medmix AG (MEDX) Earnings Call Transcript & Summary

Good morning, everyone. My name is Domenico Truncellito, Head of Corporate Communications and IR at Medmix. I'm joined today by Rene Willi, our CEO; and Jennifer Dean, our CFO. In the interest of gravity, we will assume that you have read the disclaimer on the slides regarding forward-looking statements. With that, I will now hand over to Rene. Rene, please.

Also from my side, good morning, everyone. I'm very pleased to present the full year 2025 results to you today. Jenny will guide you through our financial performance. I will update you on our business review and our strategy as well as our near and midterm outlook. On Slide 4, you can see the highlights for the full year 2025. We significantly increased gross profit and adjusted EBITDA margin above the range of our full year guidance despite decreased revenues. Gross profit increased by 310 basis points to CHF 161.9 million, delivering a strong gross margin of 36.1%. We clearly see that the savings generated by our growth and efficiency program and our strategic initiatives are going through to the bottom line. We have successfully turned around the Industry business unit following the shutdown of our Polish site in 2022. Throughout 2025, we focused on improving efficiency by streamlining product flows and further automating production processes at our Valencia facility. In addition, we are making solid progress in in-sourcing third-party manufacturing in the U.S. to our Atlanta site, enhancing value creation. Furthermore, we are on track with our Surgery and Drug Delivery production in Atlanta, which, on the one hand, increases customer proximity and on the other hand, reflects our disciplined strategy implementation. We are steadily increasing our share in high-growth, high-margin healthcare applications. Another highlight in 2025 was our recognition by the TIME Magazine as one of the world's best companies in sustainable growth in 2026. The distinction places Medmix among an elite group of organizations that excel across the critical dimensions of financial stability and environmental impact, including greenhouse gas emissions, waste management, water consumption and renewable energy usage. Out of more than 4,000 global companies evaluated across all industries that transparently disclose environmental performance data, only 500 made the final list. Slide 5. In our Healthcare segment, our Dental business unit continued to grow significantly above market in 2025 as we successfully increased our share in fast-growing product categories and are well-on track to launch our next generation of Dental applicators in 2026. Our cementation and restorative solutions are growing faster than the structural decline in the impression category, which is becoming substituted by intraoral scanning. Our focus on these faster-growing product categories will continue to secure our growth momentum. The Drug Delivery business unit generated revenue of CHF 34.2 million, a decrease of 19.6% compared to prior year. This decline was mainly due to the dual sourcing of one customer, which I identified in the second half and will continue to affect revenues in 2026 as it reaches the contractual cap. In our Drug Delivery business unit, we have significantly strengthened and derisked the project pipeline. I will share additional details in the strategy section of this presentation. Our Surgery business unit was basically flat for the year. After growing 26% in the first half of 2025, Surgery recorded also sequentially double-digit growth in the second half of 2025. With our Atlanta facility, we have increased customer proximity in the world's largest healthcare market, U.S. This enables us to build a full portfolio of value-adding services and to become a strategic partner for our customers. In our Consumer & Industrial segment, our -- we significantly have improved the business unit industry with 1.4% revenue growth and improved profitability, especially when considering sluggish end markets heavily impacted by geopolitical uncertainty. Our Valencia facility is delivering the full portfolio of industrial products, and we progressed well on increasing efficiency and profitability through leaner product flows and automated production processes. We've also increased productivity at our Shanghai site and progressed local for local production in Atlanta. Revenue of the Beauty business unit declined year-on-year by 12.9% to CHF 152.1 million. The first half of 2025 was marked by lower commercial activity and customer project delays. Sequentially, the second half of 2025 grew mid-single digit, supported by a successful dual-site global launch. We protected our profitability through disciplined pricing while accelerating decisive cost-out measures to align our cost base with business volumes, allowing us to unlock additional profitable growth opportunities. With this, I will hand over to Jenny, who will take you deeper into the financials. Please, Jenny.

