Ladies and gentlemen, welcome to the medmix half year results 2026 conference call and live webcast. I am Sandra, the Chorus Call operator. I would like to remind you that all participants have been in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to José Cascón, Chief of Staff to the CEO and Head of M&A. Please go ahead, sir.
Good morning, everyone. My name is José Cascón, Chief of Staff and Head of M&A at medmix. I am joined today by René Willi, our CEO, and Sven Luginbuehl, our CFO. In the interest of time, we will assume that you have read the disclaimer on this slide regarding forward-looking statements. With that, let me hand over to René to begin today's presentation.
Thank you, José. Also from my side, good morning, everyone. I am very pleased to present the half year 2026 results to you today. Sven will guide you through our financial performance. I will update you on our business review and on our strategy, as well as our near- and mid-term outlook. On slide four, you can see the highlights for the half year 2026. Despite a challenging market environment and revenues declining by 1.6% organically, we continued to improve profitability and we remain firmly on track to return to profitable growth. Adjusted EBITDA margin increased by 40 basis points year-on-year to 20.3%, within our guidance range of around 20%. This marks the fifth consecutive half- year of adjusted EBITDA margin improvement, underlining the consistent execution of our operational excellence and portfolio transformation initiatives.
Gross profit margin also improved by 120 basis points to 37.8%, driven by operational improvements, a stronger revenue mix, and disciplined cost management. Our strategy pivot towards Healthcare remains a key pillar of our transformation. Healthcare grew organically by 0.8%, driven by very strong growth in the Surgery business unit, as well as a solid growth in Dental, partially offset by Drug Delivery. We continued to strengthen our U.S. Healthcare footprint through the expansion of our Atlanta facility, increasing output significantly while improving cost and proximity and responsiveness. Superior customer experience, one of our imperatives. Our continued investments in innovation, co-development with leading Healthcare OEMs, and industrialization of our Drug Delivery platforms reinforce our position in attractive, high-growth, high-margin Healthcare markets and supports our long-term profitable growth ambitions.
In industry, we continue to focus on the operational improvements, portfolio optimization, customer co-development, and creation of a local for local hub in Atlanta. Growth was driven by our cartridges and mixer categories. In dispensers, we focus on the most differentiating solution, optimizing our portfolio. As a result, the business continued to deliver profitable growth and confirms the successful turnaround of the business unit. Innovation remains at the heart of our growth strategy. By working closely with customers, we continue to transform evolving markets' needs into differentiated solutions. Recent examples include FleXa in Dental and the new 400 mL 5:1 cartridge for key automotive applications in Industry, reinforcing our focus on customer-centric innovations and value creation. Overall, the first half of 2026 confirms that our strategic initiatives are delivering results.
We are strengthening our profitability, advancing our portfolio transformation, and continuing to build a stronger foundation for sustainable, profitable growth. On slide five, you can see the revenue development and key growth drivers across our business units in the first half of 2026. In our Healthcare segment, Dental revenues increased by 1.5%, continuing to grow above market rates despite the demanding comparison base. As a reminder, in the first half of 2025, Dental benefited from customer-driven acceleration of orders in anticipation of tariffs and a project milestone payment. Growth was supported by sustained demand for our cementation and restorative solutions, which more than offset the ongoing structural decline in impression products. Drug Delivery generated revenues of CHF 16.5 million, a decrease of 13.8% compared to the previous year. As anticipated, performance reflected the impact of a customer's second source strategy.
At the same time, we continue to strengthen our project pipeline, securing new opportunities and confirming strong market interest, particularly for high viscosity applications. I will discuss these developments in more detail later in the strategy part of the presentation. Our Surgery business delivered a very strong growth of 31.6% in the first half, supported by continued customer demand, the ramp-up of our Atlanta facility, and further progress in the insourcing activities. We also strengthened our position with both existing and new customers, leveraging our differentiated delivery and mixing solutions. In our Consumer & Industrial segment, Industry revenues increased by 3.6%, driven by strong growth in cartridges and mixers. We continue to execute our portfolio optimization program while advancing automation. Product flow optimization and insourcing activities, further strengthening operational performance and profitability. Revenue in Beauty declined by 9.2%, primarily due to lower volumes at GEKA, while Qiaoyi continued to grow.
