Investing.com — Shares of Ambu (CSE:AMBUb) surged by over 13% on Friday, after the The medical device manufacturer revised its financial outlook for the 2024/25 fiscal year.
Ambu now anticipates organic revenue growth for the fiscal year to be between 11% and 14%, up from the previous forecast of 10% to 13%.
Similarly, the EBIT margin before special items is expected to reach 13% to 15%, compared to the prior estimate of 12% to 14%.
The improved organic growth forecast is primarily due to stronger-than-anticipated revenue performance in the Anaesthesia & Patient Monitoring segment, supported by price hikes and increased volumes.
Additionally, robust organic growth in the Endoscopy Solutions division, driven by sustained pulmonology demand and significant growth in urology, ear-nose-throat, and gastroenterology segments, further boosted the outlook, the Danish company said in a statement.
This momentum contributed to the 19.5% organic revenue growth recorded in the first quarter, up from 14.2% in the same period last year.
Ambu also flagged the positive impact of favorable currency movements, specifically the strengthening of the USD against the DKK.
This currency advantage, along with operational efficiencies, bolstered the EBIT margin to 16.1% in the first quarter, an increase from 10% a year earlier. Nevertheless, the company stressed that it would continue to invest in growth initiatives.
In addition to maintaining free cash flow expectations at DKK +500 million, the company reaffirmed its commitment to developing its single-use endoscopy market presence.