Thanks, Rene. Our main KPIs can be seen on Slide 7. We delivered significant improvements year-on-year in gross profit, gross profit margin and profitability with the latter above the top end of our guidance. This was achieved despite an organic revenue decline of 4.8%, which, however, was in line with our guidance. Foreign exchange rate effects of minus 2.6% resulted in reported growth of minus 7.4% or CHF 448 million. Our gross profit grew 1.4% year-on-year to CHF 161.9 million, and our gross profit margin expanded 310 basis points to 36.1%. The strategic actions and cost-out measures in our growth and efficiency plan, especially in our Consumer & Industrial segment, continued to deliver impressive results. Higher Dental in the mix at improved margins further fueled the margin improvement. Tight discretionary cost control, actions from our growth and efficiency plan and the end of some acquisition-linked amortization of intangibles delivered lower year-on-year OpEx. Combined with our gross margin improvement, this enabled us to deliver an adjusted EBITDA of CHF 89.7 million and an adjusted EBITDA margin of 20%, well above our full year guidance range of 18% to 19%. Demonstrating the strong improvement in our underlying performance, EBITDA increased 5.1% to CHF 78.3 million and EBITDA margin by 210 basis points to 17.5%. EBIT increased CHF 9.9 million or 76.7% year-on-year to CHF 22.8 million. Operating net cash flow is lower year-on-year at CHF 40.3 million. 2024 was a high comparable, reflecting the impact of a significant decline in net working capital in 2024, which remained flat during 2025. Our leverage ratio increased slightly year-on-year due to the decline in absolute adjusted EBITDA. On Slide 8, you can see the full year 2024 to 2025 revenue bridge. As mentioned by Rene, within Healthcare segment, strong growth in Dental and flat revenue in Surgery was offset by a decrease in Drug Delivery. And within C&I segment, Industry grew slightly while Beauty declined. Foreign exchange effects, mainly the weakening dollar and euro to Swiss franc negatively impacted growth year-on-year to arrive at minus 7.4% decline on a reported basis. On the right, you see the percentage of revenue contributed by our segments and business units. The contribution of our Healthcare segment has increased 1 percentage point to 38%, meaning Consumer & Industrial segment contributed 62%. Slide 9 shows our full healthcare and C&I gross profit and gross profit margin year-on-year. Total gross profit grew by 1.4% to CHF 161.9 million despite a decline in group revenues and delivering a strong gross profit margin of 36.1%, a year-on-year increase of 310 basis points. Healthcare gross profit was flat year-on-year despite organic revenue decline of 1%. Gross profit margin grew 109 basis points to 51.8% Dental business unit revenues and percentage margins both grew year-on-year. Surgery revenue and margins remained flat and Drug Delivery revenues and margins remained under pressure. Consumer & Industrial gross profit grew 3.9% year-on-year, contrasting with an organic revenue decline of 7%. The segment delivered a robust gross profit margin of 26.9%, an increase of 360 basis points year-on-year. This was achieved through operational efficiency gains and cost-out initiatives in our growth and efficiency program in both Industry and Beauty business units. Slide 10 shows the walk from our full year adjusted EBITDA in 2024 to 2025. The decline year-on-year in absolute adjusted EBITDA is driven primarily by the decline in revenues in Beauty and Drug Delivery and lower add-back of one-off costs, somewhat masking the success of the growth and efficiency initiatives. The upside from margin and mix reflects these growth and efficiency impacts as well as the impact of more Dental revenue at higher margins, offset partly by tariff impacts in Industry, Dental and Beauty. The upside from OpEx reflects growth and efficiency savings, offset partly by adverse transactional FX impacts, net impacts of provisions for litigation and restructuring and the impact of the reinvestment in our healthcare teams Adjusted EBITDA as a percentage of revenue has now grown sequentially for 4 half years. Slide 11. EBIT increased CHF 9.9 million or 76.7% year-on-year to CHF 22.8 million. EBIT as a percentage of revenue stands at 5.1%, a 228 basis points increase year-on-year. Our EBIT metrics clearly show the impact of higher Dental in the mix at higher margins and the success of our growth and efficiency cost out and efficiency initiatives, especially in the Beauty and Industry business units. On Slide 12, you can see the walk from our full operating net cash flow 2024 to 2025. Operating net cash flow decreased to CHF 40.3 million in 2025 from CHF 61 million in 2024. This decrease is driven primarily by 2 factors: early and anticipated cash receipts in December 2024, lowering the receipts in '25 and a significant decline in net working capital levels in 2024, which have remained flat overall in 2025. With that, I would invite Rene to come back to discuss our strategy and our outlook.

