Image Credit: DMS Imaging Booth, JFR 2018
On January 20th, Diagnostic Medical Systems Group, the French-based healthcare technology company published its financial results for Q4 2020. These show that sales were lower during the quarter, although Q4 2019 is a tough comparable due to previously high growth and cumulative sales remained higher for the year. Quarterly sales reached €8.6m, compared with €9.6m during Q4 2019, a decrease of approximately -10% year-on-year. This took cumulative 2020 sales to €32.1m, compared with €31m in 2019, an increase of approximately +4% year-on-year. These figures reflect the sales performance of the DMS Group, which comprises of three operational segments, DMS Imaging, DMS Wellness and DMS Biotech.
The DMS Imaging segment is responsible for the development and manufacture of medical imaging solutions for radiology, osteodensitometry and posturology. DMS Imaging trades under four brand names; DMS and Medilink for bone densitometry systems, Apelem for radiology and AXS Medical for 3D modelling and posturology systems.
For the full year 2020, sales originating from radiology solutions were approximately +9% higher year-on-year. This sales growth was driven by a combination of increasing OEM business, sustained demand from key export markets as well as continued local domestic demand. DMS Imaging has international trade agreements with Carestream and Fujifilm Europe which significantly contributed toward sales growth, particularly within Europe.
For the full year 2020, sales originating from bone densitometry solutions were approximately -18% lower year-on-year. The Coronavirus pandemic caused a material slowdown in orders and deliveries in key markets. Sales were also interrupted during the first-quarter as a result of an operational disruption relating to a third-party supplier. The group aims to return to a normalised pace of activity during 2021, supported by increased distribution with Fujifilm Europe across EMEA and Asia. The agreement with Fujifilm enables for the distribution of the DMS Stratos and Stratos DR systems under the brand name FDX Visionary-DR.
Construction of a new factory completed
During June-19 the Group began the construction of a new factory located in Gallargues-le-Montueux (France). During Q3 2020, the construction of this facility was completed and from October this site was operational. Built on a total area of 16,800 m², this new facility offers a floor area of 5,500 m², of which approximately 50% is office space, 25% production space and the remaining 25% dedicated to storage and shipping. The site enables a double in production capacity as well as significant efficiency gains through consolidating multiple operations at Montpellier and Nîmes. The site has 115 parking spaces and will accommodate around 150 employees. The land also benefits from a land reserve of the order of 2,000 m² allowing to realise a project of extension according to the subsequent needs of the group.