Amplitude Surgical - Fiscal Year 2023-24: 106.0 MEUR Sales and EUR27.1m EBITDA

   -- Consolidated sales of EUR106.0 million, up 6.3% at constant exchange 
      rates 
 
   -- EBITDA up to EUR27.1m (+3.7%), EBITDA rate at 25.6%. 
 
   -- Current operating income of EUR12.7 million 
 
   -- Cash position of EUR29.1m at June 30, 2024 
VALENCE, France--(BUSINESS WIRE)--October 23, 2024-- 

Regulatory News:

Amplitude Surgical (ISIN: FR0012789667, Mnemo: AMPLI, PEA-PME eligible), a leading French player on the surgical technologies market for lower-limb orthopedics, announces its annual results for 2023-24.

Olivier Jallabert, Chief Executive Officer of Amplitude Surgical, comments: "Group sales for the 2023-24 financial year were up +6.3% at constant exchange rates on the previous year. Sales were up both in France (+5%) and internationally (+9.9% at constant exchange rates). The increase in sales combined with tight control of operating expenses, despite a context of cost inflation, led to a +3.7% rise in EBITDA to EUR27.1 million. Current operating income rose to EUR12.7 million. Over the course of the 2024-25 financial year, the Group intends to pursue its dynamic sales development and investment in technological projects. "

Financial summary - data at current exchange rates:

The audit procedures have been completed and the certification audit report is being issued.

 
 In EURm - IFRS                                 2023-24   2022-2023   Change 
---------------------------------------------  --------  ----------  ------- 
 Sales figures                                    106.0       100.2     5.8% 
---------------------------------------------  --------  ----------  ------- 
 Gross margin                                      74.7        70.9     5.3% 
---------------------------------------------  --------  ----------  ------- 
 As % of sales                                    70.4%       70.7%    -31bp 
---------------------------------------------  --------  ----------  ------- 
 Sales & marketing expenses                        31.1        29.7     4.9% 
---------------------------------------------  --------  ----------  ------- 
 Administrative expenses                           14.9        13.3    12.3% 
---------------------------------------------  --------  ----------  ------- 
 R&D expenditure                                    1.5         1.8   -15.4% 
---------------------------------------------  --------  ----------  ------- 
 EBITDA                                            27.1        26.1     3.7% 
---------------------------------------------  --------  ----------  ------- 
 As % of sales                                    25.6%       26.1%   -51 bp 
---------------------------------------------  --------  ----------  ------- 
 Current operating income                          12.7        10.3 
---------------------------------------------  --------  ---------- 
 Non-recurring operating income and expenses       -2.5        -2.3 
---------------------------------------------  --------  ---------- 
 Operating income                                  10.3         8.0 
---------------------------------------------  --------  ---------- 
 Net financial income                              -8.6       -14.0 
---------------------------------------------  --------  ---------- 
 Current and deferred taxes                        -0.1        -0.8 
---------------------------------------------  --------  ---------- 
 Income from discontinued operations, net of 
  tax                                               0.0        45.3 
---------------------------------------------  --------  ---------- 
 Net income - Group share                           1.5        39.2 
---------------------------------------------  --------  ----------  ------- 
 
 Net financial debt                                90.0        69.3 
---------------------------------------------  --------  ---------- 
 Closing net cash position                         29.1        37.2 
---------------------------------------------  --------  ----------  ------- 
 

EBITDA up +3.7% with an EBITDA margin of 25.6%

In the 2023-24 financial year, Amplitude Surgical posted sales of EUR106.0 million, up +5.8% and +6.3% at constant exchange rates. The Group's business continued to grow both in France (+5%) and internationally (+9.9% at constant exchange rates).

Amplitude Surgical reported a gross margin of 70.4%, down -31 bp, mainly due to higher product costs.

Group operating expenses came to EUR47.6m, up 6.3% on the previous year, reflecting sales growth and the impact of inflation on certain costs.

Sales & marketing expenses rose by 4.9%, in line with business growth.

Administrative expenses rose by 12.3% to EUR14.9m, with higher personnel expenses and costs for quality and regulatory activities.

