Sotera Health Company (NASDAQ:SHC) Q1 2024 Earnings Call Transcript

It just all depends on where the customers and their cycle with inventory and their supply chain challenges. But as I stated on the last call, and we continue to reiterate today, we’re not seeing that get worse. We’re seeing it stabilize to slightly getting better.

Michael Polark: Okay. I’m going to drill down on that again. When you say mix, is it product category mix, is it sterilization modality mix, is it customer mix, I mean what does mix mean to you when you make that disclosure?

Michael B. Petras: Yes. We’re talking — in this case, we’re talking about customer mix and the category mix. You’re asking specific categories. That’s what we’re giving to you, but that’s generally where it is. We’re not seeing shifts in modalities, if that’s what your question is. We’re not seeing that pressure, that problem.

Michael Polark: Okay. And for the follow-up, just on the three capacity expansions, can you remind me within Sterigenics kind of where are they relative to go-live, what’s the time horizon over which they will go live, and kind of order of magnitude how — because I know there’s been a series of these over the last few years, and I just want to understand the three that are left in order of magnitude, how big are these expansions? Thanks so much.

Jonathan M. Lyons: Thanks for the question. Three as you mentioned, one is going live this year, should be coming up in the next quarter or so. And then we have the two Greenfields, one will come live late this year, early next. And then the other one, end of 2025.

Michael Polark: Thank you.

Operator: Ladies and gentlemen, there are no more questions registered at this time. The floor is back to you for any closing remarks.

Michael B. Petras: Okay. Well, we thank everybody for taking the time this morning to join our call. We look forward to seeing many of you at our upcoming investor conferences. In the meantime, if you have any questions, feel free to reach out to Jason. Thank you, and have a good day. Bye-bye.