31st July 2024
1st Half 2024 Financial report
Warning / Disclaimer
and Cautionary Statements
This document and the results conference call (including the question and answer session) may contain forward-looking statements and information (hereinafter "Statements") relating to ATRYS HEALTH, S.A., or the ATRYS Group (hereinafter "ATRYS", the "Company" or the "Group"). These statements may include financial projections and estimates with assumptions, statements regarding plans, objectives, and expectations that may relate to various matters, including, but not limited to, the customer base and its evolution, the growth of the various lines of business, market share, the company's results and other aspects relating to the company's activity and situation.
The forward-looking statements or forecasts contained in this document may be identified, in certain cases, by the use of words such as "expects", "anticipates", "intends", "believes" or similar language, or their corresponding negative form, or by the predictive nature of matters relating to strategies or plans or intentions. These forward-looking statements or forecasts reflect the views of ATRYS with respect to future events and are not, by their nature, guarantees of future performance and are subject to risks and uncertainties that could cause actual developments and results to differ materially from those expressed in these intentions, expectations or forecasts. Such risks and uncertainties include those identified in the documents with more complete information filed by ATRYS with the various supervisory bodies of the securities markets on which its shares are listed, and in particular, with the Spanish Securities Market Commission (CNMV).
Except to the extent required by applicable law, ATRYS undertakes no obligation to publicly update the outcome of any revisions it may make to these statements to conform to events or circumstances after the date hereof, including, without limitation, changes in the Company's business, business development strategy or any other circumstances that may arise. This document may contain summary financial information, non-GAAP or unaudited information. The information contained herein should be read as a whole and is subject to all publicly available information about the Company, including, where applicable, other documents issued by the Company containing more complete information.
Finally, it is noted that neither this document nor anything contained herein constitutes an offer to buy, sell or exchange, or a solicitation of an offer to buy,
sale or exchange of securities, or a recommendation or advice on any security.
Highlight H1 2024
We reiterate Guidance 2024.
Turnover development | Adjusted EBITDA evolution (MAR) |
Figures in EUR million. | Figures in EUR million. |
202 | 220-224 | ||||||||||||
158 | |||||||||||||
107 | |||||||||||||
33 | 43 | 47-49 | |||||||||||
11 | 20,8 | 13 | 21 | ||||||||||
7,3 | 3,3 | 7 | |||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Guidance | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Guidance |
2024 | 2024 | ||||||||||||
(MAR ) See definitions of alternative performance measures in Annex II. | 3 | ||||||||||||
Key figures H1 2024
Solid 1H24 operating cash flow growth +46% thanks to the execution of the optimisation and efficiency plan and the Group's operating leverage.
('000 EUR) | 1H 2023 | 1H 2024 | (%) Chg. | |||||
Turnover | 102.278 | 107.443 | 5,0% | |||||
Turnover without FOREX impact | 102.278 | 108.823 | 6,4% | |||||
Gross Margin | (APM) | 70.257 | 72.235 | 2,8% | ||||
% Gross Margin | 68,7% | 67,2% | (146) b.p. | |||||
EBITDA | (APM) | 17.759 | 21.953 | 23,6% | ||||
Non recurrent expenses | 2.512 | 3.301 | 31,4% | |||||
Adjusted EBITDA | (APM) | 20.271 | 25.254 | 24,6% | ||||
% Adjusted EBITDA | 19,8% | 23,5% | +368 b.p. | |||||
Consolidated Results | (23.150) | (16.585) | 28,4% | |||||
Total Capex | (AP M) | (6.855) | (6.039) | -11,9% | ||||
Capex | (4.777) | (4.120) | -13,8% | |||||
Capex R&D | (2.079) | (1.919) | -7,7% | |||||
Operating Cash Flow | (APM) | 10.904 | 15.914 | 46,0% | ||||
Adjusted operating Cash Flow | (APM) | 13.416 | 19.215 | 43,2% | ||||
Revenue growth of +5.0%, reaching €107.4m in the first half of FY2024. (+6.4% at constant exchange rate).
Gross Margin growth of +2.8% to €72.2m with a reduction in Gross Margin over
revenues of (146) b.p. due to a change in mix as a result of the higher growth of the business areas with lower levels of Gross Margin.
EBITDA improved by +23.6% to €21.9m, as OPEX expenses were contained due to the execution of the optimization plan and operating leverage.
Adjusted EBITDA improved by +24.6% to €25.2m, improving the Adjusted EBITDA margin on revenues by +368 b.p. The amount of the €3.3M€ non-recurring expenses in 1H24 correspond to redundancy compensations and costs regarding to the implementation of the 2024 cost reduction plan.
In the first six months of the year, CAPEX investment amounted to €6.0m, 11.9% lower than in 1H23. Of the €6.0m CAPEX investment in H124, €1.3m corresponds to expansion Capex (opening of medical oncology centres in Mexico), with the expansion Capex planned for 2024 having been executed in H124.
Significant improvement in Operating Cash Flow and Adjusted Operating Cash Flow of +46.0% and +43.2%.
(APM ) See definitions of alternative performance measures in Annex II. Unaudited figures.
