Medmix Aktie

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.

Ladies and gentlemen, welcome to medmix H1 2025 Results Webcast. [Operator Instructions] The webcast will be recorded. Please note that the recording by participants for publication or broadcast is not allowed. [Operator Instructions]

I will now hand over to Domenico Truncellito, Head of Communications and Investor Relations at medmix.

Good morning, everyone. My name is Domenico Truncellito, Head of Corporate Communications and Investor Relations at medmix. I'm joined by Rene Willi, our CEO; and Jenni Dean, our CFO.

In the interest of brevity, we will assume that you have read the disclaimer on this slide regarding forward-looking statements.

With that, I will now hand over to Rene.

Also from my side, good morning, everyone. I'm very pleased to present the half year 2025 results to you today. Jenni 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 half year 2025. We significantly increased gross profit and profitability above the range of our full year guidance despite decreased revenues. Gross profit increased by 240 basis points to CHF 82.5 million. We clearly see that the savings generated through our growth and efficiency program and our strategic initiatives are going through to the bottom line. We are ahead of plan with our growth and efficiency program, which, on the one hand, is aimed to unleashing growth by reallocating resources to our strategic priorities and, on the other hand, improving our performance by strategically reducing costs.

Of our original CHF 30 million target, we have secured CHF 15 million so far. This means we have executed initiatives that will generate CHF 15 million of savings. Of this CHF 15 million, we have realized, in the P&L, CHF 8.5 million of savings in H1 2025. I will give you more details in the strategy section of this presentation.

Operating cash is slightly down, mainly driven by our decision to build up dental inventories to mitigate the impact of U.S. tariffs and improve service levels overall for U.S. customers.

Another highlight in the first half of this year was our recognition as just 1 of 9 Swiss companies to achieve an A score in the sustainability ranking by CDP.

In our Healthcare segment, our Dental business unit continued to grow significantly above market in the first half of 2025 as we successfully expand our sales outside the impression category. We are very pleased with the development of our Surgery business unit, which grew 26%, partly because of low comparable in H1 '24, but mainly because of new customer approvals. Drug Delivery declined mainly due to missing non-repeat project milestones that were booked in H1 2024.

The dual-source impact was very low in the first half, but we expect a higher impact in the second half of 2025. Our first PiccoJect auto-injector devices for clinical use have been produced and delivered to our customers this year. We have a solid pipeline of projects for a mix of originated drugs, biosimilars and generics for a broad range of indications.

In our Consumer & Industrial segment, our Industry business is performing well with slightly negative revenues year-on-year in H1 2025 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, automated production processes. We have started commercial production from our Atlanta facility, which will ramp up as we start to in-source volume currently with our U.S. subcontractors.

In our Beauty business unit, year-on-year growth in H1 was always going to be challenging given the extremely strong H1 in '24 and a slowdown of new orders booked in H2 2024. The first half of 2025 was marked by lower commercial activity and customer project delays. We expect this lower activity to continue in the second half. We have seen an increase in customer projects activity in Q2 2025, including winning our second largest order ever. These orders will provide revenue growth momentum in 2026.

Given the slowdown, we have accelerated existing cost-out measures to adapt the cost base to business volumes and protect profitability, and we have identified significant new initiatives to be implemented immediately. I will elaborate on this in our growth and efficiency section of this presentation.

With this, I will hand over to Jenni, who will take you deeper into the financials.

Thanks, Rene. Our main KPIs can be seen on Slide 7. As already explained, our revenues declined year-on-year. Foreign exchange rate effects of minus 2% impacted underlying organic volume growth during the period, which stood at minus 4.6%. Both segment gross profit and gross profit and the margins for both expanded significantly despite these lower revenues. Importantly, we see from our profitability metrics that our strategic actions and cost-out measures, impacting both margin and OpEx, are flowing through to the bottom line profit. I have a slide on that later.

Our adjusted EBITDA margin is now close to 20%, ahead of our full year guidance range of 18% to 19%. This was mainly driven by higher Dental in the mix at improved margins and margin improvements in our Industry and Beauty business units. EBIT increased 22.2% as a result of the higher gross profit and our implemented strategic initiatives. Operating net cash flow is slightly lower year-on-year as we have built inventories mainly in our Dental business to mitigate the impact of potential U.S. tariffs and improved service levels of our U.S. customers. Our leverage ratio improved slightly year-on-year, driven by lower net debt.

