Interim Report Q1 2016/17

Ambu raises its outlook for the year after yet another strong Q1 with organic growth of 11%, an EBIT margin of 12.7% and free cash flows of DKK 43m.

"Based on a strong Q1 last year, it is gratifying to see that we are starting the new year with double-digit growth and significantly improved earnings. Growth is driven by sales to hospitals, and sales of our single-use videoscopes continue to develop positively. We raise our expectations for growth and free cash flows and are thus well-positioned for realising our financial targets for 2016/17," says President and CEO Lars Marcher.

Highlights

• Revenue of DKK 512m was posted for Q1, representing growth of 11% both in local currencies and in Danish kroner.
• The Anaesthesia business area grew by 19% and accounts for the group's entire growth. Patient Monitoring & Diagnostics (PMD) contributed growth of 0% (in local currencies).
• Europe contributed growth of 5%, North America 12% and the rest of the world 36% (in local currencies).
• Sales of single-use videoscopes are developing positively with sales of 59,000 units for the quarter. Sales volumes are thus up approx. 85% relative to Q1 last year.
• The gross margin was 53.7% (52.6%), corresponding to an improvement of 1.1 percentage point. The improved gross margin is attributable to a more profitable product mix combined with lower production costs.
• Capacity costs totalled DKK 210m (DKK 197m), equating to a net increase of 7%. The rate of cost was 41% (43%).
• EBIT for the quarter was DKK 65m (DKK 46m) with an EBIT margin of 12.7% (10.0%), equating to a 41% improvement in EBIT.
• Free cash flows before acquisitions of enterprises totalled DKK 43m (DKK 3m) for the quarter.
• The outlook for 2016/17 is raised. The outlook is now of organic growth of approx. 9-11% against the previously announced outlook of 8-10%, an unchanged EBIT margin before special items of approx. 18%, and free cash flows before special items in the region of DKK 200m as opposed to DKK 175m. Net interest-bearing debt is expected to be in the region of 1.6 x EBITDA rather than 1.75. Special items are made up of integration costs in respect of ETView Medical Ltd., and are expected to total approx. DKK 10m rather than the previously announced level of DKK 15-20m.

A conference call is being held today, 1 February 2017, at 11.00 (CET). To participate, please call the following number five minutes before the start of the conference: +45 3544 5580. The conference can be followed via www.ambu.com/webcastQ12017 and is held in English. The presentation can be downloaded immediately before the conference call via the same link.

Contact
Lars Marcher, President & CEO, tel. +45 5136 2490, e-mail: lm@ambu.com

Vedhæftede filer:

Company Announcement no 8 2016_17.pdf