R&D expenditure expensed amounted to 1.4% of sales, compared with 1.8% in the previous year. However, including capitalized R&D expenditure, the Group's overall investment in R&D increased to EUR5.6 million in the 2023-2024 financial year, compared with EUR4.9 million in the financial year ended June 30, 2023. We consider that around EUR2.8m relates to exceptional projects for the first MDR (Medical Devices Regulation) certification of products and the development of the robotics project.

At the end of June 2024, Amplitude Surgical's headcount was virtually stable at 428, compared with 426 at the end of June 2023. Personnel costs are 7.3% higher than in the 2022-2023 financial year, impacted by the full-year effect of recruitment carried out in the previous financial year and salary adjustments of around 3.5%.

EBITDA thus amounted to EUR27.1 million, up 3.7%, giving an EBITDA rate of 25.6%, down 51 bp compared with FY 2022-23.

Operating income before non-recurring items came in at EUR12.7 million, compared with a profit of EUR10.3 million in FY 2022-23, boosted by favorable sales trends and tight control of operating expenses.

Operating income was positive at EUR10.3m, compared with a profit of EUR8.0m in FY 2022-23.

Net financial expense was negative at EUR8.6 million, mainly due to interest expense net of interest-rate hedging income of EUR8.7 million.

Overall, net income (Group share) came to a profit of EUR1.5 million, compared with EUR39.2 million the previous year, the latter having been favorably impacted by EUR45.3 million following the disposal of the Novastep business.

Financial structure: cash position of EUR29.1 million at June 30, 2024

Net cash flow from operating activities was positive at EUR4.0 million, compared with cash generation of EUR8.1 million in the 2022-23 financial year, given the growth in working capital requirements, particularly for inventory.

Capital expenditure before sale and leaseback amounted to EUR19.3m, compared with EUR19.4m the previous year.

As a result, at the end of June 2024, the Group had cash and cash equivalents of EUR29.1 million.

Net financial debt stood at EUR90.0 million.

Highlights of the year

   -- Acquisition of Ortho-Santé On April 30, 2024, Amplitude SAS acquired 
      100% of the shares of Ortho-Santé, its exclusive sales agent in the 
      Nouvelle Aquitaine region. 
   -- URSSAF checks on medical device promotion tax On October 17, 2024, the 
      French Supreme Court (Cour de cassation) upheld the decision of the Court 
      of Appeal in the third audit of the tax on the promotion of medical 
      devices, which had dismissed Amplitude SAS's claim for cancellation of 
      the reassessment and for which the company had already paid the full 
      EUR6.4 million. As a reminder, the company won the first two audits, and 
      all risks relating to the periods audited or open to audit have been 
      provisioned in their entirety. 

Outlook

For the 2024-25 financial year, the Group anticipates sales growth of around 10%, with an EBITDA margin of around 26%.

Next press release:

Sales for 1(st) quarter 2024-25: Thursday November 21, 2024, after market close.

About Amplitude Surgical

Founded in 1997 in Valence, France, Amplitude Surgical is a leading French player in the global market for surgical technologies for lower limb orthopedics. Amplitude Surgical develops and markets high-end products for orthopedic surgery, covering the main pathologies affecting the hip and knee. Working in close collaboration with surgeons, Amplitude Surgical develops numerous high value-added innovations to best meet the needs of patients, surgeons and care facilities. A leading player in France, Amplitude Surgical is expanding internationally through its subsidiaries and a network of agents and exclusive distributors in over 30 countries. As of June 30, 2024, Amplitude Surgical employed 428 people and generated sales of nearly 106.0 million euros.

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    CONTACT:    Amplitude Surgical 

Dimitri Borchtch

Chief Financial Officer

finances@amplitude-surgical.com

04 75 41 87 41

NewCap

Investor Relations

Thomas Grojean

amplitude@newcap.eu

01 44 71 94 94

NewCap

Media Relations

Nicolas Merigeau

amplitude@newcap.eu

01 44 71 94 98

(END) Dow Jones Newswires

October 23, 2024 12:00 ET (16:00 GMT)