Thanks, Jenny. We are on track with implementing our strategy I presented last February. Our strategic priorities focus on the adaptation of our organizational setup to enhance our customer proximity, pace of innovation and ensure clear accountability. An essential pillar of our strategy is our transformation into an entrepreneurial, high-performing organization. I will explore this further in the next slide, which focuses on our cultural journey. As we have stated in our results section, our Dental business unit continues to outpace overall Dental industry growth with our existing portfolio, and we remain on track to launch our next-generation Dental applicators in the second half of 2026. For this reason, the second half of 2026 will grow stronger than the first one. Our strategy to increase exposure to faster-growing product categories is paying off. As mentioned before, growth in our cementation and restorative solution is more than offsetting the structural decline in impression caused by the shift toward internal scanning. In Surgery, we are now producing a full range of products at our Atlanta site. We have launched significant co-development projects with existing customers and are successfully broadening our customer base. We will accelerate the growth momentum in 2026, driven by increased customer proximity, value-adding services and innovative product launches. For our Drug Delivery business unit, the primary strategic focus is on commercialization of our 2 innovative device platforms, PiccoJect and D-Flex. Both are at the beginning of their life cycle and received a positive response from customers. In the past year, we have significantly strengthened and derisked our project pipeline. Design verification testing for our PiccoJect device has been successfully completed, and we have now entered clinical trials with our customer. We have also secured launch readiness for PiccoJect by progressing industrialization and ramping up production at our sites in the U.S. and in Europe. Our other next-generation platform, D-Flex is already commercialized in '20. In 2025, this platform attracted growing interest, particularly for high-volume projects. I will give you more details on our Drug Delivery pipeline on Slide 16. In Industry business unit, we successfully achieved a turnaround and returned to growth despite sluggish end markets. We have steadily improved profitability through our growth and efficiency program, focusing on streamlining product flows and further automating production processes at our Valencia facility. In addition, we are making solid progress in insourcing third-party manufacturing in the United States to our Atlanta site. This will enhance value creation. As for Industry, our primary strategic imperative for the Beauty business unit is to return to profitable growth. Weak end markets and lower commercial activity of our main customers led to a significant revenue decline in the business unit. We protected our profitability through disciplined pricing while accelerating decisive cost-out measures to align our cost base with the business volumes. We also executed selective investments to improve our cost position. This allowed us to increase our competitiveness and unlock additional profitable growth opportunities. An integral part of our strategic review is the continuous evaluation of our portfolio of activities and a keen focus on optimizing our capital allocation. Our clear goal remains to pivot towards healthcare and increase our business stake organically or through strategic acquisitions in areas where we see high growth and a high margin potential. An example of how we evaluate our portfolio of activities is the repositioning of our industry dispenser business. In 2025, we optimized the dispenser portfolio by focusing on areas where we have a clear right to win with a renewed emphasis on quality, service level and profitability. We reduced manufacturing complexity by consolidating assembly and warehousing operations, further enhancing efficiency. Let's move to Slide 15. As mentioned in the previous slide, we put great emphasis on transforming Medmix into an entrepreneurial high-performing organization. This year, we made further progress by streamlining our structure and aligning business unit P&L ownership more closely with global functional responsibilities. We have created a lean organization that enables faster and more direct decision-making and strengthens accountability across the business. We have also taken steps to better reward performance, particularly within our sales organization. We continue to strengthen our management team through the appointment of Charity Kufaas as Chief Strategy and Transformation Officer at the beginning of this year. With more than 20 years of global experience in strategy, M&A, transformation and P&L leadership, she will play a pivotal role in advancing our strategy. Today, we have also announced the appointment of Sven Luginbuehl as our new Group CFO. Since 2022, Sven has served as Deputy Group CFO and Head of Corporate Finance at Medmix, bring extensive business expertise and deep financial knowledge to this new role. He is a seasoned finance executive with over 20 years of experience across publicly listed global companies, completed by Big 4 experience at PwC. His deep understanding of our company and global exposure to core markets will ensure a seamless transition into this new role. Our long-term CFO, Jennifer Dean, will take over leadership of our Beauty business with focus on profitable growth. Jennifer brings deep insight into the Beauty business as she has played a key role in maintaining and enhancing profitability in the last