Currently, order intake at GEKA improved during the period, supporting our expectations for a stronger second half. In parallel, we initiated restructuring and cost reduction measures to enhance competitiveness, streamline operations, and support future profitable growth. Overall, our Healthcare business continued to build momentum while the operational improvements implemented across Consumer & Industrial segments are contributing to stronger profitable growth and reinforcing the foundation for sustainable profitable growth. With this, I will hand over to Sven, who will take you deeper into the financials.
Thanks, René, and welcome also from my side. Let me now take you through our key financial metrics on slide seven. Despite lower volumes, we delivered further margin expansion in the first half of 2026. Group revenues declined by 1.6% organically, reflecting softer underlying demand, particularly in the Beauty business unit. Including a negative foreign exchange impact of 3.3%, reported revenues decreased by 4.9% year-on-year to CHF 214.4 million. Gross profit reached CHF 81.8 million, reflecting a modest decrease in absolute terms compared to the prior year. At the same time, gross profit margin increased by 120 basis points to 37.8%, driven by operational improvements, disciplined execution of our Growth and Efficiency initiatives, and a favorable product mix. Adjusted EBITDA was CHF 43.5 million, compared to CHF 44.9 million in the prior year period, reflecting the impact of lower volumes.
Despite this, adjusted EBITDA margin improved by 40 basis points to 20.3%, on track to deliver full- year guidance. Reported EBITDA decreased to CHF 38.0 million compared to CHF 41.9 million in the prior year, primarily reflecting restructuring costs related to the Industry dispenser and Beauty businesses. EBIT declined to CHF 10.6 million and was additionally impacted by related impairment charges. Operating net cash flow improved by CHF 4.1 million to CHF 19.4 million due to lower capital expenditure. As a result, free cash flow increased to CHF 12 million. Our net debt- to- adjusted EBITDA ratio improved to 2.36 x compared to 2.41 x in the prior year period, driven by lower net debt. On slide eight, you can see the half year 2025 to 2026 revenue bridge.
As already mentioned by René, within the Healthcare segment, strong performance in Surgery and solid growth in Dental was partially offset by a decrease in Drug Delivery. The C&I segment remained impacted by lower demand in Beauty, while Industry continued to build on its turnaround. Foreign exchange effect, mainly the weakening dollar and euro to Swiss franc, negatively impacted growth year-on-year, reaching a 4.9% decline on a reported basis. On the right, you see the percentage revenue contributed by our segments and business units. The contribution of our Healthcare segment has increased 1 percentage point to 41% compared to the previous year, while the Consumer & Industrial segment contributed 59%. Slide nine shows our half year Healthcare and C&I gross profit as well as gross profit margin year-on-year. Total gross profit decreased by CHF 1.4 million to CHF 81.1 million due to lower group revenues.
Despite the decrease in revenues, we delivered a strong gross profit margin of 37.8%, a year-on-year increase of 120 basis points. Healthcare gross profit increased by CHF 0.3 million and 140 basis points year-on-year to CHF 47.1 million, resulting in a gross profit margin of 54.6%. Dental and Surgery gross profit margin growth was partly offset by the Drug Delivery business unit, as it continues to be impacted by the dual sourcing shift. Consumer & Industrial gross profit decreased by CHF 2.2 million to CHF 33.9 million, primarily reflecting lower Beauty volumes. Despite this decline, the segment gross profit margin improved by 20 basis points year-on-year to 26.5%. Industry witnessed a significant increase in gross profit margin year-on-year, driven by operational efficiencies from our Growth and Efficiency program and an improvement in volumes. Slide 10 shows the walk from our half year adjusted EBITDA in 2025 to 2026.
