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Investing.com -- Shares of Danish medical device company Ambu A/S (CSE:AMBUb) rose more than 10% Wednesday after unveiling its “ZOOM AHEAD” strategy, raising long-term revenue growth targets and setting a goal of global leadership in single-use endoscopy.
The strategy extends Ambu’s financial targets through fiscal year 2029/30 and increases its five-year organic revenue CAGR to 11-13%, up from a previous target of 10% for FY 2027/28.
Ambu also reaffirmed its target for an EBIT margin of 20% by FY 2029/30, maintaining the goal set for FY 2027/28.
Ambu said the new strategy builds on its earlier “ZOOM IN” plan, launched in November 2022, which strengthened the company’s financial foundation.
Over the past three years, Ambu reported double-digit revenue growth, a fourfold increase in EBIT margin, strong free cash flow, and elimination of all debt.
The company said single-use endoscopy now represents about 3-4% of the global endoscopy market, which it expects to grow by 20% annually.
This growth is driven by both an increase in endoscopy procedures and continued conversion from reusable to single-use endoscopes.
Ambu said it is the current market leader in single-use endoscopy across four areas: Respiratory, Urology, Ear-Nose-Throat, and Gastroenterology. These are supported by its EndoIntelligence platform.
The “ZOOM AHEAD” strategy is structured around four themes, which are, improving customer outcomes and efficiency, delivering integrated solutions, building a scalable growth platform, and fostering a culture of empowerment.
Within its new targets, Ambu projects Endoscopy Solutions to grow at a CAGR of 15-20% through FY 2029/30.
Anesthesia & Patient Monitoring is expected to grow at 3-5%, compared with a previous forecast of 2-4% for FY 2027/28.
The company reiterated a cash conversion target of 40%, based on net working capital at about 20% of rolling 12-month sales and capital expenditure of 6-10% of sales.
Ambu said the targets reflect a shift toward sustained growth while maintaining profitability, with an emphasis on capital deployment for long-term expansion.