Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vimian Group AB (VIMGF, Financial) delivered a strong earnings growth with an 18% increase in revenue to EUR107.5 million.
- The company achieved a significant milestone by starting to trade on the large cap market on the Nasdaq main market in Stockholm.
- Specialty Pharma business showed robust performance with 10% organic growth and the launch of 23 new products.
- Veterinary Services business reported double-digit revenue growth and improved margins from 25.4% to 30.3%.
- The company improved its ESG rating from A to AA with MSCI, reflecting progress in sustainability initiatives.
Negative Points
- Organic growth was negatively impacted by adjustments in the annual ordering program, particularly affecting the MedTech orthopedic business in the US.
- The MedTech segment experienced an organic decline due to softness in the elective surgery market in the US.
- Cross-selling contributed less to organic growth this quarter due to order timing issues.
- The company faces potential challenges from tariffs, with roughly half of US sales impacted, though the impact on EBITDA is expected to be limited.
- There is ongoing geopolitical uncertainty and potential risks from tariffs and macroeconomic conditions that could affect future performance.
Q & A Highlights
Q: Can you provide more details on the impact of tariffs on earnings and assumptions for the year?
A: Carl-Johan Boudrie, CFO: We are monitoring the situation closely. Currently, about half of our US sales are impacted by tariffs, resulting in a limited impact on adjusted EBITDA for 2025, estimated at low-single digit percentage points. We are exploring mitigation strategies, including supply chain adjustments and price changes.
Q: Could you elaborate on the strong organic growth in Specialty Pharma and the role of cross-selling?
A: Patrik Eriksson, CEO: The Specialty Pharmaceutical compounding business showed exceptional growth, surpassing the segment average. Dermatology and Allergy also performed well, while Specialized Nutrition saw slower growth compared to a strong Q4. Cross-selling was affected by order timing but is expected to rebound in Q2.
Q: What is the growth outlook for the US MedTech business, considering the current market conditions?
A: Patrik Eriksson, CEO: The US Orthopedics market shrank by low-single digits in Q1. We expect to outperform the market in the remainder of 2025 by leveraging our clinician education efforts, which should drive growth above market levels.
Q: Is this the last year for AOP reductions impacting MedTech's organic growth?
A: Patrik Eriksson, CEO: Yes, this is the last quarter affected by the AOP program. The impact in Q1 was EUR3 million, and we have transitioned to a normalized order flow.
Q: How do you view the potential impact of tariffs and geopolitical uncertainty on M&A activities?
A: Patrik Eriksson, CEO: We see current conditions as an opportunity. Our stable business and strategic fit allow us to pursue acquisitions. Some sellers may accelerate sales due to uncertainty, but we remain disciplined in our M&A approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