On Slide 8, you can see the half year '24 to '25 revenue bridge. As mentioned before, strong growth of the most profitable health care businesses, Dental and Surgery, was offset by a decrease in Drug Delivery and in the C&I segment. Foreign exchange effects, mainly the weakening dollar to Swiss franc, negatively impacted underlying organic growth year-on-year as well. On the right, you see the percentage revenue contributed by our business units: Consumer & Industrial contributed 60%, 5 points lower than in 2024; and Healthcare, therefore, 40%.

Slide 9 shows our full year health care -- our half year Healthcare and C&I gross profit year-on-year. Total gross profit segment grew by 1.6% to CHF 107.9 million despite the decline in group revenues, delivering a strong segment gross profit margin of 47.9%, a year-on-year increase of 390 basis points. Healthcare segment gross profit increased 7.5% year-on-year, in line with the revenue growth. Resulting segment gross profit margin was a strong 62.7%.

Dental and Surgery business unit volumes and segment margins grew year-on-year, partly offset by the volume and segment margin pressure from the Drug Delivery business unit. Consumer & Industrial segment gross profit decreased by 4% year-on-year due to the impact of the decrease in Beauty volumes. The segment delivered a robust gross profit margin of 38.3%, though, an increase of 370 basis points year-on-year. This was driven by the operational efficiency gains through our growth and efficiency program in Industry and Beauty business units.

Slide 10 shows the walk from our adjusted EBITDA in half 1 2024 to half 1 2025. The decline here from CHF 46 million to CHF 44.9 million in absolute adjusted EBITDA masks the success of the growth and efficiency cost-out initiatives. The decline in absolute adjusted EBITDA is driven by 2 factors. In the first column, you see the impact of the volume shortfall year-on-year in Beauty and Drug Delivery of CHF 5.3 million. And in the final column, you see the impact of minus CHF 4 million on our profit. That's actually related to the fact we guide and report on adjusted EBITDA. And for half 1 2025, we have lower non-ops or one-off adjustments and lower amortization after the end of some technical GEKA amortization in half 1 '25.

As previously mentioned, we have realized a significant CHF 8.5 million of cost-out savings through our growth and efficiency program. CHF 5.5 million of this is included in the CHF 7.1 million you see in the middle of this chart, which is increasing our contribution to profit for margin and mix. Also included in this number are impacts of accelerated Dental sales, offset by tariff impacts, bringing the total to CHF 7.1 million. The remaining CHF 3.3 million is part of the CHF 0.9 million increased contribution from OpEx. Offset against the savings of CHF 3 million were adverse transactional FX impacts and net impacts of provisions for litigation, restructuring and reinvestment in the health care business unit teams.

Slide 11 shows that our EBIT is positively impacted by our segment gross margin growth. EBIT increased 22.2% year-on-year and EBIT as a percentage of revenues stands at 7%, a 170 basis points increase compared to the same period a year ago. The EBIT metrics clearly show the benefit of our growth and efficiency initiatives, which drove higher Dental in the mix at higher margins and Industry as well as Beauty operational efficiency gains.

On Slide 12, you can see the walk from our operating net cash flow in June '24 to June '25. Operating net cash flow slightly decreased to CHF 15.3 million. The lower ONCF is primarily due to inventory buildup in our Dental business unit to mitigate potential U.S. tariff impacts and to increase service levels for our U.S. customers.

With that, I would like to invite Rene to come back and discuss our strategy and outlook.

Thanks, Jenni. In February, I presented our strategic priorities, which you see on this slide. We have refined our strategy in order to create a sound foundation for our future growth.

Our strategic priorities focus on the adaptation of our organizational setup to enhance our customer proximity, pace of innovation and ensure clear accountability. In the past half year, we have significantly strengthened our management team with seasoned leaders.

Jasper Den Ouden joined medmix as of March as Chief HR & Sustainability Officer. Jasper brings extensive international HR leadership experience. He most recently served as Chief Human Resource Officer at SR Technics Group in Zurich and drove key initiatives in digital transformation, talent development, ESG and organizational change.

