Biotechnology Company Avantor Aligns Business Segments, Eyes Cost Savings
Portfolio Pulse from Lekha Gupta
Avantor Inc (NYSE:AVTR) announced a new operating model and a multi-year cost optimization initiative at its investor day, aiming to transition from three geographic segments to two business segments: Laboratory Solutions and Bioscience Production. The company expects to achieve $300 million in cost savings by 2026 and reiterated its FY23 guidance with a core organic revenue decline and adjusted EBITDA margin contraction. Two executives will leave Avantor in 2024. AVTR shares closed slightly higher.
December 08, 2023 | 10:48 am
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Avantor Inc announced a strategic shift to two business segments and a cost optimization plan expected to save $300 million by 2026. FY23 guidance was reiterated, with shares closing up 0.19%.
The announcement of a new operating model and cost optimization initiative is likely to be viewed positively by investors as it suggests a proactive approach to improving efficiency and profitability. The confirmation of FY23 guidance provides stability and may reassure investors. The slight increase in share price reflects a modest positive market reaction.
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