Summary presentation of the LISI MEDICAL activity:

  • Change of dimension with the acquisitions of REMMELE Medical Operations from ALCOA on April 11, 2016;
  • Dynamic market and numerous on-going developments;
  • Further improvement in the operating margin and Free Cash Flow.


Over the last three 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, on which it operates from its five production sites, is growing faster than the world market, which is expressed by a sector consolidation strategy.

LISI MEDICAL customers respond to market constraints by consolidating their activity portfolio with acquisitions in strongly growing segments. Overall, the market remains well oriented towards the majority of geographic areas.


(in millions of euros) 2016 2015 Changes
Sales revenue 119.1 74.8 +59.3%
Current operating profit (EBIT) 9.3 4.1 +125.4%
Operating cash flow 11.8 5.3 +120.8%
Net CAPEX (5.6) (4.0) +40.0%
Free Cash Flow1 3.7 1.7 +€2.0M
Registered employees at period end 915 573 +59.7%
Average full time equivalent headcount2 868 623 +39.3%

1 Free Cash Flow: operating cash flow minus net capital expenditure and changes in working capital requirements.
2 Including temporary workers.


Consolidation of LISI MEDICAL Remmele at May 1 (sales revenue of €44.9 million over the period), i.e. 7 months’ activity;

Good level of orders and activity with existing customers, new customers in orthopedics (€4.0 million) and mini-invasive surgery (LISI MEDICAL Remmele);

Overall improvement in management indicators.

The sales revenue amounted to €119.1 million, i.e. an increase of +59.3%. At a constant perimeter, the sales revenue increased by +0.4% with a more active last quarter at +2.8%.

On the commercial front, orders kept up well, driven by the very strong dynamic of LISI MEDICAL Remmele, the build-up of generic products (constitution of inventories) and projects being developed.


Supported by the volume effect which allows better coverage of fixed costs, and consolidation of LISI MEDICAL Remmele, the operating margin once again improved and amounted to 7.8% (5.5% in 2015; 4.9% in 2014).

The division’s French sites confirm the operating progress observed for several months. The American sites of LISI MEDICAL Remmele reached performance levels complying with the group’s objectives while the Jeropa site experienced some disruptions due to the change in its product portfolio undertaken several months previously.

The CAPEX, still significant (€5.6 million), were above all carried by the purchase of equipment intended for developments and the production of new products. They are financed by a very good level of operating cash flow (+€11.8 million). The levels of inventories expressed in days of sales revenues experienced a further drop to reach the historically low level of 65 days. Consequently, the Free Cash Flow improved once again over the financial year to €3.7 million (+€1.7 million in 2015; –€1.0 million in 2014) i.e. 3.1% of sales revenue.


After a lackluster start to 2016, the division reinforced its fundamentals and its positioning as benchmark supplier with its customers. Furthermore, the consolidation of LISI MEDICAL Remmele gave it a greater visibility and opened new prospects for organic growth with new markets for medical appliances other than orthopedics. The continuation of continuous improvement actions, investments in differentiating technologies and industrialization of new products should make it possible to consolidate this positive trend.

Qualitative objectives for 2017 are in line with the improvement approach underway for the last three years. The division is therefore on the way to joining the world’s four leading specialized contractual manufacturers to support its sector consolidation approach.