Vimian Group AB (publ)

Good morning, everyone, and welcome to Vimian's first quarter earnings call 2026. I'm Olle Taibach, Group CEO, and I will present the first quarter results together with our CFO, Carly Wansetterberg-Boudry. Q1 is always an active period for us at Vimian, with strong cadence of industry and client events. This provides an early read on customer sentiment, I get valuable feedback across our beef businesses, opportunities to engage with industry peers and so on. It's encouraging to see that the strong traffic booth, high engagement and the positive feedback I get from veterinarians from these events are also reflected in a strong start to the year with positive momentum across the group. Three out of four of our segments, specialty pharma, veterinary services and diagnostic, all deliver double-digit growth in the quarter, well ahead of global animal health market. We completed two acquisitions in the quarter, the diagnostic company Ivet in Italy and the innovative Danish clinic group Fauna. These two acquisitions will add in total around 10 million euros in annual revenues. This morning we also signed the acquisition of veterinary service business Vetsafe with revenues of 1.6 million euros. This marks the entrance into Ireland for our veterinary service segment. Our M&A pipeline going into 2026 is fruitful and we have a strong position as a natural home for ambitious entrepreneurs within animal health. Operational cash conversion remains strong in the quarter being above 70%. And on April 13th, we welcome Lutta Lundås, Tartun as head of Medtech, adding vast experiences running entrepreneurial businesses based out of the US. Turning into the quarterly numbers, we report 8% revenue growth and reached 116 million euros in revenues for the first quarter. We delivered strong organic growth of 9% ahead of the market driven by specialty pharma, veterinary services and diagnostics. 4% contribution from acquisitions and 5% negative impact from currency movements. Adjusted EBITDA grew 3% to 29.2 million euros or 8% adjusted for negative currency impact. Margin of 25.2%. given our plan investments to Diagrowth Kinetic and Orthopedics and new market entries within veterinary services. Going into specialty pharma, specialty pharma delivers a strong quarter across the board with double digit growth, improved profitability and strong cash generation. The organic growth of 10% was driven by double digit growth in three therapeutic areas, while the strongest contributions came from allergy and specialized nutrition, where growth was supported by key customer wins in the past months. We continued to execute our strategy of innovation, education and cross-sales and launched 17 new products and four new cross-sales initiatives in the quarter. We established a direct sales force in Switzerland and Finland and started to cross-sell our compounded pharmaceutical products in Scandinavia. Adjusted EBITDA grew 11% to 14.4 million euros or 15% adjusted for negative currency impact. Margin improvements improved significantly from 28.8 to 30.3% driven by operating leverage across the businesses. Moving on to Medtech, in Medtech we delivered 6% organic growth driven by double digit growth in our dental business and in our orthopedic businesses in Europe and APAC, where all markets deliver healthy growth. of our European orthopedic markets delivered all time high quarter and continue to strengthen our sales team and education teams in the region. In US orthopedics, we onboarded our new field sales force with a lot of focus on getting them ready and training and continue to drive sequential sales improvement in a challenging market. We attended several key congresses in the quarter, and continue to see our high-quality orthopedic brands enjoy a strong reputation in the global veterinary community. As previously communicated, we expect changes we have implemented in orthopedics to enable US orthopedics to return to organic growth later in spring. Adjusted EBITDA declined 2% to 11.9 million euros, or grew 6% adjusted for negative currency impact. The adjusted EBITDA margin was 27.1%, which is a strong sequential improvement driven by very strong performance in our belt of businesses in the quarter. Year over year, margin was impacted by geographic mix and our investments into orthopedics to strengthen commercial performance in particularly in the US where we are seeing effects of those investments. Two weeks ago, Lotta Lundås joined us as head of METRIC as well, and we have already felt the energy and experience she brings into the organization from building and scaling entrepreneurial organization, strong financial track record. Overall, being close to the method business up until Lotta joined us, I'm confident that we are on the right track to get our method business, and in particular, the US orthopedic business back on track. And we have the right people to continue strengthening commercial performance across the board. Before I move on to veterinary services, I would like to spend a few minutes using or highlighting the Medtech dental operation as a clear example of how we at VBM create global opportunities, combining M&A experience or expertise with operational excellence to build global living platforms and long-term shareholder value. In October 24, as you all know, Vinyan acquired IM3, making our entry into the veterinary dental niche. The companion animal dental market is both large and attractive, growing above industry average, and clinicians believe that this will be the fastest growing category at the veterinary clinic in the coming years. 