Embla Medical posted its third quarter (3Q) interim results.
Highlights included:
- Sales amounted to (USD) $214 million and organic growth was 7 percent, compared to 7 percent in 3Q 2023.
- Prosthetics and neuro orthotics sales grew by 9 percent, patient care grew 9 percent, while bracing and supports grew by 1 percent (all organically). Europe, the Middle East, and Africa (EMEA) continued to contribute strongly , whereas performance in Americas remained soft. The Asia-Pacific (APAC) region also delivered good growth.
- Gross profit margin was 63 percent, compared to 62 percent during the same period a year ago. The increase in gross profit can partly be ascribed to cost reduction initiatives in manufacturing implemented during 1Q as well as better product mix and manufacturing efficiency.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $47 million, and EBITDA margin was 22 percent of sales, compared to 19 percent in 3Q 2023. Increasing gross profit margin and continued cost control contributed to increased profitability.
- Net profit grew by 58 percent and was $22 million with a net profit margin of 10 percent, compared to 7 percent of sales in 3Q 2023.
- Cash generated from operations totaled $52 million or 24 percent of sales, compared to 17 percent of sales in 3Q 2023.
- Free cash flow totaled $33 million or 15 percent of sales, compared to 9 percent of sales during the same period a year ago. Free cash flow was strong with solid operating results.
- Net debt-to-EBITDA before special items was 2.8x at the end of 3Q. Share buybacks are paused.
“Our EBITDA margin came in strong for the quarter at 22 percent,” said Sveinn Sölvason, president and CEO. “We continue to see the positive effects from the cost reduction initiatives implemented in manufacturing earlier this year as well as contribution from better product mix and cost control. We are executing well on our Growth’27 strategy and reiterate our full year guidance of 6-8 percent organic sales growth and 20 percent EBITDA margin before special items.”
