MedCap (MCAP) Q3 2024 earnings summary

Executive summary

• Net sales rose 13% year-over-year to SEK 413.1 million in Q3 2024, with 5% organic growth and 14% organic growth excluding Specialty Pharma, which faced tough comparisons.

• EBITA increased by 21% to SEK 80.1 million, with profit after tax at SEK 53.3 million.

• Strong performance in Assistive Tech and MedTech, while Specialty Pharma declined due to UK price pressure.

• Acquisitions of Picomed, Alert-IT, and Kompany AS completed or agreed, strengthening the Assistive Tech portfolio.

• Cash flow from operating activities improved to SEK 70.2 million in Q3 and SEK 233.6 million for the nine months.

Financial highlights

• Q3 2024 net sales reached SEK 413.1 million, up 13% year-over-year; EBITA was SEK 80.1 million (+21%), with an adjusted EBITA margin of 16.7%.

• Adjusted EBITA grew 4% year-over-year; up 9% excluding move-related costs and 44% excluding Specialty Pharma.

• Nine months net sales: SEK 1,332.5 million (+18%); EBITA: SEK 258.7 million (+41%).

• Net Debt/EBITDA at -0.5 (excluding IFRS16), indicating a strong balance sheet.

• Rolling 12-month net sales at SEK 1,789 million; EBITA CAGR at 29%.

Outlook and guidance

• Demand expected to remain favorable across business areas, with a strong pipeline for future acquisitions.

• Focus on organic growth, business development, and leveraging synergies from recent acquisitions.