REVENIO GROUP OYJ Q1/2024: Soft start for the year as expected, however, net cash flow from operations was strong
The figures in parentheses refer to the corresponding period in the previous year unless otherwise stated.
January –
- Net sales totaled
EUR 23.6 (23.2) million, showing an increase of 1.8% - The currency-adjusted net sales in January–March decreased 0.5%
- Operating profit was
EUR 5.1 (6.2) million, representing 21.8% of net sales, down by 16.6%. The operating profit was impacted by our decision to apply for FDA approval for iCare ILLUME screening solution. The costs in the review period were approximatelyEUR 0.6 million . - EBITDA was
EUR 6.2 (7.1) million, down by 12.0% - Net cash flow from operations totaled
EUR 4.6 (0.3) million. The net cash flow from operations was strong due to smaller payments from the incentive programs. In addition to these, paid taxes and trade receivables decreased. - Earnings per share came to
EUR 0.137 (0.159) - The Annual General Meeting was held after the review period on
April 4, 2024 . Dividend was set atEUR 0.38 (0.36) and paid onApril 15, 2024 after the review period.
Group key figures
| MEUR | 1-3/2024 | 1-3/2023 | Change-% |
| Net sales | 23.6 | 23.2 | 1.8 |
| Gross margin | 16.6 | 16.4 | 1.6 |
| Gross margin - % | 70.3 | 70.5 | -0.2 |
| EBITDA | 6.2 | 7.1 | -12.0 |
| EBITDA-% | 26.3 | 30.5 | -4.1 |
| Operating profit, EBIT | 5.1 | 6.2 | -16.6 |
| Operating profit-%, EBIT | 21.8 | 26.6 | -4.8 |
| Return on investment-%, ROI | 4.4 | 6.0 | -1.4 |
| Return on equity-%, ROE | 3.6 | 4.8 | -1.2 |
| Earnings per share | 0.137 | 0.159 | |
| Change, %-point | |||
| Equity ratio-% | 74.5 | 64.0 | 10.5 |
| Gearing-% | -7.0 | -13.1 | 6.1 |
Financial guidance for 2024
Revenio Group’s exchange rate-adjusted net sales are estimated to grow 5-10 percent from the previous year and profitability, excluding non-recurring items, is estimated to remain at a good level.
President and CEO
The year started softly as we expected. Despite the challenging comparables, our net sales grew by 1.8% from last year to
Our operating profit was
The development of the net cash flow from operations was very strong in the first quarter of the year, due to notably smaller payments from the incentive programs. In addition, paid taxes and trade receivables decreased.
The process concerning the reimbursement policy for the iCare HOME2 tonometer is proceeding as planned in
During the strategy period 2024–2026, from 2025 and onwards, we seek to grow three times faster than the market growth. The drivers of our growth are the prevalence of eye diseases caused by population aging and the increased standard of living, as well as the increase in lifestyle diseases, cost pressures in health care, and shortage of eye care personnel, as well as the development of ophthalmological treatment. We provide innovative and user-friendly products and software solutions for these challenges that improve the quality of clinical diagnostics and streamline patient care pathways. We also have the capacity to complement organic growth with acquisitions due to our strong balance sheet. We actively survey the markets to identify potential acquisition targets in the eye diagnostics market.
In Q1, we have continued to advance in our sustainability themes. We will report on our sustainability in accordance with the EU Corporate Sustainability Reporting Directive (CSRD) as part of the Board of Directors’ report for 2025. For this, we are conducting a double materiality assessment.
Although the decrease of interest rates by central banks has been delayed and geopolitical uncertainty has increased, we still remain confident in the improvement of the market situation starting from the second half of 2024. Despite the short-term challenges caused by macroeconomics and the geopolitical situation, we are confident that we are on track with Revenio’s strategy period’s financial targets.
Revenio Group’s strategy
The cornerstones of the strategy for 2024–2026 are:
- Improve the quality of clinical diagnostics with targeted product innovations
- Optimize clinical care pathways with connected and predictive solutions
- Enhance customer focus in operations & sales
- Continue to develop People & Culture as a foundational strength
- Continue sustainable and profitable growth
FINANCIAL REVIEW
INTERIM REPORT JANUARY 1–MARCH 31, 2024, TABLES
Accounting policies applied in the preparation of the interim report
This interim report is not prepared in accordance with IAS 34.
in accordance with the Securities Markets Act and, for the first three and nine months of the year, publishes
interim reports to present key information on the Group’s financial performance. The financial figures presented in this interim report are unaudited. The financial statement bulletin and the half-year report are drawn up in accordance with IAS 34 Interim Financial Reporting.
