Medical device maker Ambu A/S on Friday cut its full-year free cash flow forecast, citing negative impacts from foreign exchange rates and tariff costs, even as it reported solid quarterly growth.
The Danish company now expects free cash flow of around 400 million Danish kroner for its 2024/25 fiscal year, down from a previous forecast of over 500 million kroner.
The downgrade came despite a third quarter where organic revenue grew 12.0%, prompting Ambu to raise the lower end of its annual revenue growth forecast to a range of 12% to 14%, from 11% to 14% previously.
"We maintain our EBIT margin guidance, supported by solid organic growth and operational leverage, even as we navigate FX and tariff-related dynamics," Chief Executive Britt Meelby Jensen said in a statement.
For the quarter, Ambu's EBIT margin before special items fell to 11.3% from 12.9% a year earlier, which the company attributed to the currency and tariff headwinds.
Growth was driven by a 15.9% organic increase in its key Endoscopy Solutions division, the company said.
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