Press Release - Ad-hoc announcement pursuant to Art. 53 LR
Medacta Group SA reports strong revenue growth of 21.4% in 2021
- FY 2021 revenue increased to Euro 363.1 million, or 21.4% at constant currency (20.0% reported) vs FY 2020, with positive contributions from all business lines and geographies
- The growth was driven by significant carry-over and customer acquisition, in addition to normalization of surgical activities, which were limited by further pandemic restrictions throughout the year
- Innovation continued with 50+ new products registered in 1H before the new European Medical Devices Regulation fully entered into force
- New customer acquisition thanks to Medical Educations back to normal level with significant increase compared to 2019
- 150+ new jobs were added, including significant salesforce expansion
CASTEL SAN PIETRO, 20 January 2022 - Medacta Group SA ('Medacta', SIX:MOVE) announces today 2021 preliminary unaudited revenues.
Francesco Siccardi, CEO of Medacta, commented: 'I am very satisfied with the achievement of our revenue target, despite the headwind from Covid-19 throughout the year. The values at the heart of our culture allowed us to remain successfully focused on our long-term value creation strategy based on innovation, medical education, and healthcare sustainability. I would like to thank all our Employees for their commitment, resilience, and performance, and to our Customers and Suppliers for their collaboration and support in this challenging time.'
In 2021 innovation continued and over 50 new products across all our business lines were registered in the first half of the year before the new European Medical Devices Regulation fully entered into force.
NextARTM is our Augmented Reality Surgical Platform that empowers the surgeon's vision with real-time surgical guidance superimposed onto the operative field to make data-driven decision-making. At the end of 2021 all NextAR Platform applications for knee, shoulder and spine surgery were CE marked and FDA cleared. Currently all the applications are in Limited Market Release to build Reference Centre Network. NextAR is an innovative solution designed to improve accuracy and efficiency in surgical procedures, with low upfront capital investment and cost per case compared to other technologies. NextAR can be the optimal solution worldwide, and particularly for U.S. Ambulatory Surgery Centers ('ASCs').
In the Hip business line, we further enhanced the AMIS(R) (Bikini) technique. We expanded revision systems and, as new technologies, we introduced personalized solutions with 3D preoperative planning and intraoperative verification (MyHip(R) Planner and MyHip(R) Verifier).
In the Knee business segment, our focus on Kinematic Alignment (MyKATM), as part of our MySolutions Personalized Ecosystem, continued. We introduced SensiTiNTM hypoallergenic implants and new revision options, together with the MyKnee(R) R patient-specific solution. In Europe we introduced GMK(R) Sphere Cementless Femur and GMK(R) Efficiency single-use instruments further penetrated the market.
In the Shoulder business line, we introduced stemless and revision humeral implants, in addition to SensiTiNTM hypoallergenic implant options, and in our Sports Med business segment, we completed the knee product offering and enlarged our shoulder and hip solutions.
In the Spine business line, our focus on the MySpine(R) platform continued and we further expanded our minimally invasive procedural solutions.
In 2021 Medical Educations came back to normal level with significant increase compared to 2019. Decentralized marketing and educational activities proved to be very effective at engaging surgeons and supporting customer acquisition. We further strengthened our M.O.R.E. in Touch program, a series of webcasts including eLearning Classes, eLearning Centers, live surgery specimen demonstrations, and web-based 'Meet the Expert' events, hosted by Medacta TV. We launched a new platform for remote proctoring activities empowered by augmented reality. International travel and congresses, which restarted in June, were limited by further restrictions in December.
In 2021 more than 150 new jobs were added, including significant salesforce expansion.
Revenue Trend by Business Line and Region
In 2021 we had a positive revenue contribution from all business lines and geographies.
Revenue from our Hip products increased to Euro 179.3 million, or 17.8% on a constant currency basis; the growth was driven by the AMIS(R) strategy supported by the roll-out of new products.
Revenue from our Knee offerings were Euro 131.1 million, an increase of 24.8% on a constant currency basis; the good momentum was generated by Kinematic Alignment, Efficiency single-use instruments and the GMK(R) Sphere platform.
Our Extremities business line reported an increase in revenue of 35.4% on a constant currency basis to Euro 19.0 million; the growth was driven by the acquisition of new customers through the completeness of the Medacta Shoulder System, supported by MyShoulder(R) and NextAR personalized solutions, and the expansion of the Sports Med product offering.