This report has been drawn up in accordance with the same reporting principles as the 2023 financial statements, except for the following amendments to the existing standards, which the Group has applied as of
Amendments made to IAS 1, IAS 7, IFRS 7 and IFRS 16.
In the management’s estimate, the adoption of the above-mentioned standards does not have a material impact on the Group’s financial statements.
Consolidated comprehensive income statement
| MEUR | 1-3/2024 | 1-3/2023 | 1-12/2023 |
| 23.6 | 23.2 | 96.6 | |
| Other operating income | 0.0 | 0.0 | 0.2 |
| Materials and services | -7.0 | -6.8 | -28.3 |
| Employee benefits | -5.7 | -5.0 | -19.1 |
| Depreciation, amortization, and impairment | -1.1 | -0.9 | -3.9 |
| Other operating expenses | -4.7 | -4.3 | -19.0 |
| NET PROFIT/LOSS | 5.1 | 6.2 | 26.3 |
| Financial income and expenses (net) | -0.3 | -0.4 | -1.0 |
| PROFIT BEFORE TAXES | 4.8 | 5.8 | 25.4 |
| Income taxes | -1.2 | -1.5 | -6.3 |
| NET PROFIT | 3.6 | 4.2 | 19.1 |
| Other comprehensive income items | 0.2 | -0.3 | -0.3 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 3.9 | 3.9 | 18.8 |
| Earnings per share, EUR | 0.137 | 0.159 | 0.719 |
Consolidated balance sheet
| MEUR | |||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| 59.3 | 59.4 | 59.4 | |
| Intangible assets | 19.1 | 16.9 | 18.6 |
| Tangible assets | 2.1 | 2.8 | 2.3 |
| Right-of-use assets | 3.3 | 1.6 | 3.6 |
| Other non-current financial assets | 2.3 | 0.4 | 2.3 |
| Other receivables | 0.0 | 0.0 | 0.0 |
| Deferred tax assets | 2.7 | 1.6 | 2.8 |
| TOTAL NON-CURRENT ASSETS | 88.9 | 82.8 | 89.1 |
| CURRENT ASSETS | |||
| Inventories | 10.9 | 7.0 | 10.5 |
| Trade and other receivables | 15.3 | 12.5 | 16.3 |
| Cash and cash equivalents | 23.8 | 30.2 | 21.5 |
| TOTAL CURRENT ASSETS | 50.1 | 49.7 | 48.3 |
| TOTAL ASSETS | 138.9 | 132.5 | 137.4 |
| SHAREHOLDERS’ EQUITY AND LIABILITIES | |||
| SHAREHOLDERS' EQUITY | |||
| Share capital | 5.3 | 5.3 | 5.3 |
| Fair value reserve | 0.4 | 0.3 | 0.4 |
| Reserve for invested unrestricted capital | 52.2 | 52.2 | 52.2 |
| Other reserves | 0.3 | 0.3 | 0.3 |
| Retained earnings/loss | 47.2 | 28.5 | 43.5 |
| Translation difference | -0.1 | -0.1 | 0.0 |
| Own shares held by the company | -1.7 | -1.8 | -1.7 |
| TOTAL SHAREHOLDERS' EQUITY | 103.5 | 84.8 | 99.9 |
| LIABILITIES | |||
| NON-CURRENT LIABILITIES | |||
| Deferred tax liabilities | 3.2 | 3.4 | 3.3 |
| Financial liabilities | 9.7 | 13.9 | 10.8 |
| Lease liabilities | 2.0 | 0.8 | 2.3 |
| TOTAL LONG-TERM LIABILITIES | 15.0 | 18.0 | 16.3 |
| CURRENT LIABILITIES | |||
| Trade and other payables | 14.3 | 24.1 | 15.0 |
| Provisions | 0.6 | 0.5 | 0.6 |
| Financial liabilities | 4.2 | 4.2 | 4.2 |
| Lease liabilities | 1.4 | 0.9 | 1.4 |
| TOTAL CURRENT LIABILITIES | 20.5 | 29.6 | 21.2 |
| TOTAL LIABILITIES | 35.4 | 47.7 | 37.5 |
| TOTAL SHAREHOLDERS' EQUITY | |||
| AND TOTAL LIABILITIES | 138.9 | 132.5 | 137.4 |
Consolidated statement of changes in equity
| MEUR | Share capital | Reserve for invested unrestricted equity | Other reserves | Retained earnings | Translation difference | Own shares | Total equity |
| Balance | 5.3 | 52.2 | 0.6 | 43.5 | 0.0 | -1.7 | 99.9 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Disposal and purchase of own shares | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Other direct entries to retained earnings | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | 0.1 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 3.6 | -0.1 | 0.0 | 3.5 |
