Medmix Ag · SIX:MEDX
Medmix — H1 2024 Earnings Presentation
24 slides from Medmix's earnings presentation, Jul 18, 2024
Slide 1: Half-year results 2024
Half-year results 2024 Providing innovative solutions to help people live healthier René Willi, CEO and more confident lives Jennifer Dean, CFO July 18, 2024
Slide 2: Disclaimer and important notes / Safe harbor statement
Disclaimer and important notes / Safe harbor statement under the US private securities litigation reform act 1995 This presentation contains forward-looking statements that are based on management’s current assumptions and expectations concerning future developments, including but not limited to, pr
Slide 3: Business Review
Business Review René Willi, CEO
Slide 4: Key figures half-year 2024
Key figures half-year 2024 Broadly as planned Healthcare Adjusted revenues EBITDA Group revenues1 82.9 46.0 241.2 -3% reported2 -7% reported -6% organic -7% year-on-year 19.1% margin Adj. operating -6% organic3 net cash flow Consumer & Gross profit Industrial revenues 80.6 23.9 158.3 -2% year-on-yea
Slide 5: Highlights half-year 2024
Highlights half-year 2024 Dental recovery on track, new US Healthcare plant operational • Dental normalizing, strong year-on-year and sequential organic growth • Drug Delivery impacted by implementation of second source • Surgery temporarily restrained by strong year end 2023 • Beauty fully in line,
Slide 6: Market segment revenue and organic growth
Market segment revenue and organic growth Healthcare Business Area (BA) Consumer & Industrial (C&I) BA Drug Dental Surgery Industry Beauty Delivery 54.9 23% of Group 21.4 9% of Group 6.6 3% of Group 65.4 27% of Group 92.8 38% of Group +3% -19% -23% -9% -4% • Robust year-on-year • Customer switch to
Slide 7: Healthcare revenue by market segment
Healthcare revenue by market segment Dental recovering, Drug Delivery pressured near-term 75 30 9.0 60 25 7.5 20 6.0 45 15 4.5 30 10 3.0 15 5 1.5 0 0 0.0 • DENTAL sequential organic growth • DRUG DELIVERY impacted by • SURGERY limited by exceptionally of +6% indicates recovery underway implementatio
Slide 8: New ISO-certified Atlanta plant operational, on schedule
New ISO-certified1 Atlanta plant operational, on schedule First validated products for Surgery and Industry products 1 ISO 13485 8
Slide 9: C&I revenue by market segment
C&I revenue by market segment Industry stabilizing, Beauty normalizing 90 90 75 75 60 60 45 45 30 30 15 15 0 0 • INDUSTRY end market demand • BEAUTY benefited in H1 2023 from remains subdued… several post-Covid launches… • …with sequential organic growth of • …with launch activity normalizing in +14
Slide 10: Fast pace of innovation maintained
Fast pace of innovation maintained Sustainable1, unique, versatile and fast to market First sustainable Innovative precision MIXPACTM greenLineTM dental mixing tip brush applicators new range extensions • Mixer housing & ring • 3D-printed Bridge Brush: Unique protected design, • Peeler System and Q
Slide 11: Global leader in supplier engagement on climate change
Global leader in supplier engagement on climate change medmix among top 15% implementing current best practices1 1 according to CDP Supplier Engagement Rating Report 2023 for medmix 11
Slide 12: Financial Review
Financial Review Jennifer Dean, CFO
Slide 13: Key performance indicators
Key performance indicators Higher gross profit margins, improved cash flow CHF million HY 2024 HY 2023 change • Group revenue down year-on-year, Revenue 241.2 248.1 -2.8% and slightly up sequentially (+1.1%) Organic revenue growth – – -6.1% BA gross profit 106.2 108.6 -2.2% • Dental recovery (improv
Slide 14: Healthcare BA gross profit
Healthcare BA gross profit Improved margin thanks to higher Dental volumes • Margin +130 bps YoY and sequentially 60 65.0% • Recovery in highly profitable Dental segment improving overall mix… 45 62.5% • …and offsetting revenue shortfall in Drug Delivery and Surgery 30 60.0% • H2 2024 to be characte
Slide 15: Consumer & Industrial BA gross profit
Consumer & Industrial BA gross profit Gross profit stable, margin increase, year-on-year • Stable BA gross profit 60 40.0% Gross profit flat YoY Gross margin 35%, +30 bps YoY 45 37.5% • Higher Beauty revenues (Qiaoyi) offsetting lower Industry revenues 30 35.0% • H2 2024 to be characterized by: 15 3
Slide 16: Adjusted Group EBITDA
Adjusted Group EBITDA Lower volumes weighing on margin • Group EBITDA 60 25% Adjusted -100 bps YoY, +90 bps vs. H2’23 20% Reported +120 bps YoY, +300 bps vs. H2’23 45 • Operating expenses flat 15% 30 • H2 2024 characterized by: 10% Efficiency improvements at Valencia plant 15 5% Increased year-on-ye
Slide 17: Adjusted EBITDA bridge
Adjusted EBITDA bridge Margin impacted by lower volumes, Valencia ramp-up 20.0% 19.1% 49.7 (6.5) 1.4 0.5 4.5 46.0 (6.8) 3.4 Adjusted Volume Pricing Margin Operating Acquisition Other items Adjusted EBITDA and mix expenses impact (Qiaoyi) EBITDA H1 2023 H1 2024 The above walk includes year on year de
Slide 18: Adjusted EBITDA to net income
Adjusted EBITDA to net income Lower EBITDA driving lower EBIT and net income 19.1% 46.0 (17.0) (11.9) 5.3% (4.2) 12.9 (6.3) 2.3% (1.0) 5.6 Adjusted Depreciation Amortization Non-operating EBIT Financial Income tax Net income EBITDA expenses and H1 2024 expense H1 2024 H1 2024 restructuring Chart fig
Slide 19: Net income to free cash flow
Net income to free cash flow Improved working capital delivering positive free cash flow (14) Valencia, Atlanta (7) Others (0.7) (1.2) (4.0) 11.9 28.6 +18% (21.0) 17.0 7.6 5.6 Net income Depreciation Amortization Gain from Working cap. Interest & Operating Net capital Free cash H1 2024 Disposal & ot
Slide 20: Adjusted operating net cash flow bridge
Adjusted operating net cash flow bridge Operating cash flow driving year-on-year improvement 0.9 0.1 3.1 (6.1) (0.7) 23.9 13.2 13.5 Adjusted Operating Property, plant Interest Other Income Other non- Adjusted op. net cash cash flow equipment & paid, net financial tax, paid operating op. net cash flo
Slide 21: Outlook
Outlook
Slide 22: Outlook
Outlook Revised FY 2024 guidance Original 2024 guidance assumed stronger Dental and Industry end market recovery than we see, leading to the following revision • Organic revenue growth flat to negative • Adjusted EBITDA margin 18-19% Our urgent priorities: 1. Execute on our innovation pipeline 2. Im
Slide 23: Q&A
Q&A René Willi, CEO Jennifer Dean, CFO
Slide 24: Your Investor Relations contact
Your Investor Relations contact James Amoroso Investor Relations, medmix Phone: +41 41 723 73 57 E-mail: investorrelations@medmix.com medmix Group AG Neuhofstrasse 20 6340 Baar Switzerland 24