80% of cats and dogs are affected by dental diseases, which makes the unmet need significant. At the same time, there's a clear structural gap. Dentistry typically receives only scarce attention in vet schools, and many clinics still offer limited dental services, despite strong clinical need and revenue potential. But growth in the segment is further driven by humanization of PET and increased demand from veterinarians to continue education in dentistry. For Vimya, bringing a successful entrepreneurial and fast-growing global platform like iM3, offering a wide range of services such as equipment, imaging, consumables, home care and software, allows us to create new touch points for us and gives us attractive growth opportunities. So looking at those growth opportunities or those new touch points, This can, for example, include targeted bolt-on acquisitions, such as we did with Dental Focus, deepening our U.S. imaging capabilities, and a la San Rosano's to expand our geographic reach and broaden the portfolio, taking a proven and innovative dental seeding product from one market, expanding it to the rest of the world. as well as doing strategic M&A or strategic investments or transformational investments like the acquisition of David AI, which leverages technology to improve workflow and embedding dental education into clinical routine. The more clinics continue to expand into dental services and deepen their knowledge of dental, our average revenue to clinic also increases given the broad range of services we offer within dental. While we currently remain in the early stages of this growth journey, I'm pleased to see the development we've had in the business post-acquisitions and some of the initiatives we've done since. Since IM3 joined us, we've established a multi-channel sales team, we've strengthened our consumable offering and loan subscription models, driving recurring revenues at good margins. We invested in a new warehouse facility, to facilitate growth and launched our first US-based education center. We launched a new successful dental unit called the Evolution Range. And on the back of the David AI acquisition, we launched a proprietary AI power imaging software systems. We are also clearly exploring cross-sales opportunities with the broader MedTech segment and have set up joint education initiatives or activities and shared facilities for orthopedics and dentistry. Since the acquisition, our dental platform has delivered double-digit revenue growth with expanding margins, and we are optimistic about the organic and main opportunities we have ahead in this space. Continuing to veterinary services, our globally leading veterinary service platform continues to show strength and again delivers double-digit organic growth, being 11% in the quarter. with continued momentum in member growth and conversion into higher tiers under now Michael's leadership. At the end of the quarter, we reached 11,400 members across four continents, and then adjusted EBITDA grew 3% to 4.8 million euros, with an adjusted EBITDA margin of 27.5%, given the strategic growth investments and temporary lower margins in some of the co-owned clinics. The demand of our services from both veterinarians and partners increases every day. And with today's development of AI, we see our ability to develop new and enhanced existing services to our customers at a faster pace than before. Last year, we shared that on the back of the successes we've had with the veterinary services, we were also planning to do additional investments, as you've seen in the numbers this quarter. by expanding into new markets and new services. Therefore, I would like to give some more insights into some of those market expansion investments. Firstly, we have since the second half of 2025 prepared our organic expansion into two new markets. One being Japan, unlocking a large market for veterinary services following the successful METIC launch Japan. In Japan, probably it's around, it's a top 10 market when it comes to animal health, depending on which numbers you look at, you could argue it's probably the fifth or sixth biggest market as well. And there's approximately 10,000 clinics in the Japanese market. And we expect to launch our Japanese operations in Q3, but we already have people on the ground as of today preparing for that launch in the market. We're also preparing to do adjacent market expansion by going into Portugal. We've had a very successful growth and momentum in our Spanish operations, so we see Portugal as a natural add-on to our Iberian footprint, leveraging the existing team we have in the territory and adding local skill sets and excellence. The Portuguese market has approximately 1,500 clinics, and we expect to launch in Q3 as well. Beyond our organic expansions, the team always looks into finding relevant companies in other markets to acquire, and we're very happy that this morning we signed an agreement to acquire VetSafe, the leading veterinary service organization on the Irish market. The Irish market has approximately 700 clinics, and VetSafe have approximately 150 clinics currently working together with them. This deal is expected to be completed in May. So on the back of these three initiatives, combination of organic and M&A, which is how we operate, we are now taking our veterinary service platform from 11 to 14 markets globally, unlocking long-term growth, and additional scale benefits. Moving on to diagnostic, diagnostic delivered double digit growth of 12% in the quarter, positively impacted by disease outbreaks towards the end of the quarter, mainly from the avian influenza outbreak in the US and blue tongue in Europe. On March 2nd, we consolidated the diagnostic business IVET, an important milestone to strengthen our companion animal offering and onboarding a strong entrepreneur and a strong team to our diagnostic team. Adjusted EBITDA grew 16% to 1 million euros and the adjusted EBITDA margin declines likely to 13.8% driven by product mix with higher level of extraction sales in the US. Looking ahead, we're excited about the opportunities to further strengthen our position in the attractive companion AMLO diagnostic market. From an M&A perspective, we covered that in the segment sections, but we've made three acquisitions here today and are advancing our M&A pipeline across the segments. We're very optimistic about looking at the pipeline we've generated and created and entered with it during 2026. And we truly feel that we are the natural home for entrepreneurial business leaders in the animal health sector. From a sustainability perspective, we continue to deliver our sustainability agenda in the quarter. On March 19th, we released our first CSRD compliant report. In February, we completed our biannual employee experience survey with high participation rate and further strengthening the employee experience scores. In March, we also completed our fourth cohort of Vimeo leadership development programs. In total, over 80 of our leaders have gone through one of these programs to develop and get to know colleagues across the world. In one of our largest production facilities in Italy, we installed solar panels during the quarter, covering the majority of the site's electricity needs and strengthening our resilience against grid volatility and rising energy costs. With that, that concludes the run-through of the quarter, and I will hand over to Kalle who wants deeper insights into the financials.

