MedCap (MCAP) Q4 2023 earnings summary

Executive summary

• Record FY sales exceeded SEK 1.5bn; Q4 sales rose 41% and EBITDA rose 42%, supported by organic growth and acquisitions.

• Organic sales growth exceeded 10% in Q4; all three business areas reported good demand and sales growth.

Financial highlights

• Q4 net sales were SEK 456.6m (+41% YoY); EBITDA was SEK 104.5m (+42%), with a 22.9% margin; profit after tax was SEK 62.2m and EPS SEK 4.2.

• FY net sales were SEK 1,587.4m (+43%); reported EBITDA was SEK 331.6m (+28%) and adjusted EBITDA SEK 347.0m (+45%).

• FY profit after tax was SEK 172.2m; EPS was SEK 11.6; operating cash flow was SEK 228.0m, up from SEK 85.5m.

• FY reported EBITDA margin was 20.9% versus 23.3%; adjusted margin was 21.9% versus 21.5%.

Outlook and guidance

• Updated targets: annual EBITA growth above 15%, return on equity above 20%, and net debt/EBITDA below 3x excluding IFRS 16.

• Continued growth opportunities were identified in organic development and acquisitions, alongside caution about a weaker economy and changing markets.