MedCap (MCAP) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 increased by 14% to SEK 1,806.7 million, with 6% organic growth, driven by acquisitions and demand in Assistive Tech and MedTech.

• Q4 2024 sales grew 4%, but organic sales declined 2% due to high comparison figures in Specialty Pharma.

• EBITA rose 19% to SEK 329.5 million; adjusted EBITA up 5% to SEK 306.4 million, reflecting non-recurring items and acquisition effects.

• Strong operating cash flow and a positive outlook for mergers and acquisitions.

• Specialty Pharma earnings declined sharply due to lower UK royalties and product mix, while Assistive Tech and MedTech delivered robust growth.

Financial highlights

• Q4 2024 net sales reached SEK 474.2 million, up 4% year-over-year; full-year net sales SEK 1,806.7 million, up 14%.

• Adjusted EBITA for Q4 was SEK 67.4 million, down 27% year-over-year; full-year adjusted EBITA SEK 306.4 million, up 5%.

• Q4 EBITA margin at 14.2% (adjusted), down from 20.1% last year; full-year margin at 17%.

• Profit after tax reached SEK 209.2 million, up from SEK 172.2 million year-over-year; EPS increased to SEK 14.0.

• One-time costs, including a SEK 10.7 million UK Melatonin royalty loss, impacted results.

Outlook and guidance

• Good outlook for M&A activity, with ongoing integration of recent acquisitions.

• Group aims for >15% annual EBITA growth over time, with a five-year CAGR of 23%.

• Continued focus on growth initiatives in core business areas.

• Specialty Pharma faces ongoing challenges, but overall market conditions for the Group are stable.