EQS Group-Ad-hoc: Medacta Group SA / Key word(s): Half Year Results
Medacta Half-year 2020 revenue equal to Euro 135M, down 11.1% over the prior
year due to COVID-19 related deferrals of orthopedic elective surgeries.
Good backlog recovery in June with a double-digit growth rate.
22-Jul-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
*Press Release*
*Medacta Half-year 2020 revenue equal to Euro 135M, down 11.1% over the
prior year due to COVID-19 related deferrals of orthopedic elective
surgeries. Good backlog recovery in June with a double-digit growth rate.*
_CASTEL SAN PIETRO, 22 July 2020_ - The response to the COVID-19 pandemic
from the local governments and health care authorities worldwide, including
the deferral of elective procedures, had a significant negative impact on
our operations and sales volume. After closing the first quarter 2020 with a
single digit growth, we registered a decrease in the second quarter 2020.
Good backlog recovery was achieved in June with a double-digit growth rate.
"Sales in 1H 2020 were heavily affected by the COVID-19 impact, generating
for the first time in the company's history a negative growth rate. The
deferral of orthopedic surgeries, particularly in the months of March, April
and May is generating waiting lists, and the encouraging double-digit growth
reached in June confirms that the backlog recovery can occur quicker than we
were expecting. Nevertheless, the uncertainty about the future and the new
partial lockdown in certain geographies makes the near-term outlook very
difficult to predict" said Francesco Siccardi, CEO. _"During the first
semester, Medacta was able to redesign most of its Marketing and Medical
Education Programs, implementing several online based initiatives, reaching
over 1800 Surgeons. Also, innovation continued and over 25 new products
among our business lines were cleared, culminating with the FDA approval on
our proprietary NextARTM Augmented Reality platform technology in July. I am
very proud of what we have been able to achieve during these difficult
months_" concluded Francesco Siccardi.
First semester 2020 recorded significant differences among product lines and
geographies due to different level of COVID-19 restrictions and different
pre-COVID momentums in sales growth.
The decrease in the core business (Hip -17.5%, Knee -13.0%) reflects
COVID-19 restrictions and lock-downs impact in almost all countries.
Spine (+11.9%) and Extremities (+41.7%) performances were heavily affected
in the second part of the semester, however they were able to recognize
positive performances in all geographies thanks to the strong momentum
carried over into the beginning of 2020.
Below we show the 1H 2020 sales break-down by product line:
(Thousand Euro) 30.06.2020 30.06.2019 Reported Constant
Growth Currency
Growth
Hip 68'873 82'919 -16.9% -17.5%
Knee 47'343 53'664 -11.8% -13.0%
Extremities* 6'060 4'181 44.9% 41.7%
Spine 12'532 10'874 15.3% 11.9%
TOTAL 134'808 151'638 -11.1% -12.2%
* Extremities include Shoulder and Sports Med sales
Revenue in Europe had the largest decline (-17.3%) within the key markets,
with "DACH" area countries (Germany, Austria, Switzerland) recording the
smallest impact.
North America was heavily affected as well (-14.3%), with the deepest
negative peak in April and the strongest acceleration in June among all
Medacta's markets.
APAC (+5.8%) had the best performance thanks to strong pre-COVID19 momentum,
a limited COVID-19 impact in Japan and a short lock-down period in
Australia.
RoW (-28.4%) was primarily affected by the situation in Latin America,
South-Africa and Israel. New distributors in the Middle East and Eastern
Europe areas are in the pipeline to further expand the Distributors network.
Below we show the 1H 2020 sales break-down by geographic area:
(Thousand Euro) 30.06.2020 30.06.2019 Reported Constant
Growth Currency
Growth
Europe 59'289 70'587 -16.0% -17.3%
North America 39'665 45'202 -12.2% -14.3%
Asia Pacific 31'857 30'328 5.0% 5.8%
RoW* 3'997 5'521 -27.6% -28.4%
TOTAL 134'808 151'638 -11.1% -12.2%
* Other includes all other geographic locations, including
Middle East.
