Annual report 2022

— Business review — Financial review

medmix Dental: 1-component system 5mL cartridge

Financial review

Resilience and growth in 2022

medmix closed the financial year 2022 with a revenue of CHF 477.1 million, an increase of 5.7% compared to the previous year, despite significant geopolitical headwinds. All segments delivered accelerated revenue growth except for the Industry segment that was impacted by the closure of the plant in Poland. Profitability was adversely impacted by global cost inflation, where we successfully secured price increases but with some time lag, and the significant additional costs arising from our Industry mitigation plan. Overall, we delivered 22.1% adjusted EBITDA margin, down from 25.0% in 2021. We generated free cash flow of CHF 10.3 million in 2022, heavily impacted by the Industry market segment volume shortfall and additional one-off costs of the mitigation plan resulting from the Polish sanctions and higher inventory levels and capital investments to ensure compensate for minimal supply chain disruptions.

If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.


“Our employees demonstrated resilience, resourcefulness and customer centricity to deliver 6% growth and 22% profitability during a turbulent year impacted by geopolitical events and the erroneous sanctioning of our Polish legal entity.”

Jennifer Dean

Chief Financial Officer

Revenue growth and commercial success despite geopolitical headwinds 

In 2022, medmix delivered revenue of CHF 477.1 million, an increase of CHF 19.8 million (5.7% organically) compared to the previous year. Without the impact of the Poland shutdown (circa CHF 30 million) year-on-year growth would have been circa 11.8%.

The Healthcare business area grew 9.2% to deliver CHF 184.9 million in revenue, capitalizing on the recovery in scheduled treatments and elective surgeries. Our Dental market segment grew 5.8% to CHF 125.1 million as demand normalized after the COVID-19 recovery. Our Drug Delivery market segment recorded CHF 47.0 million revenue, an impressive growth of 21.4% derived from product and project sales. The Surgery market segment revenue grew 1.3% to CHF 12.8 million, with strong tissue bank sales growth compensating the impact of overstocking of a key customer in the prior year. The Healthcare business now represents 38.8% of medmix’ revenue, up from 37.1% in the prior year.

The Consumer & Industrial business area grew 3.6% to deliver CHF 292.3 million in revenue. Our Beauty market segment showed strong growth as expected, increasing 18.6% to CHF 144.1 million, as the restrictions in retail and travel due to COVID-19 were lifted and product launches resumed. Our Industry market segment was impacted by the temporary headwinds generated by the sanctions on our factory in Poland. Revenue was down 8.2% to CHF 148.2 million after an impressive start to 2022 that indicated high single digit growth would be achieved.

Business area gross profit impacted by Polish sanctions

The business area gross profit margin was 45.7% in 2022, a decline of 250 basis points versus the previous year, driven primarily by the impact of the sanctions on our Poland legal entity and cost inflation due to geopolitical uncertainty.

The Healthcare business area gross profit margin was stable year-on-year at 61.0% due to successful prices increases to compensate for cost inflation and improvements in operational efficiency.

The Consumer & Industrial business area gross profit margin was 36.0%, down 470 basis points. Price increases were secured in both segments to address cost inflation. The decrease is driven by higher costs in the Industry segment resulting from mitigation actions to address the loss of production in Poland.

Profitability impacted by geopolitical events

medmix delivered profitability of 22.1% adjusted EBITDA margin in 2022, a good result given the headwinds we faced, although 290 basis points lower than the previous year. Geopolitical events and uncertainty lead to global cost inflation, for which secured price increases were slightly lagging in time. Mix in the second half was somewhat unfavourable. The primary driver of the decrease, however, was the higher costs incurred to relocate production and ensure that we continued to serve our customers despite the unforeseen and immediate cessation of production in Poland.

Bridge from operating income (EBIT) to adjusted EBITDA

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Operating income (EBIT)


















Impairments on tangible and intangible assets












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Non-operational items 1)






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1) Non-operational items include significant acquisition-related expenses, gains and losses from the sale of businesses or real estate (including release of provisions), and certain non-operational items that are non-recurring or do not regularly occur in similar magnitude. In 2022, CHF 30 millions of non-operational costs are related to the sanctions on our Polish plant in the form of additional costs to relocate production and deconsolidation of the entity from the consolidated financial statements.

Adjusted EBITDA margin

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Financial income and expenses

Interest expenses on borrowings and lease liabilities were CHF 6.5 million, down from CHF 8.1 million in 2021 as a result of the group establishing new funding arrangements after the spin-off from the Sulzer group. Other financial expenses amounted to CHF 1.6 million in 2022, compared to CHF 0.5 million in 2021.

Income tax expenses

The effective income tax rate in 2022 is 5.1%, compared to 14.3% in 2021. The lower income tax rate in 2022 is mainly the result of tax-deductible impairments of foreign subsidiaries, partly offset by deconsolidating the net assets of medmix Poland. Without the effects of foreign subsidiaries impairments and deconsolidating the net assets of medmix Poland, the effective income tax rate would have been 14.2%.

