Scandinavian Medical Solutions (SMSMED) H1 24/25 earnings summary

Executive summary

• Revenue grew 20% year-over-year to DKK 122.7 million, but results fell short of expectations due to geopolitical uncertainty and market volatility.

• Strategic investments in the U.S. subsidiary and adaptation to changing customer behavior led to lower sales margins and increased capacity costs.

• Leadership transition with new CEO and commercial director highlighted as key event.

• Focus for H2 is on strengthening cash flow, improving operational efficiency, and building resilience.

• Emphasis on risk management and scalable, improved processes.

Financial highlights

• Revenue: DKK 122.7 million (H1 2024/25), up from DKK 102.6 million in H1 2023/24.

• Gross margin declined to 19.7% from 25.9% year-over-year; gross profit fell 6.6% to DKK 24.2 million.

• EBITDA: DKK 0.6 million, down from DKK 8.1 million in H1 2023/24.

• Net loss: DKK -2.3 million, compared to net profit of DKK 2.6 million in H1 2023/24.

• Free cash flow before financing: DKK -20.7 million (H1 2023/24: DKK -14.6 million).

Outlook and guidance

• Revenue guidance for FY 2024/25 maintained at DKK 200–240 million; EBITDA guidance at DKK 11–15 million.

• Management expects cost-saving measures to take effect at the start of the next financial year.

• Ongoing momentum in commerce and market activity, with a strong pipeline for preset and trading.

• Key focus areas: U.S. market expansion, cash flow improvement, and operational efficiency.

• Continued investment in scalable processes and product mix improvements.