Financial review

^{Unless otherwise indicated, changes from the previous year are based on nominal figures.}

“We significantly increased profitability despite lower revenues. Strong operational rigor and improved mix helped drive robust  margin and profit expansion fueled by our Growth and Efficiency program”

JENNIFER DEAN

CHIEF FINANCIAL OFFICER

Revenue generation

In the first half of 2025, medmix generated revenue of CHF 225.4 million, 6.5% lower year-on-year. Foreign exchange rate effects of -2.0% negatively impacted underlying organic volume growth during the period which stood at -4.6%. Compared to the second half of 2024, group revenues declined by 7.1% on a reported basis and by 5.1% organically.

Healthcare segment revenue grew strongly in the first half of 2025, with Surgery  and Dental growing well above market rates, partly offset by a decline in Drug Delivery.

Healthcare segment revenues increased by 6.2% on a reported basis and 7.5% organically, with the difference of -1.3% entirely due to foreign exchange effects.

Dental business unit organic revenue grew 10.1% year-on-year due to growth outside the historically strong impression material sector and overall stronger market conditions.

Drug Delivery business unit revenue declined by 4.9% organically as H1 2024 included some non-repeat project milestones due to close-out of a customer project.

Surgery business unit revenue saw a 26.1% organic increase. Our customer base is growing as we move our commercial and manufacturing base to Atlanta.

A continuation of the positive growth trajectory of the Dental and Surgery business units revenue is expected in the second half, at a more normalized level. The second source impact in the Drug Delivery business unit is expected to  partly offset this growth.

Consumer & Industrial segment organic revenue declined by 10.9%.

Industry business unit revenue reached CHF 63.5 million in the first half of 2025, organically 1.3% lower versus the first half of 2024. Sequentially, the Industry business unit delivered robust organic growth of 5.6% as we continue to deliver our full portfolio from our plant in Valencia and expand our greenLine offering. Management remains cautious of the global economic landscape and its impact on the Industry business unit.

Beauty business unit organic revenue declined year-on-year by 17.7% to CHF 73.8 million. The  negative organic growth reflects project delays and lower commercial activity in our business. In comparison H1 2024 saw Beauty’s highest half-year revenue in five years, where the business unit benefited from a high level of launch activity after the lifting of Covid restrictions. We expect this slower activity to continue in the second half. We have seen an increase in customer project activity in Q2 2025, which will provide revenue growth momentum in 2026. Additionally, medmix has accelerated decisive cost-out measures to adapt the cost base to business volume and protect profitability.

Revenue by business unit

January 1 – June 30

Segment gross profit

Segment gross profit, which does not include shared cost and cost absorption, grew by 1.6% to CHF 107.9 million, despite a decline in group revenues, delivering a strong segment gross profit margin of 47.9%.

Healthcare segment gross profit increased CHF 3.9 million, a growth of 7.5% year-on-year, in line with the revenue growth. Resulting segment gross profit margin was a strong 62.7%. Dental and Surgery segment gross profit margin growth was partly offset by the profit pressure from the Drug Delivery business unit as it remains in ramp-up mode, with more projects than commercial product sales.

Consumer & Industrial segment gross profit decreased by 4.0% year-on-year due to the impact of the decrease in Beauty volumes. Importantly, the segment delivered a robust gross profit margin of 38.3%, an increase of 370 basis points year-on-year, driven by operational efficiencies from our Growth and Efficiency program, driving margin expansion across both Industry and Beauty business units.

Segment gross profit margin

January 1 – June 30

Gross profit margin

Gross profit at the group level, which includes shared costs and cost absorption, improved by 2.4% year-on-year to CHF 82.5 million. Group gross profit margin therefore increased to 36.6%, up 320 basis points. This improvement was driven by the improved product mix, with higher Healthcare, especially Dental, better utilization of some of our production facilities and operational efficiencies through automation and leaner processes resulting in margin expansion in the Consumer and Industrial segment.

Operating expenses (OPEX)

OPEX was lower at CHF 66.8 million, reflecting the positive impact from our Growth and Efficiency program and strong cost control, helping offset the impact of the further ramp up of the Atlanta site.

Bridge from segment gross profit to operating income (EBIT)

January 1 – June 30

Profitability

Group adjusted EBITDA was CHF 44.9 million, a decrease of 2.5% year-on-year, with our Growth and Efficiency program more than compensating the impact on profitability of lower revenues. Adjusted EBITDA margin was 19.9% (+80bps), having grown sequentially for two consecutive halves, with 19.1% in H1 2024 and 19.2% in H2 2024.  The year-on-year and sequential improvement is primarily driven by the continuation of strong Dental volumes and operational efficiencies in Consumer and Industrial segment. Reported EBITDA was flat year-on-year at CHF 41.9 million. The EBITDA margin grew substantially by 120 basis points, from 17.4% to 18.6%. Sequentially, EBITDA increased 28.5% and EBITDA margin 520 basis points. EBIT increased year-on-year from CHF 12.9 million to CHF 15.7 million.

Bridge from operating income (EBIT) to adjusted EBITDA

January 1 – June 30

Adjusted EBITDA margin

January 1 – June 30

Financial income and expenses

Total financial income / (expenses), net, amounted to CHF -7.2 million, compared with CHF -6.2 million in the first half of 2024. The higher financial expenses are mostly driven by net currency exchange losses.

