Interim report for Q3 and Q1-Q3 2008/09

With growth in revenue of 11%, or 9% when measured in local currencies, in the first nine months of the financial year, developments remain satisfactory for Ambu. Year-to-date revenue was DKK 647.3m against DKK 582.8m last year. The operating profit – EBIT – for the first nine months of the financial year was DKK 62.2m, including non-recurring expenses and special items of DKK 13.2m against DKK 69.1m last year. The EBIT margin was 9.6%, and before non-recurring expenses and special items 11.6%.

Ambu has achieved significantly higher growth than the estimated general market growth of 3-5%. In the USA, which is more acutely affected by the financial crisis than other countries, Ambu saw solid growth of approx. 12% in the local currency year to date. The health sector is affected by the global crisis, but Ambu is currently only sensing the economic downturn to a very limited extent. The outlook for FY 2008/09 (before special items relating to the pending patent cases) remains of revenue of approx. DKK 850m and an EBIT of approx. DKK 100m.

“Given the current economic situation, we are very pleased that Ambu is continuing to grow and winning market share. We can see that the many initiatives launched within product development, sales and streamlining are beginning to have an effect. For example, the sales companies have been strengthened further through the combination of sales areas to form larger regions. Ambu has strengthened its development efforts and in June introduced a new and exciting product, the single-use videoscope Ambu aScope. We are currently maturing the product for production at our production facility in Malaysia, and we expect sales to start in Q1 2009/10. Finally, we are devoting targeted efforts to our new strategy plan, which is to support our future growth and earnings targets up until 2013. The strategy will be launched later this year,” says Lars Marcher, President & CEO of Ambu.

• Revenue for Q3 totalled DKK 215.9m against DKK 196.9m in Q3 2007/08 and year to date DKK 647.3m against DKK 582.8m year to date last year. This corresponds to an increase of 11%, or 9% when measured in local currencies year to date.
   
• In Europe, Germany and Italy saw the highest growth in Q3, realising growth rates of 11% and 16%, respectively. In the USA, growth was 17% when measured in the local currency and relative to Q3 2007/08.
   
• Revenue within the business areas Respiratory Care, Cardiology and Neurology was up 5% in all in Q3 when reported in local currencies. The highest growth was seen within Neurology. The year-to-date growth in revenue measured in local currencies was 9%, which is significantly higher than the estimated average market growth of 3-5%. The growth was driven, in particular, by sales of laryngeal masks and the neurology products in both the USA and Europe.
   
• The operating profit (EBIT) for Q3 was DKK 21.8m against DKK 28.1m in the same period last year. Year to date, EBIT was DKK 62.2m against DKK 69.1m last year. Year to date, non-recurring expenses for organisational adjustments in the region of DKK 4m have been incurred as well as legal fees in connection with the pending patent cases of DKK 9.2m, the total being approx. DKK 13.2m.
   
• The profit before tax for Q3 was DKK 23.0m against DKK 21.3m in the same period last year. Year-to-date profit before tax totalled DKK 61.5m against DKK 54.8m last year. The increase is mainly attributable to lower financial items due to lower foreign currency translation adjustments in 2008/09 compared to last year.
   
• Year-to-date cash flows from operating activities total DKK 69.7m against DKK 66.0m last year. Before acquisitions, the free cash flow year to date was DKK 28.1m against DKK 37.1m in the same period last year. The free cash flow after acquisitions amounted to DKK -13.0m following acquisitions of DKK 41.1m.
   
• Revenue in the region of DKK 850m is still expected for FY 2008/09 (1 October 2008 - 30 September 2009), while EBIT is still expected to be approx. DKK 100m before special items in connection with the pending patent cases. Moreover, the company still expects a free cash flow in the region of DKK 50m before acquisitions.

Conference call
Conference call and webcast on this release will be held in Danish on 27 August 2009 at 11 am Danish time. To participate, please call tel. +45 32 71 47 67 five minutes before the start of the conference. The conference can be followed via this link.

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Download the full Interim report for Q3 2008/2009 (PDF)

Contact: Lars Marcher, President and CEO, tel. +45 5136 2490, email: lm@ambu.com

Ambu develops, produces and markets diagnostic and life-supporting devices to hospitals and rescue services. Ambu has five business areas: Respiratory Care, Cardiology, Neurology, Training and Immobilization. The most important business areas are Respiratory Care, Cardiology and Neurology, and the most important products in these areas are ventilation products for artificial respiration and single-use electrodes for ECG recordings and neurophysiological examinations. Ambu’s products are sold worldwide. Exports account for 98% of sales, and sales are handled via Ambu’s foreign subsidiaries or via distributors. Ambu has approx. 1,600 employees, of whom approx. 300 work in Denmark and approx. 1,300 abroad.