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Ambu A/S: Interim Report for Q1 2018/19
In Q1, Ambu realised organic growth of 15% and a 43% increase in sales of endoscopes to 149,000 units. Gross profit increased by 1.9 percentage points to 59.9%, resulting in an EBIT margin of 17.1%.
"In Q1, we have experienced solid growth in all sales regions, and Visualisation as well as our core business have developed as expected. With 15% organic growth, and 19% growth in Danish kroner, our gross profit rose by 1.9 percentage points to 59.9%. Growth in the USA was at a record high 20%, and we are seeing an increasing effect of the approx. 50 extra sales representatives hired in the USA over the past year. The EBIT margin was 17.1% in what is traditionally the least profitable quarter of the year, and we are therefore optimistic about the economies of scale and the value creation which Ambu intends to realise globally, and particularly in the USA, in the current strategy period. Sales of endoscopes reached 149,000 units, and the target for 2018/19 remains unchanged at sales of more than 750,000 units," says CEO Lars Marcher.
- Revenue of DKK 656m (DKK 553m) was posted for Q1, representing growth of 15% in local currencies and 19% in Danish kroner. The difference between the organic growth when measured in local currencies and growth when measured in Danish kroner is due to the strengthened USD/DKK exchange rate as well as the recognition of the GPO fees in accordance with the accounting standard relative to the same quarter last year.
- Anaesthesia contributed growth of 8%, Visualisation contributed 42%, and PMD (Patient Monitoring & Diagnostics) delivered growth of 1%, when measured in local currencies.
- Growth in Europe reached 11%, North America contributed growth of 20%, and the Rest of the world 10%, when measured in local currencies.
- Sales of endoscopes in Q1 reached 149,000 units (104,000 units), up 43% relative to Q1 last year.
- The gross margin was 59.9% (58.0%), representing an improvement of 1.9 percentage points, which is attributable to contin-ued economies of scale in production and a shift in the product mix towards visualisation products.
- Capacity costs for the quarter totalled DKK 281m (DKK 230m), up 22%. Adjusted for the effect of foreign exchange fluctua-tions and timing differences in costs, the underlying increase constitutes 13%.
- EBIT was then DKK 112m (DKK 91m), with an EBIT margin of 17.1% (16.5%).
- The ratio of net working capital to revenue is at 21, calculated for rolling 12-month revenue.
- Free cash flows before acquisitions of enterprises were DKK 45m (DKK 36m).
- The outlook for the financial yearannounced in the annual report for 2017/18 on 13 November 2018 is maintained:
- Organic growth in local currencies of approx. 15-16%
- EBIT margin of approx. 22-24%
- Free cash flows of approx. DKK 400-475m.
A conference call is being held today, 31 January 2019, at 11.00 (CET). To participate, please call the following number five minutes before the start of the conference: +45 3544 5580. The conference can be followed via www.ambu.com/webcastQ12019 and is held in English. The presentation can be downloaded immediately before the con-ference call via the same link.
Lars Marcher, President & CEO, tel. +45 5136 2490, email: firstname.lastname@example.org
Tel.: +45 7225 2000
CVR no.: 63 64 49 19