So far in H2, Demant has witnessed positive momentum/recovery across most hearing-related sub-segments. Particularly, Oticon More was able to gain market share in the VA channel and posted strong growth in the NHS as well. Although EPOS remained under pressure. 2021 adjusted EBIT guidance was increased marginally while top-line growth guidance was maintained. As our estimates are already on the higher side, we don’t expect any major changes and our cautious recommendation should be maintained.
Companies: Demant A/S (DEMANT:CPH)Demant A/S (DEMANT:CSE)
Demant’s management targets aggressive mid-to-long-term growth. Besides a recovery in Hearing Healthcare, to also benefit via the Oticon More launch, the growth prospects in Communications seem promising. Strong FY21 guidance was reinforced. As a result, our estimates should reset higher. However, considering that competition is head-on with Sonova’s Paradise and there could be some near-term business/margin challenges (as already guided for Communications), our cautious stance should be maintai
Despite the deceleration in communications, Demant reported a sales beat in H1, benefiting from the hearing aids market recovery, the robust traction for new products and reform-related tailwinds in France. Strong sales growth combined with cost savings led to significant margin expansion. Anticipating the release in pent-up demand, the FY21 outlook has been upgraded with hearing healthcare to lead the pack. However, communications is likely to shrink in H2 and continued investments into R&D and
Year-to-date, Demant’s organic revenue has grown faster than management’s expectations with strong demand for Oticon More and Philips HearLink leading to market share gains in Hearing Aids. Also, Hearing Care benefited from a continued market recovery and strong growth in Europe. Given the ongoing trend of vaccination, particularly in the US, management anticipates pent-up demand in H2 and thus full-year sales and profitability targets have been upgraded. Share buy-back amount has also been rais
Driven by the strong recovery in hearing healthcare market and robust demand for its communications solutions, Demant returned to growth in H2 20, though sales were below the normal level. Interestingly, strict cost management bolstered profitability as well. Assuming the hearing market normalises in H1 21, management has set ambitious but risky targets for FY21 – pent-up demand for hearing solutions and the recently-launched Oticon More should be the key growth contributors. The DKK2bn share bu
Companies: Demant A/S
Demant has launched a new product – Oticon More comes with an industry-first in-built Deep Neural Network (deep/ machine learning) which improves audiology performance. This is a multi-brand launch, allowing Demant to target a wider patient base and ensuring strong sales momentum into 2021. Nonetheless, given the stiff competition within the hearing aids industry, the new product is priced only marginally higher than the previous device as management’s focus is on market share gain.
Supported by pent-up demand, Demant’s revenue has continued its positive trend towards normalisation since mid-August and H2 revenue guidance has thus been narrowed – on easier comps, the wholesale business is expected to remain flat while retail is likely to grow in mid-single-digits. The structural cost-cutting initiatives are also delivering results and thus an EBIT outlook has been introduced. With rival Sonova and GN out with their latest product offerings, we await a similar announcement f
Demant’s H1 revenue declined 27% organically, though a recovery was visible towards the end of H1 on the back of pent-up demand. Management has guided for +5-15% revenue growth for H2 and the operating profit, which slipped into the red in H1 due to operational de-leverage, should also be back in the black. However, the reinforcement of lockdown restrictions, particularly in the US, and new lead generations continue to be the key risks.
Benefiting from the gradual re-opening of economies, conditions within the hearing healthcare market have improved and Demant is now operating at a 50-60% sales run rate (vs. 30% in May). Many European countries have seen a progression and the activity level has increased amongst independents. However, as Demant resumes commercial activities and ramps up operations, opex is approaching normalisation faster than revenue – the run rate now at 75-85% (vs. 60% in May) – and thus EBIT is expected to
Until mid-March, Demant reported double-digit organic growth driven by a robust product portfolio. However, COVID-19 led to the closure of hearing clinics across key markets, which severely impacted sales and profits. Currently, Demant is operating at a c.30% revenue run rate. Nonetheless, the fundamentals of the hearing aids industry are still intact and we should see a gradual recovery, which could spill-over into 2021. Until then, the headsets business, which is benefiting from the working-fr
An IT incident in September brought business to a standstill (for few days) and as a consequence, Demant’s FY19 financial performance was affected adversely – operating margin slipped to new lows. While the majority of the businesses have returned to normalcy, following the resolution of the IT issues, management still anticipates a minor spill-over effect in FY20. However, as Demant expands its product portfolio by introducing new rechargeable mid-priced products across brands, momentum should
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Today’s update reveals many of the challenges flagged in September have persisted. Alongside rising input/logistics costs, and volatile customer ordering, revenue guidance has been reduced by 10%. We have rippled a similar reduction through to FY22, leading to EPS downgrades of 27% this year and 38% next year. The company continues to look to 2022 with confidence, and maintains its medium term ambitions for profitable expansion.