Thank you, Olli, and good morning, everyone. I'll dive straight into the results for the quarter. Adjusted EBITDA in the first quarter was 29.2 million euros, an increase of 3%. In constant currency, the increase corresponds to 8%. The adjusted EBITDA margin for the quarter equaled 25.2%, where the margin decrease compared to the same period last year is primarily a result of focused investments in medtech orthopedics to strengthen our commercial platform, as well as investments in new markets and services in our segment veterinary services. Central costs amounted to minus 2.9 million, an increase from minus 2.3 million last year. The increase is mainly a result of expenses related to our long-term incentive programs. In total, 0.6 million euro in the quarter. These are non-cash IFRS expenses that would recur for the duration of the three-year programs. We report an operating profit of 21.2 million euro, a significant 36% increase from last year's result of 15.6 million. Items affecting comparability decreased in a quarter compared to the same period last year and totaled minus 1.8 million euros. The majority of items affecting comparability relate to MedTech. This consists of minus 0.7 million in litigation costs in the US indemnification dispute and 0.5 million in acquisition costs. Acquisition related costs amounted to 1.1 million in total for the group. Net financial items amounted to minus 3.3 million euro and consisted of four main parts. Financing expenses of minus 3.1 million with an average interest rate of 4.1% during the quarter. A quarterly discounting impact of minus 1.3 million and positive impact of 0.2 million from probability adjustments related to contingent considerations. A positive impact of 0.9 million from exchange rate effects on the revaluation of debt. And lastly, The quarter was also burdened by a write-down of shares in associates amounting to minus 2.5 million. Income tax expense for the quarter was minus 5.3 million euro at an effective tax rate of 35%. In the quarter, the tax expense as percentage of pre-tax profit was negatively affected by the non-deductible write-down of the shares in associates together with other non-deductible expenses. In total, this results in a profit for the period of 10.1 million euro with an earnings per share of 2 euro cents for the quarter. Looking at the cash flow, the cash flow from operating activities amounted to 23.0 million, corresponding to a cash conversion of 73% for the first quarter. Cash conversion being measured as operating cash flow in relation to EBITDA. Networking capital amounted to 92.8 million euro at the end of the quarter, equal to 21% of revenue. a decrease from 96.6 million at the end of the fourth quarter, which equaled 23% of revenue. The majority of the 3.8 million decrease in working capital is relating to an increase in payables. Cash flow from investing activities amounted to minus 33.6 million, primarily consisting of acquisitions and earn-out payments. And cash flow from financing activities of 5.1 million euro from proceeds from borrowings. At the end of the quarter, net debt amounted to 258.4 million, up from 245.4 million at the end of the fourth quarter. Cash and cash equivalents amounted to 50.4 million, a decrease compared to 55.0 million at the end of December. External lending was 230.2 million at the end of the first quarter. This resulted in a leverage at the end of the quarter equal to 2.1x, which is an increase from 2.0x at the end of the fourth quarter, where we still remain well capitalized with an ability to execute and strengthen acquisition pipeline. With this financial review, I hand the word back to Ali for concluding remarks.

