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 ME&A.

• 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%.

• Strong new order intake and successful launches of Alma Harmony, Alma IQ, and Soprano Titanium position the company for a stronger H2 2024.

• No interim dividend declared for H1 2024; dividend policy remains at 30% of net income.

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).

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

• Net profit margin: 7.8% (down from 10.9%); adjusted net profit margin: 9.9% (down from 12.0%).

• Direct sales comprised 86% of total 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 and product launches.

• 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 for H2, but management expects improved performance if macroeconomic conditions stabilize.

• Leverages Fosun Pharma's resources in China for expansion.