Revenio Group Oyj

Good afternoon from snowy Finland and welcome to Revenio Q4 and full year 2025 earnings call. My name is Jouni Toijala. I'm the group CEO for Revenio. And then with me, as always, we have Robin Pulkkinen here as a CFO. Plan for today is to go through the business highlights for Q4 2025 and then couple of highlights also from the whole 2025. And then we are going to go through recap regarding to the three-year strategy period, focusing on the strategy execution during 2025, and then Robin is going to take over and go through the financials for the Q4 2025, and then the whole year 2025, and then we'll finish up with the guidance for 26, and of course the Q&A at the end. Q4, net sales grew to 31.2 million, so reported growth 2.2%, currency-adjusted growth 8.6%. And if you think and go back for the Q4 from the region perspective, so Q4, US sales grew strongly and we received the all-time sales record in the USA during the December. Also strong growth in Europe, Middle East, Africa region. And if you look for the APAC, so a bit more similar trend during the Q4. For APAC as we had for Q3, so the sales was down year on year, but on the positive note, Now the tide bit turned and APAC started to perform a bit more better during the Q4 compared to the Q3. On the profit side, quite a lot of down. I think it's good to understand a couple of things regarding to the EBIT development and comparing to the last year. So we had a couple of bigger buckets here, which had an impact to the EBIT performance for the Q4. So the first one was related to the delayed price increases that cost on the bottom line about half a million euros, 2% on the GM level. Then we had roughly half a million non-recurring costs and then bit more increased costs on the FDA side. And then if you go back to the At 2024 Q4, so we had roughly currency tailwind about 860,000 euros, which then passed through also to the bottom line. But Robin is going to cover this one in more detail. But I think these things are just two. good to keep in mind. Cash flow, extremely strong, so a bit shy on the 16 million compared to the 10 million on the comparable quarter. For full year, more or less in the middle of the guidance, so currency adjusted net sales growth 9.1%, totaling to the 109.7%. million euros. Profitability in good level. And then perhaps a highlight from the 2025 links also to the cash flow. So strong cash flow ending up to roughly 30 million from the 23 million. And perhaps this is the right time to say a big thanks for all our customers. So they have been trusting us during the 2025 and then of course for all our partners and especially for the team. So I think the year 2025 was a good year for us in this turbulent market environment. Then a bit doing the recap. to the strategy and main drivers which have been driving our growth for quite many years and we don't see that tide changing at all. So even though that we have had turbulence in geopolitical environment also on the economical side, so the mega trends have been and they are going to support our growth also in the long run. People are aging, there's more lifestyle-related diseases, so really the need for care is growing globally as we are going to have more and more patients every day. And then if we compare to the amount of the available resources, so the gap is going to be widening. And where we have been seeing this one, especially during the 2025, is the pickup on our retina screening solution in general. and they are going to be there for sure for years to come. When we enter to the strategy period, We laid out four cornerstones. So the first one related to devices, which is here improve the quality of clinical diagnostics with targeted product innovations. Then we had the solution side, I say second, then sales and operations, and then the people part. So during 2025, we have been able to get the new products out in the market. First example is the Maya micro-perimeter. Then also on the solution side, the data management solution FDA cleared in the USA was launched during 2025 and now in first client installations. Then on the solution side, we have been really successful on rolling out the screening solution. It has been driving already during the 2025, our hardware sales, especially on the new segments where we haven't been before. And the good example is, and I think this is the first number what we are giving out. So even in the short period, we have now, even now live sites, more than 350 up and running and and in this stage, even more. And also the reporting or report volumes, so we have been doubling them during 2025. On the sales side, I think good year for the sales, so all product categories grew during 2025 in all regions, even in the APAC, if we take into account the strong Q1, which we had in APAC. And then, of course, ending up to all time sales record during the December in the USA. From the operations side, we were really well prepared to take the stock levels up because of the tariffs. So full on the money on that one. And then we have been able to increase also quality, product quality across all product categories. On the people side, we have been putting a lot of effort regarding to the leadership team development, sorry, leadership development in general. And then also we laid out the new product operating model during the second half 2025. And I think these all have been contributing our ability to maintain profitable growth during 2025. So if looking the priorities for the remaining part of 2026, so top three items here is of course to focus on the sales and marketing side. So we are going to put even more focus on that one in order to guarantee the sales growth also during 2026. Then we have been constantly investing to the R&D. So in our mind, we have a really compelling product portfolio also in the future on the tonometry side, also on final imaging and perimeter side and software solution side. So the key is to focus on those areas and get the new products out on time. And of course, topic what we have been discussing in in quite many earnings calls and there always have been quite many questions around the mna so that's that's going to be high on our agenda also in in the coming coming quarters but i think robin before giving speech to you so um We are starting a new strategy period early 2027. So we are planning to have a capital markets day during the fall 26. So keep eye on the more detailed dates. So we'll come back to this one. Over to you, Robi. Thank you, Jani.

