Business Concept, Goals and Strategy
Vitrolife’s goal is to be the leading provider of solutions that reduce the time to achieve a healthy baby and improve workflow efficiency and control for IVF clinics.
Business concept
Vitrolife's business concept is to develop, produce and market advanced, effective and safe products and systems for assisted reproduction.
Business goal
Vitrolife’s goal is to be the leading provider of solutions that reduce the time to achieve a healthy baby and improve workflow efficiency and control for IVF clinics.
Strategy
Vitrolife has identified five strategic focus areas to reach this goal:
- Scalable global organisation and way of working focusing on attractive culture and sustainable capabilities.
- Strong sales and support channels that can offer customised solutions.
- Competitive and complete portfolio with leading support and service offering.
- Innovative research and development as well as efficient manufacturing and efficient processes.
- Take advantage of external growth opportunities such as collaborations and acquisitions.
Financial objectives
Vitrolife’s Board of Directors considers that Vitrolife should have a strong capital base in order to enable continued high growth, both organically and through acquisitions. Vitrolife targets profitable growth. The objective for Vitrolife’s growth over a three year period is an increase in sales by an average of 20% per year in local currencies, with an operating margin before depreciation and amortisation (EBITDA) of more than 30%. The Group’s net debt in relation to EBITDA should normally not exceed three times.
Achievements of financial objectives
Sales growth
During the last three year period, Vitrolife’s sales have grown both organically and through acquisition by an average of 14 percent per year in local currencies. The pandemic affected the IVF market negatively. The acquisition of Igenomix in 2021 contributed to Vitrolife’s sales for one month. The objective of 20 percent growth per year is defined as growth measured in local currencies organically, and through acquisition, as an average over three years. Growth in 2021 exceeded the target, while annual growth during the last three-year period is below the objective.
EBITDA Margin
In 2021, the operating margin before depreciation, amortisation and impairment (EBITDA) was 32 percent. EBITDA adjusted for acquisition-related non-recurring costs came to 38 percent. Vitrolife’s objective is to have EBITDA-margin higher than 30 percent. The Group, thereby, reported a operating margin for 2021 that exceeded the objective.
Net debt / EBITDA
Net debt in relation to EBITDA grew in 2021 to 3.2 times (-2.1). The net debt increased as a result of the acquisition of Igenomix. Net debt in relation to EBITDA adjusted for non-recurring acquisition-related costs is calculated as approx. 2.7 times. Vitrolife’s strong financial position enable financing of future acquisitions.