These preliminary sales figures are unaudited for the periods ended June 30,
2020 and are therefore subject to change. The company expects to announce
its second quarter and reviewed 2020 half-year financial and operating
results on September 7.
*2020 Annual Guidance*
The positive sales performances in June confirms that backlog recovery can
occur quickly if the environmental conditions allow. Even if this is
encouraging, speed and size of recovery in the second semester of 2020
depend on the evolution of the COVID-19 crisis in key markets, which remain
unpredictable.
Given these uncertainties and the inability to forecast future developments,
we are not able to provide a short-term outlook. Overall, we believe that
mid and long-term fundamentals haven't changed.
*Conference Call Information*
Medacta's 1H 2020 Preliminary unaudited top-line figures conference call
will take place at 3:00 pm CET today. The event will be webcast live via
this link [1]. The audio webcast of the conference call will be available on
our website.
The telephone conference can be accessed at:
CH: +41 445806522
DE: +49 69201744220
UK: +44 2030092470
USA: +18 774230830
PIN: 28756483#
*Contact*
Medacta Group SA
Corrado Farsetta, CFO
Phone: +41 91 696 60 60
investor.relations@medacta.ch
*About Medacta*
Medacta is an international company specialized in the design and production
of innovative orthopaedic products and the development of accompanying
surgical techniques for joint replacement, spine surgery, and sports
medicine. Established in 1999 in Switzerland, Medacta's products and
surgical techniques are characterized by innovation. Medacta is a pioneer in
developing new offerings on the basis of minimally invasive surgical
techniques, in particular its Anterior Minimally Invasive Surgery (AMIS)
technique for hip replacements. Medacta has leveraged its orthopaedic
expertise and comprehensive understanding of the human body to develop the
sophisticated MySolutions technology, which offers surgeons highly
personalized pre-operative planning and implant placement methodologies by
creating advanced personalized kinematic models and 3D planning tools for
use in hip, knee, shoulder and spine procedures.
*Disclaimer*
This press release has been prepared by Medacta Group SA ('Medacta' and
together with its subsidiaries, 'we', 'us' or the 'Group'). The information
contained in the press release does not purport to be comprehensive and is
not to be taken as containing any securities advice, recommendation, offer
or invitation to subscribe for, purchase or redeem any securities regarding
Medacta.
*Forward-looking information*
This press release has been prepared by Medacta and includes forward-looking
information and statements concerning the outlook for its business. These
statements are based on current expectations, estimates and projections
about the factors that may affect its future performance. These
expectations, estimates and projections are generally identifiable by
statements containing words such as 'expects,' 'believes,' 'estimates,'
'targets,' 'plans,' 'outlook' or similar expressions. Although Medacta
believes that its expectations reflected in any such forward-looking
statement are based upon reasonable assumptions, it can give no assurance
that those expectations will be achieved.
*Alternative Performance Measures*
This press release contains certain information that it refers to as
"constant currency", which is a non-IFRS financial measure and represents
the total change between periods excluding the effect of changes in foreign
currency exchange rates. The Group believes that the reconciliations of
changes in constant currency provide useful supplementary information to
investors in light of fluctuations in foreign currency exchange rates.
Furthermore, the Group believes that constant currency measures provide
additional useful information on the Group's operational performance and is
consistent with how the business performance is measured internally.
End of ad hoc announcement
Language: English
Company: Medacta Group SA
Strada Regina
6874 Castel San Pietro
Switzerland
Phone: +41 91 696 6060
E-mail: info@medacta.ch,investor.relations@medacta.ch
Internet: www.medacta.com
ISIN: CH0468525222
Listed: SIX Swiss Exchange
EQS News ID: 1098895
End of Announcement EQS Group News Service
1098895 22-Jul-2020 CET/CEST
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July 22, 2020 01:01 ET (05:01 GMT)
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