Synektik expects sales growth in 2024/25; share of recurring revenue to increase

"The upcoming first quarter of the financial year will be difficult because of the base, so I rather prefer to comment on the results of the whole of next year because it looks positive. It may no longer be a 40 percent growth, (...) but I think the dynamics will be interesting. We certainly have the fuel to grow, with recurring revenues being the main growth driver (...). In the perspective of a year, with the volume we have, which is more than PLN 600 million, we can expect a few percent," the deputy CEO Korecki said.

"The share of recurring revenues in the sales structure is growing significantly and at the end of September 2024 is close to 37 percent. Our ambition is to reach a level of more than 50 percent from this area in a perspective of 2-3 years, but rather two years. This stabilises the seasonality associated with sales," he added.

Revenues in the 2023/2024 financial year amounted to PLN 624.8 million (EUR 144.2 mln), an increase of 40 percent year on year.

Synektik said that the backlog at the end of September in the medical equipment and IT solutions sales segment amounted to PLN 36.1 million (EUR 8.3 mln). The value of active offers at the end of the period was PLN 141.5 million (EUR 32.7 mln).

As stated in the presentation, nine da Vinci systems were installed at Polish customers in the fourth quarter of 2023/24 (seven new systems, two new leases). At the end of September, the number of da Vinci systems in Poland (under the care of Synektik Group) was 56, and 30 in the Czech Republic and Slovakia.

In October, Synektik and Intuitive Surgical expanded their cooperation territories to include Lithuania, Latvia and Estonia, where Intuitive's product distribution operations will begin on January 1, 2025.

“We are already undertaking activity of a marketing nature, meetings with customers. (...) From January, there should be information about the first sales in this market. We do not foresee a lease model there for the time being, it will be a sales-related model. We are preparing, we are setting up a subsidiary - a similar model as in the Czech Republic and Slovakia, maybe it will have branches because these are three countries, (...) but all supervision will be from one country," Korecki said.

“This is a market where we see at least a dozen systems installed and several thousand treatments,” he added.

Asked about the company's dividend plans, Synektik's deputy CEO said that the board would like to move a recommendation for profit distribution in December.

"With this profit and cash level, we will still wait for the approximate closing of this quarter, so in the perspective of mid-December, the third decade of the month, we will be able to present the recommendation," Korecki said.

"We assume that there will be a dividend significantly higher than in the previous period," he added.

For the fiscal year, ended September 30, 2023, the company paid a dividend of PLN 3.03 (EUR 0.70) per share.

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