Q4 2022/23 AIDE-MÉMOIRE
INTRODUCTION
This aide-mémoire sets forth public information previously provided by Ambu. The information provided below may prove helpful in estimating the financial performance for Q4 2022/23 (July 2023 - Sep 2023).
Please note that the items listed below are not exhaustive.
PRELIMINARY FINANCIAL HIGHLIGHTS FOR THE FULL FINANCIAL YEAR 2022/23
On October 9, 2023, Ambu announced its (unaudited) full-year 2022/23 results
Organic | EBIT margin | |
revenue growth | (before special items) | |
Financial results, | 7.6% | 6.3% |
2022/23 | ||
Last year's comparative figures are stated in brackets.
- Revenue was DKK 4,775m (DKK 4,444m), with organic growth of 7.6% (4%), driven by strong growth in Endoscopy Solutions. Reported growth for the year was 7.4% (11%).
- Gross margin was 56.8% (57.5%), mainly impacted by a strengthened product mix, driven by Endoscopy Solutions.
- EBIT before special items was DKK 302m (DKK 122m), corresponding to a margin of 6.3% (2.7%), mainly driven by scale in OPEX.
The stated preliminary results for the full financial year 2022/23 are unaudited. Ambu will release its financial year earnings results, as previously announced, on 8 November 2023.
WE HAVE COMMUNICATED THE FOLLOWING REGARDING FINANCIAL YEAR 2022/23
ORGANIC REVENUE GROWTH
"2022/23 will be a transition year for Ambu, and combined with high external volatility, the outlook for 2022/23 is associated with uncertainty"
(Q4 2021/22 investor presentation, November 15, 2022)
"The organic revenue growth for 2022/23 is projected at 5-8%, where we will see highest growth coming from Endoscopy Solutions. The ENT (aScope™ 4 RhinoLaryngo) and cystoscopy (aScope™ 4 Cysto) businesses will continue to deliver double-digit growth, and the pulmonology business is expected to deliver year-over-year growth from the second half of 2022/23. The newly launched aScope™ 5 Broncho is expected to contribute positively to the growth in pulmonology"
(Q4 2021/22 investor presentation, November 15, 2022)
"In 2022/23 the GI portfolio (…) is expected to contribute to the growth, however, the uptake for both products (aScope™ Duodeno 1.5 and aScope™ Gastro) will be gradual compared to the other segments we are present in" (Q4 2021/22 investor presentation, November 15, 2022)
Q4 2022_23 AIDE-MÉMOIRE | PAGE 1 OF 4 |
"Ambu plans to improve profitability in the Anaesthesia and Patient Monitoring businesses by implementing sizable
price increases in selected low-margin areas. (…) Ambu has started to exit ~40 countries, corresponding to an
estimated annual revenue of approximately DKK 20m. These strategic initiatives are expected to have a positive impact on profitability and cash flow mid-term, but will potentially result in a revenue decline in 2023/24 within
Anaesthesia and Patient Monitoring, combined."
(Interim Report for Q3 2021/22, August 31, 2023)
MARGINS
"For the financial year 2022/23, EBIT before special items totalled DKK 302m, with an EBIT margin before special items of 6.3% (previous outlook: 5 - 6%), mainly driven by scale in OPEX and product mix."
(Preliminary financial results for the full year 2022/23, October 9, 2023)
FINANCIALS
"During the quarter, Ambu continued to decrease its inventory levels to DKK 985m from DKK 1,222m in Q4
2021/22, and the company's net working capital has further decreased to 21% of total revenue. Based on this,
Ambu now expects a free cash flow before acquisitions to be improved by DKK +500m for the financial year, compared to the full-year 2021/22."
(Interim Report for Q3 2021/22, August 31, 2023)
"CAPEX relative to revenue is expected to be approximately 7% in 2022/23" (Q3 Earnings Release Investor Call, August 31, 2023)
Q4 2022_23 AIDE-MÉMOIRE | PAGE 2 OF 4 |
LONG TERM FINANCIAL TARGETS
LT Financial Targets | 5-year CAGR target (2022/23-2027/28) |
Total organic revenue growth | >10% |
Endoscopy Solutions | 15-20% |
Anaesthesia and Patient Monitoring | 2-4% |
(Capital Market Day Presentation, March 21, 2023) | |
5-year target (2027/28) | |
EBIT margin before special items | ~20% |
>10% within next 2 years | |
Potential trade-offs with growth investments | |
(Capital Market Day Presentation, March 21, 2023) |
"Ambu expects a 5-year organic revenue CAGR (2022/23-2027/28) of >10%, with revenue growth in Endoscopy Solutions of 15-20% and Anaesthesia and Patient Monitoring combined of 2-4%, respectively"
(Capital Markets Day Press Release, March 21, 2023)
"The company expects an EBIT margin (before special items) >10% within the next two years, with a 5-year target of ~20% (2027/28). Given the market potential, Ambu strives for a balance between revenue growth and profitability that corresponds with Ambu's long-term financial targets, with potential short-termtrade-offs on EBIT margin, if growth investments are available to secure long-term sustainable profitable growth"
(Capital Markets Day Press Release, March 21, 2023)
EXCHANGE RATE ASSUMPTIONS FOR 2022/23
Currency | 31 August 2023 | 3 May 2023 | 7 Feb 2023 | 15 Nov 2022 |
USD/DKK | 697 | 697 | 696 | 722 |
MYR/DKK | 154 | 156 | 160 | 156 |
CNY/DKK | 99 | 100 | 101 | 103 |
GBP/DKK | 855 | 847 | 845 | 850 |
(Interim Report for Q3 2021/22, August 31, 2023)
Q4 2022_23 AIDE-MÉMOIRE | PAGE 3 OF 4 |
INVESTOR RELATIONS CONTACT
Anders Hjort
Head of Investor Relations
Telephone: +45 2892 8881
E-mail:Anhj@ambu.com
Frederik Futtrup
Associate, Investor Relations
Telephone: +45 6070 9526
E-mail:Frfu@ambu.com
FORWARD-LOOKING STATEMENTS
Forward-looking statements, especially such as relate to future revenue and operating profit, are subject to risks and uncertainties. Various factors, many of which are outside Ambu's control, may cause the actual development to differ materially from the expectations contained in this memo. Factors that might affect such expectations include, among others, changes in health care, in the world economy, in interest rate levels and in exchange rates.
Q4 2022_23 AIDE-MÉMOIRE | PAGE 4 OF 4 |
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Ambu A/S published this content on 23 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2023 12:03:39 UTC.