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Investing.com -- Medartis Holding AG (SIX:MEDA) on Tuesday raised its full-year 2025 sales outlook after reporting a 15.3% rise in organic sales in the first half, though the company posted a small net loss due to currency effects and financing costs.
The orthopedic company now expects 14% to 16% organic core sales growth in 2025, an increase from its previous guidance of 13% to 15%. The company’s outlook for a high-teens core EBITDA margin remains unchanged.
The Basel-based company said that sales climbed to CHF 123 million, including contributions from the NeoOrtho business in Brazil consolidated in May.
Core sales, excluding non-strategic items, increased to CHF 122.1 million from CHF 107.6 million a year earlier.
By region, EMEA sales advanced 16% at constant exchange rates to CHF 67.9 million, with growth led by the U.K., Spain and France.
U.S. sales rose 16.2% at constant exchange rates to CHF 26.1 million after restructuring its distributor network and expanding its elbow product line.
APAC revenue increased 14.9% at constant exchange rates to CHF 17.1 million, with gains in Australia and Japan.
Latin America reported organic growth of 8.2% at constant exchange rates, with core sales reaching CHF 11 million including NeoOrtho.
By product category, upper extremities generated CHF 81.9 million, up 15.8% at constant exchange rates.
Lower extremities contributed CHF 22.5 million, up 16.8%, while craniomaxillofacial and other products produced CHF 17.7 million, up 10.3%.
Core gross profit rose to CHF 98.5 million from CHF 89.7 million, though the margin fell to 80.7% from 83.4%.
Swiss franc appreciation and higher U.S. tariffs each reduced margins by 0.5 percentage points, while NeoOrtho and KeriMedical distribution diluted margins by 0.3 and 0.8 points respectively.
Operating expenses increased to CHF 89.1 million from CHF 81.3 million, but declined slightly as a share of sales to 72.4%. Distribution costs fell to 46% of sales from 48.3%, while general administration expenses rose to CHF 19.4 million, or 15.7%.
Core EBITDA increased to CHF 21.7 million from CHF 19.1 million, with the margin unchanged at 17.8%. Core EBIT rose to CHF 10.4 million from CHF 3.5 million, maintaining an 8.5% margin.
The company reported a core net loss of CHF 0.4 million compared with a profit of CHF 7.3 million a year earlier, citing CHF 5 million in foreign exchange losses and CHF 3.2 million in financing costs from convertible bonds issued in 2024.
Operating cash flow was CHF 8.6 million, down from CHF 9.3 million, while free cash flow reached CHF 0.4 million after CHF 8.2 million in capital expenditures.