Mettler-Toledo International Inc.

Mettler-Toledo experienced robust growth in most product lines and regions during Q3, particularly in the Lab business, resulting in a successful quarter which happened to be an all-around beat. For 2023, the management anticipates strong trends in the biopharma sector but not from catch-up demand segments such as chemicals. In California, Mettler secured a $36 million grant from the U.S. Department of Defense to expand its pipette tip production. The Core Industrial business performed well, and Mettler benefited from a catch-up in demand. While Product Inspection witnessed a 13% increase in sales during the quarter, Food Retail sales decreased by 19%. Sales in Europe rose by 10%, whereas the Americas, Asia, and the Rest of the World witnessed a growth of 20%, and 16%, respectively. To capture growth and market share in its Lab business, Mettler has accelerated their digital transformation in sales and marketing and sharpened their focus on the most attractive market segments. We give the company a ‘Hold’ rating with a revised target price.