Companies: Venture Life Group Plc
Venture Life Group has provided a trading update and details of changes to the company's board. While the recent acquisitions are integrating as planned, COVID-related challenges have persisted including pricing pressure, freight charges and Chinese sales. The company now expects FY21E revenues to be not less than £32m and we have moved our forecasts in-line with this guidance. Venture Life has also announced Dr Drummond and Mr Waters, Chair and CFO, respectively, will retire from the board and
OptiBiotix has announced the launch of a new sports nutrition product range, LeanBiome, which has been licensed to a leading global player in the beauty & nutrition market. The partner's new product line, containing LeanBiome, is scheduled to be rolled out from January 2022 in Europe and Asia and could be introduced in North America in due course. First orders worth £200k have been placed and the agreement is expected to generate a minimum of £1m in annualised recurring revenues to OptiBiotix. T
Companies: OptiBiotix Health PLC
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Interim results to 30 September were marked by a return to pre-pandemic sales levels for the core business, with revenues rising 81% to £5.7m, which included c.£1.2m of COVID-related revenues. An adjusted EBITDA loss of £2.4m reflected the incremental costs of gearing up to supply the DHSC with COVID-19 antigen tests, which did not materialise. With the contract with DHSC now having expired, focus turns to other commercial opportunities. The core Health & Nutrition EBITDA of £1.15m covered the c
Companies: Omega Diagnostics Group PLC
ECO’s overweight exposure to China continues to have a bearing on the short term outlook, with volatile pork prices impacting on demand and forward visibility. Whilst prices have rebounded strongly off their lows, stability is needed to restore the market to equilibrium. Trading in the rest of the world remains more positive and in line with expectations. After downgrading at the AGM in September, we push through further China-related downgrades, the net impact is -37% at the EPS level this year
Companies: ECO Animal Health Group plc
SkinBioTherapeutics has released its FY21A results for the 12-months to June 21. Calendar 21 has been a landmark year for SkinBioTherapeutics, capped by the launch of the company's first product, AxisBiotix-Ps in October. For FY21A, the pre-tax loss was c£1.5m versus our forecast loss of c£2.4m, which along with lower CAPEX, resulted in a stronger year-end cash balance of £4.6m than we had forecast. We believe the development of the two lead commercial pillars, SkinBiotix and AxisBiotix, is prog
Companies: SkinBioTherapeutics Plc
Interims results reflect the high level of Group corporate activity, but also a better performance on cash preservation with the Group incurring lower expenditure. In H1, focus was on evolving the business with a NASDAQ listing and the collective £23.8m (net) refinancing; in H2 attention turns back to the clinical pipeline. We await important topline efficacy Part A data from the Phase I/II of MRx-4DP0004 in asthma - a moment that may validate the live biotherapeutic approach in asthma. We also
Companies: 4d Pharma PLC
A positive AGM update from CVS this morning shows an excellent start to FY22, reporting strong 12.4% LFL sales growth. This reflects both the secular tailwind from a growing UK pet population and the continuing focus on optimal patient care/working-up of cases. The company does not comment on the CMA enquiry relating to a recent small acquisition. This is to be expected given the restriction terms under CMA guidelines. The transaction itself is not material in terms of scale. Importantly, the pr
Companies: CVS Group plc
NetScientific (NSCI), the international life sciences and sustainability technology investment and commercialisation group, has arranged an investment of $1m (ca. £0.75 million) into EpiBone Inc, a Life sciences portfolio company. EpiBone is an innovative regenerative medicine company developing a pioneering technology offering a transformational approach to personalised bone graft development for skeletal repair. NSCI's latest investment in EpiBone comprises $734k from its own balance sheet and
Companies: NetScientific plc
H1 EBITDA declined by 45% YoY, albeit this was slightly better than we had anticipated after the pre-close update in August. The beat was cost related (efficiencies/savings). There was a significant gross margin drag though and, while transitory in nature and diminishing in H2, this means further savings need to be realised to hit full year forecasts. This is our view and we retain a good level of confidence in next year’s forecasts. Having de-rated, valuation looks very undemanding now on just
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Hostmore plc (MORE.L) has demerged from Electra Private Equity PLC, and the shares admitted to the Premium Segment of the Main Market.. Hostmore is a growing hospitality business with its current operations focused on the American-themed casual dining brand, Fridays, and the cocktail-led bar and restaurant brand, 63rd+1st.
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Ashtead Tech, subsea equipment rental and solutions provider for the g
Companies: VAL ALNOV GMR
On track to meet FYApr22E profit forecasts, as investment in chronic condition management solutions accelerates
The digital clinical decision support company has announced its unaudited interim results for the half year ending 31 October 2021. Revenue for the six-month period has held well at £1,618,439 (2020: £1,716,424). Profit before tax is £21,427 (2020: £150,556) and profit after tax £137,352 (2020: £224,825). DXS finished the period with cash on hand of £543,000.
DXS commented that result
Companies: DXS International Plc
Novo Nordisk reported strong Q3 results, with growth again driven by the GLP-1 diabetes portfolio and launch euphoria for Wegovy (obesity drug). Interestingly, management upgraded its 2021 guidance for the third straight quarter. While the group continues to make sound progress in the diabetes market, with its ever-increasing global market share, lack of immediate growth catalysts beyond the largely mature diabetes market is a key impediment. Hence, our recommendation remains cautious.
Companies: Novo Nordisk (NOVO-B:CPH)Novo Nordisk A/S Class B (NOVO.B:CSE)
In Q2, Astra reported strong sales growth momentum, (again) driven by a strong showing in oncology, diabetes drug Farxiga and COVID-19 vaccine sales. Although there were some issues in R&I and CVRM. More importantly, at cost vaccine sales and mandatory VBP discounts in China weighed on profitability. While the profitability strain can sustain in H2 as well, one should find confidence from the robust potential of core pharma offerings and the addition of high-growth and excellent-margin Alexion,
Companies: AstraZeneca PLC