Interim report for Q3 2013/14 (1 April - 30 June)

Organic growth in revenue of 8% and gross margin improved to 51.6%. EBIT increased by 41% to DKK 55m. The outlook for the year is maintained, and the estimated growth in revenue and EBIT margin is specified.

"Q3 is the first quarter in which Ambu has owned King Systems for a full 12 months, and against this background, having realised organic growth of 8% and a solid increase in earnings for the second consecutive quarter is very satisfactory. The growth is broadly based, but also positively driven, in particular by sales of aScope 3 and other products for the Anaesthesia segment, which is reporting combined growth of 14%. I am pleased that growth, in combination with the many initiatives currently being implemented, is now reflected in an improved gross margin and in significantly improved free cash flows. All in all, the results realised by Ambu in Q3 support the targets set for the company's long-term value creation," says President and CEO Lars Marcher.

  • Revenue of DKK 397m was posted for the quarter, corresponding to organic growth of 8% when reported in local currencies. Year to date, absolute growth of 16% has been realised in Danish kroner, corresponding to revenue of DKK 1,142m.
  • All the regions are contributing to the organic growth. Growth in Europe stood at 4% and is positively impacted by continued strong growth in aScope 3 sales, but negatively affected by the Emergency Care business area. Growth in the USA was 5%, continuing the positive trend. The rest of the world has contributed strong growth of 40%.
  • Total sales of aScope were up more than 60% compared with Q2. aScope 3 was only launched in the USA at the end of the quarter, explaining why the effect is so far insignificant.
  • The gross margin was 51.6% (48.1%), and year to date 50.3% (49.4%). The improved gross margin can be ascribed, among other things, to increasing sales of high-margin products and cost synergies from the integration of acquired activities.
  • EBIT before special items was DKK 55m for the quarter (DKK 39m), while an EBIT margin of 13.9% (10.3%) was posted. Year to date, EBIT before special items totals DKK 118m (DKK 102m), with an EBIT margin of 10.3% (10.4%).
  • Free cash flows before acquisitions were DKK 28m (DKK 10m) for the quarter, and DKK 57m for the first nine months of the financial year (DKK 24m). Special items are constituted by expenses of DKK 2m (DKK 19m), while the figure is DKK 10m (DKK 20m) year to date.
  • The quarter saw the launch in the USA and in Europe of King Vision aBlade, a new version of Ambu's video laryngoscope for use in operating theatres. The agreed milestone payment of DKK 55m to the seller of King Systems has been made.
  • The full-year outlook is narrowed down to revenue of approx. DKK 1.6bn, based on expected organic growth of approx. 6-7% as opposed to the 5-7% announced earlier and an EBIT margin of approx. 13% against the previously announced 12-14%. Free cash flows before acquisitions, special items, milestone payments and earn-outs are expected to be unchanged at approx. DKK 100-120m, with an NIBD/EBITDA ratio of approx. 2.5.

A conference call is being held today, 20 August 2014, at 11.00 am (CET). To participate, please call the following number five minutes before the start of the conference: +45 3544 5579. The conference can be followed via www.ambu.com/webcastQ32014 and is held in English. The presentation can be downloaded directly in the conference call.

Download this announcement as pdf: Interim Report for Q3 2013-14

Contact
Lars Marcher, President & CEO, tel. +45 5136 2490, email: lm@ambu.com

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