So, let me run through the numbers a bit. So, like mentioned, the OD covered the sales 8.6 in the last quarter growth, FX adjusted, then 9.1 for the whole year. Basically, the sales didn't include any of those larger deals we're discussing at the end of Q3. None of those are gone or have been lost. So they're all still in the works and kind of looking quite promising going into this year for the company and from the sales point of view. The margin has been a surprise for the market clearly. The price increases were not fully implemented in the U.S. during the last quarter. You can see it clearly visible here. kind of ran out of the tariff-free inventory at the end of Q3. And the impact is here when you see that the price increases are not in. It really had an impact on the gross margin. Like we discussed earlier, though, we are increasing the prices to cover for the cost of the tariff. But basically, for example, if we add 1,000 in the cost of goods sold as tariff and you add 1,000 of revenue, it will have a lowering impact on the percentage, but the kind of euros should be covered by the increases. So if you have the tariffs running through, it will have a lowering impact on the gross margin, but it shouldn't be this low. So we're working on getting all those fixed now early this year. And looking at the ASP reports, we're seeing now signals or signs that the prices are going up in the U.S., and this will be hopefully fixed in the coming months. Basically, I don't think the price increases will maybe get us closer to 70, but that's probably more realistic level for the coming quarters as long as the tariffs are at the level where they are today. I'll get back to the profitability a bit more later. Basically, our earnings per share is slightly down for the year from last year. Net gearing, minus 13.3, so kind of in a very balanced sheet, in a very healthy situation. So I'll also have more slides on those to come. So the sales. So basically, some people have been wondering why the FX impact was so big in Joni also. mentioned that slightly there earlier, but the comparison period, we still, some of you are hopefully remember that end of Q24, we made some adjustments to the balance sheet where we reallocated, restructured some of the foreign currency balances into different parts of the balance sheet to kind of avoid having direct impact on the, or kind of revaluations hit to our top line. Last Q4 24 was the last quarter we still had those. And in that quarter, there was 860,000 euros of kind of FX adjustment to the top line from the balance sheet items, which basically flows through the whole P&L. So the comparison number, if you take those out, we take it out from the top line for reporting currency adjusted growth, but actually the same 860 also has a full role in the EBIT line. So I mentioned no larger deals, so really business as usual for the quarter. We left the guidance gap quite wide still at the end of Q3 with the assumption of the possibility to close some of those, but they didn't materialize yet, but we're still working on them and quite positive how things are looking. So, the profitability. So, basically, I explained the FX part. So, looking at why the revenue top profitability is down from the Q4-24. The FX had the 860K impact. Then we had clinical trial costs, which are half a million higher, which is related to the FDA Illume DRS Plus. So, the screening platform, FDA trials. Those are expected to continue into this year. We're still now in the pre-study phase. Based on the findings, then we'll kind of have a better understanding how the actual clinical trial is going to be done and what scope. So the full value or the cost is not fully clear yet at this point, but we're talking about above a million, definitely, most likely around one and a half million cost for this year. And those are hitting the P&L, so they're something we don't capitalize. So the price increase delays also had an impact on the profit. And then finally, we had the non-recurring costs during the quarter, basically related to negotiations and also other one-off projects. Going into 26, we've always been seen as a scalable company. If you leave out the FDA clinical trial costs, which are in one way one-off costs, our assumption or our expectation is that we are going to target to grow the top line faster than the other operating expenses. So kind of getting scale back to the bottom line. The balance sheet remains strong. There hasn't been any major shift here for the last couple of years. We had over 26 million in the bank at the end of the year versus a little bit more than 20 million a year earlier. The interest bearing debt was roughly 11 million at the end of the year. And same picture you can see here. So basically the net gearing coming down fast, driven by the strong cash generation. So the interest-bearing debt basically breaks down. So basically we have 5.8 million left of the bank loan we withdraw for acquiring CentraView. So basically six quarters of the down payment is roughly one million and a quarter. So next six quarters will be bank debt-free at least. And then the remaining part is the right-to-use liabilities, which are about five million at the end of the year. Cash flow, very strong, record high, almost 16 million within Q4, basically driven by efficient working capital management and then lower payments in tax than we had earlier. And then the dividends. So we've had a long trend of more than 10 years of paying a growing dividend. Now reading today's analyst reports in media, seems like mostly people have read it, or maybe it's AI doing some of the parts, but seems like the reports are stating that the dividend is 44 cents that is payable just as normal. If you read carefully what the board is proposing to the AGM, it's asking for authorization to decide separately on a dividend payment of up to 44 cents during this year. So what the intention or how maybe the investors should read it is that there isn't a chance that we will pay the dividend as normally after the AGM, but I'd say there's just as good of a chance that the dividend is paid after summer. It's maybe smaller than 44 cents or there could be no dividend this year. So that's just to kind of clarify, and hopefully those are being, I think some of the articles have been fixed already during the day. Shareholder side, not really any major changes. Demand ownership slightly increased, not much. The foreign ownership is up less than 1%, so the finish down, foreign up. And then looking at the top 10, list that's mostly the same as Swedbank and Le Financiere have fallen out and we have Case Capital and Handelsbanken that have come as owners on the top 10 list during the quarter. And the guidance, we expect the exchange rate adjusted net sales to grow 8-15% from the previous year and profitability excluding non-recurring items is estimated to remain at a good level. Thank you, Robin.

I think it's time for the questions.