INTERIM REPORT FOR Q3 2022/23

In Q3 2022/23, Ambu delivered 8% organic revenue growth and a 7.6% EBIT margin. This was driven by Endoscopy Solutions growing 23%, due to high double-digit growth within urology and ENT, and pulmonology returning to positive growth year-over-year.

Today, Ambu narrows its full-year 2022/23 organic revenue growth guidance to 6-8%, previously 5-8%, based on the company’s performance in Q3 and the first two months of Q4. On 10 July 2023, Ambu adjusted its financial guidance by upgrading its full-year EBIT margin before special items to 5-6%, previously 3-5%, driven by a better-than-expected gross margin, due to a strengthened product mix. In Q3, free cash flow ended at DKK 157m before acquisitions and is expected to reach an improvement of more than DKK 500m (previously DKK 350-450m) for the full-year 2022/23, compared to 2021/22.

“I am pleased with our performance this quarter, reflected by 23% growth in Endoscopy Solutions and 16% in pulmonology. We strengthened our pulmonology offering by completing our fifth-generation bronchoscope portfolio in North America, hereby gearing up to support more customers in our biggest market. This, combined with our strengthened free cash flow, reflects our continuous efforts to execute on our strategy to build a strong financial platform.”

BRITT MEELBY JENSEN
Chief Executive Officer

 

FINANCIAL HIGHLIGHTS FOR THE QUARTER
Last year’s comparative figures are presented in brackets.

• Revenue for Q3 increased organically by 8% (8%) to DKK 1,195m (DKK 1,128m), with reported growth of 6% (16%). Year-to-date, organic growth was 5% (5%), with reported growth of 7% (10%).
• Endoscopy Solutions revenue increased organically by 23% (0%) and by 12% (0%) year-to-date. Endoscopy Solutions excluding pulmonology increased by 33%, mainly driven by urology and ENT. Pulmonology posted 16% organic growth, driven by increased procedure volumes as a result of the healthcare market recovering from Covid-19, as well as strengthened single-use penetration of Ambu’s growing pulmonology portfolio.
• Anaesthesia organic revenue declined by 7% (14%), and Patient Monitoring declined by 7% (20%), on account of high comparables in North America for the circuits and cardiology product categories. Year-to-date, Anaesthesia and Patient Monitoring, combined, declined by 2% (10%).
• Revenue in North America increased organically by 9% (16%), Europe increased by 10% (4%), and Rest of World declined by 2% (-4%). Year-to-date, organic growth rates were 9% (15%) in North America, 1% (-3%) in Europe and 6% (-2%) in Rest of World.
• Gross margin in Q3 was 56.2% (55.8%) and 56.8% (58.2%) year-to-date. The better-than-expected gross margin was mainly driven by a strengthened product mix.
• EBIT before special items was DKK 91m (DKK 42m), with an EBIT margin before special items of 7.6% (3.7%). Year-to-date, EBIT before special items ended at DKK 205m (DKK 129m), with an EBIT margin before special items of 5.8% (3.9%). The improved EBIT margin of 3.9% percentage points was due to the achieved scale in OPEX and the effect from the increase in gross margin.
• Free cash flow before acquisitions totalled DKK 157m (DKK 7m), and free cash flow was DKK 4m year-to-date, up DKK 295m, compared to the same period last year. This was driven by improved EBITDA, NWC and lower CAPEX.
• The FY 2022/23 guidance:
  • Organic revenue growth: 6-8% (narrowed from 5-8%)
  • EBIT margin before special items: 5-6% (maintained as per 10 July 2023)