We are also very happy to welcome Francisco Faoro and Oliver Haferbeck to our executive leadership team. Oliver was appointed as the new Head of Drug Delivery business unit in June. He brings a wealth of international leadership experience in the health care and medical technology sectors. Most recently, he served as Head of Gerresheimer Advanced Technology and CEO of Sensile Medical AG, where he led innovation advanced drug delivery systems. His tenure at Gerresheimer was marked by a strong focus on strategic growth, technology advancement and operational excellence.

Francisco Faoro joined medmix as Chief Technology Officer in May. Francisco brings an extensive international leadership experience in technology and innovation. He held various senior leadership roles at Straumann Group, successfully preparing multiple implant innovations, which he created significant growth momentum. Prior to his tenure in the dental field, Francisco had several managerial positions in brand management and product development within the orthopedic and polymer processing industries.

As we have stated in our results section, our Dental business unit continues to grow strongly above market. We have increased our focus on faster-growing product categories to further reduce our exposure to the impression category, which today is below 40%. We are building strategic partnerships with our key OEMs to foster collaboration and provide them a competitive advantage. We have increased our innovation pace and have a strong pipeline in several categories such as cementation, adhesive, et cetera. As an example, we will achieve launch readiness for our new applicators ecosystem, CliX, end of this year, which is a paradigm shift when it comes to precision, ease of use for the dentist and sustainability. I will provide you more details in the innovation section of this presentation.

In Surgery, we are growing high double digit and have started the second phase of ramp-up of the Atlanta site, which now produces a full range of validated Surgery products. With these new facilities, we have increased customer proximity in the world's largest health care market. This enables us to build a full portfolio of value-adding services and to become a strategic partner for customers. We have benefited in the first half of the year from very successful product launches of our customers. Furthermore, we continue to in-source manufacturing to increase value creation as well as securing an improving service level.

For our Drug Delivery business, the primary strategic focus is on commercializing our 2 next-generation device platform, PiccoJect and D-Flex. Both are at the beginning of their life cycles, and we have received a positive response from customers. As previously communicated, the increase in allocation of production to one customer's second source persists in 2025, but is skewed to the second half of the year.

In our Industry business unit, our primary strategic focus is taking cost out, improving operational efficiency and therefore, profitability. In H2 2025, we will begin ramping up our in-sourcing initiatives in Atlanta to enhance value creation.

Volume growth is, of course, also important. Our environmentally friendly product portfolio continues to make the difference with our customers. Following SIKA, which recently decided to switch its current portfolio to our greenLine product range, Huntsman and Gurit, 2 other customers, important customers, have also started to use our greenLine portfolio. Furthermore, our team has launched a new multiyear, high-volume supply partnership, which adapts and introduces our ecopaCC solutions to the aerospace market.

As for our industry, our primary strategic imperative for the Beauty business unit is to improve profitability. We have focused on quality of our order books, which means we have been selective in accepting customer projects. While we have good traction in our growth and efficiency initiatives in Beauty, revenues have continued to decline, and we see a slower-than-expected recovery in the Beauty revenue trends in H2 2025. We have, therefore, accelerated the existing cost-out measures and identified new actions to adapt the cost base to business volume and protect profitability.

With regard to new projects, we have seen an increase in customer activity in Q2 2025. And we're also able to win new tenders, which will provide revenue growth momentum in 2026. The growth and efficiency program is progressing well as we see savings flowing through to the bottom line. I will give you more details on the next slide.

As communicated, we target cost-out of CHF 30 million over 2 years with most of the actions to be executed in 2025 and a significant portion of the savings expected to have an impact already in 2025. Part of the cost-out will be reinvested to pursue our health care growth strategy and increasing efficiency in our production facilities. We will continue to invest in R&D, which will ensure we stay at the forefront of innovation.

As you can see in this graph, in 2024, we have realized savings of CHF 3 million. For 2025, CHF 70 million are planned, of which we have already secured CHF 11 million until June 2025. And we have realized in the P&L CHF 8.5 million.

