Senior Vice President and Chief Financial Officer at Catalent
Thanks, Alessandro. I'll begin this morning with a discussion on segment performance where commentary around segment growth will be in constant currency. I'll start on Slide 10 with the Biologics segment. Biologics net revenue in Q4 of $667 million increased 14% compared to the fourth quarter of 2021. This strong net revenue growth was driven organically by increased demand in our cell and gene therapy, drug product and drug substance offerings, which more than offset lower year-over-year revenue from our COVID-19-related programs. Our fiscal 2022 third quarter marked the peak in our COVID-19-related revenue with Q4 down both sequentially and year-over-year.
When looking at the bar graph on Slide 10, you will see that Biologics commercial revenue declined year-on-year. The driver of the year-over-year decline is the conclusion of the COVID-19 program that was classified as a commercial product for revenue recognition purposes. This program is not expected to generate future revenue. The segment's EBITDA margin of 32.8% was up more than 210 basis points year-over-year from the 30.9% recorded in the fourth quarter of fiscal 2021 and up 170 basis points sequentially over the third quarter.
Year-over-year margin expansion was fueled by strong operational efficiencies, which more than offset the impact of remediation activity in Brussels. Note, that remediation-related costs were lower in Q4 than in Q3 and remediation activity continues at the site in fiscal 2023. In addition, market was aided by a mix shift away from lower margin component sourcing revenue, which is mentioned on past calls represents approximately 25% of total COVID vaccine revenue. As COVID-19 revenue continues to decline, so will the related diluted margins from component sourcing that we have recently experienced.
As shown on Slide 11, Softgel and Oral Technologies net revenue of $350 million increased 22% compared to the fourth quarter of fiscal 2021 with segment EBITDA increasing 9% over the same period last fiscal year. The October 1, 2021 acquisition of Bettera contributed 18 percentage points to SOT's net revenue growth and 13 percentage points to the segment's EBITDA growth during the quarter. The operational performance of the acquired Bettera business continues to exceed our expectations and remains an important driver for continued margin expansion for the company.
SOT organic net revenue increased 4% and was driven by continued growth in development revenue as well as demand for both prescription products and consumer health products. However, supply chain challenges, inflationary pressures and unfavorable mix weighed on overall organic results, muting the impact of increased product demand.
Slide 12 shows the results of the Oral and Specialty Delivery segment. Net revenue grew 11% and segment EBITDA was up 27% over the fourth quarter of last year. Overall demand for our Zydis offerings reached a record level, fueling significant growth. This strong demand was further supplemented by revenue from a royalty agreement related to our Zydis platform, which was a primary driver of the segment's strong EBITDA margin.
As shown on Slide 13, our Clinical Supply Services segment posted net revenue of $104 million, representing 4% growth over the fourth quarter of fiscal 2021, driven by growth in our storage and distribution services. Segment EBITDA declined 2%, driven by unfavorable mix. As of June 30, 2022, backlog for the segment was $540 million, up from $529 million at the end of last quarter and up 10% from June 30, 2021. The segment recorded net new business wins of $132 million during the fourth quarter compared to $119 million in the fourth quarter of the prior year. The segment's trailing 12-month book-to-bill ratio is 1.1 times.
Moving to our consolidated adjusted EBITDA on Slide 14. Our fourth quarter adjusted EBITDA increased 10% to $384 million or 29.2% of net revenue, which was roughly in line with the fourth quarter of fiscal 2021. On a constant currency basis, our fourth quarter adjusted EBITDA increased 16% compared to the fourth quarter of the prior year. For the full year, adjusted EBITDA increased 26% to $1.29 billion over fiscal 2021 and 28% on a constant currency basis. Adjusted EBITDA margin increased 110 basis points to 26.6% in fiscal 2022 from 25.5% in fiscal 2021.
As shown on Slide 15, fourth quarter adjusted net income was $215 million or $1.19 per diluted share compared to adjusted net income of $209 million or $1.16 per diluted share in the fourth quarter a year ago. For the full fiscal year, adjusted net income was $694 million or $3.84 per diluted share compared to adjusted net income of $549 million or $3.04 per diluted share in fiscal 2021.
Slide 16 shows our debt-related ratios and our capital allocation priorities. Catalent's net leverage ratio as of June 30, 2022, was 2.9 times, slightly below our long-term target of 3.0 times. This compares to net leverage of 2.6 times on March 31, 2022, and 2.2 times on June 30, 2021.