Key figures H1 2024
Turnover Evolution
Turnover by business segment | |||||
('000 EUR) | 1H 2023 | 1H 2024 | (%) Chg. | ||
Diagnostics | 31.471 | 32.026 | 1,8% | ||
Oncology | 28.251 | 30.700 | 8,7% | ||
Preventive Medicine | 42.556 | 44.716 | 5,1% | ||
Total Turnover | 102.278 | 107.443 | 5,0% | ||
Forex impact | -- | 1.380 | |||
Total Turnover ex Forex impact | 102.278 | 108.823 | 6,4% | ||
Turnover by geography | |||||
('000 EUR) | 1H 2023 | 1H 2024 | (%) Chg. | ||
Spain | 77.736 | 81.174 | 4,4% | ||
Portugal | 6.131 | 6.263 | 2,2% | ||
LatAm | 18.411 | 20.005 | 8,7% | ||
Total Turnover | 102.278 | 108.823 | 6,4% | ||
Revenue growth of +5.0% to €107.4M in H1 FY2024, (+6.4% at constant exchange rate).
Diagnostics: Growth of +1.8% to €32.0m in the first half of FY2024. (+6.4% at constant exchange rate). Strong growth in Laboratory by +32.8% due to the good performance of the ramp-upof the Madrid laboratory. Growth of +0.5% in the DxO business, affected by the adverse performance of the exchange rate in Chile (growth of 7.09% at constant exchange rate), and a decline of -16.9% in Nuclear Medicine revenues in Spain due to the lower volume of patient referrals from the public healthcare system.
Oncology: Good performance of revenues in the Medical Oncology area +12.9%, highlighting the acceleration of the ramp up of this activity in Mexico, whose revenues increased from €0.6m in H1 23 to €2.6m in H1 24,
Preventive Medicine: Growth of 5.1% in the area of Preventive Medicine, driven by a 5.0%
increase in the number of medical check-upsand a 3.3% rise in the average ticket per medical check-up, as well as by the improvement in the client renewal rate from 89% in H1 23 to 90% in H1 24.
LatAm: Growth of +8.7% in revenues in the region. At constant exchange rates, revenue growth in LatAm would be +16.2%.
(APM ) See definitions of alternative performance measures in Annex II. Unaudited figures.
Highlight H1 2024
Business perspective
- We reiterate the Guidance for the financial year 2024 communicated to the market.
- Leadership with differential business positioning in Medical Oncology in Spain with high growth potential and a service that is beginning to be demanded by medical insurers with a presence in Latin America.
- Ramp up of the Madrid lab and Mexico better than estimated.
- Nuclear Medicine in 2024 affected by lower volume of referrals from Public Health System.
- Introduction in 2024 of new business areas in Chile demanded by health insurers and the public health system (reduction of waiting lists, pathology diagnosis and medical oncology treatment).
- Cost Optimisation Plan 2024 being implemented as planned.
- Closed in H1 2024 partnerships with:
Chile: Collaboration in the areas of oncology and diagnostics and programmes to resolve waiting lists.
Chile: Collaboration for the digitalisation of healthcare processes.
6
Key figures for the
financial year H1 2024
Extraordinary impacts on consolidated results for the year H1 2024
01 | Net impact accelerated amortisation of 4 R&D projects. |
02 | Impact of exchange rate differences and sale of assets. |
03 | PPA amortisation impact of acquisitions. |
04 | Non-recurring expenses(MAR) ( Personnel savings and severance |
payments 2.1 million euros / Impact of introduction of synergies in |
OPEX and others 1.2 million euros).
Bridge extraordinary impacts on consolidated result H1 2024
(figures in thousands of EUR)
(16,6) | +3,9 | ||||||||||||
+1,6 | +6,1 | ||||||||||||
+3,3 | |||||||||||||
(1,7) | |||||||||||||
Accelerated | Extraordinary | PPA | |||||||||||
Consolidate | GNR | Consolidated | |||||||||||
d Profit 1H24 | depreciation | impacts | amortisation | (4) | Result | ||||||||
of R&D | (2) | (3) | 1H24 without | ||||||||||
assets (1) | exceptionals |
Extraordinary impact with no cash outflow.
Extraordinary impact leading to cash outflow.
7
Financial debt position
On 5 January 2024, the €25m of the MARF bond was redeemed.
Financial structure as at June 2024:
Net leverage ratio1 : 3.29x
TLB + | |
Bank | 161,6M EUR |
Debt: |
Public Debt R&D: | |||||
7,3M EUR | Gross Debt | ||||
Convertible Bond: | 6,8M EUR | ||||
Others: | 10,8M EUR | 186,6M EURNet Debt (MAR) | |||
Cash and cash | (25.2)M EUR | 161,3M EUR | |||
equivalents: |
(1 ) Net Leverage ratio: Net Financial Debt / Adjusted EBITDA.
(APM ) See definitions of alternative performance measures in Annex II.
Debt repayment schedule:
(figures in thousands of EUR)
142,4 | |||||
25,2 | 9,5 | ||||
4,7 | 3,6 | 1,8 | |||
06/25 | 06/26 | 06/27 | 06/28 | 06/29 | >06/30 |
Debt amortisation 2025: including revolving working capital financing facility
Redemption of 2027 debt: includes €7.0m of the Convertible Bond.
Shareholder composition
T.P. Analyst objectives:
Shareholder composition:
31/12/2023
33,4%
Free Float
7,3%
8,1%
Management
Team
24,7%
Excelsior Times
Target | |
Price | |
Kepler: | 5,0 |
ODDO: | 6,5 |
Alantra: | 5,6- 6,9 |
GVC Gaesco: | 7,0 |
Renta 4: | 7,3 |
JB Capital Markets: | 6,0 |
Recommendation
Buy
Buy
--
Buy
Buy
Buy
Venture Capital
7,2%
Insurance
Companies
19,3%
Family Offices
Media 6,3
9
Thank you!