitor them, in order to detect potential negative effects in advance and take the necessary action to mitigate them, primarily through our operating and financing activities and if required, through the use of derivative financial instruments.

The following section provides qualitative and quantitative disclosures regarding the effect that these risks may have upon us. The quantitative data reported in the following section does not have any predictive value.

Financial market risks

Due to the nature of our business, we are exposed to a variety of market risks, including foreign currency exchange rate risk, interest rate risk and commodity risk.

Our exposure to foreign currency exchange rate risk arises from our global footprint (both in terms of production and commercialization), as in some cases we sell our products in the currencies of the destination markets, which may differ from the currency of the countries in which we operate. Also, it can be difficult to move production between plants in different countries where we operate, due to regulatory and validation requirements, which can further impact foreign currency exchange rate risk.

Our exposure to interest rate risk arises from the need to fund certain activities and the possibility to deploy surplus funds. Changes in market interest rates may have the effect of either increasing or decreasing our net profit/ (loss), thereby indirectly affecting the costs and returns of financing and investing transactions.

These risks could significantly affect our performance and are therefore identified and monitored, in order to detect potential negative effects in advance and take the necessary actions to mitigate them.

We have in place various risk management policies, which primarily relate to foreign exchange, interest rate and commodity risks.

In particular, to manage foreign exchange rate risk, we have adopted a hedging policy, approved by the Board of Directors of Stevanato Group S.p.A. Hedging activities are mainly executed at corporate level, based on the information provided by the reporting system and utilizing instruments and policies conforming to IFRS. Hedging is undertaken to ensure protection in case an entity has transactions in currencies other than the one in which it primarily does business, taking into account also budgeted future revenue/ costs. Despite hedging operations, sudden movements in exchange rates or erroneous estimates may result in a negative impact, although limited, on our results.

Information on foreign currency exchange rate risk

We are exposed to risk resulting from fluctuations in foreign currency exchange rates, which can affect our earnings and equity. In particular:

•

Where a Group company incurs costs in a currency different from that of its revenues, any change in foreign currency exchange rates can affect the operating results of that company.

•

The main foreign currency to which we are exposed is the U.S. Dollar for sales in the United States and other markets where the U.S. Dollar is the reference currency, against the Euro, Mexican Peso and Renminbi. Other significant exposures include the exchange rate between the Euro and the following currencies: Japanese Yen and Danish Krone. It is our policy to use derivative financial instruments (primarily forward currency contracts, currency swaps, currency options and collar options) to hedge against exposures.

•

Several subsidiaries are located in countries that are outside the Eurozone, in particular the United States, China, Japan, Mexico, Denmark, and Brazil. As our reporting currency is the Euro, the income statements of those companies are translated into Euros using the average exchange rate for the period and, even if revenues and margins are unchanged in local currency, changes in exchange rates can impact the amount of revenues, costs and profit as restated in Euro. Similarly, intercompany financing may lead to a foreign exchange rate impact due to different functional currencies.

•

The amount of assets and liabilities of consolidated companies that report in a currency other than the Euro may vary from period to period as a result of changes in exchange rates. The effects of these changes are recognized directly in equity as a component of other comprehensive income/ (loss) under gains/ (losses) from currency translation differences.

We monitor our main exposures with regard to translation exchange risk. While fluctuations in the exchange rates of a number of currencies against the consolidation currency may impact the consolidated financial statement values, there was no specific hedging in this respect at June 30, 2024.

Exchange differences arising from the settlement of monetary items are recognized in the consolidated income statement within the net financial income/ (expenses) line item.

The impact of foreign currency exchange rate differences recorded within financial income/ (expenses) for the three and the six months ended June 30, 2024, except for those arising from financial instruments measured at fair value, amounted to a net gain of EUR 2.0 million and a net gain of EUR 4.2 million respectively (compared to EUR 1.9 million net loss for the three months ended June 30, 2023, and to EUR 6.2 million net loss for the six months ended June 30, 2023).

There have been no substantial changes in the second quarter of 2024 in the nature or structure of exposure to foreign currency exchange rate risk or in the Group’s hedging policies.

We actively hedge against economic-transactional risk; more specifically, forward, swap contracts, and collar options are used to manage the exposures. Such instruments are designated as cash flow hedges only in part and contracts are entered for a period consistent with the underlying transactions, generally ranging from three to twelve months.

