Announcement no. 10/2024
Interim report Q1 2024
Sveinn Sölvason, President and CEO, comments:
"Sales growth was strong in the first quarter or 10% and organic growth was 7%, driven by volume growth in Prosthetics & Neuro Orthotics and
Highlights Q1 2024
- Sales amounted to
USD 200 million and grew by 10%. Organic growth was 7%, compared to 9% in Q1 2023. -
Prosthetics & Neuro Orthotics sales grew by 10% organic, Bracing & Supports (B&S) sales grew by 1% organic and
Patient Care sales grew by 6% organic. Growth is attributed to strong volume growth and sales of high-end solutions. Growth was driven by strong sales in EMEA while sales inAmericas and APAC were soft. - Gross profit margin before special items was 62% in Q1 2024, same as in Q1 2023. Cost reduction initiatives were executed in late Q1 to lower unit cost in manufacturing.
-
EBITDA before special items was
USD 33 million and EBITDA margin before special items was 17%, compared to 16% in Q1 2023. EBITDA margin before special items was positively impacted by scalability in operating expenses while currency movements negatively impacted the EBITDA margin by 70 basis points. -
Net profit was
USD 8 million and net profit margin was 4% of sales, compared to 6% of sales in Q1 2023. Net profit was impacted by the expense of special items in the quarter. -
Free cash flow was negative by
USD 7 million in the quarter. Free cash flow is seasonally low in the first quarter of the year and was impacted by CAPEX investments. - NIBD/EBITDA before special items was 3.3x at the end of Q1 2024 (2.9x excl. leases), above the target ratio of 2.0-3.0x as expected due to the acquisition of FIOR & GENTZ in January.
Other highlights
- On
13 March 2024 , Embla Medical was established as the new name of the parent organization to leading product brands Össur,College Park , and FIOR & GENTZ in addition to a portfolio ofPatient Care facilities. Embla Medical is listed on Nasdaq Copenhagen and the trade ticker was changed to EMBLA on8 April 2024 (previously OSSR). -
On
18 January 2024 , Medicare in the US published a draft proposal that would grant K2 (low active) patients access to prosthetic knees and feet previously restricted to K3-K4 (high active) patients. The effective date for these proposed changes has not been announced.
2024 outlook
- Organic sales growth guidance is unchanged at 5-8%.
- EBITDA margin before special items guidance is unchanged at 19-20%.
Conference call details
Embla Medical will host a conference call on
To actively participate in the Q&A session of the call please click on this link: Register here.
Further information
David Hreidarsson, VP of Investor Relations, IR@emblamedical.com, +354 661 8225
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About Embla Medical
Embla Medical (Nasdaq Copenhagen: EMBLA) was founded in
Embla Medical was formerly listed as Össur (OSSR) on Nasdaq Copenhagen until
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