Scandinavian Medical Solutions (SMSMED) H2 24/25 earnings summary

Executive summary

• Achieved 8% year-over-year revenue growth for the group, with strong performance in Rental and Parts Solutions despite challenging market conditions.

• Maintained stable revenue in Equipment Solutions, consolidating inventory and optimizing internal processes.

• SMS Inc. became fully self-financing, and the U.S. market remains strategically important.

Financial highlights

• Total revenue reached DKK 245m for the year, with gross profit before other external costs at DKK 57m.

• EBITDA for the year was DKK 11m, with H1 margin at 0.5% and H2 margin at 8.1%.

• Parts Solutions and Rental Solutions both delivered over 30% growth year-over-year.

• Inventory value exceeded target by approximately DKK 20m, contributing to negative cash flow.

Outlook and guidance

• 2025/26 guidance projects revenue of DKK 220-250m and EBITDA of DKK 11-15m.

• Focus on reducing inventory in Equipment during H1 and maintaining growth in Rental and Parts.

• Emphasis on improving cash flow, debtor management, and controlling capacity costs.