Medistim (MEDI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 sales of MNOK 144.9, up 5.5% year-over-year; H1 sales reached MNOK 278.7, up 4.5% year-over-year.

• EBIT margin rebounded to 28.5% in Q2 after prior lows, with H1 EBIT at MNOK 73.3 and margin normalization.

• Net profit for Q2 was MNOK 34.7; H1 net profit was MNOK 59.1.

• Recurring sales remained high at 73% in Q2 and 74% in H1.

• Dividend of NOK 4.50 per share (MNOK 82.4) paid in May 2024.

Financial highlights

• Q2 EBITDA was MNOK 47.7 (32.9% margin); H1 EBITDA was MNOK 86.1 (30.9% margin).

• Third-party product sales grew 17.7% in Q2 and 12.8% in H1, supported by new agency agreements.

• Own product sales rose 1.7% in Q2, with flow products at MNOK 89.3 (+3.1%) and imaging products at MNOK 31.2 (+3.8%).

• Cash position at quarter end was MNOK 107.1 after dividend payout.

• Earnings per share increased to NOK 1.90 in Q2 and NOK 3.23 for H1.

Outlook and guidance

• EBIT margin expected to continue normalizing as direct operations in China, Canada, and Sweden mature.

• Anticipate stabilization or reduction in inventory and working capital as supply chain normalizes.

• Optimism for a rebound in APAC, especially Japan, in H2 due to inventory normalization and easier comparables.

• Strategic focus on expanding in vascular surgery and high-growth Asian markets.

• Imaging sales expected to recover as macroeconomic headwinds ease.