Medartis lifts 2025 sales outlook after 15.3% H1 growth, posts small loss

Published 19/08/2025, 06:56
© Reuters.

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. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.