Embla Medical posted financial results for its fourth quarter (4Q) and year-end results during a conference call.
Highlights included:
- Sales amounted to $855 million where organic growth was 6 percent and local currency growth was 9 percent including acquisitions.
- Prosthetics and neuro orthotics sales grew by 9 percent organic; bracing and supports sales grew by 1 percent organic, and patient care sales grew by 5 percent organic. Growth was attributed to solid volume growth and positive product mix supported by strong performance in our high-end solutions.
- Gross profit margin was 63 percent, compared to 62 percent in 2023. The gross profit margin was positively impacted by cost reduction initiatives in manufacturing implemented during the first quarter of 2024, as well as favorable product mix and manufacturing efficiency.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin before special items increased to 20 percent compared to 18 percent in 2023. The EBITDA margin expansion was driven by strong sales performance, cost savings and efficiency in manufacturing, and effective cost control in selling, general, and administrative expenses.
- Net profit grew by 17 percent and amounted to $69 million or 8 percent of sales compared to 7 percent of sales in 2023.
- Free cash flow amounted to $77 million or 9 percent of sales compared to 7 percent of sales in 2023.
- Net interest-bearing debt/EBITDA before special items was 2.4x at the end of fiscal year 2024, within the company’s target range of 2-3x EBITDA in line with its capital structure and capital allocation policy.
Sveinn Sölvason, president and CEO, said, “The year was marked by several milestones, most notably the establishment of Embla Medical, beginning to unite our patient care business under the ForMotion brand, and the acquisition of Fior & Gentz, to name a few. Additionally, positive market trends such as the expanded US Medicare coverage for advanced bionic prosthetics for less mobile K2 amputees, brings potential for improved quality of life for a large patient population….”
