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

Over the last three years, Vitrolife’s sales have grown both organically and through acquisitions by an average of 4% per year in local currencies. The growth during the three-year period was negatively affected by the decline in the IVF market in 2020 as a result of the pandemic. The target of 20% annual growth is defined as organic and acquired growth measured in local currencies and averaged over a three-year period. Growth thus underperformed the target.

EBITDA Margin

In 2020 the operating margin before depreciation and amortisation (EBITDA) amounted to 36%, which means that the margin decreased compared with 2019. The decrease is primarily explained by reduced sales as a result of the pandemic. Vitrolife’s objective for the EBITDA margin amounts to more than 30%. The Group thereby reported an operating margin for 2020 that surpassed the objective.

Net debt / EBITDA

In 2020, net debt in relation to EBITDA amounted to a multiple of -2.1 (-1.2), i.e. the company had a net cash position. Vitrolife’s strong financial position provides scope for financing future acquisitions.