Thank you, Kaliwan. Vimeo is off to a good start to the year with double digit growth in three out of four segments and strong cash generation. We welcome three new businesses year to date and remain positive about the M&A opportunities throughout 2026 and beyond. All in all, we are well positioned with a robust strategy and continue to execute our organic and inorganic growth initiatives to build a global leader in attractive animal health niches. Thank you for your attention, and we now open up for Q&A.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Adela Dashian from Jefferies. Please go ahead.

Good morning, gentlemen. A couple of questions from me. If we can maybe first start on the MedTech development. Do you have any more color to offer on what the growth was in US orthopedics during the quarter?

Hi, good morning. Yes, the growth in US orthopedic was a slight decline given the current market situations, but we see a sequential improvement from the previous quarter.

Glad to hear that. And if that is the case, I mean, with the heavy investment pace, do you feel like this is necessary to keep up or at what point do you feel that it's time to maybe face it down a bit too. I guess once you're able to capture the market opportunities and so on.

I think the investments we're talking about in particular and what we've done is of course put together an outside sales team. that was in place in the beginning of the year. And as well, when you have a new sales team in place, it requires some training and education to get up to speed. So I don't believe we have so far gotten the full effect of the capabilities of the sales team in the US. There's a strong team in place, and I believe that with the measures we've taken into account as of end of Q4 and going into the quarter and what we've done in Q1, we are well prepared to bring back US orthopedics to organic growth later this spring.

Thank you. So with that being said, we should expect a normalization of the investment pace in the coming quarters.

Yes. Just to clarify, the investment is in people, so the investments we've done will remain from a PEX perspective, but of course we expect the revenues to increase as we move ahead.

Sure. Great. And then on diagnostics, there was some comments around mix affecting your profitability here. Could you maybe speak a bit more about them and how you expect that to proceed for the remainder of the year?

Yeah, sure. Morning Adela. So in diagnostics, and as you know, there's some volatility from quarter to quarter in the revenues as part of the business is driven by outbreaks. depending on sort of the regional mix and the outbreak mix, that's gonna have an impact on margins in the quarter as certain products we sell for certain outbreaks in certain regions carry a different margin profile. And that's what happened in the quarter from a mixed perspective where we enjoyed good revenue from outbreaks, but the mix was a little bit different, which impacted the margins in the quarter specifically.

Is there anything you can say about the mixed effect going into the second quarter?

I would say what happens with outbreaks is difficult to predict. And I would think about it as thinking from a normal margin perspective for diagnostics excluding the outbreak effect.

OK. Thank you so much. I'll step back into the queue.

The next question comes from Adrian Elmlin from Nordia. Please go ahead.

