OrbusNeich Medical (6929) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 6.6% to US$164.1m; FX-excluded growth was 8.7%, while profit attributable to owners declined 11.9% to US$39.7m.

• Sales volume reached 1.7m units, including 1.5m proprietary products, up 4.8% YoY; gross profit increased 7.5% to US$114.5m.

• Profit pressure reflected acquisition-related integration costs, higher R&D spending and lower government grants; additional operating expenses from post-acquisition consolidation were US$9.5m.

Financial highlights

• Revenue was US$164.1m, up 6.6% YoY; cost of sales rose 4.8% to US$49.6m and gross profit rose 7.5% to US$114.5m.

• Gross margin improved to 69.8% from 69.2%; net profit margin fell to 24.2% from 29.3%.

• Profit before tax declined 14.6% to US$42.4m; profit attributable to owners fell 11.9% to US$39.7m; basic EPS was US4.81 cents vs US5.45 cents.

• Operating profit was US$32.2m vs US$39.9m; net finance income rose to US$11.7m from US$10.5m, partly offsetting higher operating expenses.

• Core operating profit, excluding share-based compensation, goodwill impairment, deferred tax asset recognition, fair-value changes in USD commodity notes and net finance income, fell 15.8% to US$29.0m.

Outlook and guidance

• For 2025, APAC and EMEA are expected to drive revenue growth, alongside a continued US recovery; no numerical revenue guidance was stated.

• In the PRC, multiple product generations provide flexibility to participate in VBP programs; active monitoring and response to new programs are planned.

• Teleport Glide and Scoreflex QUAD are expected to expand the portfolio, initially targeting Japan; applications for new pipeline products are expected to be submitted in 2025.

• Hangzhou R&D and manufacturing facility is expected to begin operations in 2027, adding annual capacity of 2.4m units.