Elos Medtech Interim Report January 1 - June 30, 2019
ROBUST GROWTH AND AN IMPROVED OPERATING MARGIN
April - June 2019
• Net sales for the second quarter increased to SEK 184.1 (166.0) million, which corresponds to organic growth of 10.9 percent. After currency conversions, our growth rate was 7.1 percent.
• Operating profit amounted to SEK 15.6 (5.2) million. Operating margin for the second quarter of 2019 was 8.5 percent, up from 3.1 percent in the same period in 2018.
• Profit after net financial items was SEK 8.6 (5.2) million. Net financial items were negatively affected by a net exchange rate loss of SEK -3.9 (2.4) million and totaled SEK -7.0 (0.0) million.
• Profit after tax amounted to SEK 6.6 (3.4) million, which corresponds to SEK 0.82 (0.42) per share.
• Cash flow from operating activities was SEK 47.7 (19.6) million, and amounted to SEK 11.7 (2.2) million after investments.
Comments from the CEO, Jan Wahlström
Further growth and four quarters in a row with improved profitability. Our margins continued to improve over the period, which is a clear indication that our decision to focus on efficiencies and specialization was the right one. We are now well equipped to start taking on additional customers. Our sales performance in the second quarter lived up to our expectations and we are now targeting continued improvements in profitability.
Orthopedics, which is the biggest driver of growth in the company, has continued to expand rapidly. Several projects are underway and there is considerable potential for further expansion. Our move to the new factory in Memphis has been initiated. Everything is going to plan and we expect production to be up and running before year-end. Our focus remains on being a strong contract manufacturer in our areas of specialization. We are suffering growing pains and, although this is a good thing, we now need to devote our energies to recruitment and on increasing our output and improving our profitability.
We have also seen strong growth in our polymer business, which is a key driver in our Life Science business area. This was a major factor behind our increased profitability for the period.
Our dental strategy, which centers on simplifying the digital workflow for dentists and dental technicians, is very much in tune with the times. We have recently signed several new agreements with leading companies in the industry, which has made Elos Accurate® accessible to more customers. We have also taken the next step toward our long-term goal for proprietary products by signing our first distributor agreement in the US, which is a very encouraging development in this market.
With a growth rate of 11 percent in the second quarter and 16 percent for the six-month period, we have continued our growth trajectory while maintaining a focus on improved profitability.
For further information, please contact:
Jan Wahlström, CEO, +46 70 212 18 89, e-mail: jan.wahlstrom@elosmedtech.com
Christian Bergaust, CFO, +46 70 293 50 40, e-mail: christian.bergaust@elosmedtech.com
For additional information about the Elos Medtech Group, visit www.elosmedtech.com
This information is information that Elos Medtech AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on July 18, 2019, at 11:00 (CET).
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