Scandinavian Medical Solutions (SMSMED) H2 23/24 earnings summary

Executive summary

• Revenue reached DKK 226.6 million for 2023/24, with EBITDA at DKK 21 million, both within guidance and reflecting growth amid investments in internal processes and infrastructure.

• Strategic investments included launching a U.S. subsidiary, ERP system upgrades, and hiring, impacting H1 EBITDA but leading to margin improvement in H2.

• The company maintained strong top-line and bottom-line performance despite significant one-time costs in the first half.

• Trading (system sales) contributed 76.6% of revenue, with the remainder from other segments.

• Rental business saw full fleet utilization, with assets financed externally and growing demand for flexible solutions.

Financial highlights

• Net revenue increased to DKK 226.7 million from DKK 191.2 million year-over-year.

• EBITDA was DKK 21 million; net profit declined to DKK 7.8 million from DKK 12.2 million year-over-year.

• EBITDA margin improved from 7.9% in H1 to 10.5% in H2, ending at 9.3% for the year.

• Gross profit margin remained stable year-over-year despite higher staff costs and investments; gross profit rose to DKK 40.1 million from DKK 34.7 million.

• Total assets grew to DKK 174.1 million from DKK 164.0 million year-over-year.

Outlook and guidance

• Revenue guidance for 2024/25 is DKK 240–270 million, with EBITDA expected at DKK 24–29 million.

• Growth is anticipated from new rental fleet units, expanded parts inventory, and increased U.S. market contribution.

• Focus remains on profitable revenue growth, cash flow optimization, and improved working capital management.