The MEDICREA Group (Paris:ALMED) (FR0004178572-ALMED) listed on Alternext by NYSE Euronext Paris, a medical device company specialized in the development of innovative surgical technologies for the treatment of spinal disorders, is publishing its 2010 audited annual results approved by the Board of Directors held on March 31st, 2011, and its 2011 first quarter sales.
IFRS 2010 Annual Results
Business growth +39% in 2010 and improved gross margin
In 2010 MEDICREA had annual sales of €18.2 million, a rise of 39% compared to prior year. This strong growth is due to the sales increase of the three distribution subsidiaries selling directly to hospitals and clinics (United States, United Kingdom, and France). MEDICREA USA sales came to nearly $12 million in 2010, compared with $8 million in 2009. The Group's gross margin reached 75%, compared with 69% in 2009. This six-point improvement is the result of continued development on the US market and better leverage of manufacturing output capacity at the La Rochelle site.
Strong reduction in operating losses
Because of its business growth and strongly improved gross margin, MEDICREA was able to lower its operating losses significantly and to generate slightly positive operating income in Q4 2010. For the entire year, the operating income of the three distribution subsidiaries was positive, and Group EBITDA reached €1.2 million, compared with a loss of €0.6 million in 2009.
In a context of steady growth, the working capital to sales ratio decreased significantly, to 27%, compared with 41% a year earlier.
Record growth in Q1 2011
Sales in the first quarter came to €5.2 million, compared with €3.4 million in Q1 2010, an increase of 52.5%. Sales reached a record high in March of €2.4 million. Sales of MEDICREA USA rose 68% (85% taking into account currency effects), and represent nearly 50% of Group activity for the quarter.
2011 outlook
Denys Sournac, Chairman and Chief Executive Officer, commented, « The Group has passed a milestone. We were largely profitable in terms of EBITDA in 2010, and the operating breakeven point was surpassed on several occasions during the second half of 2010. Sales growth in 2011 should continue the trend of the first quarter, remaining solid and at least at the level of 2010. Consequently, operating income should be positive for the financial year. In 2011, MEDICREA will pursue development of the PASS LP® thoraco-lumbar fixation system, with the launch of a mini invasive, percutaneous version. The Group will also present a series of innovations and new products at the Eurospine professional trade fair in Milan in October 2011, which will greatly enhance the current product range.