Our combination -- our combined balance of cash, cash equivalents and marketable securities as of June 30, 2022, was $538 million compared to $880 million as of March 31, 2022. Note that our free cash flow has been negatively impacted the last two years by our strategic decision at the onset of the pandemic to increase inventory levels, which continue to allow us to have the inputs we need to meet our supply obligations to our customers and their patients in a timely manner.
When we feel the time is appropriate and are more comfortable with the stabilization of our supply chain, we will begin to reverse course, which will have a future positive effect on free cash flow. Similarly, the realization of contract assets will also drive a favorable impact on future free cash flow after negatively impacting our fiscal 2022 results. As of June 30, 2022, our contract asset balance was $441 million, an increase of $260 million compared to June 30, 2021. The overwhelming majority of this increase is related to some notably large development programs, such as for some of the COVID vaccines where revenue is recorded based on a percentage of completion versus entirely on batch release as it is for commercial programs. This difference in approach affects when we are able to invoice customers, thereby delaying cash realization and negatively affecting free cash flow.
Moving on to capital expenditures. We added a new slide in the appendix that illustrate our annual capex spend. In fiscal 2022, capex as a percentage of revenue was 14% compared to 17% in fiscal 2021. Capex as a percent of revenue was a bit lower than we initially expected for fiscal 2022, driven by higher-than-expected revenue growth as well as some supply chain-related delays and longer lead times than initially anticipated for some of our capital projects. For fiscal 2023, we expect capex to be in a similar range as fiscal 2022, or approximately 13% to 15% of net revenue.
Now we turn to our financial outlook for fiscal 2023 as outlined on Slide 17. The midpoints reflected in our outlook assume the challenging macro environment remains stable. We expect full year net revenue in the range of $4.975 billion to $5.225 billion, representing growth of 3% to 8% on an as-reported basis compared to fiscal 2022. Current FX rates, which we use in this forecast, are forecasted to have a negative impact of approximately 3 to 4 percentage points on our revenue and adjusted EBITDA growth.
We project that inorganic revenue, which basically reflects one remaining quarter of the Bettera acquisition until the first anniversary of that acquisition on October 1, will positively impact our annual growth rate by less than one percentage point. So after taking into account these two considerations, our expected organic constant currency net revenue growth rate in fiscal 2023 is approximately 8% at the midpoint of our guidance range. The acquisition of Metrics will be factored into updated guidance we will share during the first earnings call following the close of the transaction.
For full year adjusted EBITDA, we expect a range of $1.31 billion to $1.39 billion, representing growth of 2% to 8% at reported rates compared to fiscal 2022. I would like to remind you of the seasonal name of our business, where revenue and EBITDA generation is historically more weighted to the back half of the year with roughly 60% of fiscal 2023 adjusted EBITDA expected to be generated in the second half of the year.
Now we expect limited EBITDA margin this year on a constant currency basis. While we're still on track to achieve our fiscal 2026 EBITDA margin target of 30%, there are a number of factors impacting margin expansion in fiscal 2023, including headwinds from COVID-related volume declines that we have been anticipating, inflationary and supply chain pressures, start-up costs related to our acquisitions of Princeton and Oxford, which we are absorbing in our organic assumptions because neither asset generated substantial revenue prior to its acquisition and foreign exchange translations as our margin profile is higher outside of the U.S., while the majority of our corporate costs are domestic. Note that swings in the euro have a greater impact on FX translation than the pound.
Moving to adjusted net income. We expect full year ANI of $660 million to $730 million representing a range from a decline of 5% to an increase of 5%, compared to fiscal 2022. However, ANI is negatively impacted by FX translation of more than 4 percentage points.
In addition, ANI growth in fiscal 2023 is being impacted by all of the items affecting adjusted EBITDA, as well as the following items. First, an expected higher effective tax rate in the 24% to 25% range, compared to 23.4% in fiscal 2022, given the year-on-year increase in the waiting of earnings in higher tax jurisdictions.
Second, an increase in interest expense due to servicing the full year of new debt we raised in part to fund the Bettera acquisition as well as other interest related increases in the current rising interest rate environment. And finally, increased depreciation expense due to our significantly larger asset base, which is also more heavily weighted in the U.S.
The last piece of our guidance is the fully diluted share count. As in the past years, we offer guidance on share count on a diluted weighted average basis, which is the number needed to compute our adjusted net income per share or adjusted EPS. For fiscal 2023, we expect our share count to be in the range of 181 million to 183 million shares.
Operator, this concludes our prepared remarks, and we would now like to open the call for questions.