News
T&W Medical
Luk
Annual Report
2023.03.07
T&W Medical increased investments in innovation and generated progress in 2021/22
T&W Medical, the holding company for the Tøpholm and Westermann families’ ownership of WS Audiology, T&W Holding, UNEEG medical and T&W Engineering, among others, increased investments in development and commercialisation of modern medtech solutions and healthcare innovation in the 2021/22 financial year, which was characterised by progress in underlying operations and significant volatility in financial markets.
The consolidated revenue of T&W Medical increased by 14% to DKK 17,493 million in 2021/22 driven by continued solid progress in the Group’s largest subsidiary, WS Audiology, which is a global leader in the hearing aid industry with 12,000 employees developing, manufacturing and selling hearing aids and related products through own sales companies and independent distributors globally.
The Group’s companies increased total investments in research and development by 17.5% to DKK 1,336 million. The continued investments strengthen the power of innovation and create a foundation for continued growth and progress in the companies.
“We are pleased with the strong underlying business performance and the continued progress in development activities across the Group companies in 2021/22. The good development was ensured under unusually difficult market conditions and underlines the persistent focus on investing in development of next generation medtech and products, which can help millions of people and contribute to improving lives around the world,” says Lars Nørgaard, CEO of T&W Medical.
T&W Medical grew normalised operating profit* (EBITDA) by 6.5% to DKK 3,584 million corresponding to a normalised EBITDA margin of 20.5%. The increase is attributable to the strong development in revenue, higher gross profit and good cost management in WS Audiology, which more than outweigh higher R&D investments across the Group’s companies.
The Group’s net result was, however, significantly impacted by negative foreign exchange adjustments of USD-based loans, which entailed a significant increase in financial expenses and a loss before tax of DKK 1,820 million. The loss was realised despite the positive business performance in WS Audiology and good investment results in T&W Holding, which invests in listed and unlisted companies, private equity, properties, infrastructure projects and alternative assets, among other things.
“Even though our investment activities contributed with very good returns in the face of raging financial market turbulence, we reported a significant loss for the year after notable currency fluctuations. The situation has improved since, and we expect to generate a reasonable return in 2022/23 to support investments in research and development across our companies,” says Lars Nørgaard.
T&W Medical will continue to invest in research and development, clinical trials, organisational development and commercialisation across the Group companies in the 2022/23 financial year.
For additional information, please contact:
CEO Lars Nørgaard, telephone +45 44 35 58 06