The decline year-on-year in absolute adjusted EBITDA is driven primarily by the decline in revenues in Beauty and Drug Delivery, partially offset by pricing effects. The upside from margin and mix reflects the impact of efficiency improvements, as well as the impact of more Dental revenue at higher margins, offset partly by underutilization in our Beauty business unit. The higher operating expenses include restructuring and impairment costs related to the Industry, Dispenser, and Beauty businesses. Net of these impacts, OpEx was lower by CHF 1.4 million year-on-year, reflecting growth and efficiency savings. Adjusted EBITDA as a percentage of revenue has now grown sequentially for five consecutive half years, demonstrating the continued results of our operational excellence and portfolio transformation initiatives. Let's move to slide 11. EBIT decreased year-on-year by CHF 5.1 million to CHF 10.6 million.
EBIT as a percentage of revenue stands at 4.9%, a 210 basis points decrease year-on-year. The EBIT metrics clearly show the impact of restructuring and impairment measures of CHF 6.4 million in the first half of 2026, related to the Industry, Dispenser, and Beauty businesses. On slide 12, you can see the walk from our half year operating net cash flow 2025 to 2026. Operating net cash flow increased to CHF 19.4 million in the first half of 2026, compared to CHF 15.3 million of the previous year. This increase is due to lower CapEx level compared to the same period last year, partially offset by lower EBIT in half year 2026, and higher changes in net working capital compared to the same period last year.
Our Growth and Efficiency program, which we launched in 2024, continues to deliver strong results and remains on track against our CHF 33 million saving target. Building on the significant progress achieved in 2024 and 2025, we have already exceeded our original CHF 30 million objective by CHF 1.0 million, with CHF 6.8 million savings already realized and CHF 1.6 million savings secured during the first half of 2026. These savings have been mainly driven by footprint optimization and operational efficiency initiatives across the group, and only to a minor extent by restructuring measures in our Industry, Dispenser, and Beauty businesses, where we will see first tangible results in the second half of the year. The Growth and Efficiency program has successfully established a culture of continuous improvement and cost discipline, which is now embedded in our day-to-day operations and forms an an integral part of our DNA.
At the same time, we also continue to invest in our sales organization and R&D capabilities to support long-term growth and innovations. With that, I hand over to René to discuss our strategy and outlook.
Thank you, Sven. We continue to execute on the strategic priorities I presented earlier this year. Our strategic imperatives across all businesses and the entire organization remain strengthening customer proximity, accelerating innovation, and further enhancing accountability across the organization. We have elevated the customer experience, making customer centricity the foundation of all our business unit strategies. It has become a key growth driver across our company and a catalyst for innovation. Recent examples include FleXa in Dental and the new 400 mL 5:1 cartridge for key automotive applications in Industry, both developed in close collaboration with customers to address evolving market needs. I will come back to these innovations later in the presentation. As already mentioned, an essential pillar of our strategy continues to be the transformation of medmix into a high-performing organization.
We are building an organization centered on accountability, entrepreneurial thinking, and speed while empowering our business units and simplifying our organizational structure. These actions are enabling fast decision-making, improving execution, and positioning medmix for sustainable long-term success. To support medmix's transformation into a high-performing organization, we further enhanced our leadership team with the appointment of Andreas Friis Hansen as our new Chief Operating Officer. Bringing more than 20 years of international leadership experience in operations, manufacturing, supply chain, procurement, and business transformation, he adds valuable expertise that will help drive operational excellence, accelerate the execution of our strategic priorities, and support medmix on its path to profitable growth. In Dental, we continue to grow above market with our existing portfolio, supported by strong demand for our cementation and restorative solutions.
Increasing exposure to faster-growing product categories is a strategic imperative for us to offset the structural decline in impression driven by the adoption of digital workflows. At the same time, we remain on track with our innovation pipeline. We just launched our next-generation syringe platform, FleXa, providing an important catalyst for future growth. Turning to this slide, you see FleXa. One of the needs we increasingly heard from Dental material manufacturer was that desire to further differentiate their products and strengthen their brands, while at the same time improving the user experience for dentists. Working closely with our customers, we developed FleXa, a customizable syringe platform that combines branding flexibility, enhanced usability, and manufacturing efficiency. Medmix clinical partner in Dental medicine gave very positive feedback, highlighting FleXa's intuitive handling. FleXa enables our customers to strengthen their market position while delivering a better experience for Dental professionals.