years. Slide 16. On Slide 16, you see the Drug Delivery pipeline. Our pipeline is substantially derisked driven by a strong focus on generics and biosimilars, which offer a reduced attrition rate. Within the originator portfolio, only one project carries notable risk as the others are either a device change or a drug that is already in the market. As material device sales will start towards the end of 2027, and we secured a solid opportunity pipeline beside this pipeline you see even after 2028, we expect Drug Delivery to evolve into a meaningful driver of our future growth. Let's go to Slide 17. Our growth and efficiency program, which we launched in 2024 aims at enhancing growth by reallocating resources to our strategic priorities and improving our performance through targeted cost reductions. We increased our initial cost saving targets of CHF 30 million by CHF 3 million to mitigate the Beauty revenue decline and are on track to deliver. By the end of 2025, we have realized savings of CHF 22.6 million and have already secured CHF 4.3 million for 2026. Key contributions include simplifying the organizational structure and advancing the automation of production processes at our Valencia facility. We are continuing to invest in our sales organization and in R&D, which will ensure we accelerate growth and innovation in both our segments. In 2025, we realized CHF 19.6 million of cost-out savings CHF 14.5 million of this CHF 19.6 million is included in margin, which also benefits from the impact of more Dental revenues at higher margins, offset partly by tariff impacts in Industry, Dental and Beauty. CHF 5.1 million is included in OpEx, which is also impacted by adverse transactional FX impacts, net impact of provisions for litigation and restructuring and impact of reinvestments in healthcare teams and projects. On Slide 18, you see our capital allocation principles, which are shown in descending order of importance. The focus of our capital allocation remains on the one hand to strengthen our foundations and on the other hand, to invest in profitable growth. Board of Directors, therefore, decided to propose to the AGM a performance-driven dividend policy, which is based on the consolidated net income attributable to shareholders. A minimum of 40% of earnings per share will be distributed with a higher payout ratio and performance and liquidity permit. We are convinced that this approach at this stage of the company's development will generate superior and more sustainable value for our shareholders. Let me turn to our innovation capabilities, which are vital to fueling our future profitable growth. Today, I'd like to show you how we enhance our customers' competitiveness through our applicator solutions. I've selected an innovative surgical product, which we have highlighted before, but this time, we show it a concrete customer application as well as our ecopaCC cartridge, which also delivers the highest reliability in aerospace applications. And in addition, I will present Dental innovation that showcases a strong customization capabilities. In this slide, you see a product and our customer is a fast-growing OEM, bringing breakthrough innovations to the medical field with its award-winning hemostatic technology. Its hemostatic shell was recognized by TIME Magazine as one of the best inventions in 2025, underscoring its transformative potential in emergency and surgical care. As a strategic partner, we play a critical role in this success by producing the G-System syringe. A specialized applicator that delivers the hemostatic shell with precision and reliability. Beyond this partnership, the G-System stands out as an excellent solution for a wide range of medical device companies in Spine, Orthopedics, General Surgery and other clinical specialties, offering performance, versatility and trusted quality. Let's move to the innovation in our industry business units. The MIXPAC ecopaCC cartridge system delivers a sustainable waste cutting and logistic efficient solution for applications in various segments like aerospace and others. The collapsible cartridge delivers the highest reliability for demanding applications. The full production ramp-up planned for January, February 2026, it sets a new benchmark for responsible and dependable liquid applications in the industry. On Slide 22 is an example of an incremental innovation in our Dental business unit designed for single component Dental materials. And our Modular Syringe platform brings flexible branding and a premium user experience to every Dental practice. Its enhanced focus on customization ensures a uniquely adaptable solution for our Dental OEMs. With this, let's go to our outlook. Looking ahead, the economic landscape remains challenging with continued geopolitical uncertainty and structural shifts in global trade. For 2026, we expect flat to low single-digit organic revenue growth and an adjusted EBITDA margin of around 20%. Our midterm revenue CAGR remains unchanged at above 4%, and we are increasing our adjusted EBITDA margin guidance to above 21%, previously above 20%. For 2026, we anticipate growth to be stronger in the second half, supported by new product launches planned for H2. With this, let's move to the key takeaways. We are making strong progress on our strategic priorities, positioning the company to grow profitable in attractive niche markets. For this year, we expect our top line to grow, supported by significant profitability gains in healthcare and C&I. At the same time, we are fostering a performance-driven culture through a leaner, more agile organization with clear accountability. With this, I will hand over to the operator for our Q&A session.