The following table presents an analysis of sensitivity to a change in exchange rates for the currencies the Group is majorly exposed to. With all other variables held constant, the Group’s marginality is affected as follows:


Exchange rate sensitivity
	Increase/decrease in percentage points					Effect on operating profit
	(Amounts in EUR millions)
Euro		1	%	(1	)%		(1.3	)	1.4
US dollar		3	%	(3	)%		(3.9	)	4.2
		5	%	(5	)%		(6.4	)	7.1

Euro		1	%	(1	)%		(0.1	)	0.1
Mexican Pesos		3	%	(3	)%		(0.2	)	0.2
		5	%	(5	)%		(0.4	)	0.4

Euro		1	%	(1	)%		0.2		(0.2	)
China Renmimbi		3	%	(3	)%		0.6		(0.7	)
		5	%	(5	)%		1.0		(1.1	)

Information on interest rate risk

Interest rate risk stems from variable rate loans, for which sudden or significant interest rate fluctuations may have a negative impact on economic results. The monitoring of this risk is carried out at the corporate level and utilizes similar structures as those employed for the management of currency risks. We have hedges in place against interest rate risk, covering EUR 126.0 million out of a total of EUR 246.7 million variable rate loans.

The following table presents an analysis of sensitivity to a change in interest rates on the portion of loans and borrowings affected. With all other variables held constant, the Group’s marginality is affected as follows:


Interest rate sensitivity
	Increase/decrease in interest rate		Effect on profit before tax
	(Amounts in EUR millions)
	+20 BP	-20 BP		0.1	(0.1	)
	+50 BP	-50 BP		0.2	(0.2	)
	+100 BP	-100 BP		0.5	(0.5	)

Our most significant floating rate financial assets at June 30, 2024 are cash and cash equivalents.

While the risk arising from net investments in foreign subsidiaries is monitored, no active hedging is currently in place.

Liquidity risk

Liquidity risk arises if we are unable to obtain the funds needed to carry out our operations under economic conditions. The main determinant of our liquidity position is the cash generated from or used in operating and investing activities.

From an operating point of view, we manage liquidity risk by monitoring cash flows and keeping an adequate level of funds at our disposal. The main funding operations and investments in cash and marketable securities of the Group are centrally managed and supervised by the treasury department with the aim of ensuring effective and efficient management of our liquidity. We undertake medium and long-term loans to fund medium and long-term operations. We undertake a series of activities centrally supervised with the purpose of optimizing the management of funds and reducing liquidity risk, such as:

•

centralizing liquidity management;

•

centralizing cash through cash pooling techniques;

•

maintaining a conservative level of available liquidity;

•

diversifying sources of funding of medium and long-term financing;

•

obtaining adequate credit lines;

•

monitoring future liquidity requirements on the basis of budget forecast and cash flow planning; and

•

monitoring covenants on indebtedness.

Intercompany financing is conducted at arm’s length terms and normally involves the holding company. These measures currently sufficiently guarantee, under normal conditions and in the absence of extraordinary events, the degree of flexibility required by movements of working capital, investing activities and cash flows in general.

We believe that our total available liquidity (defined as cash and cash equivalents, plus undrawn committed credit lines), in addition to funds generated from operating activities, and the potential access to additional capital through the equity markets or through our existing relationships with banks, will enable us to satisfy the requirements of our investing activities and working capital needs for at least the next 12 months and ensure an appropriate level of operating and strategic flexibility. However, there can be no assurance that we will be able to obtain additional capital, or at acceptable costs.

Credit risk

Credit risk is the risk of economic loss arising from the failure to collect a receivable. Credit risk encompasses the direct risk of default and the risk of a deterioration of the creditworthiness of the counterparty. The maximum credit risk to which we are theoretically exposed is represented by the carrying amounts of the financial assets stated in the consolidated statement of financial position.

If customers fail to meet payment deadlines, our financial position may deteriorate. Socio-political events (or country risks) and the general economic performance of individual countries or geographical regions may also impact our financial position. Our credit risk is mitigated by our consolidated commercial relations with well capitalized multinational pharmaceutical and biologics companies and our guidelines created for the selection and evaluation of the client portfolio, which may require, where possible and appropriate, further guarantees from customers. At June 30, 2024, our days sales outstanding increased by 14 days to 81 days, compared to 67 days at December 31, 2023.

Trade receivables at June 30, 2024 amounted to EUR 244.0 million (compared to EUR 308.4 million at December 31, 2023), net of the allowance for doubtful accounts amounting to EUR 7.0 million (compared to EUR 6.7 million at December 31, 2023).

Commodity risk

As the Group consumes large amounts of natural gas and electricity for its operating activities, it entered into commodity swap contracts for certain utilities to mitigate commodity risk and the increased volatility in natural gas and electricity prices over the past 12 months.