Key balance sheet positions

Total assets as of December 31, 2022 amounted to CHF 1’105.9 million, an increase of CHF 131.5 million.

Non-current assets decreased from CHF 634.7 million in 2021 to CHF 617.0 million in 2022. Purchases of property, plant and equipment of CHF 36.4 million and higher lease assets of CHF 5.9 million were more than offset by depreciation (CHF 28.8 million), amortization (CHF 20.8 million) and the deconsolidation of medmix Poland (CHF 20.0 million). Negative currency translation effects on non-current assets amounted to CHF 21.7 million.

Current assets increased by CHF 149.3 million to CHF 489.0 million, mainly due to higher cash and cash equivalents (CHF 103.7 million). Besides regular cash flow generation and investing activities, the increase in cash and cash equivalents is also the result of higher borrowings after drawing the revolving credit facility in the amount of CHF 150.0 million. Inventories increased by CHF 12.6 million to secure supply availability for our customers despite the unforeseen cessation of production in Poland. Trade accounts receivable increased by CHF 31.1 million driven by 5.7% higher revenue.

Equity amounted to CHF 504.8 million in 2022, compared to CHF 533.9 million in 2021. The dividend distribution of CHF 20.5 million, currency translation differences of CHF 11.9 million, acquisition of treasury shares of CHF 6.1 million and remeasurement of defined benefit plans of CHF 4.7 million reduced equity. Net income for the year added CHF 11.6 million to equity.

Non-current liabilities increased by CHF 6.9 million to CHF 330.0 million. The main driver were higher borrowings of CHF 8.0 million, higher lease liabilities of CHF 4.7 million linked to the new Healthcare site in Atlanta, USA, partly offset by lower deferred income tax liabilities of CHF 3.5 million and lower income tax liabilities of CHF 1.7 million.

Current liabilities increased from CHF 117.4 million in 2021 to CHF 271.1 million in 2022. The increase is mostly related to higher borrowings since the group drew the syndicated credit facility amounting to CHF 150.0 million in 2022 to secure liquidity for current and future growth.

Net debt increased in 2022 by CHF 45.8 million to CHF 156.7 million. Net debt to adjusted EBITDA ratio was 1.49 in 2022, compared to 0.97 in 2021.

Solid free cash flow generation

Cash flow from operating activities was CHF 47.6 million, down from CHF 87.3 million in 2021, mainly as a result of lower net income and higher net working capital. Net income was impacted by non-operational costs related to the sanctions on our Polish plant, in the form of additional costs to relocate production and deconsolidation of the entity from the consolidated financial statements. Higher revenues and securing lead times following the unforeseen cessation of production in Poland resulted in an increase in working capital. Trade accounts receivable increased by CHF 37.9 million and inventory grew by CHF 30.5 million.

Cash out from investing activities was CHF 57.0 million, mostly related to the purchase of property, plant and equipment (CHF 36.4 million) and the acquisition of subsidiaries (CHF 14.7 million). Deconsolidating medmix Poland resulted in a cash out of CHF 2.0 million.

Cash flow from financing activities was CHF 116.1 million, mainly related to net proceeds from borrowings of CHF 149.0 million. Dividends paid to shareholders amounted to CHF 15.0 million. The group further purchased treasury shares of CHF 6.1 million to cover its exposure related to share-based payment plans and paid lease liabilities of CHF 8.9 million.

Free cash flow in 2022 was CHF 10.3 million, a decrease of CHF 45.3 million from 2021, mainly related to lower operating cash flow.

Bridge from cash flow from operating activities to free cash flow

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Cash flow from operating activities






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Free cash flow (FCF)







In 2023, we anticipate continued revenue growth above market rates across all our segments. With demand expected to normalize as the post COVID-19 recovery continues, we target a 5% to 7% growth in revenue. Return to full capacity and a more normalized cost base in Industry and an improved revenue mix overall will result in an adjusted EBITDA margin of 23%.

With our new production facilities in Spain and the US and exciting investments in R&D, we expect an elevated capital expenditure level at 14% of revenue in 2023 (9% excluding the investment in Spain). For the financial year 2022, we intend to pay a dividend of CHF 0.50 per share.

Our medium-term ambition remains unchanged with revenue growing at a compound annual growth rate (CAGR) of 8% and an adjusted EBITDA margin of 30%, a target delayed in the short term by the closure of our site in Poland but reinforced in the medium term by our new set-up in Valencia. This increase in profitability will be achieved through an increased share of revenue in the Healthcare business area, which is expected to grow faster and with higher margins than the Consumer & Industrial business area, as well as an increase in operational leverage.

Our 2023 priorities:
Abbreviations and definition of alternative performance measures (APMs):

CAGR: Compound annual growth rate

EBIT: Earnings before interest and taxes

EBITDA: Earnings before interest, taxes, depreciation and amortization

For the definition of the alternative performance measures, please refer to the chapter alternative performance measures.