SMAIO Publishes its 2023 Annual Results - Seite 2

Net profit/(loss)

1.1

2.8

Taking into account intra-group sales of implants, which are strongly linked to the growth of SMAIO's U.S. subsidiary, SMAIO SA’s sales 2023 amounted to €7.6 million, up +212% compared to 2022. After neutralizing intra-group sales of implants between SMAIO SA and its U.S. subsidiary SMAIO USA and considering only the hospital implant sales conducted by the latter, SMAIO Group’s sales came to €5.4 million*, representing a +120% growth compared to 2022. Sales of the Kheiron system, consisting of customized implants and rods, were particularly strong in the last quarter of the year (+40% vs. Q4 2022) due to surgeries performed in the U.S., initiated during the second half of 2023.

Capitalized production reached €1.1 million compared with €0.7 million in 2022, reflecting SMAIO's R&D efforts and enabling to position the Company as a key differentiator in the spinal surgery sector.

The margin on the purchase cost of implant sales has continued its upward trend, up from 63% in 2022 to 67% in 2023 (71% on a consolidated basis*). This trend is the direct result of the optimization of the Company's purchasing prices, coupled with the growth in international sales in high value-added markets. This margin should continue to increase significantly for SMAIO from 2024 with the ramp-up of the U.S. subsidiary, a market where margins have historically been higher.

The increase in other operating expenses is the result of the efforts made by SMAIO in R&D, since its IPO in April 2022, with the strengthening of its software development teams integrating artificial intelligence (AI) and the promotion of its solutions through the "Sagittal Alignment Academy" training courses held in Europe and the United States.

In view of the above, operating profit for 2023 stands at €0.7 million, compared with a loss of -€4.0 million in 2022.

After considering a research tax credit of €0.4 million, net profit for 2023 stood at €1.1 million, compared with a profit of €2.8 million for the same period in 2022, which was the result of exceptional income following the cancellation of SMAIO's debts to its main shareholder, Sylorus Scientific, prior to the company's IPO.