Q3 2024 Ambu A/S Earnings Call Transcript
Key Points
- Ambu A/S (AMBFF) reported a strong organic revenue growth of 15% in Q3 2023/24.
- The endoscopy solutions segment saw a significant growth of 18% in the quarter and 21.6% over the first nine months of the fiscal year.
- The EBIT margin before special items improved to 12.9%, indicating better profitability.
- Free cash flow for the quarter was DKK163 million, showcasing strong cash management.
- The company received approvals for two new solutions, aScope 5 Uretero and aScope Duodeno 2, in both the US and Europe, expanding their product portfolio.
- There is a risk of losing contract volumes due to price increases in the anesthesia and patient monitoring segments.
- The company is still facing challenges in fully utilizing its manufacturing footprint, particularly in its Mexican factory.
- Despite strong growth, there is uncertainty in the fast-growing urology and ENT segments regarding the timing of large orders.
- The company experienced a significant increase in administrative costs in Q3 due to investments in strategy and IT projects, which may not be sustainable.
- The market for single-use endoscopes is becoming increasingly competitive, with new entrants from legacy scope players and Chinese manufacturers.
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Hello, everyone, and welcome to the Ambu presentation of our Q3 2023 and '24 financial results. I'm Britt Meelby Jensen. I'm the CEO of Ambu. And with me today, I have Henrik Skak Bender, our Chief Financial Officer.
On the agenda today, I'll start providing an overall update on the business, and then I'll hand over to Henrik to go through the financials, and then we'll end with a Q&A session.
So jumping right into the numbers. We delivered in Q3 2023, '24, a total organic revenue growth of 15%. If we look at how that is split into the different segments, starting with the endoscopy solutions segment, we grew 18% in our endoscopy business in the quarter and 21.6% in the full 9 months of this fiscal year.
When we look at profitability, our EBIT margin before special items ended at 12.9% and on the free cash flow, we delivered DKK163 million for the quarter. So overall, a strong quarter that we are very excited about, continuing the strong quarter
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