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Third party research

Vitrolife: Analyst - ABG

Vitrolife

This is a third party research report and does not necessarily reflect our views or values

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3% organic growth and improved margins
EBITDA down 2-5% for '23e-'25e
52-60% below historical multiples, but above sector peers


EMEA region shines in Q3

Vitrolife reported a solid set of numbers in Q3, with 2% organic sales growth, or 3% if adjusted for discontinued products, despite headwinds in the US related to Genetic services. The EBITDA margin improved to 33.9%, up from 32.3% in Q3 '22 (excluding a positive one-off). In the EMEA region, Vitrolife reported growth for all the three product types, with particularly strong growth for Technology products, which reported 44% organic sales growth. On the negative side, Genetic services in the US declined 15% in Q3. The decline is related to two particular tests, ERA and PGT-A tests. Management is taking action to remediate the decline seen in ERA tests. However, we see a risk that ERA revenues in the US will continue to weigh on sales growth over the coming quarters.
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