#Sweden #Gothenburg #financial report #Vitrolife AB #Q4 2025

Overview of Vitrolife AB's Financial Performance in 2025

Vitrolife AB, a leading player in the biotechnology field, recently unveiled its financial results for the fourth quarter and the full year of 2025. These figures reflect a complicated year, characterized by substantial currency impacts and a strategic overhaul.

Fourth Quarter Highlights

In the fourth quarter, Vitrolife reported sales of SEK 891 million, marking a decrease from SEK 959 million in the same period last year. Excluding discontinued operations, the organic growth in local currencies stood at 6%. This growth was hindered by a significant currency devaluation that negatively affected the overall revenue, leading to a 7% decline when expressed in SEK.

The regional sales performance varied significantly: while sales in the Americas grew by 9%, Asia-Pacific recorded an impressive 10% increase, in stark contrast to the EMEA region which saw a slight decrease of 1%. Analyzing product groups, consumables experienced a growth of 10% in local currencies, followed by a 6% increase in technologies. However, genetics growth was relatively modest at 1%.

Despite these growth metrics, Vitrolife faced challenges in profit margins. The gross margin fell to 58.0%, down from 61.1%, largely attributed to reorganization costs totaling SEK 55 million. Additionally, the company recorded an impairment charge of SEK 5.357 billion under other operating expenses, which heavily impacted net income. Consequently, the net income showed a considerable decline, resulting in a loss of SEK 5.314 billion compared to a profit of SEK 139 million during the previous year.

Full Year Performance

Looking at the entire year, total sales amounted to SEK 3.44 billion, down from SEK 3.609 billion. Local currency growth for the year was 4%, with the Americas showing an increase of 8% and the EMEA region growing by 5%. However, the Asia-Pacific region displayed a minor decline of 1% compared to the previous year.

In terms of product groups, consumables led with an 8% growth in local currencies, while technologies and genetics sectors followed with modest increases of 1% and 3%, respectively. Despite efforts to maintain operational efficiency, the overall gross margin also suffered, dropping to 58.1% from 59.3%. This decline was again linked to the persistent negative currency effects.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year were reported at SEK 949 million, reflecting a decline from SEK 1.225 billion seen in 2024. The EBITDA margin also slipped to 27.6%, clearly demonstrating the strain of restructuring costs and currency fluctuations.

Strategic Changes and Future Outlook

Vitrolife's plans include a restructuring program aimed at optimizing operations and reducing costs, particularly in its genetic services division. This is anticipated to yield annual savings of 65 million SEK. Furthermore, the board intends to propose a dividend of SEK 149 million, maintaining dividend stability despite the financial strains endured this year.

The board's decision to sustain the dividend reflects confidence in the long-term operational strategies, even amidst current challenges. Vitrolife remains focused on recovering its market share and stabilizing its financial position as it addresses the implications of recent restructuring and external economic factors.

In conclusion, while the results for 2025 signify a challenging period for Vitrolife AB, the company's commitment to restructuring and adapting to market conditions suggests a potential rebound in future quarters. The focus on operational efficiency and strategic growth will be crucial for navigating the complexities of the biotechnology industry in the upcoming years.