Hi, guys. Good morning. I think I have three questions. So you're mentioning here that you're going into Japan, right, through organic growth. It looks like it's a market of a total of 10,000 cleaners, so it's quite a lot. What costs are we talking about here when going into this market? I presume that it will take a time before you reach sort of segment average margins. How long do you think that can take? What kind of expectations do you have on the growth rates and also in the competition? Because I assume that Japan is a bit of a tricky country, right? At least for a lot of companies I've spoken to previously. But if I'm not mistaken, do you have any comments regarding Japan?

yes so good morning i think japan is an interesting market it's a market we looked into for a long period of time uh there are obvious differences in in the japanese market versus europe and so forth so we have invested in a local japanese team that will operate and run the business in the market it's a market we know well uh given the work we've done and actually the reason we chose japan besides size is that we have received a lot of inbound from both clinics and our partners that the model we offer and the value we bring is very relevant and would we consider entering that market? So I think it's a good opportunity for us and there is a demand, but the model we offer is new to the market, so it's something we will, if you call it, educate the market together with our partners. In terms of upcoming growth perspective, I think what we can say is we're going to launch in Q3. As always, we put a local team on the ground supported by our strong team based out of Stockholm. So it will take some time both to get the contract and the services in place and as well build up the member base going forward. Normally, I would say it takes approximately a year to a year and a half for us to break even.

Did you say break even or did I miss that? Yes. Okay, perfect. Thank you. Similarly, are there any comments you can give on the acquisition here entering Ireland regarding growth rates or margin contribution, etc.? ?

So the Irish business have a higher margin profile than the veterinary service average. It's a strong platform where the entrepreneur will stay on and continue to join together with us. And we believe that the strong local positioning Michael and the team has in Ireland together with the experience and all the value added services we can bring to the market is a very good match going forward.

Right. If the group margins or if the margins in Ireland is higher than the kind of segment margins, does that mean that the growth rates are slower than the average as well?

No, I wouldn't think about it in that way. And of course, the business in Ireland, we think it's a great platform for Ireland. It's a good combination to what we do. And we see that we can bring our, as Olle said, our knowledge, our experience, our service portfolio to the Irish market to drive continued revenue growth. The business in Ireland currently, from a size perspective, it's a good market for us, but it's not a huge market comparison to that family in total, or veterinary services in total. But yes, we do see good growth momentum, opportunities to continue in Ireland. And as I said, there is a margin profile that is higher than the rest of veterinary services, but given its size, it's not going to have, you could say, a significant impact on veterinary services margins going forward.

Right. Okay, very good. Thanks. Last question here, sorry for being kind of long. Regarding the US orthopedics recovery here in the spring, could you give us any guidance with regards to the growth rates here as well? Are we speaking like low single digit growth rates or expecting kind of a big push here in the spring?

I think there's two components. One, I think the team in place and the new leadership will continue to build momentum, but then there is a dependency on market dynamics as well. So the combination of the two of them would end up in a number. Given the current market, it's still fairly flat from Q1, if you look at April in particular. So we're expecting low single digits.

As we communicated also in the first quarter, we do see that we will get back to organic growth during later of spring this year. And we see that we'll start to get back to single digit organic growth for us to get back to double digit organic growth. That is our ambition. We need to start to see a market that this go back to growth trajectory again.

Very clear. Okay, thank you very much. I'll get back into the queue.

The next question comes from Kavya Deshpan from UBS. Please go ahead.

Good morning. Thank you for taking my questions. I have one on Spec Pharma and then one on MedTech, please. So on Spec Pharma, would you be able to explain what drove the strength in the allergy and compounding businesses, please? I think I heard you say it was key customer wins for Pax and Allergy. But it'd be great to get some color on the compounding business. And then related to that, would you be able to say what the one therapeutic area that didn't grow double digits, what that was, and if there's anything to flag there. And then just on med tech, so I was wondering if you could give us a bit more detail on this in the investment in the field sales force. So you have more people on the ground. Is the next step now more about training new GPs to perform these CCL implants? Is it about converting customers from your competitors or is the key approach about increasing utilization with your current customer base? And then related to that, are you looking to deploy price as a key tool? And is the increase in inventories this quarter, was that related to the strategic transformation or something else? Thank you.

