Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vitrolife AB (VTRLY, Financial) achieved a 9% organic growth in its Consumables business, outperforming the market and gaining share from competitors.
- The Americas region delivered a 5% organic growth in local currency despite challenging market conditions due to the IVF executive order.
- Vitrolife AB (VTRLY) became the lead investor in AutoIVF, advancing its strategy to create an end-to-end IVF platform.
- The EMEA region showed strong performance with a 17% growth in Consumables, excluding discontinued business, indicating significant market share gains.
- The company reported a strong balance sheet with an equity ratio of 78.8% and a net debt to EBITDA ratio of 0.8x.
Negative Points
- Sales decreased by 7% in SEK, heavily impacted by an 8% negative currency effect.
- Gross margin decreased to 58%, affected by currency fluctuations and increased supply chain costs.
- EBITDA decreased to SEK243 million, with a margin of 27.8%, impacted by currency and increased US sales and marketing investments.
- Operating cash flow dropped to SEK151 million, and earnings per share fell to SEK0.74.
- The APAC region experienced flat organic growth, with market weakness in China and delayed capital purchases affecting performance.
Q & A Highlights
Q: What is your impression of the underlying growth in EMEA and Americas, and what drives your market share gains in EMEA Consumables and Americas Genetics?
A: Cycles are down in the US, but our Consumables and Genetics performance in North America is strong due to share gains. In EMEA, cycles are positive, but our consumables growth is significantly above cycle growth, driven by share gains across the portfolio, including media, disposable devices, pipettes, and needles.
Q: What specific tests are driving growth in Genetics in the US, and has the PGTA class action suit impacted sales?
A: The PGTA family of tests is driving growth and is the largest part of our revenue in North America. There has been no impact from the class action suit on PGTA sales.
Q: Can you comment on the cycle growth in the US during the quarter and the outlook for the second half of the year?
A: Cycle growth improved slightly as the quarter progressed, with the biggest drop at the start. EMEA is looking solid, while APAC is mixed with soft cycles in China but better performance in Southeast Asia. The US market's growth depends on clarity regarding financial support for IVF.
Q: What is the outlook for technologies in the coming quarters across regions?
A: The pipeline for EmbryoScopes is healthy, but there are delays in capital purchases, especially in APAC. EMEA is our most penetrated region, and consumable revenue per EmbryoScope is increasing. In the Americas, there is some holding pattern due to the executive order, but the funnel is building.
Q: Regarding the margin declines in Q2, should we consider them as one-offs, and can you provide insights into Japan's market?
A: Part of the margin decline is due to currency and tariffs, with some one-off effects. In Japan, we see signs of pickup in consumables, mainly from share gains, despite delays in capital purchases. The reimbursement system is improving, supporting growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