Income tax expenses

The effective income tax rate used for the reporting period is 19.0%, compared with 15.7% for the six months ended June 30, 2024.

Net income and adjusted net income

Net income increased by CHF 1.4 million to CHF 6.9 million from CHF 5.6 million in the prior period. Adjusted net income decreased to CHF 16.3 million from CHF 18.6 million in 2024.

Bridge from net income to adjusted net income

January 1 – June 30

Key balance sheet positions

Total assets as of June 30, 2025, amounted to CHF 952.6 million, a decrease of CHF 1.6 million from December 31, 2024. All balance sheet movements are compared with the year-end balances as of December 2024, unless stated otherwise.

As of June 30, 2025, non-current assets totaled CHF 684.3 million, reflecting a decrease of CHF 8.7 million. This decline was mainly due to a CHF 4.3 million reduction in goodwill, attributed to currency translation effects, and a CHF 8.5 million decrease in other intangible assets, mainly due to amortization. Additionally, the group reclassified CHF 8.0 million in non-current financial assets to current financial assets during the first half of 2025, further contributing to the overall reduction. These movements were partially offset by a CHF 7.5 million increase in defined benefit assets, supported by an improved funding status of the Swiss pension plan, and a CHF 5.3 million rise in lease assets resulting from new lease agreements.

As of June 30, 2025, total current assets amounted to CHF 268.3 million, reflecting a modest increase of CHF 7.1 million compared to CHF 261.2 million at year-end 2024. This growth was primarily driven by higher trade accounts receivable, which rose by CHF 7.5 million to CHF 51.3 million. Inventory also grew by CHF 3.8 million, reaching CHF 79.2 million. In contrast, cash and cash equivalents declined by CHF 18.0 million to CHF 100.1 million, largely due to the repayment of CHF 10.0 million under the syndicated revolving credit facility.

As of June 30, 2025, equity totaled CHF 430.5 million, representing a decrease of CHF 16.2 million. The decline was mostly resulting from declared dividends of CHF 25.5 million, currency translation losses of CHF 9.8 million, and the repurchase of treasury shares amounting to CHF 1.0 million. These negative effects were partially offset by a net income of CHF 6.9 million for the period, positive movements from cash flow hedges totaling CHF 3.1 million, and actuarial gains of CHF 7.3 million related to the remeasurement of the Swiss pension plan.

Non-current liabilities increased by CHF 6.3 million to CHF 350.9 million as of June 30, 2025, mainly due to a CHF 7.4 million rise in non-current lease liabilities, reflecting new lease agreements.

As of June 30, 2025, total current liabilities amounted to CHF 171.2 million, up CHF 8.3 million from CHF 162.9 million. This increase was mainly due to a CHF 8.8 million rise in trade accounts payable, which reached CHF 48.2 million. Current income tax liabilities increased by CHF 3.3 million to CHF 17.2 million, due to higher income before tax expense and timing differences in tax settlements. Current borrowings decreased by CHF 9.7 million due to the repayment of CHF 10.0 million (net) under the syndicated revolving credit facility. As of June 30, 2025, the syndicated revolving credit facility was undrawn, compared to CHF 10.0 million drawn as of December 31, 2024.

Net debt/adjusted EBITDA ratio

Capital expenditure

Gross capital expenditure in the first half of 2025 increased year-on-year by CHF 0.4 million to CHF 18.0 million. This was primarily driven by the ramp up of the production facility in Atlanta, USA.

Bridge to capital expenditure, net

January 1 – June 30

Cash flow

Cash flow from operating activities increased slightly to CHF 30.4 million in the first half of 2025, compared to CHF 28.6 million in the prior-year period. This improvement was supported by a CHF 1.3 million year-on-year increase in net income, as well as non-cash adjustments including depreciation, amortization and other non-cash items. In H1 2025, the group recorded a cash outflow of CHF 6.5 million related to higher net working capital, in contrast to a cash inflow of CHF 3.1 million in the same period of 2024, which benefited from a reduction in net working capital.

Cash outflows from investing activities totaled CHF 18.9 million in the first half of 2025, driven by net investments in property, plant and equipment amounting to CHF 15.5 million, and CHF 3.4 million related to the acquisition of intangible assets. In comparison, cash outflows from investing activities were slightly higher in the same period of 2024, totaling CHF 21.0 million as a result of higher investments in our new facilities.

Cash outflows from financing activities amounted to CHF 26.1 million in the first half of 2025. This included dividend payments of CHF 7.8 million to shareholders and CHF 2.0 million to non-controlling interests, as well as lease liability payments totaling CHF 5.5 million. In addition, current borrowings decreased by CHF 9.7 million, primarily due to the repayment of CHF 10.0 million (net) under the syndicated revolving credit facility.

The higher year-on-year cash flow from operating activities for the first half of 2025 and lower payments for capital expenditure resulted in a positive free cash flow of CHF 11.4 million, compared to CHF 7.6 million in the first half of 2024.

Bridge from cash flow from operating activities to free cash flow and adjusted operating net cash flow

January 1 – June 30

Outlook

Reference is made to the letter to the shareholders.

Alternative performance measures (APMs)

For the definition of the alternative performance measures, please refer to the medmix annual report 2024, chapter on alternative performance measures.

Abbreviations

EBIT: Earnings before interest and taxes

EBITDA: Earnings before interest, taxes, depreciation and amortization
ONCF: Operating net cash flow