AMBU ANNOUNCES FINANCIAL OUTLOOK FOR THE 2023/24 FINANCIAL YEAR
Today, Ambu announces its financial guidance for the fiscal year 2023/24. Also, today, Ambu will publish its Q4 and full-year earnings release along with its Annual Report, including the company’s Sustainability Report, and its Remuneration Report and Corporate Governance Report for 2022/23.
MARKET CONDITIONS
During 2022/23, Ambu witnessed increased geopolitical uncertainty and a volatile macroenvironment, affecting the global economy and resulting in inflationary effects on raw materials, energy prices and logistics costs. This is a tendency that the company expects to continue throughout 2023/24. Despite this, Ambu expects the single-use endoscopy market to continue to grow in 2023/24, driven by hospital systems’ and clinics’ growing needs for workflow efficiencies and improved economics, as well as the increased awareness of infection control and the strong clinical performance that single-use solutions bring to healthcare professionals and patients.
Organic revenue growth
Ambu’s Endoscopy Solutions business remains the key growth engine for the company, and it makes up 56% of the company’s total revenue in 2022/23. In 2023/24, this business area is expected to grow 15% organically, with the ENT and urology segments expected to continue their double-digit organic growth trajectory. Similarly, due to Ambu’s strengthened pulmonology portfolio, as well as the company’s expanded gastroenterology (GI) portfolio, both the pulmonology and GI businesses are expected to contribute positively towards a solid organic revenue growth in 2023/24. Also, with the objective of increasing long-term profitability in the Anaesthesia & Patient Monitoring business areas, Ambu will continue to drive the strategic initiatives launched in 2022/23, related to addressing selected low-margin areas with sizable price increases and exiting 40 countries to reduce geographical complexity.
Overall, Ambu’s total organic growth is expected to be 7-10% for the 2023/24 financial year, compared to 7.6% in 2022/23.
EBIT margin before special items
For 2023/24, the EBIT margin before special items is expected to be 8-10%, compared to 6.3% in 2022/23. This will be driven by an improved gross margin from a strengthened product mix, as well as from a continued overarching cost focus. Ambu’s free cash flow before acquisitions is expected to improve to around DKK +270m, compared to DKK 192m in 2022/23. The continued increased cash flow will be driven by a higher EBIT margin before special items and continued annual savings from the cost reduction program, reflecting a disciplined capital allocation.
CONFERENCE CALL
An investor conference call will be held today, Wednesday 8 November 2023, at 11:00 (CET).
The conference will be broadcast live via Ambu.com/webcastQ42023.
To ask questions during the Q&A session, please register prior to the call via Ambu.com//conferencecallQ42023register.
Upon registration, you will receive dedicated dial-in details via e-mail to access the call, including a passcode, a unique PIN, dial-in numbers and a calendar invitation.
The presentation will be made available for download at Ambu.com/presentations.
Ambu A/S
Baltorpbakken 13
2750 Ballerup
Denmark
Tel. +45 7225 2000
CVR no.: 63 64 49 19
www.Ambu.com
CONTACT
Investors
Anders Hjort
Head of Investor Relations
[email protected]
+45 2892 8881
Media
Tine Bjørn Schmidt
Head of Corporate Communications
[email protected]
+45 2264 0697
ABOUT AMBU
Since 1937, Ambu has been rethinking solutions, together with healthcare professionals, to save lives and improve patient care. Today, millions of patients and healthcare professionals worldwide depend on the efficiency, safety and performance of our single-use endoscopy, anaesthesia and patient monitoring solutions. Headquartered near Copenhagen in Denmark, Ambu employs around 4,400 people in Europe, North America, Latin America and Asia Pacific. For more information, please visit Ambu.com.
