Vimian Group AB (publ)

Q2 revenue was EUR 121.6 million, up 17% year over year, with 12% organic growth, 6% contribution from acquisitions, and a -1% currency impact. Adjusted EBITA was EUR 29.7 million, up 17%, and adjusted EBITA margin improved to 24.5%. Reported operating profit was EUR 22.3 million versus EUR 14.5 million last year; EPS was EUR 0.02; net profit for the period was EUR 8.8 million. Specialty Pharma revenue growth was 14% organically and adjusted EBITA was EUR 15.4 million with a 30.1% margin; MedTech grew 11% with adjusted EBITA of EUR 11.2 million and a 25.8% margin; Veterinary Services grew 10% organically with a 28.2% margin; Diagnostics had 7% organic growth and a 9% margin. Cash flow from operating activities was EUR 3.8 million, net debt was EUR 273.7 million, cash and cash equivalents were EUR 51.6 million, and leverage was 2.1x, unchanged quarter over quarter. Management did not give formal next-quarter or full-year guidance, but said it expects continued slow single-digit growth in U.S. Orthopedics in the second half and continued focus on organic growth and M&A execution.

CEO Alireza Tajbakhsh said the quarter reflected improved execution across Vimian’s three strategic focus areas, with double-digit organic growth, strong earnings growth, and margin improvement. He emphasized that performance was well ahead of the global animal health market and highlighted momentum across all four segments, plus four acquisitions closed year to date. His tone was confident and upbeat, while still noting that U.S. Orthopedics remains in a soft market and that M&A depends on finding the right targets at the right valuation.

CFO Carl-Johan Zetterberg Boudrie highlighted adjusted EBITA of EUR 29.7 million and margin of 24.5%, saying the margin improvement was mainly driven by MedTech Dental. He noted central costs of EUR -3.0 million, including EUR 0.8 million of LTI expense, operating profit of EUR 22.3 million, net financial items of EUR -8.0 million, and a 39% effective tax rate. On cash flow, he said operating cash flow was EUR 3.8 million, working capital rose to EUR 114.1 million or 26% of revenue due mainly to receivables and inventory build, investing cash flow was EUR -22.9 million from acquisitions and earnouts, net debt was EUR 273.7 million, cash was EUR 51.6 million, and leverage stayed at 2.1x.

Analysts focused on U.S. Vet Orthopedics growth, Dental versus Orthopedics margins, the Specialty Pharma sales campaign, M&A timing, and working capital. Management said U.S. Orthopedics should continue at slow single-digit growth in the second half, assuming market conditions stay unchanged, and that the business is benefiting from recent operational changes. On the Specialty Pharma campaign, management said the program was larger than last year and lifted Q2, while Q3 will face the comparison shift, and organic growth excluding the campaign was 9%. On working capital, CFO said the higher receivables were caused by a strong quarter-end finish and should normalize in Q3, not by the MedTech transformation.