With regard to the Beauty business unit, we have accelerated cost-out measures already planned and identified additional savings of CHF 3 million. We will accelerate automatization projects further, optimize the supply chain and review organizational setup.

Let's move to Slide 16. On this slide, you see our exposure to U.S. tariffs. Our mitigation actions and the maximum 2025 gross impact on the P&L we foresee based on the latest expected tariff rates and timing. We are well positioned to weather the disruption caused by U.S. tariffs due to our global footprint and our strong customer relationships.

With our Atlanta and Elgin sites, we produce local for local for our Beauty, Surgery and Drug Delivery business units. Some Dental U.S. customers are served through our hub site in Switzerland, and we serve some U.S. industry customers out of our Valencia and China site, which exposes us to U.S. tariffs.

Assuming that we would not increase prices to the maximum forecast impact with latest communicated tariffs and timing, we will be 1 point of profit in terms of EBITDA. We have actually already communicated price increases to impact the customers starting 1st of July 2025, and we'll work with customers and monitor the situation carefully throughout the remainder of the year.

On Slide 17, you see our capital allocation principles, which remain unchanged to what we have shown in February. Needless to say, these are integral to our strategy and are shown in descending order of importance. The focus of our capital allocation is, on the one hand, to strengthen our foundations and, on the other hand, to invest in profitable growth.

Let me now talk about our innovation capabilities, which are vital to fuel our future profitable growth. We have innovation projects in every business unit. In the past, we have already spoken about our sustainable innovations such as shadow printing, greenLine, ecopaCC and C&I as well as about our innovative product platform, PiccoJect. Today, I'd like to focus on Dental and Surgery. Both have strategically important projects, achieving launch readiness this year and will provide growth momentum in 2026 and beyond.

Slide 19 shows a good example of our investments in faster-growing Dental product categories. Here, you can see our new CliX Drop applicator, which represents a paradigm shift when it comes to precision and ease of use for the dentist. Nowadays, dentists had to apply liquid by handout of a conventional bottle. Clearly, the current technology would not allow for precise dosing and would generate a lot of waste of very expensive material needed for the dental treatment. This is also messy and not convenient. With our new applicator, dentists can precisely apply the liquid without any waste. It is easy to use, maximizes control and maximizes applications per cartridge. Interest from our globally leading dental OEM customers for this innovation is very high, and CliX will be available to these customers in 2026.

Just to complete the picture, this slide shows the internal part of CliX and the cartridges, and it is more than an applicator. It allows the dentist to apply liquids, adhesives and shells out of the same system, just by changing the tip and the container. The container can be used multiple times, treating multiple patients. Some engineers told me that using CliX is as simple as switching coffee capsules in an espresso machine. But because it can be used for adhesives, liquids and gels, it's actually more like a machine which can make coffee, tea and ice cream. We are really excited about this innovation.

On Slide 21 is an example of an incremental innovation in our Surgery business unit. The Vented G-System significantly reduces the time required to prefill the syringes by our surgical OEM customers and tissue banks. This provides them significant efficiency gains. Also, the vented syringe allows for more effective hydration and mixing of bone graft material in the operating room. The vented syringe will be commercially launched in the second half of this year and is a good example of quick time to market of our incremental innovation solutions. I really like this innovation as it does not only provide a better experience for the end users and the surgeon, but also provides a competitive advantage for our direct OEM customers in their supply chain.

With this, let's go to our outlook. As we stated in our February outlook, 2025 will be a transition year as we laid the important foundations for a stronger and more resilient future. Based on H1 2025 actuals and our outlook for the full year, we now expect a full year revenue decline similar to that seen in H1 2025 on an FX-adjusted basis. Our 2025 guidance for profitability with an adjusted EBITDA margin of 18% to 19% remains unchanged as does our midterm guidance over a 3-year period with a compound annual growth rate in revenues of above 4% and adjusted EBITDA margin of above 20%.

With this, I will hand over to the operator for our Q&A session.

[Operator Instructions] We will now start with some questions from the board. The first question is from Patrick Rafaisz, UBS. Dual sourcing in Drug Delivery, did you say you expect a higher impact in H2? And are we safe to assume that for 2026, this is then fully washed out?