Let's now move to the next slide. In Surgery, we are one of the few players with a proprietary and comprehensive off-the-shelf portfolio, which is very attractive for startups, smaller emerging companies, and tissue banks. On the other side, we have a development team and technology competence driving innovation with our global OEM customers. We continue to benefit from strong customer demand, the successful ramp-up of our Atlanta facility, and further progress in in-sourcing activities. We are strengthening our position with both existing and new customers and continue to broaden our offering through value-added services and innovative product solutions. All these initiatives have improved customer experience and position the business well to sustain its positive growth momentum. For our Drug Delivery business unit, our primary strategic focus remains the commercialization and scaling of our next-generation platforms.
During the first half of the year, we continued to build a solid project pipeline and secured a new PiccoJect project, reflecting the strong market interest in the platform, particularly for high viscosity applications. PiccoJect advanced further in the clinical phase across customer programs, marking another important milestone towards future commercialization, as I will show you in the next slide. We remain focused on expanding customer programs while continuing to invest in industrialization and manufacturing. On slide 20, you can see the Drug Delivery pipeline. Our pipeline remains well-diversified and substantially de-risked, supported by a strong mix of generic biosimilars, lifecycle management, and originator programs. During the first half, one project was hibernated while a new one was added to the pipeline, maintaining a healthy portfolio of future opportunities. As already mentioned, PiccoJect continued to advance through the clinical phase across customer programs, marking another important step towards future commercialization.
With key projects progressing according to plan and a solid opportunity pipeline extending beyond 2028, we remain excited by the long-term potential of our Drug Delivery business being a key element of our pivot to Healthcare strategy. Let's now go to slide 21. In Beauty, our primary strategic objective remains the return to profitable growth. In the first half of the year, we made encouraging progress. We started selling Qiaoyi products through GEKA channels. We also secured the first win for a combined product in the Middle East. Market conditions remain challenging, order intake at GEKA improved, supported by recently one major project for which we will start shipping products in the next month. These developments give us the confidence in a stronger second half of the year. We have launched decisive restructuring, cost reduction, and commercial and excellent initiatives to enhance competitiveness, improve profitability, and customer experience.
We are also optimizing our processes to better serve upcoming so-called indie brands. At the same time, we are accelerating innovation and leveraging the complementary strength of the GEKA and Qiaoyi portfolios to unlock future growth opportunities. As we assess the situation in Beauty, it became clear that restoring profitable growth required actions on several fronts with short and long-term positive impact. Starting from last year, we launched three complementary initiatives that are now firmly in execution mode. The first one, Return- to- Growth Commercial Program, focuses on regaining growth. The program is built around three priorities. First, protecting our existing business. Second, accelerating growth. Third, strengthening our customer focus. We expect these actions to support the stabilization of revenue in the near term and create the foundation for sustainable growth over the coming years. The program is already delivering tangible progress.
We have positioned us more competitively, which resulted in several large project wins. At the same time, we have increased our ability to serve smaller and more agile Beauty brands, the so-called indie brands, by adapting production capabilities and order requirements. Additionally, we are expanding into selected growth markets and unlocking new opportunities to cross-selling across the GEKA and Qiaoyi customer base. Together, these actions are expanding our commercial reach and strengthening our pipeline. Second, the cost containment program is delivering near-term savings and helping us to protect profitability. The focus has been on immediate cost measures, organizational right-sizing, and structural cost reductions. We have already delivered savings in the first half and expect additional benefits to come through the second half of the year. The turnaround program is addressing the broader transformation agenda supported by external consultants.
These initiatives take a comprehensive view of the business and combines two integrated work streams. Commercial acceleration, including go-to-market, sales effectiveness, and innovation, and operational excellence with a focus on manufacturing competitiveness and further cost reductions. Taken together, these initiatives address both performance improvements in the short term and the structural changes needed to return Beauty business to sustainable, profitable growth over the long term. In Industry, we continue to execute our strategy on profitable growth despite ongoing geopolitical uncertainty and challenging market conditions. Growth in our core cartridge and mixer product categories, combined with operational improvements and continued cross-margin expansions, demonstrates the strength of our business model. We are also making very good progress with the optimization and streamlining of our dispenser portfolio while further advancing automation initiatives and the insourcing of manufacturing activities in our Atlanta facility.