[Operator Instructions] Our first question comes from Patrick Rafaisz from UBS.

Maybe if I can, 3 questions. The first one, I'll take them one after the other. The first one would be on the guidance. Should we assume a negative potentially H1 in terms of organics due to the dual source impact still and then a positive H2 with the product launches. Is that how you get to the flat to slightly up guidance? And also on the guidance for the margin, you're assuming flat despite stabilizing revenues. How should we think about the, let's say, margin and mix contribution in '26 then? That's the first question.

Thank you, Patrick. Yes, we believe that the first half of the year will be weaker than the second half. And from our perspective, the first half of the year, that's more flat to slightly negative. And the second half, we see them because of the innovations from flat to positive, which will turn also the full year from flat to positive. And as you mentioned, that the impact is also by the dual sourcing because we have seen particularly for this dual sourcing in Drug Delivery, we have seen that we have probably reached the cap at the end of last year. So that impact will be -- the lion's share will come in the first half of the year of the dual sourcing. And the second question was about the margin. I think that's something I think, Jenny, would you like to take that?

I think you're on the right track, Patrick. You're right. In 2025, we had an impact in the mix of more [indiscernible] and higher margins. In 2026, we expect a return to growth for some of the businesses with lower margin profiles, and that will impact our mix. That's why we're holding it at flat for 2026.

Okay. But it feels a bit cautious still, right? Because Dental should still grow, I assume, with a flat guidance overall, you cannot assume that much of growth in the other businesses. Drug Delivery is still negative. So I struggle to see why the mix shouldn't be -- or margin mix, right, in combination shouldn't be better with incremental cost savings, no more negative leverage from declining volumes for the year as a whole. Is that just building in some conservatism also maybe?

Maybe. Let's be honest. The tariffs are still unclear. We saw an impact of tariffs. We said it would be 1% in '25. It was around 1% in '25 and that was not for the full year. Let's see how that evolves. There's been quite some uncertainty there for '26. So that's still an open topic. And the businesses that didn't grow or declined in '25 are significantly lower-margin businesses than Dental. So if these now have some growth in them, it does impact our mix. But you're right, we haven't overstretched this. We want to deliver on our promises, and we'll stick to this guidance.

Great. That's great. Then maybe still with guidance, but more on the targets. Can you clarify the midterm? Is that a rolling targets? Because clearly, the original 3-year period to get to 4% would require an extremely strong 2027, which just looks unlikely. Is that a correct assumption?

That's a correct assumption. As I've already mentioned, I think when we looked about Beauty in 2025, and that was really something which we have not expected this decline as we have seen, particularly in the first half of the year. And that's from a top line perspective because Beauty is our largest business unit. It's not really possible to compensate that year. So it's rolling. I think from a profitability, of course, that was much easier to compensate because our highly profitable business units were performing well. That's also why we were able to maintain and now even to improve our guidance on the bottom line.

Great. And then the last question before going back into the queue would be on the balance sheet in terms of capital allocation priority now at the top to strengthen the balance sheet. Can you give us a framework of how you think about your optimal balance sheet in terms of net debt leverage or whatever KPIs you're focusing on?

So I think it's clear our focus remains on our leverage ratio for now. You see in the annual report that it's below 3, but it's still quite high in 2s. So this is our fundamental focus is to remain strong and get ourselves to a position where we can continue our M&A journey and pivot to healthcare.

We want to strengthen our balance sheet also really to be in a position that we can also capture any strategic opportunity we see.

Okay. Understood. So leverage going down to, let's say, 1.5x or something like that. Is that a fair number?

I would not say that this is something which we can now put as a target. I think it really depends when we see a strategic opportunity for an acquisition, then of course, then we will not go down to this level.

The next question comes from Alessandro Foletti from Octavian.

