BONESUPPORT HOLDING AB ((SE:BONEX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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BONESUPPORT HOLDING AB’s recent earnings call conveyed a generally positive sentiment, underscored by notable sales growth and successful product performance, particularly in the U.S. market with CERAMENT G. The company demonstrated robust cash flow and strategic advancements, such as the publication of the CeraHip study. However, these achievements were somewhat overshadowed by currency impacts, challenges in key markets like Germany and the UK, technical disruptions during the call, and declines in certain product sales.
Strong Sales Growth
BONESUPPORT reported impressive net sales of SEK 294 million, marking a 24% increase compared to Q3 2024, and a 34% rise at constant exchange rates. This growth highlights the company’s successful market strategies and expanding presence.
Successful CERAMENT G Performance
The U.S. market showed strong traction for CERAMENT G, with sales reaching SEK 192 million for the quarter. This success was driven by both new account acquisitions and increased usage among existing customers, indicating a solid foothold in the market.
Publication of CeraHip Study
The publication of the CeraHip study marks a significant milestone for BONESUPPORT, paving the way for market penetration efforts in the revision arthroplasty segment. This development is expected to enhance the company’s market position.
Robust Cash Flow and Position
The company reported strong cash generation, with operating cash flow reaching SEK 71 million, leading to a healthy cash position of SEK 379 million at the end of the quarter. This financial strength supports BONESUPPORT’s strategic initiatives and growth plans.
Positive Market Developments
BONESUPPORT benefited from a 6% increase in CERAMENT relevant DRG codes by CMS for orthopedics and the finalization of the NTAP for CERAMENT G in open trauma, which are expected to support future growth.
Currency Impact on Sales
The depreciation of the U.S. dollar against the Swedish krona significantly impacted sales figures, affecting the reported growth despite strong underlying performance.
Challenges in Germany and the UK
The company faced persistent market contraction and disruption in Germany, along with a slow recovery in the UK due to healthcare backlogs, which negatively impacted sales performance in these regions.
Technical Issues During Call
The earnings call was marred by multiple technical difficulties, which interrupted the flow of information and may have affected stakeholder perceptions.
CERAMENT BVF Sales Decline
Sales of CERAMENT BVF experienced a slight decline of 2% year-over-year in constant currency, indicating challenges in maintaining growth for this product line.
Tariff Impact on U.S. Costs
Newly introduced tariffs in the U.S. are expected to impact costs, with the full effect anticipated by 2027, posing a potential challenge for future profitability.
Forward-Looking Guidance
BONESUPPORT maintained its guidance for over 40% sales growth for the full year 2025 at constant exchange rates, reflecting confidence in its strategic direction. The company also highlighted the significant potential of the CERAMENT platform and announced plans for a Capital Markets Day in 2026 to provide a detailed strategic overview.
In summary, BONESUPPORT HOLDING AB’s earnings call painted a picture of strong financial performance and strategic progress, particularly in the U.S. market with CERAMENT G. While the company faces challenges from currency impacts and market-specific issues in Germany and the UK, its robust cash position and forward-looking strategies position it well for future growth.