Summarized overview of the activity of LISI MEDICAL:

  • Market rather dynamic
  • New improvement to the operating margin
  • Return to a positive Free Cash Flow, despite continuing significant investments


Over the last two financial years, the world orthopedics market has returned to growth in line with the long-term trend (+4% to +5% per year).

LISI MEDICAL considers that the contractual manufacturing segment, in which it operates from its three production sites, has increased faster, allowing it to consolidate inventories and orders in the sector.

However, implant prices are still a concern for final users with a continuous increase in quality demands.

LISI MEDICAL's customers respond to market constraints by consolidating their portfolio of activities with innovative approaches.


In millions of euros 2015 2014 Changes
Sales revenue 74.8 71.1 +5.2%
Current operating profit (EBIT) 4.1 3.5 +16.8%
Operating cash flow 5.3 3.5 +51.0%
Net CAPEX (4.09) (4.6) -12.2%
Free cash flow1 1.7 (1.0) +€2.7M
Registered employees at period end 573 538 +6.5%
Average full time equivalent headcount2 623 597 +4.4%

1 Free cash flow: operating cash flow minus net industrial CAPEX and changes in working capital requirements.
2 Including temporary employees


  • Good level of orders and activity with existing customers and new customers in orthopedics (€3.0M)
  • Tangible improvement of the management indicators for all sites

Sales revenue amounted to €74.8 million, an increase of +5.2%, of which part is due to the dollar effect (+2.0%) with a good level of activity over the last quarter at €18.6 million. Production was pushed to €75.3 million (+7.0%) with the aim of increasing inventories of products under contract and improving the service level to customers.

Commercially, order taking is at a reasonable level, before the ramp-up of generic products and projects under development.

Supported by the volume effect which allows better coverage of fixed costs, the operating margin improved again to reach 5.5% (4.9% in 2014). All sites progressed, in particular in the USA where sales revenue increased by 41% in euros. Quality, productivity and consumption indicators are managed, despite the dollar effect on the price of raw materials, jolts in demand and the increased flexibility demanded by major customers.

Investments are still significant (€4.0 million) and carried in particular by the increase in production capacities and equipment renewal. In addition, new logistics approaches lowered the inventory rotation rate from 80 days of sales revenue in 2014 to 77 days in 2015. Consequently, free cash flow returned to positive figures over the financial year, at +€1.7 million (compared to -€1.0 million in 2014), i.e. 2.3% of sales revenue.

The industrial system and the qualified personnel of the different sites are able to manage the future level of activity.


After the significant increase in activity, the LISI MEDICAL division starts the 2016 financial year on the basis of fairly stable outlooks with consolidated fundamentals, and improved production facilities adapted to current volumes. The development of new products with new customers remains a priority to feed growth drivers for all the sites.

Qualitative objectives for 2016 are in the continuity of the improvement approach underway for the last three years.