Ambu A/S: Interim report for Q1 2019/20
Ambu begins the year with double-digit sales growth, and a good performance across all geographies. The expansion of the sales organization as well as the preparations for products to be launched during 2019/20 are progressing as planned. Full-year financial guidance is maintained.
“In the first quarter of 2019/20, we have successfully executed on the strategic decisions that were made last year, and with double-digit revenue growth at 14% we have a good start to the year. All geographies and business areas are performing as planned and on our biggest market, the US, we have managed to transition most of the business from the former distributor and done so ahead of plan. At the same time, we are expanding the US salesforce to be ready for the product launches in this financial year. Our launch plans are progressing as expected and we are on schedule to launch three major products for our single-use endoscopy business this year,” says CEO Juan Jose Gonzalez.
Highlights for the quarter – Solid growth across business areas
- For Q1, revenue totalled DKK 760m (DKK 656m), with organic growth of 14% and reported growth of 16%. The difference between organic growth and reported growth is due to the strengthened USD/DKK exchange rate.
- Visualization contributed organic growth of 24%, Anaesthesia was 8%, and PMD (Patient Monitoring & Diagnostics) delivered 10%.
- North America contributed organic growth of 16%, while Europe delivered 11% and Rest of World 12%.
- Sales of single-use endoscopes totalled 180,000 units, up 21% relative to Q1 last year.
- Gross margin was 60.1% (59.9%), which is on par with Q1 last year.
- Capacity costs totalled DKK 364m (DKK 281m), corresponding to a 30% increase, primarily relating to investments in the Sales organization.
- EBIT before special items was DKK 93m (DKK 112m) with an EBIT margin before special items of 12.2% (17.1%).
- The working capital to revenue ratio ends at 20% (21%) based on rolling 12-month revenue.
- Free cash flows before acquisitions totalled DKK -190m (DKK +45m).
- The outlook for the financial year 2019/20 as announced in the annual report on 13 November 2019 is maintained:
- Organic growth in the range of 16-22%
- EBIT margin before special items in the range of 12-14%
- Sales of approx. 900,000 endoscope units
A conference call is held today, 4 February 2020, at 10.00 (CET). To ask questions in the Q&A session, please call the following number five minutes before the start of the conference: +45 3544 5577 and enter the following access code: 72232066#. The conference is broadcast via www.ambu.com/webcastQ12020 and is held in English. The presentation can be downloaded immediately before the conference call via the same link.
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