Good morning. So let's start with the specialty pharma question. Positive from a specialty pharma overall perspective, we saw WD growth in three out of four therapeutical areas. So both allergy, US specialized nutrition and specialty pharmaceuticals showed WD growth in the first quarter. And for all those three therapeutical areas, you could say that the contributor driving double-digit growth was solid customer wins in late of last year, beginning of this year that contributed to good growth in the first quarter. And I said that goes across all three therapeutical areas that I mentioned. The one therapeutical area where we didn't see double digit growth was dermatology, but we did see high single digit growth in dermatology. So I would say it's still solid growth in our dermatology business. And the main reason I would say for slight difference also is because the geographical mix a little bit in the different therapeutical areas. But again, all in all,

good performance in all therapeutic areas and double digit in three out of four therapeutic areas thank you so moving on the map tech in terms of the the sales team i think what we as we spoke about it in in the last quarter we are moving in moving from our inside sales team to an outside sales team meaning we put people in territory And we're strengthening the sales team by adding more people to have a strong presence across the US. The reason we're doing that, of course, is to be much closer to our customers, being able to support them on a daily basis, and also be able to pick up feedback from them what they need and how we can support and drive their business going forward. Clearly, with this transition being implemented in the quarter, there is a ramp up, but I do believe we have a strong sales team in place. And as they learn our products, as some of them being new to the industry as well, get to know our customers and build their relationships with them over time, I believe sales will pick up on the back of that. The ambition, of course, is to do kind of all of the things you mentioned in terms of, you know, gaining market share, protecting and developing the businesses we have, but also get more GPs and more veterinarians understanding our products and moving to that space and recommending our procedures.

And apologies, just to make sure I get the question and as a result the answer, could you repeat your question regarding inventory?

Of course, just the increase in inventories, is that related in any way to the transformation or is that something else?

No, I wouldn't say that the increase in inventory is related to the transformation. If we look at the transformation, and I think To look at Medtech, and we have two different areas within Medtech, being dental and being orthopedics. Dental is performing very well and to cater for continued good growth, we're making sure that we have some necessary inventory to drive the continued growth. For the orthopedics business, I think our work will continue to make sure that we optimize inventory levels within Medtech. And as we discussed last quarter, we did continue part of the product portfolio as well. So that optimization of Medtech portfolio and the Medtech business within orthopedics continues.

Thank you very much.

The next question comes from Sten Gustafsson from ABG Sundahl Collier. Please go ahead.

Yes, good morning. So first of all, going back to that services, would it be possible, I mean, looking at these new markets in Japan, in particular with the 10,000 potential new customers given that you have, it was 11,400 today. Would it be possible to give us some sort of revenue potential for the new markets you're entering? I mean, midterm, not short term, but what kind of penetration rate should we think about there? And then secondly, going back to the MedTech division, if you could It remind me of how much of the total revenue for let's say 2025 is related to us orthopedic today.

So I can start with that services. So I think it's a bit. early to kind of give a revenue projection i think that the demand is there we get positive response from the clinics keys of course not just have as many members as possible you want to have engaging and member compliance rates being high to support what we do so it is still early stage as we said we're going to launch in q3 but we're happy with the team we have in place and normally We don't need to capture the full market to drive revenue growth and have profitability. So key for us initially is, of course, on the back of some key contracts together with our partners and the experience we have in building an independent community to explain the model to onboard members and start working together with them to enhance the daily operations into the clinic. But I think it would be a bit premature to indicate the revenue at this stage, although, of course, we do our math before we go into a market.

And then, Stian, your question regarding medtech and orthopedics was the size of US orthopedics in the medtech segment. So as you know, orthopedics is the larger part of medtech. compared to dental and US orthopedics is the largest region within the orthopedic space for us. In the quarter, roughly 60% of the orthopedics business related to North America and that in total is roughly 40% of the business for Medtech.

Okay, thank you very much.

