Scandinavian Medical Solutions (SMSMED) Investor update summary

Guidance adjustment and financial outlook

• Revenue guidance for FY2024/25 was revised from DKK 240–270 million to DKK 200–240 million, and EBITDA from DKK 24–29 million to DKK 11–15 million.

• The adjustment is driven by geopolitical instability, potential tariffs on exports to the US, and a weaker US dollar impacting margins and customer buying power.

• Shorter order book visibility and customer hesitancy, especially among long-term export customers, have reduced the ability to forecast long-term sales.

• Margin pressure is attributed to the inability to hedge currency risk and the need to maintain market momentum despite lower profitability.

Market and operational dynamics

• US customers are delaying orders due to tariff uncertainty and currency fluctuations, affecting both demand and order book duration.

• The rental business shows positive traction with strong interest, particularly in the US, but larger projects take longer to materialize.

• The company’s US presence provides strategic flexibility to source and sell equipment domestically, mitigating tariff risks.

• Private healthcare in the US is expected to drive demand for used equipment, benefiting the business model.

Cost management and strategic response

• Cost-saving initiatives include consolidating positions, optimizing warehousing, and maintaining a prudent approach to hiring.

• Growth investments will continue, but with increased focus on cost control and cash flow management.

• The company is financially robust and prepared to execute contingency plans depending on future tariff outcomes.