Aurelio Calderon's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership • Q2 2023
Question
Aurelio Calderon from Morgan Stanley inquired about the long-term growth and margin expectations for the Biopharma and Semicon industries, whether the company is moving toward a more integrated "one Group" operational model, and the drivers for the anticipated margin recovery in the organic ETS business in H2.
Answer
Group Chief Executive Nicholas Anderson affirmed that the long-term growth outlook for Watson-Marlow remains robust, viewing the current situation as a temporary blip. He confirmed a strategic move towards a more integrated group to leverage cross-business synergies while maintaining specialist focus. Both he and CFO Nimesh Patel attributed the H2 ETS margin recovery to seasonality, debottlenecking efforts, and the timing of recovery in the Semicon and Biopharm sectors.