Demant’s management targets aggressive mid-to-long-term growth. Besides a recovery in Hearing Healthcare, to also benefit via the Oticon More launch, the growth prospects in Communications seem promising. Strong FY21 guidance was reinforced. As a result, our estimates should reset higher. However, considering that competition is head-on with Sonova’s Paradise and there could be some near-term business/margin challenges (as already guided for Communications), our cautious stance should be maintai
Companies: Demant A/S (DEMANT:CPH)Demant A/S (DEMANT:CSE)
Despite the deceleration in communications, Demant reported a sales beat in H1, benefiting from the hearing aids market recovery, the robust traction for new products and reform-related tailwinds in France. Strong sales growth combined with cost savings led to significant margin expansion. Anticipating the release in pent-up demand, the FY21 outlook has been upgraded with hearing healthcare to lead the pack. However, communications is likely to shrink in H2 and continued investments into R&D and
Year-to-date, Demant’s organic revenue has grown faster than management’s expectations with strong demand for Oticon More and Philips HearLink leading to market share gains in Hearing Aids. Also, Hearing Care benefited from a continued market recovery and strong growth in Europe. Given the ongoing trend of vaccination, particularly in the US, management anticipates pent-up demand in H2 and thus full-year sales and profitability targets have been upgraded. Share buy-back amount has also been rais
Driven by the strong recovery in hearing healthcare market and robust demand for its communications solutions, Demant returned to growth in H2 20, though sales were below the normal level. Interestingly, strict cost management bolstered profitability as well. Assuming the hearing market normalises in H1 21, management has set ambitious but risky targets for FY21 – pent-up demand for hearing solutions and the recently-launched Oticon More should be the key growth contributors. The DKK2bn share bu
Companies: Demant A/S
Demant has launched a new product – Oticon More comes with an industry-first in-built Deep Neural Network (deep/ machine learning) which improves audiology performance. This is a multi-brand launch, allowing Demant to target a wider patient base and ensuring strong sales momentum into 2021. Nonetheless, given the stiff competition within the hearing aids industry, the new product is priced only marginally higher than the previous device as management’s focus is on market share gain.
Supported by pent-up demand, Demant’s revenue has continued its positive trend towards normalisation since mid-August and H2 revenue guidance has thus been narrowed – on easier comps, the wholesale business is expected to remain flat while retail is likely to grow in mid-single-digits. The structural cost-cutting initiatives are also delivering results and thus an EBIT outlook has been introduced. With rival Sonova and GN out with their latest product offerings, we await a similar announcement f
Demant’s H1 revenue declined 27% organically, though a recovery was visible towards the end of H1 on the back of pent-up demand. Management has guided for +5-15% revenue growth for H2 and the operating profit, which slipped into the red in H1 due to operational de-leverage, should also be back in the black. However, the reinforcement of lockdown restrictions, particularly in the US, and new lead generations continue to be the key risks.
Benefiting from the gradual re-opening of economies, conditions within the hearing healthcare market have improved and Demant is now operating at a 50-60% sales run rate (vs. 30% in May). Many European countries have seen a progression and the activity level has increased amongst independents. However, as Demant resumes commercial activities and ramps up operations, opex is approaching normalisation faster than revenue – the run rate now at 75-85% (vs. 60% in May) – and thus EBIT is expected to
Until mid-March, Demant reported double-digit organic growth driven by a robust product portfolio. However, COVID-19 led to the closure of hearing clinics across key markets, which severely impacted sales and profits. Currently, Demant is operating at a c.30% revenue run rate. Nonetheless, the fundamentals of the hearing aids industry are still intact and we should see a gradual recovery, which could spill-over into 2021. Until then, the headsets business, which is benefiting from the working-fr
An IT incident in September brought business to a standstill (for few days) and as a consequence, Demant’s FY19 financial performance was affected adversely – operating margin slipped to new lows. While the majority of the businesses have returned to normalcy, following the resolution of the IT issues, management still anticipates a minor spill-over effect in FY20. However, as Demant expands its product portfolio by introducing new rechargeable mid-priced products across brands, momentum should
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Cambria Autos has left the AIM following a takeover.
