Sisram Medical (1696) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was US$168.7 million, down 1.7% year-over-year, mainly due to a decline in North America, offset by double-digit growth in APAC, Europe, and Middle East & Africa.

• Gross profit margin improved to 62.4% from 61.4% year-over-year, driven by a higher proportion of direct sales, which reached a record 86% of total revenue.

• Net profit was US$13.2 million, down 29.7% year-over-year, impacted by higher expenses and investments in new direct offices; adjusted net profit was US$16.7 million, down 19.4%.

• Launched new products including Alma Harmony™, Alma IQ™, and Soprano Titanium™ Special Edition, driving strong new order rates and market adoption.

• Expanded direct sales operations and opened new offices in China, Japan, and UAE, enhancing the wellness ecosystem and brand presence.

Financial highlights

• Revenue: US$168.7 million (down 1.7% year-over-year); gross profit: US$105.3 million (flat year-over-year); gross margin: 62.4% (up 1.0 ppt).

• Net profit: US$13.2 million (down 29.7%); adjusted net profit: US$16.7 million (down 19.4%).

• APAC revenue grew 15.5% to US$56.0 million; Europe up 10.0% to US$24.0 million; Middle East & Africa up 10.9% to US$15.4 million; North America fell 15.7% to US$67.0 million.

• Direct sales accounted for 86% of revenue, up 14 percentage points year-over-year.

• Cash and cash equivalents at period end: US$70.1 million (up 35.1% year-over-year).

Outlook and guidance

• Forecasts stronger revenue and net income in H2 2024, supported by record new orders, product launches, and potential interest rate reductions.

• Strategic focus on expanding direct sales, launching DAXXIFY® in China, and introducing new injectables and EBD products.

• Plans to enhance brand awareness, expand financing offerings, and pursue M&A to strengthen R&D and distribution.

• No specific forecast provided, but new technologies and expanded direct sales expected to drive growth.

• Anticipates improved performance in North America if macroeconomic conditions stabilize.