Vitrolife AB Reports Strong Profits in Fourth Quarter and Full Year of 2022

Fourth quarter

Sales of SEK 855 (514) million soared by an impressive 66% in SEK, driven by organic growth of 11%, 37% acquired growth, and a further 18% currency effect. In local currencies (adjusting for Covid-19 tests and divested business), sales pro forma rose by a satisfying 9%.

Consumables saw an impressive 23% increase in sales in SEK, while Technologies experienced an even higher 36% rise in sales in SEK. Additionally, our Genetic Services segment brought in an additional 192 million SEK in sales.

Our growth story is a compelling one, with success across the globe: the Americas showing a remarkable 81% increase, EMEA rising by 31%, Japan Pacific achieving 56%, and Asia reaching 32% in local currencies. With the acquisition, we are proud to say that our growth has been strong in all market regions.

Organic growth in local currency remained strong across the globe despite the impact of Covid-19, with Japan Pacific soaring at 24%, Asia at 15%, EMEA at 6% and Americas at 1% pro forma and adjusted for business related to Covid-19 tests.

Operating income before depreciation and amortisation (EBITDA) soared to SEK 273 million in the period, a whopping 196% increase from the previous period and a margin of 31.9%. This means that EBITDA per share stands at SEK 2.02, a dramatic improvement from the 16.5% margin reported in the previous period (pro forma 27.8%).

Net income soared to SEK 73 million, resulting in a substantial earnings per share of SEK 0.55, compared to SEK 0.26 in the previous year. This marked an impressive increase of 108% year-over-year.

Full Year 2022

Sales of SEK 3,234 million soared by 92% compared to the previous year, with organic growth of 10%, acquired growth of 65%, and a currency effect of 18%. Pro forma sales in local currencies also increased by 10%, adjusting for the business related to Covid-19 tests and divested business.

Consumables saw a significant 23% rise in sales in SEK, while Technologies experienced a 16% increase. Additionally, Genetic Services made a substantial contribution of SEK 1,085 million in acquired sales.

Our global growth is a testament to our success, with the Americas soaring 177%, EMEA jumping 48%, Japan Pacific rising 59%, and Asia soaring by 38% in local currencies thanks to the acquisition.

Organic growth remained strong in the Asia-Pacific and Americas regions, with Japan Pacific experiencing a 19% increase, Asia seeing a 16% rise, and the Americas registering an 8% growth. In contrast, the EMEA region witnessed a more modest 3% uptick pro forma, adjusted for business related to Covid-19 tests.

Operating income before depreciation and amortisation (EBITDA) rose by 93% to SEK 1,050 million, with a corresponding margin of 32.5%. This translated to an impressive 63% increase in EBITDA per share to SEK 7.75. Pro forma, the EBITDA margin was an equally impressive 32.2%.

Net income increased to SEK 394 million, resulting in earnings per share of SEK 2.91, a rise of SEK 0.04 from the previous quarter.

The rolling 12-month period has seen net debt to EBITDA drop from a ratio of 1.5 to a far more impressive figure of 3.2, indicating a significant improvement in the company’s financial health.

After the end of the period

Vitrolife AB (publ) is proud to announce the appointment of Bronwyn Brophy as its new Chief Executive Officer! She will be joining the team at the latest of August 1st, 2023, bringing a wealth of experience and innovative ideas. We are excited to have her on board and look forward to seeing how she leads the company to new heights.

Jón Sigurdsson, Chairman of the Board, is set to take on the role of interim CEO starting April 1st, 2023. With his many years of experience in the company, he is sure to bring fresh perspective to the executive team and guide the business to greater success.

Henrik Blomquist, a board member, has been appointed as the Chairman of the board, starting from April 1st, 2023, until the annual general meeting on April 27th, 2023. This is an exciting opportunity for Henrik to bring his expertise and leadership to the board.

Thomas Axelsson, the current CEO, will be stepping down from his position on 31 March 2023, marking the end of a successful tenure. During his time as CEO, Axelsson has been instrumental in driving the company’s growth and success. He will be leaving a lasting legacy at the company, and his departure will be met with sadness from all who have worked with him.

The Board is pleased to propose a dividend of SEK 0.85 per share, an increase of SEK 0.05 from the previous dividend, amounting to SEK 115 million in total.

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