EQS Group-Ad-hoc: Medacta Group SA / Key word(s): Annual Results Press Release - Publication of 2020 Annual Results Medacta reports strong profitability and cash flow in 2020
Commenting on 2020 results Francesco Siccardi, CEO of Medacta, said: "During an unprecedented year affected by the global Covid-19 pandemic, we were nevertheless able to deliver a very positive performance with an increase of our market shares as well as strong profitability and cash flow, while remaining committed to investing in our future growth. I would like once more to thank all Medacta employees for the strong results we have been able to deliver. We are confident that the impact of Covid-19 vaccines and potential subsidence of the pandemic can enable us to build upon our 2020 achievements and return to a path of growth in 2021." Our Achievements During the year over 30 new products across our business lines were cleared (CE or FDA), including the FDA clearance on NextARTM, our Augmented Reality-Based Surgical Platform with its first application for Total Knee Replacement. This surgical platform has a limited upfront capital investment and reduced cost per case compared with other technologies. NextAR aims to improve surgical accuracy and efficiency via advanced 3D personalized planning tools, unique soft tissue assessment and accurate surgical execution. First surgeries were successfully performed in Australia and in the US, and the number of reference centers supporting future worldwide expansion is increasing. In the Knee business line, of particular note is the launch of our new SensiTiNTM coating with low metal ion release designed to reduce the exposure of patients to metallic ions. In the Hip product line we completed the renewal of our primary implant offering and expanded our revision product range. We launched two solutions for 3D pre-operative planning and intra-operative verification in primary total hip replacement, MyHip(R) Planner and MyHip(R) Verifier, which can deliver a personalized approach to optimize the surgical experience. In the Spine and Shoulder businesses new implants were launched to complete our portfolio, while in Sports Med we have been working on the expansion of our product portfolio and initial market introduction in selected countries. Our Marketing and Medical Education Programs continued through the year, including the implementation of tactical changes and new initiatives designed to maintain existing customers and reach new ones. In 2020 over 2,900 surgeons attended our online and digital education programs, and our Medacta TV achieved more than 22,000 visits. The "M.O.R.E. Surgeon to Surgeon" meetings together with classic Learning Centers were redesigned at national and local levels. We continued to invest strategically, resulting in significant salesforce expansion across all geographies and development of additional surgical instruments to serve new customers.
Revenue Analysis The various levels of restrictions imposed during the year across our geographies and diverse patterns of momentum in pre-Covid sales growth resulted in different impacts on our product lines and geographies. In the core business Medacta reported sales of EUR 153.1 million and EUR 106.2 million in the Hip and Knee lines, respectively. The product lines' growth declined compared to 2019 (Hip -6.1% and Knee -4.1% at constant currency) due to postponement of elective procedures in the first half, partially compensated by an effective backlog recovery since June, limited by the second wave starting in October. The Spine business line reported revenue of EUR 28.9 million, an increase of 14.6% at constant currency driven by newly launched products, salesforce expansion and a gain in market share, particularly in the US. The Extremities business line, made by Shoulder and Sports Med, was able to achieve 46.6% growth at constant currency and reported revenue of EUR 14.3 million. The business line grew in all geographies despite the Covid-19 impact, thanks to the strong sales momentum carried over by expansion of our product portfolio, with an increase of our market share, especially in Europe. Europe registered a negative growth of 6.0% at constant currency and reported sales of Euro 129.3 million with a significant recovery in the second half of the year. The North America market reported sales of Euro 92.7 million, substantially unchanged at constant currency compared with the previous year (-1.0%). APAC delivered a positive performance of 9.2% at constant currency and reported Euro 72.0 million, thanks to a limited pandemic impact in Japan and Australia together with a gain of new customers through the expansion of our salesforce. RoW recorded negative growth of 29.2% at constant currency and reported sales of Euro 8.5 million due to stocking distributors reducing purchases in response to the Covid-19 pandemic. Gross Profit Performance Strong Adjusted EBITDA Margin of 29.1% Solid Balance Sheet 2021 Outlook Forward Financial Calendar - 25 May 2021 Annual General Meeting - 20 July 2021 Publication of 2021 Half-year unaudited top-line figures - 10 September 2021 Half-year results 2021
Live-Link: https://www.webcast-eqs.com/medactaint20210331 For participants to the conference call (slides only): Dial-in numbers for conference call function only: PIN: 37721714# Disclaimer Alternative Performance Measures 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: | 1179842 |
End of Announcement | EQS Group News Service |
1179842 31-March-2021 CET/CEST