| Balance | 5.3 | 52.2 | 0.6 | 47.2 | -0.1 | -1.7 | 103.5 |
| MEUR | Share capital | Reserve for invested unrestricted equity | Other reserves | Retained earnings | Translation difference | Own shares | Total equity |
| Balance | 5.3 | 52.4 | 0.6 | 34.3 | 0.2 | -1.9 | 90.9 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | -9.6 | 0.0 | 0.0 | -9.6 |
| Disposal and purchase of own shares | 0.0 | -0.1 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 |
| Other direct entries to retained earnings | 0.0 | 0.0 | 0.0 | -0.4 | 0.0 | 0.0 | -0.4 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 4.2 | -0.3 | 0.0 | 3.9 |
| Balance | 5.3 | 52.2 | 0.6 | 28.5 | -0.1 | -1.8 | 84.8 |
Consolidated cash flow statement
| MEUR | 1-3/2024 | 1-3/2023 | 1-12/2023 |
| CASH FLOW FROM OPERATIONS | |||
| Profit for the period | 3.6 | 4.2 | 19.1 |
| Adjustments: | |||
| Depreciation, amortization, and impairment | 1.1 | 0.9 | 3.9 |
| Other non-cash items | 0.2 | 0.3 | 1.3 |
| Interest and other financial expenses | 0.3 | 0.7 | 1.5 |
| Interest income and other financial income | -0.1 | -0.3 | -0.7 |
| Taxes | 1.2 | 1.5 | 6.3 |
| Other adjustments | 0.0 | -0.5 | -0.6 |
| Change in working capital: | |||
| Changes in sales and other receivables | 0.9 | 1.6 | -2.7 |
| Changes in current assets | -0.4 | -0.2 | -3.7 |
| Changes in trade and other payables | -0.8 | -5.8 | -3.6 |
| Change in working capital, total | -0.3 | -4.4 | -10.0 |
| Interest paid | -0.2 | -0.2 | -0.8 |
| Interest received | 0.0 | 0.1 | 0.2 |
| Taxes paid | -1.1 | -2.1 | -9.4 |
| NET CASH FLOW FROM OPERATING ACTIVITIES | 4.6 | 0.3 | 10.9 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Purchase of tangible assets | -0.1 | -0.1 | -0.7 |
| Purchase of intangible assets | -1.0 | -0.3 | -3.4 |
| Investments in other investments | 0.0 | 0.0 | -1.9 |
| NET CASH FLOW FROM INVESTING ACTIVITIES | -1.0 | -0.5 | -6.0 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Repayments of loans | -1.1 | -1.1 | -4.2 |
| Dividends paid | 0.0 | 0.0 | -9.6 |
| Payments of lease agreement liabilities | -0.4 | -0.2 | -1.2 |
| NET CASH FLOW FROM FINANCING ACTIVITIES | -1.4 | -1.3 | -15.0 |
| Net change in cash and credit accounts | 2.2 | -1.5 | -10.1 |
| Cash and cash equivalents at beginning of period | 21.5 | 32.1 | 32.1 |
| Effect of exchange rates | 0.1 | -0.4 | -0.4 |
| Cash and cash equivalents at end of period | 23.8 | 30.2 | 21.5 |
Key consolidated figures
| MEUR | 1-3/2024 | 1-3/2023 | 1-12/2023 |
| Net sales | 23.6 | 23.2 | 96.6 |
| Ebitda | 6.2 | 7.1 | 30.3 |
| Ebitda-% | 26.3 | 30.5 | 31.4 |
| Operating profit | 5.1 | 6.2 | 26.3 |
| Operating profit-% | 21.8 | 26.6 | 27.3 |
| Pre-tax profit | 4.8 | 5.8 | 25.4 |
| Pre-tax profit-% | 20.5 | 24.9 | 26.3 |
| Net profit | 3.6 | 4.2 | 19.1 |
| Net profit-% | 15.4 | 18.2 | 19.8 |
| Gross capital expenditure | 1.1 | 0.1 | 5.8 |
| Gross capital expenditure-% | 4.5 | 0.6 | 6.1 |
| R&D costs | 3.0 | 2.3 | 10.4 |
| R&D costs-% from net sales | 12.7 | 10.0 | 10.8 |
| Gearing-% | -7.0 | -13.1 | -1.2 |
| Equity ratio-% | 74.5 | 64.0 | 72.2 |
| Return on investment-% (ROI) | 4.4 | 6.0 | 23.5 |
| Return on equity-% (ROE) | 3.6 | 4.8 | 20.0 |
| Earnings per share, EUR | 0.137 | 0.159 | 0.719 |
| Equity per share, EUR | 3.88 | 3.18 | 3.74 |
