Ambu (AMBU) Q3 23/24 earnings summary

Executive summary

• Achieved 15% organic revenue growth and 12.9% EBIT margin before special items in Q3 2023/24, led by strong performance in Endoscopy Solutions and Anaesthesia & Patient Monitoring.

• Endoscopy Solutions grew 18% in Q3 and 21.6% for the first nine months, now representing 59% of total revenue.

• Anaesthesia & Patient Monitoring grew 10.9% in Q3, driven by price increases and stable demand.

• Free cash flow reached DKK 163 million in Q3, reflecting higher profitability and operational efficiencies.

• FDA and CE mark approvals for aScope 5 Uretero and aScope Duodeno 2, with bioplastic materials introduced in products to advance sustainability.

Financial highlights

• Q3 revenue was DKK 1,383 million, up 15.7% year-over-year; year-to-date revenue reached DKK 4,004 million.

• Gross margin improved to 60.2% in Q3, up from 56.2% last year.

• EBIT margin before special items was 12.9% in Q3 (up from 7.6% last year); EBITDA margin before special items reached 20.8%.

• Net working capital ratio reduced to 19% of revenue; CAPEX was 5% of revenue in Q3.

• Free cash flow for Q3 was DKK 163 million; net interest-bearing debt reduced to DKK 78 million.

Outlook and guidance

• Upgraded full-year guidance: organic revenue growth of 12-14%, EBIT margin before special items of 11-13%, and free cash flow above DKK 450 million.

• Endoscopy Solutions organic growth expected to exceed 18% for the year.

• Long-term targets: >10% organic revenue CAGR and ~20% EBIT margin by 2027/28.

• Continued focus on organic growth, margin expansion, and selective investments in commercial and IT infrastructure.

• Strategic initiatives may have a 1.0-1.5% negative revenue impact due to market exits and product discontinuations.