Embla Medical: Q3 underpins positive momentum into 2025 - ABG

Q3 with healthy 7% organic growth despite headwinds
Growth and cost improvement yields 300bp margin expansion
EPS +3-5% and FVR up to DKK 30-45 (27-40)


Q3 was more of the same good thing

Embla delivered 7% organic growth in Q3 for sales of USD 213.5m (+2% vs ABGSCe; 0% vs. consensus). The gross margin was up 90bp y-o-y. While the gross margin fell 90-150bp short of expectations, opex only grew 4% organically in Q3, taking EBITDA pre-items to USD 46.6m (+5-6%) for a 300bp higher margin y-o-y. Net profit was USD 22.0m (+12-21% vs. expectations). Embla generated USD 33m in FCF and reduced net debt by USD 10m q-o-q and net debt/EBITDA to 2.8x (3.1x Q2'24).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/embla_medical/Equity-research/2024/10/embla-medical---q3-underpins-positive-momentum-into-2025/