| Average no. of employees | 219 | 212 | 214 |
| Cash flow from operating activities | 4.6 | 0.3 | 10.9 |
| Cash flow from investing activities | -1.0 | -0.5 | -6.0 |
| Net cash used in financing activities | -1.4 | -1.3 | -15.0 |
| Total cash flow | 2.2 | -1.5 | -10.1 |
Contingent liabilities
Alternative growth indicators used in financial reporting
Revenio Group’s net sales are strongly affected by fluctuations in the exchange rate between the euro and the US dollar. As an alternative growth indicator, we also present our net sales with the exchange rate effect eliminated.
| Alternative growth indicator (EUR thousand) | 1-3/2024 |
| Reported net sales | 23,619 |
| Effect of exchange rates on net sales | 366 |
| Net sales adjusted by the effect of exchange rates | 23,254 |
| Growth in net sales, adjusted by the effect of exchange rates | -0.5% |
| Reported net sales growth | 1.8% |
| Difference, % points | -2.3% |
Alternative profitability indicator EBITDA (EUR thousand)
EBITDA = Operating profit + depreciation + impairment
As an alternative growth indicator, the company also presents profitability as an operating margin (EBITDA) key figure.
| Alternative profitability indicator EBITDA (EUR thousand) | 1-3/2024 | 1-3/2023 |
| Operating profit, EBIT | 5,148 | 6,170 |
| Depreciation, amortization, and impairment | 1,070 | 898 |
| EBITDA | 6,219 | 7,067 |
Formulas
| EBITDA | = | EBITDA = Operating profit + amortization + impairment | |
| Gross margin | = | Sales revenue – variable costs | |
| Earnings per share | = | Net profit for the period (attributable to the parent company’s shareholders) Average number of shares during the period – own shares purchased | |
| Equity ratio, % | = | 100 x | Shareholders’ equity + non-controlling interest Balance sheet total – advance payments received |
| Net gearing, % | = | 100 x | Interest-bearing debt – cash and cash equivalents Total equity |
| Return on equity (ROE), % | = | 100 x | Profit for the period Shareholders’ equity + non-controlling interest |
| Return on investment (ROI), % | = | 100 x | Profit before taxes + interest and other financial expenses Balance sheet total – non-interest-bearing debt |
| Equity per share | = | Equity attributable to shareholders Number of shares at the end of the period |
Audiocast and conference call
Audiocast: https://revenio.videosync.fi/q1-2024/
To ask questions, please join the teleconference by registering using the following link: https://palvelu.flik.fi/teleconference/?id=50048930
After the registration, you will be provided with phone numbers and a conference ID to access the conference. To ask a question, please press #5 on your telephone keypad to enter the queue.
A recording of the audiocast will be published on www.reveniogroup.fi/en/ after the event.
General statement
This report contains certain statements that are estimates based on the management’s best knowledge at the time they were made. For this reason, they involve a certain amount of inherent risk and uncertainty. The estimates may change in the event of significant changes in the general economic conditions.
Board of Directors
For further information, please contact
jouni.toijala@revenio.fi
robin.pulkkinen@revenio.fi
Distribution
Principal media
www.reveniogroup.fi/en
In 2023, the Group’s net sales totaled
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