MEDACTA: Encouraging growth trend

The medical technology company MEDACTA presented its detailed business figures for the past year, confirming its top form. The orthopaedics company not only grew far faster than the market, but was also noticeably more profitable. The 16% increase in sales enabled the orthopaedics company to achieve positive economies of scale, resulting in a disproportionately high increase in earnings before interest, taxes, depreciation and amortization (EBITDA). Adjusted for extraordinary expenses, EBITDA climbed by +19.4% to a rounded EUR 160 million. The corresponding margin was 27.1%, compared to 26.3% in 2023. At constant exchange rates, the margin was 28%. MEDACTA clearly exceeded market expectations with both the already known sales and the operating margin. The bottom line is a net result of almost EUR 73 million, which is +54% above the previous year's figure. A dividend of CHF 0.69 per share is to be distributed, compared with CHF 0.55 in the previous year. MEDACTA is forecasting sales growth of +13% to +15% at constant exchange rates for the current 2025 financial year. The operating profit margin - also at constant exchange rates - is expected to be around 27%.

On March 7, MEDACTA also announced the acquisition of the American company Parcus Medical, a specialist in sports medicine and arthroscopy solutions. Parcus Medical is intended to increase MEDACTA's presence in the fast-growing US market for outpatient surgery centers. This will give MEDACTA access to global sales channels and customers. Last year, the company generated sales of around USD 16 million with 50 employees. Financial details were not disclosed. The solidly financed family business is in a phase of high investment: Production capacity at the two sites in the canton of Ticino is to be doubled by 2027/28. Our optimism remains high. Target price: CHF 159!