Overview
Letter from the CEO
As we look back on a successful 2024, what stands out most is delivering on our relentless commitment to improving people‘s mobility.
Our innovative product solutions and patient care have a positive impact on millions of lives around the world.
The year was marked by several milestones, most notably the establishment of Embla Medical, beginning to unite our patient care business under the ForMotion brand, and the acquisition of Fior & Gentz, to name a few.
Additionally, positive market trends such as the expanded US Medicare coverage for advanced bionic prosthetics for less mobile K2 amputees, brings potential for improved quality of life for a large patient population.
We continue to execute well on our Growth’27 strategy delivering solid sales in line with our long term financial ambition. For 2024, we delivered 6% organic growth driven by a strong performance in Prosthetics & Neuro Orthotics and Patient Care, while growth in local currency was 9% supported by positive impact from the acquisition of Fior & Gentz. Our EBITDA margin also came in strong for the year at 20% reflecting operational efficiency and effective cost control.
In the beginning of 2024, we acquired Fior & Gentz, a leading maker of transformative and innovative lower limb neuro orthotic devices for people living with neurological conditions. The acquisition is an important milestone in our growth journey, marking our expansion into the field of Neuro Orthotics. An exciting field which broadens our ability to support individuals with chronic mobility challenges. We are very pleased to see the integration progressing according to plan as we transfer product distribution to our commercial distribution network and existing O&P clinics in mature, reimbursed markets.
Overview
Embla Medical in Brief
Embla Medical is a leading global provider of innovative mobility solutions that help people live a Life Without Limitations®. Founded as Össur in 1971, Embla Medical is now home to industry leading brands Össur, Fior & Gentz, College Park and ForMotion.
We Improve People’s Mobility
Össur is a leading global provider of prosthetics and bracing & supports solutions. Fior & Gentz is an innovative developer of neuro orthotics, and College Park designs and manufactures lower limb prosthetics. ForMotion patient care clinics are spread across multiple countries and provide patients with compassionate care from world-class healthcare professionals. Embla Medical is focused on reaching more people with our mobility solutions and contributing to the advancement of the Orthotic & Prosthetic industry in a sustainable manner. Our commitment and responsibility extend to our people and our planet as we embrace diversity and recognize the impact we have on the world around us.
2024 Financial Highlights
We continue to execute well on our Growth’27 strategy delivering solid sales in line with our long term financial ambition. For 2024, we delivered 6% organic growth driven by a strong performance in Prosthetics, Neuro Orthotics and Patient Care, while growth in local currency was 9% supported by positive impact from the acquisition of Fior & Gentz. Our EBITDA margin also came in strong for the year at 20% reflecting operational efficiency and effective cost control.
855m
Highest ever sales recorded (USD)
+6%
Organic sales growth
+9%
Local currency growth (incl. acquisitions)
20%
EBITDA margin (before special items)
Shareholder Information
Embla Medical is a large cap company that has been listed on the Nasdaq Copenhagen since 2009 and prior to that on Nasdaq Iceland since 1999.
At year-end 2024, the share capital of Embla Medical was 427,636,122 nominal value, divided into the same number of shares. There is only one class of shares, and all shares carry one vote, besides treasury shares that do not carry voting rights.
Key Information Table
Market
Nasdaq Copenhagen
ISIN
IS0000000040
Ticker
EMBLA
Industry
Healthcare
No. of Shares
427,636,122
Performance
Performance in 2024
- Sales amounted to USD 855 million where organic growth was 6% and local currency growth was 9% including acquisitions.
- Prosthetics & Neuro Orthotics sales grew by 9% organic, Bracing & Supports sales grew by 1% organic, and Patient Care sales grew by 5% organic. Growth is attributed to solid volume growth and positive product mix supported by strong performance in our high-end solutions.
- Gross profit margin was 63%, compared to 62% in 2023. The gross profit margin was positively impacted by cost reduction initiatives in manufacturing implemented during the first quarter of 2024, as well as favorable product mix and manufacturing efficiency.
- EBITDA margin before special items increased to 20% compared to 18% in 2023. The EBITDA margin expansion was driven by strong sales performance, cost savings and efficiency in manufacturing, and effective cost control in SG&A.
- Net profit grew by 17% and amounted to USD 69 million or 8% of sales compared to 7% of sales in 2023.
- Free cash flow amounted to USD 77 million or 9% of sales compared to 7% of sales in 2023.
- NIBD/EBITDA before special items was 2.4x at the end of 2024, within our target range of 2-3x EBITDA in line with our capital structure and capital allocation policy.
Net sales
855
786
Sales growth, organic
6%
9%
5-8%
Gross profit margin
63%
62%
EBITDA
169
139
EBITDA margin
20%
18%
EBITDA before special items
173
139
EBITDA margin before special items
20%
18%
20-21%
CAPEX to net sales
4.6%
5.4%
Effective tax rate
24%
23%
Net sales
Sales growth, organic
Gross profit margin
EBITDA
EBITDA margin
EBITDA before special items
EBITDA margin before special items
CAPEX to net sales
Effective tax rate
Sales in 2024 by Business Segment
of sales
USD 393 million
Organic growth: 3%
Employees: ~1,500
of sales
USD 395 million
Organic growth: 10%
Employees: ~1,800
of sales
USD 67 million
Organic growth: 4%
Employees: ~200
6%
20%
17%
2.4x
HQ Employees: ~700
Sustainability Highlights
-2%
Emissions Intensity 2023/2024
0.6
Incident rate per 100 FTEs
7.9 of 10
Employee Engagement Index
51% : 49%
Male/Female Gender Ratio
Strategy
Growth'27 Strategy
Embla Medical introduced its five-year Growth’27 strategy in 2023. The focus of the Growth’27 strategy is to reach more people in need of mobility solutions.
The strategy addresses key industry themes and supports our transformation into an increasingly patient-centric company. It is our aim to drive accelerated organic growth and continue generating value for individuals and healthcare systems.
Unlocking a Larger Playing Field as an Increasingly Patient-Centric Organization
Over the past years, we have been transitioning from a product-focused company to an increasingly patient-centric organization. This shift primarily focuses on chronic mobility categories, where individuals require lifelong solutions, as well as on those who have suffered acute injuries requiring short-term solutions. This transition presents opportunities to gain direct access to patients, payors, and providers while addressing a broader set of chronic mobility categories.
Growth Drivers
Patient Reach, Innovative Solutions, and O&P Value Creation are the three growth drivers that form the basis of Growth’27. These growth drivers address our ambition to become increasingly patient driven and to cater for the needs of individuals with chronic mobility challenges. In other words, they guide our strategic priorities within Prosthetics, Neuro Orthotics and Patient Care.
In Bracing & Supports, we will continue to drive growth in line with our “Bracing Simplified” strategy, by being a trusted partner for our customers through the delivery of a simplified and strong product portfolio.
Outlook
Guidance for 2025
Sales growth, organic
5-8%
6%
EBITDA margin before special items
20-21%
20%
For modeling purposes:
CAPEX as % of sales
3-4%
5%
Effective tax rate
23-24%
24%
Sales growth, organic
EBITDA margin before special items
For modeling purposes:
CAPEX as % of sales
Effective tax rate