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Ambu A/S: Interim report Q3 2017/18
Ambu reports organic growth of 17% in Q3 and raises its outlook for this year's EBIT margin by 1 percentage point. Moreover, the target for sales of endoscopes is increased to 550,000 units.
"Our business is moving forwards at a solid pace, realising strong organic growth, while also increasing earnings. Our endoscopes continue their impressive development, now with expected sales of 550,000 endoscopes for the year. We are investing heavily in the expansion of our sales force and in product development; this is driving sales at the moment and, more importantly, paving the way for growth for many years to come. Based on the good results in Q3, we are therefore announcing a more precise outlook for organic growth and raising our EBIT margin outlook as well as raising our sales target for endoscopes for the year," says CEO Lars Marcher.
- Revenue of DKK 673m was posted for Q3, representing growth of 17% in local currencies and 12% in Danish kroner. The difference between growth in local currencies and growth in Danish kroner is due primarily to a weakening of the USD/DKK exchange rate of 8% relative to the same quarter last year.
- Anaesthesia contributed growth of 10%, Visualisation contributed 47%, and PMD (Patient Monitoring & Diagnostics) delivered growth of 2%, when measured in local currencies.
- Growth in Europe reached 19%, North America contributed growth of 18%, and the Rest of the World 3%, when measured in local currencies.
- Sales of endoscopes in Q3 reached 146,000 units, up 54% relative to Q3 last year. Year to date, sales of endoscopes thus totalled 395,000 units, and sales of approx. 550,000 endoscopes are now expected for the year.
- The gross margin was 59.7% (57.1%), corresponding to an improvement of 2.6 percentage points.
- Total capacity costs for the quarter were DKK 251m (DKK 213m), corresponding to an 18% increase, inclusive of operating expenses of DKK 20m related to product development and more sales resources in the USA.
- EBIT was then DKK 151m (DKK 130m) with an EBIT margin of 22.4% (21.6%) for the quarter and 21.2% (18.3%) year to date.
- Net working capital relative to revenue has increased marginally and now accounts for 22% (21%) of revenue over a rolling 12-month period.
- Free cash flows before acquisitions of enterprises totalled DKK 103m (DKK 99m) for the quarter, and DKK 161m (DKK 193m) year to date.
- Based on the results for Q3, the financial outlook for 2017/18 is changed. The outlook for organic growth in local currencies is changed from previously 'approx. 14-15%' to a more precise 'approx. 15%', while the EBIT margin is raised from previously 'approx. 20-21%' to now 'approx. 21-22%'.
A conference call is being held today, 23 August 2018, at 11.00 (CET). 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/webcastQ32018 and is held in English. The presentation can be downloaded immediately before the conference 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