Half Year 2024 Vimian Group AB Earnings Call Transcript
Key Points
- Vimian Group AB (FRA:0V0) reported 11% organic growth, with double-digit growth in its three largest segments.
- Adjusted EBITDA improved by 220 basis points from 25% to 27.2%, driven mainly by specialty pharma and medtech businesses.
- The company finalized a capital raise in April, reducing leverage to 1.4 times, positioning it well for future acquisitions.
- Veterinary services segment saw 18% growth with the addition of 400 new member clinics, and co-owned clinics accelerated their growth to double digits.
- Net profit for the quarter increased by 57% year-over-year, reaching EUR 5.1 million.
- The diagnostics segment, which makes up 5% of the total business, saw a revenue decline of 9% due to challenging market conditions.
- Nonrecurring items amounted to EUR 5.8 million, driven by high legal costs for US patent litigation.
- Net working capital increased to EUR 82 million, impacting cash flow negatively.
- The US surgical market showed softness and slowdown, impacting the medtech segment.
- Cash flow from investing activities was negative EUR 11.2 million, reflecting earn-out payments and capital expenditures.
Good morning, and welcome to our earnings call today. I'm here with Carl-Johan, and we're going to jump straight into it. Thank you for joining us. We have a strong quarter, great organic growth with margin expansion. The profit that we are delivering is in line with our financial targets.
Our three main segments, which makes up about 95% of the business, all delivered very strong performance, and all made good progress on our strategic priorities and execution. We finalized the capital raise in April. So our leverage is now down to about 1.4 times, which puts us in a really good position for further acquisitions. We're continuing to develop our M&A pipeline, and we have several ongoing dialogues there. So all in all, a good quarter for us.
Let's jump into some of the details here. We reported 11% organic growth, double-digit growth in all of the three largest segments. Our adjusted EBITDA improved by 220 basis points from 25% to 27.2%. This was driven mainly by our specialty pharma and our medtech business.
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