The producer of radiopharmaceuticals and supplier of advanced medical solutions launched the 2023 financial year with great impetus. In Q1 of the financial year (ended 31 December 2023) the Group grew sales by 89% to PLN 271.3 million. The Synektik Group’s normalized EBITDA in this period climbed 78% to PLN 53.1 million, while the net result moved up 82% to PLN 34.7 million.
The past quarter marked another successive period in which both of the Group’s business segments posted high double-digit growth rates measured by key financial parameters. The segment responsible for selling medical equipment and IT solutions and maintenance and measurement services achieved 92% top line growth in the past quarter reaching PLN 261.4 million and a normalized EBITDA level of PLN 53.1 million (+75%). The radiopharmaceutical segment wrapped up Q1 with 30% sales expansion reaching PLN 9.9 million (net of intragroup transactions), thereby growing EBITDA by more than 180% to PLN 4.1 million.
The beginning of the year saw rapid growth in the recurring revenues generated by the medical equipment and IT services segment linked to the supply of products and services under long-term contracts. In the past quarter the segment’s recurring revenues grew by 97% to PLN 42.2 million. Recurring revenues in the last 12 months as at the end of December 2023 totaled PLN 133.6 million versus PLN 75.4 million in the previous year (growth of 77%).
The growth in the segment’s recurring revenues is associated with the growing number of advanced therapeutic devices used by the health service, primarily the da Vinci surgical robots under the care of the Synektik Group. In Q1 of the financial year the Group supplied 12 da Vinci robots to clients in Poland and the Czech Republic thereby bringing up the number of systems under the Group’s care to 69 devices. In the past quarter the Group also sold the ZAP-X system used for stereotactic radiosurgery.
The more extensive utilization of the advanced therapeutical devices supported by the Synektik Group is a key driver of the segment’s recurring revenues. In the past quarter more than 2.1 thousand surgical procedures were performed using da Vinci in Poland, nearly double the number from the previous year. Nearly 2.1 thousand procedures were performed in the Czech Republic and Slovakia using da Vinci, up 42% from the previous year.
“Growing the Group’s recurring revenues is one of the goals in the company’s growth strategy. The investments made over the years to develop an offering of innovative therapeutical devices and popularize them on the marketplace have contributed to highly satisfactory operating and financial results. We are interested in continuing to develop this area of our business. The pillar underpinning it is predicated on long-term cooperation with leading medical centers in the region and supporting them as they provide top-notch health care”, reports Cezary Kozanecki, founder and CEO of Synektik.
In the Group’s radiopharmaceutical business, the first quarter of the financial year saw further rapid growth in revenues generated by selling the core radiopharmaceuticals used in PET-CT diagnostics. The sales revenue grew during the period under analysis by 62% to the record-breaking level of PLN 5.7 million. The sales of special radiopharmaceuticals rose in the past quarter by 18% to PLN 2.2 million.
“The growing size of the radiopharmaceuticals business is accompanied by higher profitability. We doubled the EBITDA margin measured as a percentage thanks, among other factors, to operating leverage and optimizing operating expenses in the past quarter, whereby we generated EBITDA in the amount of PLN 4.2 million”, remarked Dariusz Korecki, Vice-President of Synektik.
Recent months have also seen significant progress in the Group’s strategic project: developing a cardiac marker and bringing it to the market, namely an innovative radiopharmaceutical designed to perform myocardial perfusion imaging (MPI). Based on the results of the clinical research conducted thus far, the decision was made that further project work will be conducted solely using the particle to which all intellectual property rights and patent protection are held by the Synektik Group. At present, the Group is in the process of preparing to kick off the next stage of phase III of the clinical research on the marker in the United States in accordance with the assumptions confirmed as part of consultations with the U.S. Food and Drug Administration (FDA) as part of the Pre-IND meeting procedure.
