Sorin: Solid quarter in a challenging environment
BUY, Fair Value EUR2.4 (+18%)
Sorin released a solid set of results of Q3 with sales at EUR180.3m (up 19% CER, +12.4% reported, guidance 18-20% CER). This was once again driven by a strong performance in Cardiac Surgery (66% of sales, 37.1% CER) with the former cardiopulmonary division (Heart Lung Machines, Oxygenators, Autotransfusion) growing double-digits with a very strong recovery in oxygenators and valves showing some signs of recovery. The Cardiac Rhythm Management division (34% of sales, -5.4%) continued to decline sharply but some signs of stabilisation were seen following the 7-8% decrease in H1. Regarding profitability, the EBITDA margin rose to 17.8% (up 120bp versus Q2) and net adjusted income was EUR15.7m demonstrating Sorin’s ability to expand margins. FY guidance is slightly adjusted down to 5% CER versus 5.5% previously, while net income should be in the high end of previous guidance. Reassuring publication, BUY maintained.
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