Medartis (MED) H2 2024 earnings summary

Executive summary

• Core revenue grew 11.7% year-over-year at constant exchange rates to CHF 224.8 million, led by strong EMEA and US performance, with a core EBITDA margin of 19.0%.

• Strategic acquisitions included a 51% stake in NeoOrtho (Brazil) and the Avenger Radial Head System, expanding presence in value and upper extremity segments.

• EMEA was the main growth driver, while APAC and LATAM faced headwinds from price cuts and insurance changes, respectively.

• New CEO and US President appointed to strengthen US operations and drive commercial expansion.

• Strategic focus on customer-centricity, innovation, digitalization, and regional market share gains.

Financial highlights

• Core gross profit margin reached 82.8%, with reported margin at nearly 80%.

• Core EBITDA margin improved to 19.0% (2023: 17.1%), and core EBIT margin reached 9.5% (2023: 6.1%).

• Core net profit rose to CHF 11.4 million, with net margin improving to 5.5%.

• Free cash flow margin was 6.3%, with year-end cash at CHF 140 million.

• One-off items included an CHF 18 million impairment, CHF 6.9 million contingent liability release, and CHF 4.8 million insurance income from a prior cyberattack.

Outlook and guidance

• Organic core sales growth guidance for 2025 is 13–15%, with core EBITDA margin expected in the high teens (17–19%).

• Growth acceleration expected in the US through exclusive distributor transition and KeriMedical launch.

• APAC and LATAM regions anticipated to recover as price cuts and insurance disruptions subside.

• New product launches, including next-generation hand system and digital planning tools, to strengthen core business.