Company Announcement no. 5 - 2009/10 - Postive development in revenue and results continues

With growth in revenue of 7% when measured in local currencies in Q1 2009/10, Ambu is winning market share and developments remain positive for the company. The operating profit, EBIT, for Q1 was DKK 18.7m against DKK 15.3m for the same period last year, up 22%. The EBIT margin was 9% against 7% for the same period last year. Ambu achieved significantly higher growth than the estimated general market growth in Europe of 3-5%. In the USA where market growth stood at 1-3%, revenue increased by 11% when measured in the local currency. The outlook for 2009/10 (before special items relating to the pending patent cases) remains of revenue of approx. DKK 900-925m and an EBIT margin of 12-12.5%
 

“We are very pleased that Ambu is seeing continued growth, winning market share in the current economic climate and increasing earnings. Despite intensifying competition, Ambu has markedly increased its gross margin to 53.1%.
We believe that Ambu has considerable scope for seeing continued growth. The many initiatives springing from our new GPS Four strategy, especially within product development, sales and streamlining, are visibly impacting our revenue and earnings. The relocation of production from Denmark to Malaysia is going according to plan and will further increase Ambu’s competitive edge within electrodes,” says Lars Marcher, President & CEO of Ambu.
 

Highlights

• Revenue for Q1 amounted to DKK 213.0m against DKK 208.6m in Q1 2008/09 corresponding to an increase of 2%, or 7% when measured in local currencies.
   
• In Europe, the highest growth in revenue in Q1 was seen in Region UK where it stood at 12%, and in Region Central, which comprises Germany, Austria and Switzerland, where growth of 10% was achieved. In the USA, growth was 11% when measured in the local currency and relative to Q1 2008/09.
   
• Both within Airway Management and Patient Monitoring & Diagnostics, revenue was up 13% in Q1 when measured in local currencies. Within Emergency Care, revenue declined by 4% when measured in local currencies relative to Q1 2008/09.
   
• The operating profit (EBIT) for Q1 was DKK 18.7m against DKK 15.3m for the same period last year.
   
• The profit before tax was DKK 17.0m in Q1 against DKK 16.7m for the same period last year. The profit before tax for Q1 was impacted by a negative foreign currency translation adjustment of DKK 0.3m against a positive translation adjustment of DKK 3.2m for the same period last year.
   
• Cash flows from operating activities amounted to DKK -1.1m in Q1 against DKK -1.4m for the same period last year. The available cash flow for Q1 was DKK -14.5m after investments of DKK 13.5m

Outlook for 2009/10
For FY 2009/10 as a whole (1 October 2009 - 30 September 2010), revenue is still expected to be in the range of DKK 900-925m, while the EBIT margin is expected to be in the range of 12-12.5% before special items relating to the pending patent cases. Moreover, the company still expects a free cash flow in the region of DKK 60m before acquisitions.

Conference call
A conference call and webcast on this announcement will be held in Danish on Tuesday, 9 February 2010, at 11 am Danish time. To participate, please call the following number five minutes before the start of the conference: +45 32 71 47 67. The conference can be seen via one of the following links:

Watch the webcast (Slides in English) 

Watch the webcast (Slides in Danish)

This announcement can be downloaded in PDF format here.

Contact
Lars Marcher, President & 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 three business areas: Airway Management, Patient Monitoring & Diagnostics and Emergency Care. The primary products are ventilation products for artificial respiration and electrodes for ECG recordings and neurophysiological examinations as well as manikins for first-aid training. Ambu’s products are marketed worldwide. Exports account for 98% of revenue, and sales are handled via Ambu’s foreign subsidiaries or via distributors. Ambu has approx. 1,600 employees, of whom 300 work in Denmark and 1,300 abroad.