Vitrolife: APAC strenght and gross margin improvement - ABG

Sales +2% vs. cons, adj. EBIT -2%
Expect relatively unchanged estimates
Conference call at 10:00 CET

Q1 results

Sales came in at SEK 854m (+3% vs. ABGSCe at 827m and +2% vs. cons. of 833m). Organic growth was 6% (9% when adjusting for discontinued businesses), we expected 3%. The adj. EBITDA was 282m (+3% vs. ABGSCe at 275m and +1% vs. cons. of 280m). Adj. EBIT was 179m (+1% vs. ABGSCe at 177m and -2% vs. cons. of 182m). There was an NRI of SEK 20m relating to agreement of retirement with old CEO. Net profit was 99m (-17% vs. ABGSCe at 119m and -20% vs. cons. of 123m) but would have been in line when adding back the NRI. APAC stood out by growing 19% organically y-o-y, largely through the re-opening of China and reimbursement programme in Japan, beating ABGSCe by 6%. The region saw organic consumables growth of 15%, and organic Technologies growth of 55%.

Outlook and estimate changes
No outlook provided but mentions that strength in APAC is expected to continue. We expect cons to leave estimates relatively unchanged.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Vitrolife/Equity-research/2023/4/vitrolife---apac-strenght-and-gross-margin-improvement/