MedCap (MCAP) Q2 2024 earnings summary

Executive summary

• Net sales rose 19% year-over-year in Q2 2024 to SEK 457.7 million, with 8% organic growth and strong contributions from acquisitions; Assistive Tech and MedTech performed strongly, while Specialty Pharma had a weak quarter due to UK price pressure.

• EBITA increased by 25% to SEK 90.1 million; adjusted EBITA up 13% after excluding one-time effects, with margin impacted by price pressure in the UK and relocation costs.

• Profit after tax reached SEK 57.1 million, and earnings per share were SEK 3.8.

• Cash flow from operating activities improved to SEK 70.9 million in Q2, maintaining a strong balance sheet with Net Debt/EBITDA at -0.4 (excluding IFRS16).

• Rolling 12-month net sales at SEK 1,740 million and EBITA at SEK 328 million, with sales CAGR of 19% and EBITA CAGR of 29%.

Financial highlights

• Q2 2024 net sales reached SEK 457.7 million, up 19% year-over-year; H1 net sales: SEK 919.4 million (+20%).

• Q2 EBITA: SEK 90.1 million (+25%); adjusted EBITA: SEK 81.4 million (+13%), with an EBITA margin of 17.8%.

• Q2 EBITA margin: 19.7% (adjusted: 17.8%).

• H1 EBITA: SEK 178.6 million (+52%); adjusted EBITA: SEK 169.9 million (+28%).

• Cash and cash equivalents at period end: SEK 262.8 million.

Outlook and guidance

• Market for M&A remains healthy, with ongoing business development and acquisition opportunities; management sees good acquisition opportunities, supported by a strong balance sheet and low net debt/EBITDA.

• Financial targets include annual EBITA growth above 15%, return on equity above 20%, and net debt/EBITDA below 3x.

• Specialty Pharma expected to recover margins through portfolio expansion and business development.