I also have a couple, if I may. First of all, on the working capital, maybe you mentioned that you had one-offs, et cetera. Can you explain? Because when I look at the balance sheet, I really don't see the major movements.

Actually, maybe I misspoke, but what I was meaning to say, so let's check the script, is that our net working capital did not move this year. What I said was our ONCF was slightly lower this year in 2025 because in 2024, we had a significant step down in net working capital. That was part of the growth and efficiency initiatives. We really did a great push. It was around 15% to 17% decline in 2024, but we remained flat in 2025. We invested in the first half in ensuring with the tariff uncertainty that we had Dental product in the U.S. also to improve our customer service levels in the U.S. for Dental. And then we had some other items. So overall, we stayed flat, about CHF 1 million change, I think, year-on-year.

Can you then maybe explain your bridge in the cash flow because there is this CHF 24 million delta from working capital. I don't really understand that.

Okay. So overall, year-on-year, we had a decline in ONCF of CHF 20 million, about CHF 15 million of that was because we had a lower impact of the movement in net working capital and about half of the delta there was because we had received some earlier cash in from customers in '24 that, therefore, we didn't have in '25. That is more or less the bridge.

Okay. Okay. Good. Then the second question on the dual source in Drug Delivery. So can you explain when will -- you mentioned you reached the cap. So it means at some point, then there is no further decline. But when will the decline stop?

So of course, we don't have the exact numbers. That's something we get always a delay with the royalty payments from the second source. But our assumption is that we have reached within Q4, the cap. That means that by the end of next year, the effect should be over and then the growth will be followed the growth of the drug in the market.

So when you say end of next year, you mean '26 or?

Sorry, that was wrong. End of this year. Sorry about that. Last year, Q4, we have reached the 50%. So it means that we have an effect now in the first -- mainly in the first 3 quarters of this year and end of this year, it will be over. Sorry about that.

All right. Good. And then maybe, I guess, another one for Jenny, I guess. The delta between adjusted and reported EBITDA, it was kind of much bigger than I thought. Can you explain what is included there? And maybe what's the trend going forward? When is this sort of going to fade away?

Sure. So this year, the non-op adjustments were around -- or the one-off adjustments were about $8 million. The prior year is $16.4 million, so significantly lower year-on-year. What's included in 2025 is still some impacts from the ramp-up and investments in Atlanta. That's the primary one from a margin perspective. In prior years, we had impacts from industry, from Valencia primarily, they're not there anymore. So it's really about Atlanta in the margin. And in OpEx, it's still some impacts -- one-off impacts of our growth and efficiency program. In 2026, we expect this to come down again because Atlanta will start to ramp up by the end of the year. So then it will go from a ramp-up situation to production into 2028. So definitely, it should go down. Historically, we had around CHF 2 million to CHF 3 million a year. It was more around some strategic initiatives, this sort of thing. So I expect that that's where we're still heading towards is back to that level.

The next question comes from Edward Hall from Stifel.

I have a couple. Just starting with the guidance. I appreciate you've answered questions on this already. But if we could just think about maybe not maybe for full year, the growth within the different segments, I think especially with the contract you signed with Beauty last year. Just trying to understand where we could think of potential headwinds and potential tailwinds within the group. That would be my first question.

So when you look about the guidance, I think from a Beauty, we believe that for the first half of the year, we still will have some headwinds. And then in the second half, this will reduce. We think about the Beauty segment in the past, we always were saying that we see that market in the mid-single-digit growth. That's something we believe that we see it now more in the low to mid-single digit. So that means that to achieve our guidance, the pivot to healthcare is mandatory. And I think that's also where we see a larger growth.

Perfect. And then if we think about the cost savings you highlighted this CHF 4.3 million sort of floor, is this the total expected? Could we see more savings in the P&L this year?

Yes, we will continue with our efficiency program, that's for sure. What you can also expect, even if we do not highlight this as an efficiency program in the future, this has become part of our DNA. That's also what we think is critical to have with a high-performing organization. So this will continue even if we do not highlight. For this year, it's still ongoing. And then it will become as part of our business as usual that we are looking into these efficiency programs.

