Rory Smith's questions to Spirax-Sarco Engineering PLC/ADR (SPXSY) leadership • Q2 2023
Question
Rory Smith from UBS inquired about the drivers of Steam Specialties' performance in H2, the potential for market share gains in Watson-Marlow's Biopharma and Process Industries divisions, and the terms of the Durex acquisition.
Answer
Group Chief Executive Nicholas Anderson stated that proactive price management continues to offset inflation in Steam. He emphasized that Watson-Marlow's market share gains are driven by its direct sales model, not temporary inventory dynamics, which he described as a "temporary blip." CFO Nimesh Patel added that H2 Steam performance is affected by project timing pull-forwards and macroeconomic uncertainty. Both confirmed there was no earnout for the Durex acquisition.