Medartis (MED) H1 2025 earnings summary

Executive summary

• Organic revenue grew 15.3% at constant exchange rates in H1, reaching CHF 123 million, surpassing guidance and expectations, with NeoOrtho consolidated from May.

• Integration of NeoOrtho in Brazil and full acquisition of KeriMedical completed, with both integrations and new production facility on track.

• Raised full-year organic sales growth guidance to 14–16% at CER, supported by strong H1 and positive trends in July/August.

• Management team strengthened with new CHRO and EVP R&D appointments, supporting digital transformation.

• Digital offering CMX expanded across all segments, with continued investments in R&D and sales force.

Financial highlights

• Core gross margin at 80.7% (down 2.7pp year-over-year), impacted by FX, US tariffs, and KeriMedical distributor margin dilution.

• Core EBITDA margin sustained at 17.8%, aided by cost management despite FX and tariff pressures.

• Net result turned slightly negative due to CHF 5.2 million unrealized FX losses and higher financing costs from convertible bond issued in April 2024.

• Cash position at end of June was CHF 120.5 million, supporting recent acquisitions and stable cashflow.

• Operating cash flow was CHF 8.6 million; free cash flow CHF 0.4 million after higher CAPEX.

Outlook and guidance

• Full-year 2025 organic sales growth guidance raised to 14–16% at CER, with high teens core EBITDA margin expected.

• U.S. growth expected above 16% in H2, with a midterm target of over 20% annual growth starting 2026.

• Outlook supported by operating leverage, disciplined cost management, and mitigation actions for US tariffs.