The next question comes from Jonathan Onwin from Barclays. Please go ahead.

Good morning. Thanks for taking my question. I just want to come back to MedTech and think about whether you need to see a market recovery later in the spring to get to that low single-digit percentage growth, or whether you think you can get to that number just from the investments that you've made in the field service organization, i.e. by starting to take a bit of share. And if you do need to see an improvement in the market to get any growth in US orthopedics, what gives you the confidence that the market's going to improve given it's been flat for the last two quarters? That's my first question. And then my second question is on EBITDA growth. You grew 3% in the quarter, 8% constant currency. Do you expect that growth rate to improve throughout the year? And if so, what are the key building blocks to see higher EBITDA growth? to Q2 to Q4 and maybe to give some context around the contribution you expect from M&A versus organics on your expectations there. Thank you.

I'll start with Medtech. So we believe that on the back of our operational initiatives initiative that we can bring the business back to low signal organic growth later this spring, assuming the market remains where it is today, which is soft and fairly flat. uh if the market improves i think that would accelerate our effort if the market would substantially decline well of course that could have an impact on the business as well but we don't when we say we believe that the u.s orthopedics will return into organic growth later this spring it's on the back of organic initiatives we have implemented and are currently doing

And on the profitability growth, looking ahead and looking a little bit at the full year. So we are doing, as I said, conscious decisions or conscious investments, I should say, we've done in medtech, in orthopedics and also in veterinary services, as we've discussed. They've had some impact. on the margins, both looking at Q4 last year and Q1 this year, as we start to see some of the effects of these investments that we've made in terms of higher revenue, to all this point, we'll see sort of a gradual improvement or gradual ramp up of revenues, both in medical orthopedics and veterinary services. we believe that we will start to see, call it margin, normalize in those two segments, meaning that overall we'll start to see margins for the relation between revenue growth and adjusted beta growth being more correlating for the rest of the year. Having that said, and as we communicated earlier, given the investments that we've done now in the first quarter, we do not see that we will show any sort of significant margin improvement for the full year.

Okay, great. Thank you very much.

As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Arvid Nykatter from DNB Carnegie. Please go ahead.

Good morning and thanks for taking my questions. So the first one on spec pharma, I was just wondering if you're able to clarify, based on the current momentum and market environment that you're seeing, do you still believe you're on track to deliver double digit organic growth for the full year? And then sort of on the overall market sentiment, the consensus seems to be that the animal health growth market will grow with about mid single digits for the full year. But during the pandemic, dog ownership, of course, saw a significant uplift and some of your industry peers have now started to talk about a tailwind from this. So I was just wondering, do you expect that to be the case for your core franchises as well? And where do you expect to see the most meaningful impact over the next one to three years? I'll stop there. Thanks.

So morning, and I can start with especially Farman. We see a good momentum in the business. As we discussed, we've seen in the first quarter that we delivered double-digit growth in three out of four therapeutic areas, high single-digit growth in the fourth therapeutic area. We've seen in specialty pharma also that we delivered high single-digit or double-digit growth for a long period of time. We don't have any indications that the good momentum that we've seen in specialty pharma will will change for looking ahead and for the rest of the year.

Yeah, and on the second question, I think the services we offer and the products we have are well positioned to capture that potential growth. The trend is generally positive for us across all our segments, since many of the things we offer are typically or they become relevant later in a dog's life. For example, like orthopedic issues or allergies are often detected sometime into the pet's life. Same goes with dental problems, which tend to increase as the dog gets older and so forth. So from a general sentiment, COVID dog effect when it happens and if it happens will have a positive effect on our business as well, given the products and services we offer.

Great, thank you so much. I'll jump back in the queue.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Thank you all for listening in. I want to reiterate how I started. Vemian is often a good start of the year with double-digit growth in three out of four segments. We have strong cash generation, and as you see, our M&A pipeline is becoming more fruitful. We're super happy onboarding the three acquisitions year to date. And we look forward to continue growing and developing the Vimeo business into a leading player within animal health. Thank you very much.