Medistim (MEDI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 7.0% year-over-year to MNOK 132.8, with year-to-date sales up 5.3% to MNOK 411.5, led by strong recovery in the Americas and robust direct market performance, while EMEA was mixed and APAC declined due to weak Japan sales and distributor transitions.

• EBIT margin normalized at 24.0% for Q3, down from 27.0% last year, mainly due to product mix and higher costs from new direct market operations.

• Recurring sales comprised 73–75.1% of revenue for the quarter, supporting stable utilization and cash flow.

• Year-to-date, Americas up 6.3%, EMEA up 6.8%, APAC down 22% due to weak sales to Japan and transition in China.

• Solid financial position with MNOK 127.3 in cash and no long-term interest-bearing debt.

Financial highlights

• Q3 2024 revenue: MNOK 132.8 (up 7.0% YoY); YTD revenue: MNOK 411.5 (up 5.3% YoY).

• Q3 EBIT: MNOK 31.9 (24.0% margin); YTD EBIT: MNOK 105.2 (25.6% margin).

• Q3 net profit: MNOK 23.4; YTD net profit: MNOK 82.5.

• Q3 EPS: NOK 1.28; YTD EPS: NOK 4.51.

• Gross margin for Q3: 80.3%; YTD: 80.5%.

• Cash at period end: MNOK 127.3; equity ratio: 82.5%.

Outlook and guidance

• Business outlook remains strong, with continued investment in innovation, expansion of direct market coverage, and a focus on product innovation and clinical marketing.

• Expecting improvement in Japan sales, with distributor indicating a strong pipeline, and new product launches to support growth.

• Significant growth opportunities in CABG and Vascular markets, with strategic focus on direct presence and product innovation.