• Stable profitability in a context of major changes in the type of customers and products
  • Expansion of product range and skills at the division's 3 production sites
  • Successful launch of new first "generic" products


The world orthopedics market was marked by a tightening of regulations for certifying implants, and as a result some consolidation among orthopedic companies. Further, the need for government and private bodies to reduce the reimbursement of health costs has impacted negatively on the launch of new products and the sales prices of existing products.

LISI MEDICAL believes its market is still growing in volume, but at a more moderate rate of about 3-4% per annum. The "vertical column, trauma and shoulder" segments are the most dynamic.


In €m 2013 2012 Changes
Sales revenue 64.1 64.8 -1.1%
EBIT 2.5 2.8 -8.0%
Operating cash flow 1.6 3.1 -50.0%
Net CAPEX 3.1 11.6 -73.2%
Operating cash flow surplus
(Free Cash-Flow)1
-1.3 -1.2 +8.4%
Registered employees at period end 474 475 -0.2%
Full time equivalent head count 2 536 511 +4.9%
1 : Free Cash Flow: operating cash flow minus net industrial CAPEX and changes in working capital requirements.
2 : Including temporary employees

Sales activity improved at the end of the financial year due to a receipt of orders that was higher than deliveries. Nevertheless, after having posted a sharp drop of 12.1% between 2011 and 2012, sales revenues saw only a slight upturn in 2013. The production level has slightly increased.

Action plans have been implemented, focused on logistics, in order to provide customers with even greater quality of service. Investments made over several years and the current improvement plans (LEAP - "LISI Excellence Achievement Program") will gradually facilitate raising current production levels.

EBIT was similar to the 2012 financial year at 4.0% of sales revenues, and still does not reflect the expected positive impact of the effect of volumes from the major extension of the new products range, nor the contribution of the many new customers. Investments have been focused on production equipment and an acid pickling line, and have stayed at €3.1M. Accordingly Free Cash Flow remained slightly negative for the period.


The order book at the start of the year shows a clear improvement over the same period last year, and should confirm the return to growth commenced in the last quarter of 2013.

This new phase is based on intensifying the repositioning of LISI MEDICAL in those segments with most growth and profitability, both for large corporations and medium-sized companies.

Started in 2013, the development of "generic" products has enjoyed true success with several customers, who will get deliveries in 2014.

Lastly, the Caen (Calvados) site has assumed greater visibility through the renewal for four years until 2019 of the contract with Stryker, LISI MEDICAL's main customer.

Back to top