12th Feb 2025 13:41
(Alliance News) - AOTI Inc on Wednesday said it expects to report a markedly higher adjusted earnings margin 2024 as its revenue was boosted by more diversified growth.
The Oceanside, California-based medical technology firm said it expects the adjusted earnings before interest, tax, depreciation and amortisation margin for 2024 to increase to 13.8% from 3.9% in the prior year.
Revenue grew by 32% to USD58.1 million from USD43.9 million. The firm said growth outside the Veterans Affairs sector helped to diversify the sales mix. VA accounted for less than 60% of revenue, down from 72% in 2023.
The company said its margin was boosted by increased receivables and investments in new market segments.
AOTI said it is confident of continuing to achieve greater than 30% revenue growth in 2025 and the medium term.
Chief Executive Officer Mike Griffiths said: "Our investment in expansion into a broader range of channels reflects the growing awareness of the burden of chronic disease and the need for effective treatments that also reduce costs.
"In the US, chronic disease consumes 90% of all healthcare spending, with heightened attention being paid to reducing this growing burden. As market leader in this new, high growth sector, AOTI is uniquely positioned to reduce the total cost of care for this patient population."
AOTI shares were down 11% to 101.81 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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