Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mentice AB (FRA:MN2, Financial) reported a strong Q4 with net sales up 22.4% year over year.
- The company achieved a positive EBITDA margin of 19.1% and a net profit of 2 million Swedish crowns for the quarter.
- Operational cash flow was significantly higher in Q4, reaching 13.4 million Swedish crowns.
- The medical device industry order intake increased by 24% in Q4, indicating strong demand for their solutions.
- The integration of neurovascular connect and vist Acuras was well-received, contributing to growth in the neurovascular segment.
Negative Points
- Total year sales were behind target, with flat performance in North America.
- Order intake for the full year decreased by 8%, despite a 5% increase in Q4.
- Recurring revenues showed flat development, with a decrease in system rentals.
- The company had to make an adjustment in the order book due to uncertainty about delivery timing for a pre-2023 order.
- Despite strong Q4 performance, the full year results were impacted by a challenging first half.
Q & A Highlights
Q: Frans, this is your first quarterly presentation as CEO of Mentice. What experiences do you bring that can drive Mentice forward?
A: Frans Wenka, CEO: I have extensive experience in the medtech industry, particularly in image-guided therapy. My background includes roles in product marketing, development, and commercial leadership in North America. I aim to extend solutions for the hospital space and guide the team towards global commercial execution to unlock further growth.
Q: What will be your main priorities going into 2025?
A: Frans Wenka, CEO: Our focus will be on providing innovations for the medical device industry, such as in valves and electrophysiology. We also aim to unlock growth in hospitals by adapting our offerings to better fit their needs. This dual focus will help us meet our financial targets.
Q: During the quarter, you showed strong sales growth but lower order intake growth year-on-year. Is this due to major orders coming early in the quarter?
A: Ulrika Droz, CFO: While major orders were realized as net sales early in the quarter, this variability is typical in our business and not the sole reason for lower order intake growth.
Q: Can you describe the Aura integration and how it has been received by the market?
A: Frans Wenka, CEO: The Aura integration, which combines our simulation solution with a treatment planning solution, has been well-received. It offers hospitals a new proposition for treatment planning, and feedback from initial implementations has been positive.
Q: What changes are needed to appeal more to hospital customers compared to MDI customers?
A: Frans Wenka, CEO: To appeal to hospitals, we need to offer more services that support physicians in adopting new workflows. This includes ensuring our solutions fit seamlessly into their busy schedules and high-stress environments.
Q: Can you describe the nature of the major orders received in Q4 and Q1?
A: Frans Wenka, CEO: The major orders are from the medical device industry, focusing on areas like valve implants and cardiac procedures. These orders align with our strategy to support MDI companies in training and procedural support.
Q: What is the reason for the strong gross margin this quarter and year?
A: Ulrika Droz, CFO: The increase in software sales, which have higher margins than hardware, and efficiencies in hardware production have contributed to the strong gross margin.
Q: There was an adjustment in the order book. Can you explain why and if this revenue might return?
A: Ulrika Droz, CFO: The adjustment relates to an order placed before 2023, which we currently cannot deliver. However, discussions are ongoing, and it may still convert to revenue in the future.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
