January 21, 2020

Medacta revenue up by 14%, with a strong revenue growth above the market in all regions and business lines

Press Release - 2019 Preliminary unaudited top-line figures

Medacta revenue up by 14%, with a strong revenue growth above the market in all regions and business lines

CASTEL SAN PIETRO, 21 January 2020 - Medacta Group SA continues to expand, achieving strong organic revenue growth significantly above market. The company realized 2019 preliminary unaudited sales equal to Euro 311M, with an increase of 14.0% over the prior year (11.4% on a constant currency basis).

'We are pleased with the full year results. We had a positive contribution from all product lines and a balanced geographic growth in all key markets' said Francesco Siccardi, CEO.

The Hip line continued to grow and benefit from the AMIS technique, while the integrated proposal of innovative implants, personalised MIKA approach and GMK Single Use Instrumentation sustained the strong Knee performance.

The Spine product line showed a nice acceleration in the second part of the year and a good full year performance. The patient-matched and minimally invasive solution, MySpine MIS MC, along with the successful refocus of the structure on the Medacta marketing approach, have been the key elements of this result.

In 2019 we completed the launch of our innovative Total Shoulder system, ended in December with the FDA clearance on the My Shoulder. Thanks to our comprehensive product portfolio and to a successful deployment strategy, we were able to achieve a very positive result in this product line as well.

Below we show the 2019 sales break-down by product lines:

(Thousand Euro)
31.12.2019 31.12.2018 Reported Growth Constant Currency Growth
Hip 164'125 153'039 7.2% 5.3%
Knee 111'749 96'060 16.3% 13.3%
Extremities* 9'747 3'820 155.1% 147.3%
Spine 25'265 19'691 28.3% 23.4%
TOTAL 310'886 272'610 14.0% 11.4%
* Extremities include Shoulder and Sports Med sales

We had a balanced geographic sales growth in all key markets. Europe registered a good growth, despite price pressure in some of our key countries. The US market realised an overall good performance and remains one of our strategic markets and a key focus for 2020. Asia Pacific delivered a strong result thanks to a fine tuned and well executed marketing strategy, capable to generate noticeable acceleration in the second part of the year.

In 2019 Medacta expanded in five new target regions with new distributors worldwide: Cyprus, Ecuador, Lebanon, Paraguay and Tunisia. This expansion in new markets contributed to sustain the acceleration in the RoW area.

Below we show the 2019 sales break-down by geographic area:

(Thousand Euro)
31.12.2019 31.12.2018 Reported Growth Constant Currency Growth
Europe 136'095 124'903 9.0% 8.0%
North America 95'507 80'148 19.2% 13.2%
Asia Pacific 66'935 58'274 14.9% 13.3%
RoW* 12'349 9'285 33.0% 30.8%
TOTAL 310'886 272'610 14.0% 11.4%
* Other includes all other geographic locations, including Middle East.

These preliminary results are unaudited and are based on management's initial analysis of operations for the periods ended December 31, 2019 and are therefore subject to change. The company expects to announce its fourth quarter and audited full year 2019 financial and operating results on April 6th.

Medacta's 2019 Preliminary unaudited top-line figures conference call will take place at 3:00 pm CET today. The event will be webcast live via this link. The audio webcast of the conference call will be available on our website.

The telephone conference can be accessed at:
CH: +41 445806522
DE: +49 69201744220
UK: +44 2030092470
USA: +18 774230830

PIN: 55202794#

Medacta Group SA
Corrado Farsetta, CFO
Phone: +41 91 696 60 60

About Medacta:
Medacta is an international company specializing in the design and production of innovative orthopaedic products and the development of accompanying surgical techniques for joint replacement, spine surgery, and sports medicine. Established in 1999 in Switzerland, Medacta's products and surgical techniques are characterized by innovation. Medacta is a pioneer in developing new offerings on the basis of minimally invasive surgical techniques, in particular its Anterior Minimally Invasive Surgery ('AMIS') technique for hip replacements. Medacta has leveraged its orthopaedic expertise and comprehensive understanding of the human body to develop the sophisticated 'MySolutions' technology, which offers surgeons highly personalized pre-operative planning and implant placement methodologies by creating advanced personalized kinematic models and 3D planning tools for use in hip, knee, shoulder and spine procedures.