(AOF) – DMS announces a net profit group share of 3.9 million euros in the first half, “driven by the strategic refocusing of the group”, compared to a net loss of 4 million a year ago. The specialist in high-performance digital medical imaging posts an EBITDA of 1.9 million euros, or an EBITDA margin of 9.0%, compared to 7.7% in the first half of 2022. The group confirms its 2023 objective a turnover of 40 million euros, an expected growth of more than 12.5% (on a comparable basis), associated with an increase in profitability.
The group specifies that its two branches of activity contributed to growth in the first half, with an acceleration in bone densitometry.
The Radiology activity increased by 8% to 16.6 million euros and represented 80% of turnover (compared to 84% in the first half of 2022). The contract signed with Fujifilm Healthcare for the delivery of 96 RF (Radio/Fluoroscopy) radiology tables in Italy began as planned during the second quarter.
The Osteodensitometry activity increased by 46% to 4.2 million euros, now representing 20% of turnover (compared to 16% in the first half of 2022). The commercial dynamic continues, driven by export sales and the recovery of the Asian market post-pandemic. As a reminder, DMS Imaging is the third global player in the bone densitometry market, which constitutes a strong vector of growth for the group.
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According to the Federation of Specialized Trade, Procos, in October 2022, activity fell by 1.5% year-on-year. However, the activity of beauty and health (+ 5.2%) and specialized food (+ 3.5%) are dynamic compared to October 2021. Attendance at points of sale was very impacted by the problems fuel and unfavorable weather. Compared to October 2019, a pre-covid year, the drop in attendance is very sharp (-20.9% in October). Shopping centers and the outskirts are more impacted than city centers with a gap of four to five points.
There are several reasons for concern for the future. The players are experiencing a very significant jaws effect given the increase in their operating costs while the evolution of demand is very uncertain. Very few brands can pass on the increase in their costs in sales prices. The federation therefore asks, among other things, to limit the indexation of the Commercial Rent Index to + 3.5% for the rents of all companies in 2023. It also invokes an absolute emergency: cap the price of energy for 2023 and retroact on contracts already signed to prevent the rate of failures from accelerating.
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Biotechs put to the test
These companies are suffering from a much less favorable economic cycle, which is reflected in particular by a drop in venture capital financing of start-ups. These companies are therefore obliged to carry out layoff plans. Added to this is a much more restrictive regulatory framework. First, in the United States, measures linked to the Inflation Reduction Act (IRA) could have a strong impact on the margins of stakeholders. Indeed, from 2026, the federal Medicare program will be able to renegotiate the price of drugs marketed for nine years (chemical) or 13 years (biological), with discounts that could range from 35 to 60% for biotechs. Likewise, in Europe, with the new drug regulations presented in Brussels in April, the duration of patent protection will be reduced if the innovative treatment is not marketed in all member countries within two years.