Vitrolife: Improving sales growth - ABG

5.2% organic sales growth, improving margins
EBITDA up 1.9% and 1.2% for '24e and '25e
35-40% below historical multiples, but above sector peers


No surprises in Q4

Vitrolife had already pre-announced headline numbers for Q4 (23 January, 2023), so there no no major surprises in the report. The adjusted EBITDA of SEK 294m was 1.7% better than Modular Finance consensus had expected prior to the pre-announcement. The 5.2% organic sales growth in Q4 was mainly driven by strong sales growth in Technologies, with 31% organic sales growth, including a particularly strong APAC (+88% organic growth). Genetic services in the US declined 9% in Q4, which is a sequential improvement from -15% in Q3'23. Vitrolife reported a 50bp y-o-y improvement in the adjusted EBITDA margin in Q4, helped by a 270bp better gross margin, driven by efficiency improvements and the product and geographical mixes.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Vitrolife/Equity-research/2024/2/vitrolife---improving-sales-growth/