Medical Developments International Limited · ASX:MVP
Medical Developments International — H1 FY2024 Earnings Presentation
18 slides from Medical Developments International's earnings presentation, Feb 29, 2024
Slide 1: FY24 Half Year Results
ASX:MVP FY24 HALF YEAR RESULTS 29 February 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: Executive summary
Executive summary Positive operational momentum through 1H24, positive FDA feedback provides greater clarity on next steps in US • Group revenue up 9% to $15.1m driven by positive momentum in Pain Management (Europe and Australia) • Pricing and efficiency benefits of $6.0m p.a. delivered 1H FY24 res
Slide 4: FY24 Half Year Results
FY24 Half Year FY24 Half Year Results Revenue Pain management revenue Respiratory revenue $15.1m $9.6m $5.5m +9%1 +26%1 -10% Underlying EBIT 2 Reported NPAT Free cashflow $7.8m (loss) $10.9m (loss) $8.3m (outflow) +4%2 (pcp $2.7m gain) +3.5m 4 1. Excluding Contract termination revenue of $18.9 milli
Slide 5: 1H FY24 strategic and operational highlights
FY24 Half Year 1H FY24 strategic and operational highlights Good progress has been made on key BAU1 initiatives FY24 strategic priorities Achievements / progress to date • $6.0m p.a earnings benefit from pricing and efficiency improvements delivered in 1H24 Improve margins through pricing and • Add
Slide 6: Positive momentum on Penthrox US market entry
FY24 Half Year Positive momentum on Penthrox US market entry ® Greater clarity provided by the regulatory body enabling MVP to progress towards Penthrox® market entry Recent developments Key takeaways • Positive meeting with the USFDA in October 2023, providing clear guidance on next steps: 9 Pote
Slide 7: Results summary
FY24 Half Year Results summary $million 1H23 1H24 Change $m Commentary Revenue1 13.9 15.1 1.2 • Group revenue up 9% Underlying EBIT (8.1) (7.8) 0.3 • Continued growth of Penthrox® in key markets; Underlying Adjustments (before tax)2 11.5 (5.1) (16.6) higher prices Reported EBIT 3.4 (12.9) (16.3) • R
Slide 8: Pain Management segment revenue
FY24 Half Year Pain Management segment revenue Revenue up 26%, higher volumes and pricing $million 1H23 1H24 Change % Commentary Europe 1.8 2.6 44% Europe Australia 4.0 5.8 45% Rest of World 1.2 1.1 (8%) • In-market volumes up 16% Product revenue1 7.0 9.5 36% • UK and Ireland in-market volumes up 18
Slide 9: Respiratory segment revenue
FY24 Half Year Respiratory segment revenue Weaker underlying demand globally, share growth in US drives 48% growth $million 1H23 1H24 Change % Commentary Europe 1.1 0.2 (82%) Europe Australia 2.2 1.6 (27%) • Lower demand from UK, Germany and Italy due USA 2.2 3.3 48% in part to inventory stocking in
Slide 10: EBIT bridge
FY24 Half Year EBIT bridge Volume and pricing drive margin expansion Commentary Pricing and efficiency • Stronger pricing in Pain Management, particularly for 1H23 Penthrox 1H24 Underlying Penthrox Respiratory expansion Inflation and Underlying Penthrox® in Australia EBIT Pricing Efficiency volume v
Slide 11: Balance sheet and cashflow
FY24 Half Year Balance sheet and cashflow Free cashflow improved $3.5 million Commentary $million 1H23 1H24 Change Working capital Underlying EBITDA (6.6) (6.3) 0.3 • Working capital to sales % improved • Strong customer collections Non-cash items (0.1) 0.6 0.7 • Increased inventory investment to su
Slide 12: Closing remarks and outlook
Closing remarks and outlook Positive operational momentum to continue $6.0m p.a. earnings benefit realised from pricing and efficiency with a further $3.0m p.a. cost savings to be delivered in FY25, of which $2.3m p.a. has been implemented to date1. MVP is on track to be operating cashflow positive
Slide 13: Appendices
APPENDICES
Slide 14: Business overview
Appendices Business overview The Pain Management segment generates the majority of Group revenue, driven by demand for Penthrox® in Australia and Europe Pain Management Respiratory Supplies pharmacies, medical clinics and hospitals with a range of Description Manufactures Penthrox®, an inhaled, need
Slide 15: Penthrox overview
Appendices 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
Slide 16: Reconciliation between underlying EBITDA and net loss after tax
Appendices Reconciliation between underlying EBITDA and net loss after tax $million 1H23 1H24 Notes FY24 Underlying EBITDA (6.6) (6.3) 1. An acceleration of share-based payment expense of Depreciation and amortisation expense (1.5) (1.5) $5.1m relating to the cancellation of all share options held
Slide 17: USFDA engagement: growing clarity on clinical pathway
Appendices USFDA engagement: growing clarity on clinical pathway IND approval March 2022 USFDA Feedback October 2023 Trial patient population restricted to males ≥ 18 • Positive results from 2 of the 3 required development and reproductive toxicity non-clinical studies would years of age and post m
Slide 18: US market overview
Appendices US market overview The US pain market is highly attractive and Penthrox® is well positioned to capitalise on the structural opportunities uniquely presented by the US market Key industry trends Penthrox® value proposition 9 The opioid epidemic has led to a growing shift in prescriber pre
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