We continue to demonstrate our ability to translate customer needs into innovative solutions. One recent example highlights this well in the next slide. In this case, a customer supporting a leading European automotive OEM faced an urgent application challenge in e-mobility battery pack repair. They required a 400 mL cartridge with a non-standard 5:1 ratio, compatible with existing medmix dispensing systems and with an exceptionally compressed timeline. Working closely with this customer, our teams rapidly evaluated solutions. Through close collaboration and fast execution, we were able to design, validate, and industrialize the new cartridge in record time. From commercial agreement to custom product release, the entire process was completed in less than four months. Historically, these kinds of development projects have taken more than one year. This demonstrates medmix's ability to combine application expertise, engineering capabilities, and customer-centric execution to deliver innovative solutions at speed.
As part of our ongoing strategic review, we continue to assess our portfolio and capital allocation with a clear focus on maximizing long-term shareholder value. Our objective remains to allocate resources, businesses, and markets where we see the greatest potential for profitable growth while taking decisive actions in areas requiring transformation or repositioning to create strategic options. During the year, we continued to optimize our Industry dispensing portfolio and sharpen the focus on core segments where we have sustainable competitive advantage. We launched a comprehensive turnaround program in our Beauty business. These actions reflect our commitment to actively manage our portfolio and enhancing the competitiveness of our businesses. Let's go to our outlook. Looking ahead, the external environment remains dynamic, shaped by macroeconomics, uncertainty, geopolitical developments, and evolving global trade patterns.
Against this backdrop, we remain focused on discipline execution, customer centricity, and innovation to support sustainable profitable growth. For 2026, we expect flat- to- low single-digit organic revenue growth and an adjusted EBITDA margin of around 20%. Our midterm guidance remains unchanged, with revenue CAGR of above 4% and adjusted EBITDA margins above 21%. For 2026, we are on track to delivering in line with our guidance, and we expect to return to growth in the second half of the year. Let's move on to key takeaways. To conclude, we continue to advance our Healthcare-focused portfolio transformation, strengthen our position in attractive markets, and creating the foundation for sustainable profitable growth. Our focus on operational excellence and cost discipline is translating into improved profitability despite a softer demand environment.
We are fostering a high-performance culture built on accountability, empowerment, and faster decision-making, enabling us to execute with greater focus and agility. With these priorities in place, we remain well-positioned to deliver on our strategic objectives and create long-term value for all stakeholders. With this, I will hand over to the operator for our Q&A session. Thank you.
Thank you, sir. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the telephone. You will hear a tone to confirm that you've entered a queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume of the webcast while asking a question. Anyone with a question may press star and one at this time. Our first question comes from Alessandro Foletti from Octavian. Please go ahead.
Yes. Good morning, everybody. Thank you for taking my questions. Just a couple, if possible, on Drug Delivery. You mentioned in the press release that the large majority of the decline related to the shift to the second suppliers takes place in H1. I was wondering if you can indicate how much of that decline is left. First part of the question. Second part of the question is what will be the growth, say, starting in H1 2027? I know that it's lower than 2028, but maybe there is already some growth.
Let me take this question. Thank you, Alessandro. Good to hear you. I think the majority is really now the transition from has made in H1. We have still had some in Q3, but this is more in line with the normal fluctuation you see anyhow in the demand. This will not change significantly. The majority is done really in the H1 and only a little bit in Q3. When it comes to 2027, we believe that that's our planning right now, that we are stable, that we will be quite flat. We don't expect that the first sales of PiccoJect, commercial sales at the end of 2027, will impact significantly the growth for the Drug Delivery. There, we are plan, from my perspective, also on the safe side. We see really an increased growth momentum in 2028.
Maybe to add on that,
Yeah
maybe to add on that, if I may, and I guess that's where your question is pointing to as well, is how will the second half of Drug Delivery look like? What we currently see is that it will be on a similar level than in the previous year.
Okay. H2 2026 compared to H2 2025.
