Vimian Group reported fourth-quarter results that slightly surpassed market expectations, with consolidated revenue rising 4% year-over-year to €109 million and adjusted EBITA increasing 6% to €26.1 million.
The company said it achieved 6% organic growth across all operating segments. Veterinary Services led on an organic basis with 10% growth, followed by Specialty Pharma at 6%, Diagnostics at 5% and MedTech at 4%.
On a margin basis, the adjusted EBITA margin expanded to 24.0% in the quarter compared with 23.4% in the same period a year earlier. Improvements were concentrated in Specialty Pharma and MedTech. Specialty Pharma's adjusted EBITA margin rose to 30.0% from 29.4% year-over-year, while MedTech's margin increased to 24.6% from 20.9%.
Conversely, margins narrowed in two other divisions where the company continued to invest. Veterinary Services' margin contracted to 26.6% from 32.5% a year earlier, and Diagnostics' margin decreased to 9.2% from 10.4%, with Vimian attributing the compression to sustained high investment levels in those units.
Breaking down revenue by business unit, Specialty Pharma generated €46.0 million, up 2% compared with the prior year. MedTech contributed €40.1 million, a 4% increase. Veterinary Services added €16.8 million, up 9%, and Diagnostics brought in €6.1 million, a 4% rise.
Vimian's quarterly performance reinforces the company's recent narrative of growth and margin expansion despite a notable decline in its share price year-to-date. The stock has fallen 17% so far this year, a contrast to the operating momentum reported for the quarter.
Clear summary
Vimian posted a modest beat on fourth-quarter revenue and adjusted EBITA, recording 6% organic growth across its businesses. Margins improved overall to 24.0%, driven by gains in Specialty Pharma and MedTech, while Veterinary Services and Diagnostics experienced margin contraction due to continued investment.
Key points
- Group revenue €109 million and adjusted EBITA €26.1 million, both slightly above consensus.
- 6% organic growth across segments - strongest in Veterinary Services (10%) and steady contributions from Specialty Pharma, Diagnostics and MedTech.
- Margin expansion to 24.0% overall, led by Specialty Pharma and MedTech; Veterinary Services and Diagnostics saw margins fall amid sustained investment.
Risks and uncertainties
- Continued high investment in Veterinary Services and Diagnostics could keep margins under pressure in those segments.
- The group's recent 17% year-to-date share price decline suggests market concerns that could affect investor confidence and access to capital.