Vitrolife: Improved sales growth in Q3e - ABG

Sales growth of +7.8% and 20% EBIT margin in Q3e
EBITDA '24e-'26e revised down 1.4-1.8%
Q3'24 results due 24 October


Q3'24 expectations

We expect to see a pick-up in organic sales growth but some margin pressure in Q3. We forecast +7.8% organic growth for Vitrolife driven by 11% growth in Consumables, 4% growth in Technology, and a return to positive growth in Genetics of 6% in Q3, after several quarters with negative sales growth, mainly related to the US market. In total, we forecast Q3 sales of SEK 894.1m and EBIT of SEK 178.9m for a margin of 20.0%, down from 21.1% (adj EBIT in Q3'23), due to higher opex. Historically, selling expenses have been sequentially lower in Q3 vs Q2 for seasonality reasons, but this year we expect selling expenses to increase sequentially from Q2 into Q3 as management has been clear that they want to make investments in the organisation and also invest more in R&D, for future growth.

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