Release Date: March 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you provide more color on the sales guidance of 13% to 15%? What factors contribute to reaching the upper end of this range? A: The guidance is based on several factors, including the ongoing distributor changes in the US, which are currently 50% complete. The acceleration in the US market, particularly in upper extremities, and the expansion of KeriMedical in Europe are key contributors. The CEO, Matthias Schupp, emphasized a cautious approach, preferring to underpromise and overdeliver, with a clearer picture expected by the half-year results in August. (Matthias Schupp, CEO)
Q: How do you plan to accelerate growth in the US, and does this include a focus on upper extremities and distributor changes? A: Yes, the focus is on upper extremities and changing distributors to exclusive ones for Medartis products. The company is also targeting specific regions in the US, such as Northern Florida, Orlando, and Tampa, where they were previously not present. The CEO highlighted the importance of personal contact and improving customer service to leverage Medartis's strong reputation for quality and innovation. (Matthias Schupp, CEO)
Q: Can you explain the impact of price cuts in Australia and the outlook for this market? A: Price cuts in Australia started three years ago with a cumulative reduction of over 20%. Additional reclassifications led to further cuts of up to 30% last year. The expectation is that these cuts will stabilize by July this year, allowing volume growth to translate into value growth. The government aimed to align public and private market pricing, and no further cuts are anticipated. (Dirk Kirsten, CFO)
Q: How do you convince US distributors to go exclusive with Medartis? A: Distributors are attracted by the comprehensive portfolio Medartis offers, particularly in hand and wrist and upper extremities. The anticipation of KeriMedical's entry into the market also makes exclusivity appealing. The CEO noted that smaller, dedicated distributors are more interested in focusing on Medartis's offerings. (Matthias Schupp, CEO)
Q: What is the expected impact of the NeoOrtho acquisition on Medartis's financials? A: The acquisition is expected to be accretive at the EBITDA level. NeoOrtho operates with gross margins around 60%, and Medartis plans to improve efficiency and expand into other Latin American markets. The acquisition will initially involve a 51% stake, with plans to acquire the remaining shares by 2028-29. (Dirk Kirsten, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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