Thank you, Patrick. It's correct. In H1, we have seen very limited impact of the dual sourcing. So it was really not -- the decline was driven by a onetime payment we got of a project which was closed, and we have not had that in this first half of the year. We expect more of this dual sourcing in the second half of the year. And in our assumption for the full year, we have assumed that it's washed out. Whether this happens, of course, that depends not on us. It depends also on the tools, the second source of our customers, which we cannot influence. So if it's not washed out, that means actually that our results for the second half would be better as we have seen already in the first half of the year. But in our planning, we assume that it will be washed out at the end of the full year.

There is a follow-up question from Patrick Rafaisz. Beauty, you mentioned incoming projects in Q2 suggest growth in 2026. Can you add more color?

Yes. So at the beginning of the year, actually, we assumed that we will have more projects coming in also that request for quotes. These were all delayed, but they came then actually later in the year, and we saw it now coming actually. And we have one large project. Actually, it's our second largest project that we have ever won in Beauty. But because it came later, it will not have the impact as we have expected in the second half of the year, the impact will come actually in 2026. And it's a global project, which is really for a global customer for all different regions worldwide.

There is another question from Patrick Rafaisz on Dental. How should we think about H2 growth after the H1 channel loading due to tariffs?

Yes. I would not say it's channel loading. There were 2, I think, particular important effects we have seen in the first half of the year. One was, because of the tariffs and our customers wanted to avoid that, yes, they have accelerated these orders, and this will probably impact the growth in the second half of the year. The second positive effect we had in the first half of the year is, as I already mentioned, we are now working more and more as a strategic partner for the large global dental OEMs. And there was a onetime milestone payment for a project, which we have with one of the leading global OEMs. And when we look for the full year, then the growth will be more in the normalized way as we have indicated before.

Another follow-up question from Patrick Rafaisz. Can you walk us through the details of the CHF 4 million non-ops in the margin bridge?

Yes. Thank you. I will leave that question to Jenni.

Patrick, thank you for the question. We actually don't have CHF 4 million of OpEx in the bridge. The CHF 4 million is amortization and non-operation add-backs. I guess you're talking about the adjusted EBITDA bridge. And so in there, as you can see in the P&L statement, we have CHF 2 million of non-ops this year compared to CHF 3 million last year. So CHF 1 million less non-ops. So of the CHF 4 million, CHF 1 million comes from that. And then the other CHF 3 million is from the step-down in amortization from last year to this year as we ended the amortization of some of the customer and R&D goodwill that we booked when we acquired GEKA.

A question from Simeon Gutman. Does the maintained midterm guidance imply that you expect now substantially more growth as of 2026 as you reduced 2025 revenue growth guidance? So are we looking for double-digit revenue growth as of 2026?

No, we do not expect double-digit revenue growth as of 2026. But in the long run, in the 3-year plan, we stick to the 4% plus.

At the moment, there are no more questions on the board, so if someone wants to ask an oral question. We have one, [ Charlie Firma ].

Can you hear me now?

We can hear you.

Okay. You have CHF 8.5 million of savings realized.

We can't hear the question.

You have realized savings of CHF 8.5 million in the first half and CHF 15 million of secured savings. Can you tell me the difference? What this actually means?

Okay. So the question was you have realized CHF 8.5 million out of CHF 17 million, if you could explain what that actually means in the savings.

Cost savings.

So what we were trying to demonstrate was our progress towards the original CHF 30 million target of cost-out versus our '24 baseline. So of the CHF 30 million, then what we said was that for this year, we have realized CHF 15 million, meaning, for example, we have ordered CapEx -- or ordered plant and equipment that would deliver an automation benefit or we have released some people or not hired some people that will have an impact down the track, but it's not necessarily visible yet in the P&L. And so of that number, CHF 8.5 million, we could really demonstrate what's in our P&L or impacting positively our P&L for this year.

And so as I said in the bridge, we have around CHF 5.5 million that's really coming from operational efficiency initiatives, for example, automation projects predominantly in our back office in Germany and Valencia, Spain plants in our C&I segment. So it might be semi or full automation of lines that were previously manual assembly or it can be better vision systems that improve the flow-through or decrease the amount of checks, quality checks, that we need to do afterwards to improve the rate of production. So that's one sort of element. It can also be improving our processes, leaning out our processes, so we have less steps in the process. We improve our service levels and improve our profitability. So that's more on the operational side, and that was about CHF 5.5 million of the CHF 8.5 million that we realized.

