In This Article:
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Medistim ASA (STU:MD1) reported an all-time high sales for the fourth quarter, reaching NOK151.1 million, an 11.4% increase over the same quarter last year.
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The Americas region showed impressive growth, with a 30% increase in currency-neutral sales for the quarter.
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The company launched the new INTUI software, which is expected to enhance clinical decision-making and improve user experience.
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Medistim ASA's cash flow from operations increased significantly from NOK115 million to NOK141.5 million, indicating strong financial health.
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The Board of Directors proposed a dividend of NOK6 per share, reflecting confidence in the company's future performance.
Negative Points
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The Asia Pacific region experienced a 24% decline in sales for the quarter, primarily due to weaker imaging sales in Japan.
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The EBIT margin decreased to 23.3% for the year, down from the previous year's margin, due to increased operating expenses and challenges in the APAC region.
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Higher operating expenses were reported due to investments in direct markets like China, Canada, and Sweden, as well as increased R&D and product innovation costs.
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The number of imaging systems sold decreased, driven by a decline in the Asia Pacific region, particularly in Japan.
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Despite overall revenue growth, the company's own product sales showed a softer development, ending at a 3.9% increase for the year.
Q & A Highlights
Q: Can you elaborate on the significant growth in the Americas and what factors contributed to this performance? A: Kari Krogstad, President and CEO, explained that the Americas experienced a 30% currency-neutral growth in the fourth quarter, driven by strong sales in both Canada and Latin America. The U.S. also saw improvements in capital sales of systems, which had been weak due to macroeconomic headwinds. The increase in capital sales contributed to a rise in flow procedures from capital accounts, indicating a positive trend in the region.
Q: What challenges are you facing in the Asia Pacific region, and how are you addressing them? A: Kari Krogstad noted that Asia Pacific sales were down, primarily due to weaker imaging sales in Japan and the transition to a direct sales model in China. The company is actively collaborating with distributors in Japan to understand market dynamics and optimize business strategies. The transition in China is expected to provide better visibility and control over sales, with optimism for improvement in 2025.