Correct.
Yeah.
Okay. I have three small sort of further questions here. One is on the adjustments, right? We had again a CHF 6.7 million one-offs, and I wonder what is the outlook for the delta between adjusted EBITDA and reported EBITDA? I don't know, an adjusted EBIT and reported EBIT, sort of to close so that these two lines become more equal to each other.
Thank you, Alessandro. I think that's a very important question, it's our clear, and as we discussed already in the past, is that we keep that difference smaller and that we really make it very close. Because of the restructuring, I think, which we have now accelerated also in this year, it has increased, but this is only something temporary. I will hand over to Sven that he can provide you more details.
Thank you, René. What happened in H1 was that we posted restructuring provisions as well as impairments in the amount of CHF 6.4 million. That's obviously, or at least the restructuring part, is impacting the adjusted EBITDA, a gap compared to EBITDA. We expect now in H2 further bookings, since we are not yet at the end of our initiatives. What you can assume is that starting 2027, the gap will become much closer between adjusted EBITDA and EBITDA, since our clear goal is now to get over that situation, do the restructurings, then start 2027 with clean books.
All right. Thank you very much. Can I ask you two small questions, maybe on the CapEx? It was a little bit lower. What's the outlook short-term and mid-term on that one?
I've not understood the first one. Which business you were a little bit low?
On the CapEx, group investments, capital investment.
Okay. Okay, CapEx. Good. Thank you. I will hand over also Sven to provide you details about that.
As you have seen in the H1 report, CapEx was significantly lower by CHF eight million or CHF nine million, depending on whether you're looking at the cash flow statement or additions to asset. We expect a normalization now in the second half of the year, also compared to the second half in 2025.
Mm-hmm. Maybe to add something from a strategic long-term perspective, when we look at CapEx, we look at Drug Delivery in a separate way than to the other businesses. With the other businesses, which are more mature and ongoing, that's something we are really want to go also to the industry benchmarks. On the Drug Delivery, that's something we have to look really separately. That's actually the more successful you are, the higher the CapEx will be. That's something we have to be aware that this will require also some investment in the future. But for the other businesses, we made good progress. This will, of course, get more to the industry benchmark. We were higher historically. That's also because we had to build up Atlanta and also Valencia.
Okay, thank you. My last question is maybe on the savings. You mentioned that you are basically on track, slightly ahead. How much of this saving is reinvested in the business? Put differently, how much remains inside the company as really a net gain?
I think we have to distinguish there between what Sven said already about the fit to the operational excellence program we have initiated earlier, I think already one and a half years or two years ago, and the new one, which is really targeted on the Beauty. On the earlier one, which was in there, actually, we have invested significantly, in also some of the faster-growing businesses. I think, Sven, you can provide details on this.
Yeah. What we have seen is that 2/3 of the savings are within COGS and 1/3 is in OpEx. Obviously, as you rightfully said, there are also some investments required to deliver the savings outcome. Where you can see the impact pretty tangible is actually on slide 10, where you see that on a year-on-year basis, OpEx, net of restructuring and impairments and non-ops, is CHF 1.4 million lower. You see the 1/3 of the savings impact is in OpEx there.
All right. Good. Thank you.
The next question comes from Edward Hall from Stifel. Please go ahead.
Good morning, guys. Thank you for taking my questions. I guess first one would just be sort of going back onto Drug Delivery. It was encouraging to see the result this morning. I was just curious, so if we were to strip out the B2C, the dual source effects, could you talk about the performance of the rest of the business? What type of drug is performing or what type of platform is performing? That would be my first question.
Yeah, because we have this major customer with the dual sourcing strategy. If we take that out, then we see the rest of the business is very stable. We have a few projects which are more at the end of the life cycle, and we have a few projects which are at the beginning and increasing. Overall, these projects are quite small compared also to the projects we have in the pipeline. To be transparent, they do not really move the needle. What will really make a big impact will be what we have shown you on the pipeline, the projects we are launching then end of 2027 and then roll out in 2028. These are really large projects where we have device sales which are also in the millions range. The other projects we have are all quite small but multiple.
