Medacta Group (MOVE) H1 & CMD 2024 earnings summary

Executive summary

• Revenue grew 14.3% at constant currency (13.1% reported) to EUR 288.6M in H1 2024, with robust organic growth across all geographies and business lines, led by EMEA at 16.6%.

• Adjusted EBITDA reached EUR 77.5M (26.9% margin), impacted by a 1.2% FX headwind and increased marketing for the 25th anniversary.

• Net profit rose 30.4% year-over-year to EUR 38.0M, with basic EPS at EUR 1.91.

• 96 new jobs added, expanding the workforce to 1,826 employees, and supply chain strengthened.

• Celebrated 25th anniversary with global marketing and education events, supporting brand and customer engagement.

Financial highlights

• Gross profit margin was 68.5%, slightly down from 68.9% due to FX and higher marketing costs.

• Adjusted EBITDA was EUR 77.5M (26.9% margin), with 28.1% at constant currency.

• Adjusted EBIT was EUR 45.5M (17% margin), up from EUR 43.8M.

• Net profit for H1 was EUR 38.0M, a 30.4% increase year-over-year.

• Free cash flow was negative EUR 12.2M, reflecting higher CapEx and R&D investments.

• Net financial debt increased to EUR 164.6M, with leverage at 1.2x EBITDA.

Outlook and guidance

• 2024 outlook confirmed: 13%-15% top-line growth at constant currency, with a 0.5% EBITDA margin improvement over 2023.

• Mid-term guidance targets low double-digit CAGR (10%-14%) for 2025-2027, with EBITDA margin expected to remain around 2024 levels.

• Margin expansion will depend on growth rate; higher growth may limit margin improvement.