Announcement no. 1/2025

5 February 2025

Interim report Q4 2024

Sveinn Sölvason, President and CEO, comments:

"Sales in Q4 2024 amounted to USD 225 million, where our organic sales growth was 5% for the quarter and local currency growth was 8%. The continued strong momentum we have seen throughout the year in our Prosthetics & Neuro Orthotics business continued to drive our growth, supported by good growth contribution across all our regions. Bracing & Supports sales growth was modest for the quarter while sales in Patient Care declined, impacted by a strong comparison. For the full year 2024, our organic sales growth was 6%, driven by a strong performance in EMEA and our Prosthetics & Neuro Orthotics and Patient Care segments.

EBITDA margin (before special items) came in strong at 21% for Q4 and 20% for the full year. We continue to see the positive effects from the cost reduction initiatives implemented in manufacturing during Q1 2024 as well as positive contributions from product mix and cost control in SG&A. In addition, we also saw strong cash flow generated for the quarter with USD 34 million or equivalent to 15% of sales.  

We are very pleased with the progress on our Growth'27 strategy and ability to execute on our ambitious targets and priorities such as the Fior & Gentz acquisition we completed in January 2024, unifying our Patient Care business under the ForMotion brand and delivering exciting new innovation. These initiatives are all enabling us to reach even more people with our mobility solutions. Lastly, we have issued new guidance for 2025 of 5-8% organic sales growth and 20-21% EBITDA margin."

Highlights Q4 2024

• Sales amounted to USD 225 million and organic growth was 5%, compared to 9% in Q4 2023. Local currency sales growth was 8% including acquisitions and 7% reported growth in USD. For FY 2024, organic sales growth was 6%.
• Prosthetics & Neuro Orthotics sales grew by 12% organic, Bracing & Supports sales grew by 2% organic, while Patient Care sales declined by 1% organic in Q4 2024 due to a strong comparison in Q4 2023. For FY 2024, Prosthetics & Neuro Orthotics sales grew by 9% organic, Bracing & Supports sales grew by 1% organic and Patient Care sales grew by 5% organic. Growth is attributed to solid volume growth and positive product mix supported by strong performance in our high-end solutions.
• Gross profit was USD 142 million and gross profit margin was 63%, compared to 61% in Q4 2023. For FY 2024, the gross profit margin was 63% compared to 62% in 2023. The gross profit margin was positively impacted by cost reduction initiatives in manufacturing implemented during the first quarter of 2024, as well as favorable product mix and manufacturing efficiency.
• EBITDA amounted to USD 47 million and EBITDA margin was 21% of sales, compared to 18% in Q4 2023. In FY 2024, EBITDA margin before special items increased to 20% compared to 18% for FY 2023. The EBITDA margin expansion was driven by strong sales performance, cost savings and efficiency in manufacturing, and effective cost control in SG&A.
• Net profit was USD 19 million and net profit margin was 8% of sales, compared to 9% of sales in Q4 2023. While stronger operating profit contributed positively to net profit in Q4 2024, financial expenses and net exchange rate differences due to currency fluctuations impacted net profit negatively. In FY 2024, net profit grew by 17% and the net profit margin increased to 8% compared to 7% in FY 2023.
• Free cash flow amounted to USD 34 million or 15% of sales, compared to 13% of sales in Q4 2023. In FY 2024, free cash flow amounted to 9% of sales compared to 7% of sales in FY 2023, with the increase driven by stronger operation profit.
• NIBD/EBITDA before special items was 2.4x at the end of Q4 2024, within our target range of 2-3x EBITDA in line with our capital structure and capital allocation policy. Therefore, the share buyback program is to be reinitiated shortly.

Other highlights

• In December 2024 Embla Medical (Össur) was ranked #41 and highlighted as one of the World's Best Companies in Sustainable Growth 2025 by TIME Magazine. The ranking, developed by TIME and Statista, a leading data analytics platform, names 500 companies pairing growth with environmental stewardship. The survey evaluated companies based on their environmental disclosure and scored them according to their revenue growth, financial stability, and environmental impact.

2025 outlook

• Organic sales growth guidance of 5-8%, driven by strong volume growth and moderate price increases.
• EBITDA margin guidance of 20-21% driven by scale and efficiency coupled with continued focus on cost control in SG&A.

Conference call details

Embla Medical will host a conference call February 5, 2025, at 9:00 CET / 7:00 GMT / 3:00 EST.

The event will be hosted by Sveinn Solvason, President and CEO, and G. Arna Sveinsdottir, CFO. The call will include a review of the quarterly and full year results and will be held in English.

Slides used in the presentation will be made available on the company website at the following link: https://www.emblamedical.com/investors

To participate in the telephone conference, please use the dial-in details provided below:

DK: +45 78 76 84 90

SE: +46 31-311 50 03

UK: +44 20 3769 6819

US: +1 646 787 0157

Participant access code: 274982

The webcast will be available through following link:  Embla Medical Q4/FY 2024 webcast

Further information

Klaus Sindahl, Head of Investor Relations, KSindahl@emblamedical.com, +45 5363 0134

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About Embla Medical

Embla Medical (Nasdaq Copenhagen: EMBLA) was founded in Reykjavik in 1971 with the mission to improve people's mobility. Embla Medical is home to several brands renowned for positively impacting people's health and well-being. They include Össur, a leading global provider of prosthetics and bracing and supports solutions; FIOR & GENTZ, an innovative developer of neuro orthotics; and College Park Industries, creators of custom-built prosthetic solutions. Embla Medical also provides patients with world-class care through a global network of Orthotic and Prosthetic (O&P) facilities. Embla Medical is committed to sustainable business practices and is signatory to the UN Global Compact, UN Women's Empowerment Principles, and contributes to the UN Sustainable Development Goals. The company's climate targets have been verified by the Science Based Targets initiative. Embla Medical operates globally and has more than 4,000 employees. www.emblamedical.com

Embla Medical was formerly listed as Össur (OSSR) on Nasdaq Copenhagen until 8 April 2024.