In This Article:
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Revenue: Over 16% growth in constant currency, surpassing EUR590 million.
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EBITDA Margin: 28% in constant currency, EUR160 million, a 19% increase year-over-year.
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Net Profit: Increased by 54% to approximately EUR73 million.
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Dividend: Proposed CHF0.69 per share, a 25% increase year-over-year.
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Gross Profit: EUR399 million, a 15% increase, with a margin of 57.6%.
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CapEx: EUR99 million, with significant investments in growth and production facilities.
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Cash Flow: Operating cash flow of EUR107 million, a 40% increase, with a positive free cash flow of EUR8.3 million.
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Leverage: Very low at 0.99 times EBITDA.
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Product Line Growth: Knees grew more than 3 times the market; Spine grew above 17%; Extremities had a CAGR of 36.5%.
Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Medacta Group SA (XSWX:MOVE) reported a strong revenue growth of over 16% in constant currency, surpassing EUR590 million.
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The company achieved an excellent profitability with a 28% EBITDA margin in constant currency, marking a 19.4% increase over 2023.
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Net profit increased by almost 54% to approximately EUR73 million.
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A proposed dividend of CHF0.69 per share represents an increase of over 25% year-over-year.
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The company has maintained a strong focus on sustainability, sourcing 100% of electricity from renewable sources and achieving a 44% reduction in greenhouse gas emissions.
Negative Points
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The market growth is expected to slow down in 2025, which could impact Medacta's growth projections.
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There is a potential for price erosion, with approximately a 1% decrease built into the company's model.
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The integration of the Parcus acquisition may lead to some dilution in margins and incur integration costs.
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The company's guidance for 2025 includes a slightly lower adjusted EBITDA margin of around 27%, partly due to the Parcus acquisition.
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Despite strong growth, the company faces increased competition in the anterior hip market from established players.
Q & A Highlights
Q: If we take Parcus out of the guidance, does it imply around 4% base ortho growth? Does this also mean the backlog is fully out? A: Parcus alone contributes around 2% to 2.5% of the 2025 guidance. The market growth in 2024 was stronger than expected, around 5% to 5.5%. We expect the market to slow down a bit, but we will benefit if it stays strong. Without Parcus, you remove 2% from our guidance for the core pre-Parcus acquisition growth rate.