It's a larger portfolio, but quite small projects.
Perfect. No, it's really clear. On PiccoJect, I would be curious to understand in terms of the indications, what was hibernated and what was added? Obviously I've noticed on the slide, obesity project is there. Maybe you could talk a little bit about this customer, obviously without sharing too many details, just trying to understand what level of excitement we could have on this particular indication.
It's a very interesting project, this obesity project. Key is that it's an innovative formulation, which results also in a higher viscosity, which makes PiccoJect really the ideal device for such an indication. This is now really in the clinical studies. First clinical trials were very positive. Now we enter, I think, the interesting phase of the clinics. We expect for this device, also in the mid- to- high single-digit million device units per year in the peak sales.
Perfect. Okay, perfect. That's really clear. I guess Surgery was a really strong quarter, and I think especially sort of sequentially it showed great growth. I just want to try and understand sort of this growth. Is it due to a key launch? Is it due to greater insourcing? Is this basically a single product driving this growth or is it result of strategy implementations?
It's not really driven just by one key launch. I think that's the really interesting. We had really multiple new customers, we were also successful with the existing customers. When you look about the Surgery results, what makes me really very happy is that we have also improved our customer base. Also in this first half of the year, this is normal, we had some disappointments that, for example, customers were not successful with clinical studies and these kind of things. We are now in a situation that we are really broad in our customer base. We can delivering. I think there's also a high trust from the customers that they don't build up so much inventory as they have done in the past, where we had more supply issues that you don't see these kind of things.
We can compensate that also with other customers, that was really good. It was also mixed between small and large customers. Yeah.
Perfect. That's clear. Just finally on Beauty. Would it be a fair assumption just looking at sort of H2 2025, the CHF 78 million that you've got there, would it be a fair assumption that you're not going to see sort of positive growth just given the high sequential growth you'd have to report?
Yeah. I hand over that also to Sven to provide you details. What I have to say is that H1 was really, I think, difficult.
Yeah.
What is promising is the order intake. What we have also communicated already last year was about a large win, and that project will now be launched in the second half of this year. This is just the nature of this industry. We see this launch as a big opportunity and could really help us. On the other side, we have to see how this is perceived by the customers. You see normally in these projects it can be huge success or medium success, low success. It's very difficult to predict that that's something which is different in the Beauty business than to all our other businesses. Maybe, Sven, you want to give more details about H2.
What we currently see for H2 compared to the same period last year is a low single-digit growth. That's what we currently have as our forecast, and that's what we are aiming for.
Amazing. Thank you very much, and congrats on the print.
As a reminder, if you wish to register for a question, please press star followed by one. The next question comes from Leonie Zirn from UBS. Please go ahead.
Hi, thank you, and good morning. Thanks for taking my question. I'd have a follow-up for the Beauty business. Sorry if you mentioned that already. I kind of dropped out in between. Regarding the cost takeout that you mentioned, can you quantify this a bit? Would this also benefit the EBITDA on a group level?
Sven, you would like to take that question? I think, of course, it should also help us on the group level. Sven, you can give the details.
If we are looking at slide 13, the numbers you see there, the saving, CHF 6.8 million. That does not include the expected savings from our restructuring program, which we launched, since this is coming on top of the CHF 33 million. Included in the CHF 6.8 million savings are initiatives which we already launched before we initiated the restructuring programs, such as short-term work, not replacing natural fluctuations. That's what you see included in the CHF 6.8 million. Not included are the restructuring topics for the Industry dispenser and the Beauty business.
Thank you, Sven. Maybe something to add here. If you look at the dynamics in the Beauty business, we have seen over capacity industry also an increase in price pressure.
That's particularly for the larger customers, less for the indie brands.
Okay.
With the restructuring program, we are increasing our competitiveness. This has two effects that we can be much more competitive also in our offering, which will provide us additional growth momentum that will also help us to increase the utilization in our plants, which will have a positive effect also on our margins.
Okay, thanks. A follow-up on the Surgery business. You just discussed the strong H1 and what kind of drove this. Can you maybe also give a bit of an outlook of what have you seen already into the second half? Can we expect this favorable customer mix to have the same positive effect, or will this likely flatten out a bit?
