#Denmark #Copenhagen #Prosthetics #Embla Medical #Neuro Orthotics

Embla Medical hf: Q4 2024 Interim Report Overview

Embla Medical hf recently published its interim report for the fourth quarter of 2024, showcasing impressive financial performance. In this quarter, the company reported sales reaching USD 225 million, reflecting an organic sales growth of 5%. The impressive figures come as no surprise, given the company’s strategic focus on its Prosthetics and Neuro Orthotics segments, which have been pivotal in driving growth.

Financial Highlights

In detail, the organic growth of 5% for Q4 2024 indicates a slight slowdown compared to the 9% growth from Q4 2023. When factoring in the local currency, sales growth surged to 8%. The full year 2024 also displayed robust metrics with a 6% organic sales growth overall. Notably, the Prosthetics and Neuro Orthotics categories achieved 12% organic growth, while the Bracing and Supports segment saw a stable 2% rise.

However, sales in the Patient Care segment dipped 1%, a result attributed to the strong comparative performance of Q4 2023. Nevertheless, the full year painted a positive picture: Prosthetics and Neuro Orthotics rose by 9%, and Patient Care by 5%.

The gross profit for the quarter was reported at USD 142 million, which translates to a gross profit margin of 63%, up from 61% year-on-year. The positive margin was driven by effective cost reduction initiatives and improvements in production efficiency.

EBITDA and Net Profit Margins

Embla Medical's EBITDA came in at USD 47 million, achieving a margin of 21%, marking an increase from 18% in the previous year. The comprehensive effectiveness of cost management strategies implemented earlier was a significant contributor to these figures.

Despite a dip in the net profit margin to 8% in Q4 2024 from 9% in Q4 2023, overall net profit grew 17% for the year. This fluctuation was affected by exchange rate impacts and financial expenses against an otherwise strong operational performance.

Cash Flow Performance

Free cash flow also performed well, amounting to USD 34 million, representing 15% of sales. For the entirety of 2024, free cash flow totaled 9%, an improvement over the previous year. This uptick illustrates the ambitious implementation of operational strategies that drove profitability and efficiency.

Moreover, the company reported a Net Interest-Bearing Debt (NIBD) to EBITDA ratio of 2.4x, staying within the desired range of 2-3x, which aligns with their robust capital structure and distribution policy.

Future Outlook

Looking ahead, Embla Medical has provided its guidance for 2025, forecasting an organic sales growth of 5-8% along with an EBITDA margin of 20-21%. These projections are underpinned by strong volume growth from their diverse product ranges and a commitment to maintaining cost-control measures.

Sustainability Recognition

In addition to these financial triumphs, the company has also gained recognition for its sustainable growth initiatives. In December 2024, TIME Magazine ranked Embla Medical as one of the World’s Best Companies in Sustainable Growth, underscoring its focus on environmental stewardship alongside business advancement.

Conclusion

Overall, Embla Medical's Q4 performance illustrates a well-rounded strategy focused on core growth sectors and sustainability, paired with robust financial management. The company's steadfast commitment to mobility solutions for a better quality of life continues to place it in a strong position as it moves into 2025 and beyond.

For more detailed insights and to join the upcoming conference call on February 5, 2025, visit Embla Medical's Investor Relations page.