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Embla Medical reported Q4 2024 sales of USD 225 million with 5% organic growth and 8% local currency growth. The company's Prosthetics & Neuro Orthotics segment grew 12% organically, while Bracing & Supports increased 2%, and Patient Care declined 1%.
Q4 2024 highlights include a gross profit margin of 63% (up from 61% in Q4 2023), EBITDA margin of 21% (up from 18%), and net profit of USD 19 million. Free cash flow reached USD 34 million, representing 15% of sales.
For full-year 2024, the company achieved 6% organic growth, with EBITDA margin reaching 20%. Looking ahead, Embla Medical issued 2025 guidance projecting 5-8% organic sales growth and 20-21% EBITDA margin.
- Q4 organic sales growth of 5% with local currency growth of 8%
- Strong 12% organic growth in Prosthetics & Neuro Orthotics segment
- EBITDA margin improved to 21% from 18% year-over-year
- Gross profit margin increased to 63% from 61% in Q4 2023
- Free cash flow improved to 15% of sales from 13% year-over-year
- Patient Care segment declined 1% organically in Q4
- Net profit margin decreased to 8% from 9% in Q4 2023
- Negative impact from financial expenses and currency fluctuations
- Full-year 2024 net profit grew by 17%
The Q4 2024 results demonstrate Embla Medical's robust execution of its Growth'27 strategy, with several noteworthy achievements. The 5% organic growth and 8% local currency growth reflect strong market positioning, particularly in high-end solutions. The standout 21% EBITDA margin represents significant improvement from 18% in Q4 2023, driven by successful cost optimization initiatives and improved operational efficiency.
The segment performance reveals important trends: The Prosthetics & Neuro Orthotics division's exceptional 12% organic growth showcases the company's strength in high-margin, specialized medical devices. While Bracing & Supports showed modest 2% growth, the slight decline in Patient Care (-1%) against a strong comparative period doesn't indicate structural weakness, especially considering the segment's 5% full-year growth.
Financial health indicators are particularly strong: The 200 basis point improvement in gross margin to 63% demonstrates successful cost management and favorable product mix. The robust free cash flow at 15% of sales (34 million) provides significant financial flexibility for strategic initiatives. The NIBD/EBITDA ratio of 2.4x remains comfortably within the target range, supporting the decision to reinitiate the share buyback program.
The 2025 guidance of 5-8% organic growth and 20-21% EBITDA margin suggests management's confidence in sustaining momentum through volume growth and operational efficiency. The recent Fior & Gentz acquisition and ForMotion brand unification indicate strategic focus on portfolio optimization and market presence enhancement.
Notably, Embla's #41 ranking in TIME Magazine's Sustainable Growth list adds an important ESG dimension, potentially attracting sustainability-focused investors and supporting long-term value creation through environmental stewardship alongside financial performance.
