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:

  • Sustainable, skilled and scalable global organisation focusing on sustainable working procedures and common culture. 
  • 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. The company’s net debt in relation to EBITDA should normally not exceed three times. 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%.

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 16% per year in local currencies. Organic growth has been driven by IVF market growth of estimated 5–10% per year. Vitrolife has also gained market shares by expanding the sales organisation and broadening the product portfolio. 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 2019 the operating margin before depreciation and amortisation (EBITDA) amounted to 40% which means that the margin decreased compared to 2018. The decrease is mainly explained by a changed product mix as the new Genomics business unit has a lower margin than the Group average. Vitrolife’s objective for the EBITDA margin is more than 30%. The company thus reported an operating margin that outperformed the target for 2019.

Net debt / EBITDA

In 2019, net debt in relation to EBITDA amounted to a multiple of -1.2 (-1.0), i.e. the company had a net cash position. Vitrolife’s strong financial position provides scope for financing future acquisitions.







Achievement of financial objectives