Embla Medical posted financial results for its first quarter (1Q) during a conference call on April 29. Highlights included:
- Sales amounted to $203 million and organic growth was 4 percent, compared to 7 percent in 1Q 2024.
- Prosthetics and neuro orthotics sales grew by 9 percent organic; bracing and supports and patient care sales ended flat compared to 10 percent, 1 percent, and 6 percent, respectively, during 1Q 2024.
- Gross profit margin was 63 percent, compared to 62 percent before special items (60 percent reported). The increase is supported by the manufacturing cost reduction initiatives as well as favorable product mix and efficiency.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) was $36 million, and EBITDA margin was 18 percent of sales, compared to 17 percent before special items in 1Q 2024. The EBITDA margin expansion was driven by an increasing gross profit margin following cost reduction initiatives implemented in 1Q 2024 and continued cost control in selling, general, and administrative expenses.
- Net profit grew by 45 percent and was $12 million with a net profit margin of 6 percent, compared to 4 percent in 1Q 2024.
- Free cash flow amounted to $8 million or 4 percent of sales, compared to negative free cash flow of $7 million or negative 4 percent of sales in 1Q 2024.
- Net-interest bearing debt/EBITDA was 2.5x at the end of 1Q, which is within the company’s target range of 2-3x EBITDA. In line with its capital structure and capital allocation policy, a share buyback program was reinitiated in early February. During the 1Q 2025, Embla Medical bought back 295,653 shares at a market value of about $1.3 million.
