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Vitrolife - Still waiting for growth to return in Genetics - ABG

Q2'24e expectations
We forecast flat (0%) organic growth rate for Vitrolife and a marginally higher EBITDA margin in Q2. The negative headwind in the Genetic Services division related to the ERA and PGTA tests is still expected to weigh on sales growth in Q2, as it did in the three past quarters. However, we forecast a return to positive sales growth for the Genetic Services division and for Vitrolife overall during H2'24e. For the Consumables and Technology divisions, we forecast +6% and +7% organic growth sales in Q2, respectively. In total, we forecast Q2 sales of SEK 848.3m and EBITDA of SEK 295.1m for a margin of 33.1%, up from 32.4% in Q2 '23, mainly driven by a higher gross margin.

Q2'24e expectations
We forecast flat (0%) organic growth rate for Vitrolife and a marginally higher EBITDA margin in Q2. The negative headwind in the Genetic Services division related to the ERA and PGTA tests is still expected to weigh on sales growth in Q2, as it did in the three past quarters. However, we forecast a return to positive sales growth for the Genetic Services division and for Vitrolife overall during H2'24e. For the Consumables and Technology divisions, we forecast +6% and +7% organic growth sales in Q2, respectively. In total, we forecast Q2 sales of SEK 848.3m and EBITDA of SEK 295.1m for a margin of 33.1%, up from 32.4% in Q2 '23, mainly driven by a higher gross margin.
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