Medical Developments International Limited · ASX:MVP
Medical Developments International — FY2024 Earnings Presentation
23 slides from Medical Developments International's earnings presentation, Aug 26, 2024
Slide 1: FY24 Full Year Results
ASX:MVP FY24 FULL YEAR RESULTS 26 August 2024
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation contains summary information about Medical Developments International Limited (ACN 108340667) and its related bodies corporate (together, MVP) and MVP’s activities as at the date of this presentation. It is information given in summary form only and
Slide 3: Important notice and disclaimer
Important notice and disclaimer Factors that could cause actual results to differ materially include: • the success of research and development activities (including clinical trials); • decisions by regulatory authorities regarding approval of our products as well as their decisions regarding label
Slide 4: Key messages
Key messages FY24 financial performance strongly improved, positive momentum to continue • Group revenue of $33.2m (+3%) with improved results in Pain Management and Respiratory FY24 results • Gross margin2 expansion of 5ppts to 74% Margins, earnings • Significant operating cost reduction of ~$5m dr
Slide 5: Strategic and operational highlights
Strategic and operational highlights MVP has delivered good progress in its strategic priorities FY24 strategic priorities Progress Improve margins through pricing • $7.2m earnings benefit from pricing ($2.2m) and efficiency improvements ($5.0m) and operational efficiency • Additional efficiency sav
Slide 6: Growth Drivers
GROWTH DRIVERS
Slide 7: Improve margins through pricing and efficiency
Improve margins through pricing and efficiency Positive momentum in improving margins and the cost base FY24 achievements • Gross margin1 improvement of 5ppt versus FY23, driven by pricing and supply chain efficiencies • Pricing improved in Australia, reflecting PBS price movements in FY23, and impr
Slide 8: The Australian Penthrox market
The Australian Penthrox market ® Penetration in emergency departments has the potential to deliver 30-40% CAGR over next 5 years Ambulance Emergency Departments (ED) Procedural segments 9 Penthrox® used broadly in 100% of ambulance 9 Strong lead indicators with 244 purchasing 9 Well established in h
Slide 9: Accelerate penetration of Penthrox in Australia
Accelerate penetration of Penthrox in Australia ® Engagement approach to promote faster product adoption over time and support growth in global markets Our strategy to accelerate penetration • Reduce field-based commercial investment in the near term, in favour of increased medical engagement • Mai
Slide 10: Grow Penthrox in global markets
Grow Penthrox in global markets ® Leveraging a capital-light partner supported go-to-market strategy in a targeted manner Progress Growth strategy 9 Penthrox® distributed in more than 20 international markets • Strong partner engagement and knowledge exchange, including support with external medical
Slide 11: Drive continued growth in Respiratory
Drive continued growth in Respiratory A profitable capital-light business The business today Growth strategy Strong growth in the large US spacer market 9 Strong revenue growth, delivering 30% CAGR • Maintain leading market position in Australia FY21-FY24 through strong partner engagement and sales
Slide 12: Results
RESULTS
Slide 13: FY24 earnings
FY24 earnings Strongly improved underlying earnings $million FY23 FY24 Change $m Commentary Revenue1 32.3 33.2 0.9 • Group revenue up 3% Underlying EBITDA (15.1) (8.2) 6.9 • Continued growth of Penthrox® volumes in Australia and Europe and strongly improved Underlying EBIT (18.2) (11.6) 6.6 margins,
Slide 14: Pain Management segment revenue
Pain Management segment revenue Higher volumes in most markets and strongly improved pricing $million FY23 FY24 Change % Commentary Europe 5.5 6.1 11% Europe Australia 9.6 12.3 28% • Revenue up 11%, driven by higher volumes Rest of World 4.6 2.7 (41%) • In-market volumes up 6% Product revenue1 19.7
Slide 15: Respiratory segment revenue
Respiratory segment revenue Share growth in US drives 37% growth, weaker demand in other global markets $million FY23 FY24 Change % Commentary Europe 2.3 1.3 (44%) Europe Australia 3.8 3.1 (18%) • Lower demand from UK, Germany and Italy due USA 4.6 6.3 37% in part to inventory stocking in the prior
Slide 16: EBIT bridge
EBIT bridge Pricing and efficiency drive step-change earnings improvement $million Commentary Pricing and efficiency FY23 FY24 Underlying Respiratory Penthrox Inflation and Underlying • Stronger pricing in Pain Management, particularly for EBIT Pricing Efficiency volume volume other changes EBIT Pen
Slide 17: Balance sheet and cashflow
Balance sheet and cashflow Free cashflow improved $10.2 million Commentary $million FY23 FY24 Change Working capital Underlying EBITDA (15.1) (8.2) 6.9 • Strong customer collections • Inventory days improved Non-cash items 0.7 1.1 0.4 • Outflows include one-off payments of $2.7m for the commercial m
Slide 18: Closing remarks and outlook
Closing remarks and outlook Positive momentum to continue Margins, earnings and cashflow strongly improved in FY24. Good progress in delivering strategy in FY24, with delivery of key strategic priorities. The Group expects positive momentum in margins and earnings to continue in FY25, with underlyin
Slide 19: Appendices
APPENDICES
Slide 20: Business overview
Business overview The Pain Management segment delivers more than 60% of Group revenue, driven by demand for Penthrox® in Australia and global markets Pain Management Respiratory Supplies pharmacies, medical clinics and hospitals with a range of Description Manufactures Penthrox®, an inhaled, needle-
Slide 21: Penthrox overview
Penthrox overview ® Efficacy, safety and administration benefits of Penthrox® deliver positive patient outcomes and lower overall customer costs1-5 • Inhaled needle-free analgesic 1 The iconic Green Whistle • Non-opioid1 • Portable, self administered device1 • Effective pain relief within 6–10 breat
Slide 22: The MAGPIE study – a growth enabler
The MAGPIE study – a growth enabler A successful clinical study outcome in children1,2 potentially expands addressable market for Penthrox • Submission of the MAGPIE study data to the European regulatory agency expected in August 2024 (decision expected August 2025) • Regulatory approval of a reduce
Slide 23: Reconciliation between underlying EBITDA and net loss after tax
Reconciliation between underlying EBITDA and net loss after tax $million FY23 FY24 Notes FY24 Underlying EBITDA (15.1) (8.2) 1. An acceleration of share-based payment expense of $5.1m relating to the cancellation of all share options held Depreciation and amortisation expense (3.1) (3.4) by the CEO
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