Sisram Medical (1696) H2 2024 earnings summary

Executive summary

• 2024 revenue was $349.1 million, down 2.8% year-over-year, mainly due to economic headwinds in North America and political instability in Latin America.

• Gross profit margin improved by 1.0 percentage point to 62.1%, driven by a shift to direct sales, which now account for 87% of revenue.

• Net profit declined by 12.6% to $28.8 million, with net margin falling from 9.2% to 8.2%, mainly due to higher operating expenses from direct office expansion.

• Significant product launches, including Alma Harmony, Alma IQ, and Soprano Titanium, and strategic partnerships expanded the injectables portfolio and global reach.

• APAC and Middle East/Africa regions delivered strong revenue growth, offsetting declines in North America.

Financial highlights

• Revenue: $349.1 million (down 2.8% YoY); Gross profit: $216.7 million; Gross margin: 62.1% (up 1.0 ppt YoY).

• Net profit: $28.8 million (down 12.6% YoY), net margin 8.2%.

• Direct sales revenue rose to 87% of total, up from 78% in 2023.

• APAC revenue up 6.0% to $116.2 million; Middle East/Africa up 27.1% to $34.6 million.

• Cash and cash equivalents stood at $70.1 million at year-end.

Outlook and guidance

• Management is optimistic for 2025, expecting benefits from new product launches, interest rate reductions, and the first full year of injectables commercialization in China.

• Focus on expanding direct sales offices, especially in APAC and North America, and launching new products including DAXXIFY® in China.

• Continued investment in R&D, regulatory clearances, and M&A to strengthen the product portfolio.

• All new offices are expected to be profitable after three years of operation.

• No specific quantitative guidance provided due to ongoing macroeconomic uncertainties.