On track to lift margins with actions taken in Genetic Services
Vitrolife is delivering on its action plan to increase profitability in Genetic Services. It has discontinued non-core GPDx and Oncology testing, as well as cutting ~20% of the workforce. We expect that it can reach a 30% margin in the long term and 25% already in ‘23e, supporting a long-term group margin in the high 30s. Growth in terms of IVF cycles is slowing down, as shown by consumables sales growing a modest 6% organically, with Americas at +4% and EMEA at -9%. Consumables was 3% below ABGSCe. Technologies also underperformed (-11% vs ABGSCe), with the segment declining 9% organically. Genetic services was the only segment that outperformed, delivering 4% higher sales than we expected. Q3’22 saw the group EBITDA margin (pro forma), adjusted for one-offs in VAT, restructuring and insurance, decline by 2pp vs. Q3’21 to 32.3%. We estimated an EBITDA margin of 33.3%. Considering the one-offs, underlying profitability looks a bit less impressive, although it was 2% better than consensus expectations on 3% better sales. The lower margin mainly stems from the deviation in sales mix, with Genetic Services constituting a larger share of sales than we expected.
Aktuellt
SENASTE