From an outlook, let's say long term, I was always saying that we can grow high single- to- low double-digit percentage over a longer period. I even believe that we can do a little bit more long term. You will see some fluctuation from one half year to another because the business is still small. You have to think this is our smallest business and one customer can still have a significant impact. We think that we can really outgrow the market. I mentioned that already, it's something which makes us a little bit special to everyone else, is we have a very comprehensive portfolio of off-the-shelf products, which helps us a lot for some of the Surgery indications, also for smaller companies. We have going more also with value-added services, which will help us to accelerate growth in tissue banks.
That's something other companies don't have it to the same extent. We have a very strong development team also. We benefit there because our development team, there's a lot of technology synergies with Dental as well with Industry, and we can really provide to the customers, particularly to the large OEMs, solutions nobody else can provide to the same extent. We are very bullish about Surgery and how this will develop in the future.
Okay. Understood. Last question on Dental. Growth was slower than expected in H1, but understandable because you have the high comps from last year. Can you give a bit of color what would be your expectation for the second half? What do you see in the underlying markets? Also maybe some color on the growth dynamics for impression material.
If you look Dental, it was really ups and downs if you looked about the H1 last year and the H1 too, but what I have to say, if you look about, let's say, the CAGR of two years, we are really exactly where we expect. This is what I said, mid-single digit growth. Mid-single digits growth, that's about, I would say more than 2x faster than the market. Because what you see in the market, if you look about the end- markets, a lot of the growth came also from price increases. We are there, really also from the unit perspective, we are growing significantly faster than the market. When you look now about your question about the impression materials. Impression materials came really down, it's more one-third of our business, and two-thirds is other businesses, the faster-growing segments.
We think that impression material will continue to decline. If I look in the end markets, then the decline is more in the 5% range, what we see. We are probably declining a little bit less. We are, really particularly, when it comes from a unit perspective, there's some price pressure there. Which means that in the other two-third of the business, we have to grow significantly faster. We have to grow there really in the high- single digit. That's what also something we are doing. This is driven by innovations, and I was showing FleXa. It's a little bit difficult to see really the features on a slide. This is creating really a competitive advantage for our customers, which will also allow them to grow faster than the overall market and gain market share.
This is why we can grow in this other two-thirds of the business significantly faster than the rest of the market. Sven can also add something from a number perspective.
Yeah.
Thanks, René. Leonie, to your point regarding expectations for H2, what we currently see is that H2 will be more normalized compared to the same period last year. We expect to see a growth more in the range what René mentioned before.
Mid-single digit. Okay.
Correct.
Good. Yeah. Last question I go back into the line. You managed to increase your margins this half year despite the low volumes, you also expect to have a bit better growth outlook and some cost savings for the second half. Could we say that the 20% EBITDA margin is a rather conservative guidance now, or is this still something you need to stretch towards?
I think we are confident that now that we can achieve the 20% guidance, I don't see there any risk. I think we are on a good track. You rightly observed that actually in some of our margin improvement projects, we were faster than we expected. Particularly in Industry, that was very good. Also how we were restructuring our dispenser business. I think that's really promising. It's also promising, how I see the accountability, our team members, particularly also in our dispenser business, how they proactively drive that. This is something which is encouraging and makes me confident that we can continue to expand also our gross margin, particularly in the Industry business, and that also in the Beauty business, that we will execute our turnaround, very similar to what we have done in the Industry business.
Perfect. Thank you so much.
Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to René Willi for any closing remarks.
Thank you very much. I think, before we conclude today's presentation, everything, I would really thank you since for your time, engagement, and particularly also for the questions and feedback. This is really invaluable as we continue to shape the future of medmix, and we want to do that together with you. We are very confident about the opportunities ahead. Our focus is clear. To further strengthen our business, return the growth, and create sustainable value for all our stakeholders. I would like to thank all our employees for their dedication, for their drive to change, our customers for their trust, and our shareholders for their continued support. We appreciate the partnership and look forward to updating you on our progress in the months ahead. Thank you very much, and I wish everyone a great day. Thank you.
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