Unfortunately, in our margin, you don't see that full impact, and that's because we had the volume decrease in Beauty and Drug Delivery, and we had some tariff impacts. So they sort of mitigated that in the margin a little bit.

On the OpEx side, so selling, G&A, R&D, these costs, then we had about CHF 3 million of upside there, and this was generated through leaning out our headquarter functions, streamlining our processes, taking layers out of the organization. We reviewed our IP strategy and the different elements that we pay for in terms of trademarks, et cetera. So we decreased that a little bit. And overall, we tried to really maximize the profitability by really focusing on where we need to reinvest a little bit in R&D and our product managers to accelerate some of the programs there.

Mr. [ Firma ], I think now your line is open again, and we got rid of the background noise. Does this answer your question? Or did I word it...

I'm still wondering how much of the CHF 30 million you target in savings will be reached this year?

Operator, we still can't hear the question.

Mr. [ Firma ], can you please repeat one time and then I will repeat it?

I'm still wondering how much of the CHF 30 million targeted savings in total will be reached this year?

The question was how much of the CHF 30 million of savings targeted will be reached this year?

Sorry, can you repeat, how much of the...

How much of the targeted savings of CHF 30 million will be reached this year?

So far, we've identified CHF 17 million. So that is our target for this year. So far, we've realized CHF 8.5 million, but we expect the full CHF 17 million to be reached. We have just launched a new CHF 3 million of initiatives in Beauty, and we will be assessing in the next few weeks how much of that we can also bring into 2025. So somewhere between CHF 17 million and CHF 20 million is our target for this year.

Yes. And of course, some of the impact will come later. Particularly, when it comes to FTE reduction, then this will not impact immediately, and that's also something depending on the country, and it's then saved because it was executed, but the financial impact you will see actually then 3 months, sometimes 6 months later.

Mr. [ Firma ], is your question answered?

Yes.

No question for now. I will move back to the question board. There is one follow-up question from Patrick Rafaisz. Last one for me, he says, a clarification on tariff impact. Can you quantify the price increases as of July? And will this fully offset the 1% point margin headwind?

The answer is that, yes, we should be able to compensate most of the price increases, but there may be a lag depending on the delivery timing of the revenue versus when they're paid. But the intent is to do that. So far, we've seen about 1 million of impact in half 1. But as we said, the price increases only start 1st of July, so there will be a bit of a lag in that sense. And so far, the targeted price increases would cover about 2/3 for this year of the tariff impact.

I have a question from [ Michael Schultz ] now from the board. You said you only will have 1 percentage point EBITDA margin loss from U.S. tariffs before passing them on to clients. Can you explain this by making an explanatory calculation?

So with our current level of revenue, 1 point of EBITDA is around CHF 5 million. So if we just have the tariffs and we don't pass any price increases on, based on the current level of tariffs, which is not clear, especially for Switzerland and the timing of the tariffs, which is also not clear for any of the countries, then we expect a maximum impact of 1 point of profit, so between CHF 4 million and CHF 5 million. However, right now, we are discussing with our customers, negotiating and we're expecting that we can pass on 2/3 of that in this year as price increases.

So Alessandro, if you want to put the question in writing or have me tell it, please move ahead. Otherwise, the question board looks empty by now. So I think I can hand over back to medmix for closing remarks.

So thank you very much for your question. I think this was really very good questions, and I think that's important. There's an uncertainty, I think, with the tariffs and the geopolitical risk. But from our perspective, we are very well positioned to really react on this. We have the agility. We have also the customer relationships, which puts us in a good position that we work out the solutions with them, and so it will not impact us too much. And we also think, in the long run, particularly with our pivot into health care, we made very good progress. So happy then also to provide you more light on this in the course of the second half of this year. Thank you.

Thank you. I just checked the board. Still no more questions. With that, I thank everyone for attending this event, which we will now close. Have a great day.

Thank you.

Thank you.

Bye.