These commodity swap contracts are expected to reduce the volatility attributable to price fluctuations of natural gas and electricity for which floating-price contracts are in place. Hedging the price volatility of our expected natural gas and electricity consumption is in line with the risk management strategy outlined by the Board of Directors. Hedging contracts are referred to the same index to which the supplying contract is based (i.e. PSV Baseload and PUN Baseload).

Controls and Procedures

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the "Commission") and that such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

The Company is a “foreign private issuer” within the meaning of Rule 3b-4(c) under the Exchange Act. As such, the Company is not required to file quarterly reports with the Commission and is required to provide an evaluation of the effectiveness of its disclosure controls and procedures, to disclose significant changes in its internal control over financial reporting and to provide certifications of its Chief Executive Officer and Chief Financial Officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 only in its Annual Report on Form 20-F. The Company furnishes quarterly financial information to the Commission under cover of Form 6-K on a voluntary basis.

As disclosed in Part II, "Item 15. Controls and Procedures" of its Annual Report on Form 20-F for the year ended December 31, 2023 filed with the Commission on March 7, 2024 (“2023 Annual Report”), during their evaluation of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by the 2023 Annual Report, the Company's Chief Executive Officer and the Chief Financial Officer concluded that the Company's disclosure controls and procedures were not effective as of December 31, 2023 due to the material weaknesses reported in the 2023 Annual Report.

The Company is committed to establishing and maintaining a strong internal control environment and is implementing measures designed to help ensure that control deficiencies contributing to the material weaknesses are remediated on a timely basis. The Company has made progress towards remediation and continues to implement its remediation plan for the previously reported material weaknesses, which includes steps to: (i) strengthen the accounting and IT structure to adequately address the identified deficiencies; (ii) conduct intensified training activities dedicated to control owners to ensure control awareness and compliance with the Sarbanes-Oxley requirements, with particular regard to formalization and documentation of controls; (iii) enhance the design and implementation of the business process controls, in order to review all necessary controls across its business processes to ensure complete and accurate financial reporting; (iv) enhance the design and operation of controls related to the period-end financial reporting process; and (v) enhance the design and implementation of the information technology general controls, including controls over program change management, the review and update of access rights.

Some of these remediation activities were already initiated during the fourth quarter of 2023, having continued during the first and second quarters of 2024 (including a digital transformation program aimed at reinforcing the IT systems and the underlying information used in a cross-functional level), and are currently ongoing.

While the foregoing measures are intended to effectively remediate the identified material weaknesses, it is possible that additional remediation steps will be necessary. As the Company continues to evaluate and implement its plan to remediate its material weaknesses in its internal control over financial reporting, management may decide to take additional measures to address the material weaknesses or modify the remediation steps described above. Until these material weaknesses are remediated, the Company plans to continue to perform additional analyses and other procedures to help ensure that its condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Changes in Internal Control Over Financial Reporting

Other than the changes related to the Company's remediation efforts described above, there were no changes in internal control over financial reporting during the six months ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect,the Company's internal control over financial reporting.

Legal Proceedings

The Company is from time to time subject to various litigation and administrative and other legal proceedings, including potential regulatory actions, incidental or related to our business, including commercial contract and other claims that might give rise to liability, among others (collectively “Legal Proceedings”).

Management believes that the outcome of the current Legal Proceedings will not have a material effect upon our business, financial condition, results of operations, cash flows, as well as the trading price of our securities. However, management will monitor ongoing Legal Proceedings and would evaluate the needs for additional disclosure in light of the discovery of additional facts with respect to Legal Proceedings pending against the Company, not presently known to us, or determinations by judges, arbitrators, juries or other finders of fact or deciders of law which are not in accord with management’s evaluation of the probable liability or outcome of such Legal Proceedings. From time to time, the Company is in discussions with regulators, including discussions initiated by the Company, about actual or potential violations of law in order to remediate or mitigate associated legal or compliance risks. As the outcomes of such proceedings are unpredictable, the results of any such proceedings may materially affect the Company’s reputation, business, financial condition, results of operations, cash flows or the trading price of its securities.

Risk Factors

There have been no material changes from the risk factors described in the Company's Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission on March 7, 2024.

Unregistered Sales of Equity Securities and Use of Proceeds

None.

Defaults Upon Senior Securities

None.

Other Information

None.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Stevanato Group S.p.A.

Date: August 6, 2024	By:	/s/ Franco Stevanato
	Name:	Franco Stevanato
	Title:	Chief Executive Officer

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STVN Stevanato Group SpA