Avita General Manager Chi Chiang announced on the 26th that although the negative impacts of the pandemic persist and this year’s performance has yet to return to 2019 levels, the company expects to achieve single-digit growth for 2023. Looking ahead, multiple new projects will enter mass production in 2024 and 2025. Products like pulse oximeters and nebulizers are projected to see increased shipments next year, while new models of thermometers for existing clients will also start production. Mass production for these new projects will begin gradually from Q1 2024 to Q1 2025, creating opportunities for double-digit revenue growth next year.
Chi noted that high inventory levels among customers, especially for thermometers, have impacted demand. Both American and European clients are still working to reduce unexpectedly large stockpiles, resulting in slower digestion. Japanese clients, however, have shown relative stability, driving growth and becoming Avita’s largest customer this year.
Despite these challenges, Avita’s gross profit margin has been improving since hitting a low in Q1 and is expected to rise further in Q4. While full-year revenue may achieve single-digit growth, gross profit margins are expected to decline slightly. For the first three quarters of 2023, Avita recorded a net profit after tax of NT$37.06 million, a year-on-year decline of 37.07%, with an EPS of NT$1.02. Cumulative revenue from January to October reached NT$778 million, down 0.4% year-on-year.
Avita’s key American and Japanese clients are advancing their new projects as planned, with production schedules aligned with customer needs. Mass production for these projects will occur between Q1 2024 and Q4 2025. Chi emphasized that the development cycle for medical products typically takes at least two years, and several strategic projects for major clients are progressing steadily.
In addition to its flagship products like thermometers and blood pressure monitors, Avita is actively working on new projects for pulse oximeters, nebulizers, and breast pumps. Pulse oximeters have attracted new customers in Europe and the U.S., while nebulizers have secured orders from North America and Europe, with shipments already increasing this year. Although these products currently contribute less than 5% to revenue, their impact is expected to grow significantly in 2024.
Furthermore, existing clients for thermometers are introducing new projects, which will gradually drive additional growth. Overall, Chi believes Avita is well-positioned to achieve double-digit revenue growth in 2024.
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