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Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive and susta
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Full-year results were in line with the trading update of 21 July, with revenues of £31m (-2%), reflecting the impact of COVID-19 on out-patient procedure rates, resulting in 14% and 24% declines in adjusted EBITDA and pre-tax profit, respectively. Lower than expected procedure growth rates and the decision to discontinue non-core (non-chlorine dioxide products) reduces forecast revenues by c.£3m to £33m in FY 2022. However, higher gross profit and tight control of costs (+6%) results in an unch
Companies: Tristel Plc
TMT Acquisition (TMTA.L) has joined the Main Market (Standard) pursue opportunities to acquire businesses in the technology, media and telecom sector. Raised £5m, mkt cap £5.5m.
NMCN Plc has left the Main Market (Premium) following the appointment of administrators.
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Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive
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IXICO has provided an upgraded trading statement for FY21E following its previous update in August 2021. Revenues are now expected to be £9.2m (vs £8.7m previously), broadly in line with FY20A, which we see as a strong result given the pandemic and Huntington's Disease (HD) trials de-scope. EBITDA is expected to be materially ahead of FY20A's £1.3m, supported by strong Q4/21 trading, cost control and positive one-offs. The company has ended FY21 with a strong order book (£18.8m) and cash positio
Companies: IXICO Plc
SEAL Advisors working in partnership with Oberon Capital is pleased to announce the publication of a briefing note on the MyHealthChecked plc.
The Future of Personal Health Care
Agile and responsive leadership has delivered a competitive array of MyHealthChecked branded COVID-19 testing products in a very short period of time
Over the past 12 months the company has been transformed from loss making and cash consumptive, to a high-growth, cash generative business
On the basis of repo
Companies: MyHealthChecked PLC
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions yesterday announced it has entered into a partnership with Tabula Rasa HealthCare® (TRHC) (NASDAQ: TRHC), a healthcare technology Company advancing the field of medication safety. Through this initiative, Physiomics' personalised docetaxel model will be integrated into TRHC's market-leading precision dosing solution, DoseMeRx®. Both parties expect positiv
Companies: Physiomics Plc
Today’s prelims are in line with management’s expectations with losses before tax in the period of £30.3m (vs. £29.4m prior year). Post-merger, 4D pharma is clearly a different beast with access to the largest global capital market for Pharma/Biotech, and supported by £25.2m (net) proceeds from corporate activity. The company has cash runway until Q2 2022 and is well placed to successfully execute its clinical development strategy with multiple shots on goal. Primary focus is on MRx0518 with two
Companies: 4d Pharma PLC
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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SkinBioTherapeutics has announced it will launch its lead commercial product, AxisBiotix-Ps on World Psoriasis Day, 29 October 2021. To support the launch, the company has begun to receive, and store finished product in the Netherlands (close to its manufacturing partner) ahead of initial launches in the UK and US. Clearly the launch of its first product is a significant step for SkinBioTherapeutics, marking the transition from development company to commercial operation. We are encouraged by th
Companies: SkinBioTherapeutics Plc
Synairgen reported interim results to 30 June in which the adjusted net loss was £32.8m with period-end cash of £46.2m. Substantial pre-commercial progress and manufacturing activities have made in the half, although slower country approvals for trial sites will result in Phase III data readout slipping into Q1 2022. With increasing evidence of the need for a broad-spectrum antiviral delivered to the lungs and recognition that vaccines don’t provide complete protection against hospitalisations d
Companies: Synairgen plc
ANGLE reported an adjusted net loss of £7.2m (+58% vs. -£3.2m), with establishment revenues increasing 26% to £0.3m and costs rising 48% to £8.9m, reflecting the costs of opening its pharma services business and clinical laboratories in the US and UK. Net cash at 30 June was £21.0m, with a further £18.9m (net) placing proceeds after period-end. Evidence of momentum building within pharma services, backed by confirmation of three contract wins and multiple ongoing discussions (some of which are w
Companies: ANGLE plc
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Conduity Capital has left AIM.
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Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segm
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The current situation in the CDMO arena looks a bit like an arms race and Lonza seems to have firm plans to be part of it. The recently updated mid-term guidance is the explanation to do so, in our view. Management is strongly dedicated to staying with the extraordinary high EBITDA margin for the coming years.
Lonza’s hybrid investors day was well attended in Zurich, in which we participated.
Companies: Lonza Group (LONN:VTX)Lonza Group AG (LONN:SWX)
The positive market research results for Eroxon®, released this morning, provides further support for the company’s ongoing partnering efforts. We continue to believe that MED2002 is a differentiated product with significant potential in both prescription and OTC markets, and look forward to further PK data followed by Phase III start in H1 2018.
Companies: Futura Medical plc