Catalent plunges ~25% after fiscal '23 revenue outlook cut on productivity, operational woes

Catalent (NYSE:CTLT) is delaying the filing of its FQ3 results and noted that it expects to significantly reduce its fiscal 2023 net revenue and adjusted EBITDA outlook by more than $400M each.

The company was scheduled to report its FQ3 results on May 9 but now expects to file its quarterly report on Form 10-Q on May 15. Catalent is also planning to submit an application to the SEC for the late filing.

Catalent said it has identified certain potential non-cash adjustments related to its operations in Bloomington, Indiana, and will require more time to review the matter before filing the 10-Q.

In April, Catalent had informed that it expected productivity issues and higher-than-expected costs at three of its facilities, including two of its largest manufacturing sites, will materially and adversely impact its FQ3 results and outlook for the remaining fiscal year 2023.

The company said on Monday that since then, it has also identified significant issues with its forecasts over the past year, which are currently being addressed.

"We are dissatisfied with our recent results and are taking the necessary steps to address the issues that negatively impacted our performance, which fell well short of our prior projections," said Catalent President and CEO Alessandro Maselli.

Catalent noted that due to the operational and productivity issues, prior forecasting challenges, potential non-cash adjustments, it expects to significantly reduce its fiscal 2023 net revenue and adjusted EBITDA outlook by more than $400M each.

In addition, the company expects to record a goodwill impairment in its consumer health business of more than $200M, mainly related to its October 2021 acquisition of Bettera Wellness.

Maselli added that ,"we are confident that our recent operational challenges are temporary and addressable, and we are working intensively to return to our historic productivity levels."

The CEO noted that reduced outlook was not due to any GMP compliance issue or the loss of any customer or cancelled order.

On Friday, Catalent had recommended its stockholders to reject a mini-tender offer from TRC Capital Investment to buy up to 2M common shares of the company at $42.95 apiece in cash.

CTLT -24.61% to $36 premarket May 8