Medmix (MEDX) H2 2024 earnings summary

Executive summary

• Gross profit increased and profitability maintained at the upper range of revised guidance, despite a slight revenue decline in 2024.

• Strong cash generation and free cash flow achieved through improved net working capital management and lower CapEx.

• Sustainability ranking improved from B to A by CDP, reflecting best practices in climate action.

• Growth and efficiency program launched, targeting CHF 30 million in cost savings over two years, with most actions in 2025.

• Strategy review completed, with structural changes implemented and a CHF 0.50 per share dividend proposed.

Financial highlights

• Group revenue CHF 483.9m, down 0.6% reported and 1.5% organic year-over-year, matching revised guidance.

• Gross profit CHF 159.7m (+1.3% YoY), gross margin improved to 33.0% (+60 bps YoY); segment gross profit CHF 217.5m, margin 45%.

• Adjusted EBITDA CHF 92.5m, margin stable at 19.1%, at the top end of guidance.

• Operating net cash flow CHF 61.0m (+239.8% YoY); free cash flow CHF 39.6m.

• Net income negative at CHF -6.4m due to impairments from the growth and efficiency program; flat year-on-year excluding these.

Outlook and guidance

• 2025 expected as a transition year: organic revenue growth flat, adjusted EBITDA margin 18%-19%.

• Dental and Surgery to continue growing; Drug Delivery to decline due to dual-sourcing, with new device revenues expected late 2026.

• C&I segment expected flat in 2025 amid market uncertainty; mid-term (three-year) guidance: revenue CAGR above 4%, adjusted EBITDA margin above 20%.

• CapEx to remain at 8%-9% of revenue; working capital expected flat to 2024.