Perfect. And then just finally, on the Drug Delivery, I'm mainly addressing the slide you showed on Slide 16. If you could expand on some of these different indications and the volume expectations. I think you talked about most of them already being approved drugs. But if we just try and understand sort of your positioning within this as a Drug Delivery market, I think last year, you talked about sort of a 5 million total production number. Has this changed? What's your current thinking at the moment?

No, this has not changed. I think that's in the same range as we already said in the past. I think the projects you see on this list are all somewhere between -- maybe the one which you see with the bone metabolism, rheumatology, obesity, that's one customer with multiple indications, but smaller volumes. All the other volumes are more in the million range, but single-digit million range of peak unit volumes.

[Operator Instructions] We have a follow-up question from Edward Hall from Stifel.

Yes, I'll jump back in the queue. Just a follow-up just on the gross profit margin within the Healthcare segment. I appreciate you don't split out by different subgroup. But if we think obviously something returning back to growth in 2026, I mean, how could we think about this absolute change in 2026?

Sorry, I've not heard the last thing in...

Yes. In terms of just the gross profit margin and the change that we expected, obviously, it's obviously -- we don't see the granularity you have on the different subsegment levels. So I'm just trying to understand the sensitivity to if surgical or Drug Delivery was to grow, what the potential impact that would have on the gross profit margin?

So what you see in the 3 Healthcare business units, we have right now, we have a very good profitability in Dental as well as in Surgery. And I think this will remain quite stable. Of course, Surgery can maybe go a little bit up if the volume goes, but the big impact will come when we see the device sales, what you see actually on this Slide 16, which will start kicking in end of '27 and '28 because the Drug Delivery profitability is at the moment, of course, significantly lower than what you see in Surgery or Dental. And as soon as we have this additional device sales, then also Drug Delivery business unit will go more into the range what you can expect from a Healthcare business unit.

We have a follow-up question from Patrick Rafaisz from UBS.

Two follow-ups. One is on the Drug Delivery business with most projects or launches kicking in only towards the end of '27. How should we think about the '27 growth? Is that just more a flattish number in all likelihood before we ramp up? And the second question is on Dental, where you talked about the product categories. Can you just add a bit of color on the relative share of the most relevant product categories in the mix and which categories will actually drive the growth going forward with the next-generation launches?

Yes. Let me go first to the Drug Delivery, I think when you look '27, because it's at the end of '27, then it's very difficult to say how much we will grow in '27 because this project, the launch date can easily vary by a quarter or 2. That's why I'm careful to make any speculations on the '27. It can be surprisingly good if it's a quarter earlier or it will be lower if it's a quarter later. And to say something about that is very difficult. The real growth will come in '28. And then about the different businesses, I think when you look about the impression business, which is a declining -- structural declining business, there, we have a very high market share. So that's probably over 50% in value we assume. And then the next bigger business is actually cementation. And in cementation, our market share is more about 2/3 of the market, whereas a significant part of that cementation market is right now not accessible for us because Solventum is also sourcing from us, but they are also producing for one product, cementation product by themselves. Where we see the real growth opportunities, these are particularly in the adhesive market, which is a very large market, and we have there a much lower market share. That's more in the single-digit percentage. And also in restorative, where we are more somewhere between 10% and 20%. These are, for us, big growth markets where we have also product launches planned. In impression, cementation, crown and bridge segments, we are -- all in these segments, we have more than 50% market share in the accessible market. So the growth will come also from that because this market, the cementation is growing, but the real growth through market share gains that will come from adhesives and restorative. Then besides that, there are multiple smaller markets where we see growth opportunities like the endo-perio market, professional whitening, aesthetics. So there are plenty of growth opportunities in the Dental world, which -- where we can also gain market share.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Domenico Truncellito for any closing remarks.

Thank you very much for attending. Very much appreciate it, Rene.

No, thank you. And as we conclude today's presentation, I really want to say thank you for your time, particularly also for the questions. I think that's always very helpful. And this year reminded us that what makes Medmix really exceptional. That's our people, our precision and also our ability to turn challenges into opportunities. I think we have really strengthened our foundations, and we delivered for customers who rely on us every day. And as we look ahead, our ambition is clear. We will continue building a Medmix that is faster, stronger and more agile. And I would like to thank really to our employees, customers and shareholders. Thank you for your trust and partnership. Thank you very much.