Ambu (AMBU) Q4 23/24 earnings summary

Executive summary

• Achieved 13.8% organic revenue growth for FY 2023/24, with Q4 organic growth at 10.6%, led by Endoscopy Solutions and Anaesthesia & Patient Monitoring.

• EBIT margin before special items improved to 12.0% for the year and 10.6% in Q4, reflecting operational efficiencies and transformation efforts.

• Free cash flow reached DKK 524m for the year, with DKK 98m in Q4, supporting a proposed dividend of DKK 102m (DKK 0.38 per share) after two years of suspension.

• Endoscopy Solutions posted 19.7% organic growth for the year, now representing 59% of total revenue, with strong momentum in urology, ENT, and GI.

• Strategic review in gastroenterology led to a DKK 334m impairment, but mid- and long-term growth potential remains.

Financial highlights

• Q4 revenue grew 10.6% year-over-year, with Endoscopy Solutions up 14.5% and Anaesthesia & Patient Monitoring up 5.3%.

• Q4 gross margin: 58.9%, up 2.1 percentage points year-over-year; full-year gross margin just below 60%.

• Q4 EBIT margin before special items: 10.6%; full-year: 12.0%.

• Free cash flow for the year was DKK 524m; Q4 free cash flow was DKK 98m.

• Net working capital ratio at 19% of rolling 12-month revenue; CAPEX at 7% of revenue.

Outlook and guidance

• FY 2024/25 guidance: organic revenue growth of 10–13%, EBIT margin before special items of 12–14%, and free cash flow above DKK 500m.

• Endoscopy Solutions expected to grow over 15%, while Anaesthesia & Patient Monitoring is projected to achieve mid-single-digit growth.

• On track to achieve long-term targets of over 10% organic growth and ~20% EBIT margin by 2027/28.

• Free cash flow guidance for next year is DKK 500+ million.