Financial highlights 2017

Our financial results for 2017 once again positions Atos Medical as one of the world’s fastest growing Medtech companies.

  • Atos Medical delivered 12% revenue growth for the full year. The growth momentum accelerated during the year and reached 15% in the last three quarters.
  • The main driver of growth was the core laryngectomy product area which grew by 15%. We experienced very strong growth for both the Direct to Consumer channel at 29% and the Hospital channel at 19%, as a result of continuing to service more patients directly.
  • From a geographical perspective, the main growth drivers were North America and Southern Europe. The main reason for the North American growth of 26% was the successful expansion of the commercial setups in both the field sales force and Direct to Consumer setup. Southern Europe grew by 21% driven by positive development in all countries.
  • The adjusted Gross margin excl. depreciation reached 80% for the year, which is a 2%-point improvement compared to 2016. Key drivers to the margin improvement were improved product mix, scale in manufacturing and efficiencies.
  • The Adjusted EBITDA reached 504 MSEK corresponding to an Adjusted EBITDA margin of 40%. This margin is reflecting the significant investments in the commercial setup that will support the planned growth in the years to come. The Adjusted EBITDA is adjusted for non-comparable items, ramp-up impact of sales initiatives and the Mediq Tefa acquisition full year impact1.
  • Selling, General & Administration cost increased by 22% in 2017, driven by scale up of the commercial setup mainly focusing on the US, Southern Europe, UK and Emerging Markets. We continued our innovation efforts and R&D expenses for the research of new products amounted to 21 MSEK (18). The R&D spend as % of revenue is now at 3% including capitalized expenses.
  • Net debt amounted to 4,431 MSEK (4,106). The increase compared to last year is mainly due to a new loan, financing the acquisition of Mediq Tefa in the Netherlands. Working capital was on average 18% of revenue (19%).
  • Investments in intangible and tangible assets (excluding business acquisitions) amounted to 97 MSEK (61). In 2017, the investment level was significantly higher compared to previous years due to insourcing of the adhesive manufacturing in our production facility as well as upgrades of legacy ERP systems.
  • The Board of Directors propose to the 2018 Annual Assembly that available funds of SEK 3,782,015,692 should be carried forward to retained earnings.

Financial highlights 2017

 

12%

Total revenue growth

 

15%

Laryngectomy revenue growth

 

80%

Adjusted Gross margin excl. depreciation

 

40%

Adjusted EBITDA margin

Key figures

2017

20162

Growth

Growth constant FX

Revenue

1,267

1,134

12%

12%

EBITDA

392

268

46%

51%

Margin

31%

24%

Adjusted EBITDA1

504

442

12%

14%

Adjusted margin

40%

39%

Net debt

4,431

4,106

Working capital

241

178

Average Working capital/Revenue

18%

19%

Investments3

97

61

Investments, % of revenue

8%

5%

Key figures

2017

20162

Growth

Growth constant FX

Revenue by product area

Laryngectomy

1,009

879

15%

15%

Tracheostomy

120

108

10%

10%

Other

138

146

-6%

-5%

Revenue by geography

North America

225

179

26%

26%

Southern Europe

241

199

21%

19%

Other Europe

734

695

6%

6%

Emerging Markets

66

61

9%

7%

1The EBITDA adjustments excludenon-comparable items 79 MSEK (174) linked to the restructuring and acquisition costs, 25 MSEK of ramp-up impact from the accelerated investments in the commercial organization and include 8 MSEK to account for the full year impact of the Mediq Tefa acquisition.

2 2016 numbers for revenue and EBITDA are calculated as a full calendar year amount based on a combination of the Starid Holding 1 group and the Lary 1 group whereas the financial statements for 2016 in this annual report only include the Lary 1 group as from its creation at July 20th 2016.

3 Excluding business acquisitions.