Medacta Group (MOVE) H1 2024 TU earnings summary

Executive summary

• 1H 2024 revenue reached €288.6 million, up 14.3% at constant currency, with EMEA leading at 16.6%, APAC at 12.6%, and North America at 11.1%.

• Knee and Shoulder product lines delivered exceptional growth, at 18.6% and 39.6% respectively, with Hip and Spine also contributing positively.

• Celebrated 25th anniversary with major medical education events, including the World Tour and M.O.R.E. Symposium, boosting the pipeline of potential new surgeons.

• Ongoing expansion of industrial and manufacturing facilities in Switzerland/Ticino to support supply chain resilience and growth.

Financial highlights

• Revenue for 1H 2024 was €288.6 million, up from €255.1 million in 1H 2023, with 14.3% constant currency growth.

• EMEA contributed €144.2 million (50%), North America €84.9 million (29%), APAC €54.3 million (19%), and LATAM €5.2 million (2%).

• Knee revenue rose to €116.1 million (+18.6% c.c.), Hip to €123.7 million (+7.5% c.c.), Extremities (mainly Shoulder) to €24.8 million (+39.6% c.c.), and Spine to €24.0 million (+10.0% c.c.).

• Revenue up 89.9% at constant currency from 1H 2019, with a 13.7% CAGR over five years.

• Growth driven by new product introductions, especially in Knee (GMK SpheriKA) and Shoulder (MyShoulder, NextAR).

Outlook and guidance

• Guidance for 13%-15% growth is confirmed, with management indicating the lower end is less likely given current momentum.

• Strong pipeline from H1 events and ongoing medical education expected to support H2 acceleration.

• Emphasis on sustainable innovation, personalized medicine, and ongoing expansion of customer base.

• Management highlights robust organic growth and continued outperformance of the orthopedic market.

• Full half-year results to be announced on September 25, 2024.