Mentice ended the year on a high note with a strong Q4, driven by large orders from top medical device companies. However, full-year order intake declined, and some challenges remain to achieve strong, sustained growth. Newly appointed CEO Frans Venker emphasized the need to enhance commercial execution in the US market and leverage new products to drive accelerated growth.

Mentice is a leading provider of simulation solutions for image-guided interventional therapies. Its solutions are utilized by physicians in daily clinical practice at hospitals and by medtech companies for training, education, and marketing. The overarching goal is to enhance patient outcomes and reduce healthcare costs through cutting-edge medical simulation technology.

In 2024, Mentice set new financial targets, aiming for annual net sales growth of 20-30 per cent and an EBITDA margin of 20 per cent within three years. The company has acknowledged natural revenue fluctuations between quarters, and Q4 was no exception – this time in a positive direction.

Revenue growth in Q4

Net sales grew by 22.4 per cent to 86.2 million SEK compared to fourth quarter the previous year. EBITDA saw a significant increase, rising to SEK 16.6 million from SEK 2.3 million during the same period in 2023. This corresponds to an EBITDA margin of 19.1 per cent for the fourth quarter.

The strong Q4 performance was driven by large orders from global medtech companies, with order intake from the medical device industry increasing by 24.2 per cent during the quarter. Total order intake reached SEK 108.7 million, making Q4 the strongest quarter of 2024. However, full-year order intake declined by 8.3 per cent to SEK 278.9 million, reflecting challenges in sustaining momentum throughout the year.

Net sales per region

Mentice experienced particularly strong sales growth in the EMEA region (Europe, Middle East, and Africa) in Q4, with net sales increasing by 61.5 per cent.

For the full year, the APAC region (Asia and the Asia-Pacific) demonstrated strong momentum, achieving a 28 per cent growth rate, while the EMEA region showed a more modest increase of 4.8 per cent.

The Americas (North, Central and South America), Mentice’s largest market, contributed to over 50 per cent of the revenue for the full year. However, the market showed only 1 per cent growth for the year, which is below expectations. To reinforce its market position and optimize commercial execution in the US, Mentice is implementing specific measures for both the medical device industry and hospitals.

CEO comments

During the fourth quarter, Mentice announced the appointment of Frans Venker as its new CEO, effective January 2025. With over 25 years of experience in the Medtech industry, he brings valuable expertise to the company at a key stage in its journey.

BioStock reached out to Frans for a comment on Mentice’s performance in Q4 and throughout 2024, as well as the key growth opportunities he has identified.

Q4 saw strong revenue growth and EBITDA improvement. What were the key drivers behind this, and how does the company plan to sustain this momentum in 2025?

– The underlying fundamentals for the IGT market remain strong, and Mentice has a well-positioned portfolio to support growth in the Medical Device Industry. We are also gaining traction in the Healthcare segment, where we introduced a new portfolio in Q4, including NV Connect with VIST Ankyras integration. In summary, we are positioned well to continue our  growth trajectory, and as a result, we reaffirm the financial targets that we have previously set.

Strengthening Mentice’s presence in the US remains a propiority. What initiatives are you focusing on to enhance commercialisation in this region?

– North America continues to be our strongest market, and our success here is crucial for Mentice’s overall performance. We are implementing greater commercial rigor to enhance operational execution, and planning stronger emphasis on North American coordination for our global MedTech partners. Additionally, we are reallocating resources to capture growth in the hospital segment. To drive adoption, we need to refine our value proposition to seamlessly integrate into the workflow of our customers and physicians.

Your software solutions are a high-margin segment with recurring revenue. What steps is the company taking to further expand and capitalize on this growth opportunity?

– We have implemented and introduced NV Connect, a connectivity platform for our Neurovascular segment, which integrates hardware and software solutions. This enables us to offer subscription-based services over time, driving reoccurring revenue growth.

Having been CEO of Mentice for less than two months, how would you summarize your initial experience in the role, and what key insights have you gained so far?

– I am impressed with the strong relationships Mentice has built with our Medical Device Industry partners. Our simulation solutions are unique and at the forefront of the IGT space, positioning us well to capture the continued growth in this segment. However, to further expand, we must improve the value proposition of our simulation solutions so they resonate more deeply with hospitals and become an integral part of procedure planning. There is work to be done, but I am confident we will achieve this.

Looking ahead, what do you see as the most promising growth opportunities for Mentice?

– We see sustained growth in the Medical Device Industry segment, as well as significant potential in expanding our footprint in hospital training and procedural planning through our advanced simulation solutions.

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