Elos Medtech - Interim report, 1 January–30 September 2015
• 23 April marked the conclusion of the acquisition of the North American company Onyx Medical LLC, based in Memphis, TN, in the US. The company is a leading supplier within the orthopaedic area Trauma & Extremities.
• Net sales increased to SEK 367.7 M (274.7), a rise of 26.6%*. Onyx Medical accounted for the greater part of the increase in sales. However, sales were negatively impacted by a temporary deceleration for the unit in Tianjin with a significant decline in our sales to Novo Nordisk.
• Order bookings amounted to SEK 325.4 M (301.4), up 2.3%*. Onyx Medical made a positive contribution to order bookings at the same time as there was a decline noted due to a change in order patterns combined with weaker demand in the Medical Devices market segment.
• Operating profit, adjusted for non-recurring items, totalled SEK 34.8 M (24.5). Onyx Medical made a positive contribution to profit, while the lower sales at the unit in Tianjin reduced profit. Operating profit, including non-recurring items corresponding to SEK 5.5 M (0), amounted to SEK 29.3 M (24.5).
• Profit after net financial items totalled SEK 23.8 M (22.8). Net financial items were positively impacted by
exchange-rate differences of SEK 0.1 M (1.9).
• Profit after tax amounted to SEK 16.7 M (18.8), corresponding to SEK 2.76 (3.11) per share.
• Cash flow after investments was a negative SEK 148.9 M (pos: 33.1), of which corporate acquisitions accounted for a negative SEK 160.4 M.
* Adjusted for exchange-rate fluctuations.
President and CEO, Johannes Lind-Widestam, comments:
“A generally satisfactory level of growth was noted for the third quarter of 2015 in the global market in which Elos Medtech operates. However, a slight fall-off in demand was noted in new markets, such as China.
Three of four market segments demonstrated continued stable growth during the year. Sales for the Dental Implant Systems market segment grew by 8%, Trauma & Spine by 232% – primarily due to the acquisition of Onyx Medical – and Diagnostics by 38%. Sales of our own products continued to increase strongly; the increase to date this year is 56%.
For the fourth market segment, Medical Devices, a decline in sales of 8% was reported. Our deliveries decreased significantly during the third quarter to our largest customer, Novo Nordisk, which we indicated in previous report. Our assessment is that the lower pace of delivery for Medical Devices will also adversely affect our sales in the fourth quarter. Then be expected to return to normal business volumes.
Among the positive events during the quarter, I also would like to mention that the expansion of Microplast’s site in Skara, Sweden, which will double its capacity, proceeded according to plan. The new site will be ready
towards the end of this year. In parallel, we are noting a steady increase in order bookings, which serves as confirmation of our expansion plans. It is also pleasing that the integration of Onyx Medical has been successful and that the strong trend for Elos Medtech’s own products per-sisted in the third quarter, now accounting for 10% of the Group’s total sales.”
For further information, contact:
Johannes Lind-Widestam, President and CEO, 46 (0)705-41 72 22, e-mail: johannes.lind-widestam@elosmedtech.com
Ulrica Ehn, CFO, 46 (0)510-48 43 67, 46 (0)702-72 11 61, e-mail: ulrica.ehn@elosmedtech.com
The information in this interim report is such that Elos Medtech AB (publ) is obligated to publish in accordance with the Securities Market Act and/or the Financial Instruments Trading Act.
The information was issued for publication on 23 October 2015 at 08:00 a.m. (CET)
For additional information about the Elos Medtech Group, visit www.elosmedtech.com
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