Revenue from our Spine offering increased by 20.4% on a constant currency basis to Euro 33.8 million, driven by the expansion of MIS Platform and MySpine(R) offering that was enlarged to include new indications such as deformities.
All the business lines benefitted from significant salesforce and marketing expansion.
Below we report the 2021 sales break-down by product line:
|31.12.2021||31.12.2020||Reported Growth||Constant Currency Growth|
|* Extremities include Shoulder and Sports Med revenues|
In terms of geographic trend, revenue in Europe registered an increase of 21.2% on a constant currency basis to Euro 156.4 million. All countries registered a solid growth despite Covid-19 restrictions in Q1 and Q4.
Revenue in North America increased to Euro 109.2 million, or 21.9% on a constant currency basis, thanks to customer acquisition, salesforce expansion and increased activity level in ASCs, which was limited by hospital staffing shortages and Covid-19 restrictions.
Revenue in Asia Pacific grew by 17.5% on a constant currency basis to Euro 84.9 million, mainly driven by the attainment of new customers, despite pandemic restrictions in Australia in 2H.
Revenue in RoW were Euro 12.6 million, a growth of 50.3% on a constant currency basis, thanks to increased purchases from stocking distributors and the creation of new distributors in the Middle East and Latin America.
Below we report the 2021 sales break-down by geographic area:
|31.12.2021||31.12.2020||Reported Growth||Constant Currency Growth|
|* RoW includes all other geographic locations, including Middle East.|
These preliminary figures are unaudited and are based on management's initial analysis of operations for the period ending December 31, 2021 and are therefore subject to change. Medacta will announce its audited Full Year 2021 results on March 11, 2022.
Webcast Today at 3:00 pm (CET)
Medacta will present its preliminary unaudited top-line figures during a webcast today at 3:00 pm (CET). The call will be headed by Francesco Siccardi (CEO) and Corrado Farsetta (CFO). The conference will be held in English.
For participants to the conference call (slides only):
Dial-in numbers for conference call function only:
CH: +41 445806522
DE: +49 69201744220
UK: +44 2030092470
USA: +1 8774230830
2022 Financial Calendar
- 11 March 2022 Publication of 2021 Full Year results
- 19 May 2022 Annual General Meeting
- 15 July 2022 Publication of 2022 Half-year unaudited top-line figures
- 9 September 2022 Half-year results 2022
Medacta International SA
Gianna La Rana, Head of Investor Relations
Phone: +41 91 696 14 95
Medacta is an international company specializing in the design, production, and distribution of innovative orthopaedic products, as well as in the development of accompanying surgical techniques. Established in 1999 in Switzerland, Medacta is active in joint replacement, spine surgery, and sports medicine. Medacta is committed to improving the care and well-being of patients and maintains a strong focus on healthcare sustainability. Medacta's innovation, forged by close collaboration with surgeon leaders globally, began with minimally invasive surgical techniques and has evolved into personalized solutions for every patient. Through the M.O.R.E. Institute, Medacta supports surgeons with a comprehensive and tailored program dedicated to the advancement of medical education. Medacta is headquartered in Castel San Pietro, Switzerland, and operates in over 40 countries.
This press release has been prepared by Medacta Group SA ('Medacta' and together with its subsidiaries, 'we', 'us' or the 'Group'). The information contained in the press release does not purport to be comprehensive and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for, purchase or redeem any securities regarding Medacta.
This press release has been prepared by Medacta and includes forward-looking information and statements concerning the outlook for its business. These statements are based on current expectations, estimates and projections about the factors that may affect its future performance. These expectations, estimates and projections are generally identifiable by statements containing words such as 'expects', 'believes', 'estimates', 'targets', 'plans', 'outlook' or similar expressions. Although Medacta believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.
Alternative Performance Measures
This press release contains certain information that it refers to as 'constant currency', which is a non-IFRS financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. The Group believes that the reconciliations of changes in constant currency provide useful supplementary information to investors in light of fluctuations in foreign currency exchange rates. Furthermore, the Group believes that constant currency measures provide additional useful information on the Group's operational performance and is consistent with how the business performance is measured internally.