Revenio Group Oyj

Good afternoon from sunny Finland, and welcome to Revenue Group Q3 earnings call. My name is Jouni Toijala, and I'm the CEO of Revenue Group, and with me here today, we also have Robin Pulkkinen, who is our Group CFO. I'm going to start first by going through the Q3 highlights, and then Robin is going to go more detailed to the financiers. So, Q3. So, an excellent quarter for us. Net sales 19.4 million euros, up to 22.7%. And what was really going strongly was the sales on fundus imaging side. So we managed to sell really well across all the markets, especially in Europe and in the United States. And it should be also noted that the Tonomir demand continued to grow well as well. Then if looking the profitability, so EBIT number in good shape, so 5.9 million euros. Of course, the percentages here are looking significantly higher than last year, and I think that it should be noted clearly that in last year's comparable numbers, we had 1.9 million cuticle impairment. So, please note that one. Then the cash flow, so 5.8 million, slightly down from last year, and there were a couple of things which were impacting to this one. So first the Okulo development activities reduced the comparable cash flow, and then also changes in working capital. And this is due to the investments that we have been putting in to actually increase the stock level because of the kind of a bit more riskier situation related to the components. And I think this is a familiar information for all. So if looking a bit more deeper to the growth drivers, so Imaging devices, especially the DRS Plus, plus the new product, so-called ADON ultrawide field. So they were selling really well across the markets. Then we have been also seeing now Q3 that the investments done towards the digital marketing, towards the brand. And then the channel integration after the Centerville acquisition, so those have been successful activities during the Q3. Then if looking at the data, so I think the good question is that is all of this growth pent up demand or not? And the answer is that we actually have been able to grow. actual market share by a couple of percentages, both in imaging devices and also in tonometer side. So from the product portfolio, product quality, product performance point of view, the offering what we now have on the table for sales, so it's actually looking really good. But with these words, I let Robin to go a bit more detailed through the finances, and then we have questions after that one. So over to you, Robin.

Thank you, Joni. If you want to switch the slide. One more. There we go. Thank you. So net sales, like you only went through, 19.4 million, up 22.7%. And for year-to-date, we reached 55 million euros in sales, up by roughly 33%. The FX has not played a very critical role for year-to-date numbers, so FX adjusted growth roughly 34% year-over-year. On the slide, we have some of the adjusted numbers also presented. So, if I go quickly through what we've adjusted here, basically for the current reported quarter, there actually is no adjustments. But for the Q3 last year, what Jouni also covered is that the Kuttika rata or impairment of 1.9 million has been added to the comparable EBIT number here. And then for the full year numbers, we've added in the Ocula one-time transaction cost that was paid out in the first half. So 0.7 million has been added to the EBITDA line and the EBIT line for this year. And then for last year, the same Kutika impairment has been added to the EBIT line. So something to take a note back from here, for example, the adjusted EBIT, EBITDA, we actually have been able to maintain the same level than last year, so 32.4%. Basically, the EBITDA has been growing in par with the top line. And same for EBIT, actually a slight improvement. So the adjusted EBIT, 28.5% compared to the 27.6% last year and 37% improvement. So I'm going to look into Q4. We mentioned this earlier. The second half last year was extremely good. Looking at the first nine months last year, our organic growth, so currency adjusted growth last year for the first nine months, 22%. And then we look at the comparable Q4. The growth was currency adjusted 36%. So the Q4 growth last year was half, 50% faster, half faster than kind of the first nine months of the year. For this year, our growth for the first nine months, like we said earlier, it's been currency adjusted 34%. So going into Q4, we are coming against some really tough comparable numbers. Also, for last year, to keep in mind that we have the contingent accrual release that was related to the Centerville transaction. So the last year, the comparable numbers also include the 1 million euro other income that kind of flows straight to the bottom line. Some of the key figures on a more graphic way. So no major changes in Q3 in the big picture. The cash is up 4.4 million from Q2. So end of Q3, we had 16.5 million euros in the bank. At the same time, the net gearing went from almost 15 down to 11.2 million. and also the equity ratio improved during the quarter from 57, a little bit over 57, to 64%. So basically our balance sheet remains very strong, and along with the other growth opportunities, it gives us the opportunity to also look at the options of inorganic growth going forward. On the ownership side, there has actually been some... more bigger changes in the kind of the largest owner. So the William Demant, they have increased their ownership. They roughly bought or invested worth 20 million into the revenue share. So on the top owner list, that's the biggest change worth mentioning. So the William Demant ownership went from, I think it was a little bit below 11% to now it's 12.3%. And the guidance, no changes to the guidance since August. So the guidance still is that the revenue groups exchange rate adjusted net sales are estimated to grow very strongly from the previous year and profitability is to remain at a good level without non-recurring items. And the COVID pandemic continues to cause uncertainty related to the markets. So the guidance remains as it's been earlier. And that's it from the financial side.

I think we'll go now to the questions. Yep. Thank you, Robin. So let's open the floor for the questions.