Medartis (MED) H1 2024 earnings summary

Executive summary

• Achieved 13.1% underlying global growth year-over-year, with strong US (21%/20.6%) and EMEA (18%/17.8%) performance, but weaker results in LATAM (-9.5%) and APAC (3.1%) due to price pressures and market disruptions.

• Gross margin improved to 80.3%, up 310 bps year-over-year, driven by higher volumes and manufacturing efficiency.

• Underlying EBITDA margin (excluding one-offs) reached 17.2%, reflecting tight cost management and improved profitability.

• Cash reserves increased to CHF 127.1m after convertible bond issuance (CHF 115m/115.8m/150m), enhancing M&A flexibility.

• Commercialization efforts ramped up in the US, with new innovations launched and organizational strengthening.

Financial highlights

• Group sales grew 10.8% year-over-year in H1 2024, with underlying CER growth at 13.1%; net sales totaled CHF 107.6m–111.5m.

• Gross profit: CHF 89.6m (80.3% of net sales), up 12.4% YoY.

• Underlying EBITDA margin (excluding one-offs): 17.2%; underlying EBIT margin: 4.9%–7.5%.

• Net profit margin improved to 2.3%–4.1% (H1 2023: -0.8%), with net profit reaching CHF 2.6m.

• Operating cash flow before M&A and financing improved by CHF 40m, from CHF -11.9m to CHF 2.2m year-over-year.

Outlook and guidance

• Full-year 2024 CER growth guidance revised to 12%-15% due to LATAM and APAC headwinds.

• EBITDA margin expected around 15% at constant exchange rates.

• Anticipates further improvement in cash flow and operating leverage over the midterm.

• Absolute run rates anticipated to increase in H2 2024, with guidance reflecting a higher comparison base.