Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenio Group Oyj (OHEL:REG1V, Financial) reported an 8.9% increase in net sales for Q3, reaching EUR23.9 million, with currency-adjusted growth at 15.1%.
- The company successfully launched new products, including the tonometer 500 and tono pro, which have received positive market traction.
- Revenio Group Oyj achieved regulatory approvals in China for several products, expanding their market presence in the region.
- The acquisition of Tiron Retina enhances their AI capabilities, allowing for better margins and control over business models.
- The company's net cash flow from operations for the first nine months was EUR14.1 million, a significant increase from EUR5.6 million the previous year.
Negative Points
- Operating profit decreased to EUR5.5 million from EUR6 million last year, impacted by currency headwinds.
- The CMS decision not to grant a reimbursement code for the home tonometer could affect sales growth in the US.
- FX impacts led to a drop in gross margin below 70% for the quarter.
- There were increased direct costs, including significant marketing expenses and higher personnel costs due to bonus accruals.
- The company faces challenges with FDA-related costs and delays in clinical trials, impacting future product launches.
Q & A Highlights
Q: Have you seen positive momentum in investment by P/E driven opticians despite not receiving larger orders yet? When do you expect these orders to materialize?
A: The status remains the same; we are receiving orders but not in large chunks. The sentiment is consistent, with orders coming in sporadically. We do not have a definitive timeline for when larger orders will materialize.
Q: Are there any changes to your outlook compared to the Q2 report?
A: No changes in outlook. The growth pattern has been consistent with expectations, with Q2 and Q3 showing good growth. Q4 is anticipated to be more challenging, similar to Q1.
Q: Has competition become more visible in the tonometer market, and has it affected pricing?
A: There has been no impact on sales or pricing from competitors. We remain vigilant, but the status is unchanged from Q2.
Q: What was the reasoning behind CMS's decision not to reimburse the Home 2 device separately, and how will this affect sales efforts in the US?
A: CMS stated that existing codes are sufficient, including training, renting, and analysis codes. We will continue our sales efforts as before, with key opinion leaders promoting the device.
Q: Can you explain the FX impact on your P&L and balance sheet that affected sales growth negatively?
A: The US dollar revenue is revalued year-to-date, affecting the top line. The balance sheet is revalued at the end of the quarter, impacting the FX adjustment line on revenue. It's a complex package with various revaluations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
