Vimian Group AB (publ)

Hello, everyone. Welcome to Vimyang's second quarter earnings call. I'm Fredrik Ullman, CEO, and with me today, our CFO, Karin Setterberg. So today, we present another quarter with strong organic growth, 14%, and positive momentum across all segments. And our EBIT margin operating profit grew by 28%. We delivered 81.3 million euros in revenue and grew adjusted EBITDA by 15%, reaching 20.3 million euros. I'm especially proud to see how the team in diagnostics have navigated the past year's headwinds in COVID, and we delivered double-digit growth thanks to strong sales execution on the ground and innovation. We strengthened our underlying cash flow from operations and continuously strive to improve performance with the aim to deliver margin expansion in H2 as we gain leverage from our investments and we see some cost measures materialize. Our positive growth momentum continues and we see sustainable demand for animal health over the coming years. With that, I'd like to hand over to Kaliwan.

Thank you very much, Fredrik, and good morning, everyone. As Fredrik said, we continued our strong growth with 21% revenue growth achieving 81.3 million euro in revenue in the quarter. Organic growth was 14%, market performance in all segments. Acquisition contributed to the impact from currency movements of 2%. For the first six months, revenue increased to 169.4 million, and organic revenue growth was 13%. primarily driven by medtech and specialty pharma. to growth 13% in the first half, and there was no impact from currency movements. 15% to 20.3 million at the margin of 25.0%. The lower mark compared to the same period last year reflects the mixed effects from faster growth in US specialized nutrition, and investments to drive growth during this year we have seen a positive market development in all segments over last year overall we continue to see a stable or improving gross margin in a high inflation environment excluding impact from fast growth in u.s specialized nutrition gross margin increased by one percentage point in the quarter we have five Geographic footprint with Europe and North America accounting for approximately 45% of revenue. With our successful growth in the annual order program. As well, as the strong performance, especially in the U. S, we've increased our share of revenue from North America. With the recent acquisition of Australia, and we have also strengthened our business in Australia, and especially and veterinary services in the region. The strong development recorded in the last couple of quarters continues, and as of the second quarter, our performer revenue was 329 million euro. In 2020, we have more than tripled the business through organic growth and continuous strategic acquisitions. Revenue growth has also supported a strong profit increase. We have grown our profit ahead of revenue, almost quadrupling adjusted EBITDA to 86 million euros. We continue to actively drive several organic growth initiatives and synergies within and between our segments and acquired entities to support continued strong revenue and profit development. Back to you Fredrik for some further insights to the quarter and business update per segment.

Thank you Carl-Johan. So if we look at our segments, all four segments delivered above market growth as call you on said, and I will dive into the largest segment specialty pharma. The specialty pharma organic growth accelerated to 18% in the second quarter with strong growth across therapeutic areas and regions. We see exceptional performance in our US specialized nutrition driven by regional expansion within the US and the launch of new products. We grew adjusted the beta with 18% and the adjusted EBITDA margin is at 26.4%, primarily reflects the mixed effect from the strong growth in specialized nutrition. We continue to deliver on our strategic agenda, launching 20 new products during the quarter, taking the total for this year so far to 45. We are progressing our innovation projects and are preparing to establish direct distribution in Spain during the second half of the year. We made a small CapEx investment in a pharmaceutical manufacturing facility in Australia to strengthen our production footprint and gain access to additional sterile and non-sterile production capacity for the segment. To summarize, positive momentum continues with a very exciting product development and innovation pipeline in specialty pharma. Moving on to our second largest segment, MedTech. medtech we delivered eight percent organic growth in the second quarter despite the pull forward effect from the annual order program in q1 year to date we deliver 17 organic growth well ahead of the veterinary orthopedics market we see solid growth across regions with an acceleration in growth in this quarter in europe and asia pacific the adjusted beta grew with 13 percent and we continue to expand our margins to 28.4%. The rolling 12 months margin to adjust for the effective annual audit program is solid at 31.6% from 30.2% at the end of 2022, as a segment successfully integrates acquired companies and streamline the organization. Operationally, we continue to optimize the supply chain and have centralized warehouses in US, and Europe during the quarter. We implemented a new organizational structure with the clarified responsibilities and reporting lines to enhance efficiency and employee satisfaction. The quarter mark high level of sales and marketing activities and our strategy, sorry, our surgery trainings for veterinarians continue to be highly appreciated. We see solid demand for veterinary orthopedics across the globe and are excited about the development in Medtech. Moving on to veterinary services, we delivered organic growth of 9% in the second quarter with record level member recruitment, especially in our new markets where we now have over 600 clinics. In total, we have over 6,000 member clinics in 12 countries cementing our position as a leading veterinary service platform in the world. The adjusted EBITDA margin is at 26%, and that is the third consecutive quarter with margin expansion up from 22% in Q3 last year. We have in this quarter onboarded the VETR team in Australia, a GPO we acquired during the spring, and we're excited to now have a stronger platform in the region. We also continue to work on our digital platform, highland.com, and have during the quarter strengthened the digital tech team In summary, we see solid development in veterinary services as well. Moving on to diagnostics, the team has successfully navigated the past year's headwinds from COVID, and we deliver 16% organic growth in this segment, well ahead of the market driven by a team's strong sales execution and new product launches developed during the past years. We have solid growth across regions and product categories and are taking market The improved adjusted EBITDA margin at 24.3% reflects operating leverage and progress on our cost optimization program initiated last year, which will also continue to improve during the second half of this year. In the first quarter, we launched our new AI innovation platform, Oversight, to detect and analyze parasites among animals. The platform is being well received among veterinarians, and we see good ramp up in installations during the quarter. Going into Q3, positive momentum continues in diagnostics with healthy trading during the summer period. Handing over to you, Carl Johan, for more detail about our numbers.