Elos Medtech Interim Report January 1 - September 30, 2019
INCREASED PROFITABILITY THROUGH EFFICIENCIES
July - September 2019
• Net sales for the third quarter increased to SEK 157.1 (154.1) million, which corresponds to organic growth of 1.9 percent. Taking into account currency conversions, growth was negative, -1.3 percent.
• The operating profit was SEK 14.2 (11.8) million. Our operating margin for the third quarter of 2019 was 9.0 percent, up from 7.7 percent in the same period in 2018.
• The profit after financial items was SEK 11.4 (7.7) million. Net financial items, which were not affected by exchange rate differences during the period (-0.9), were SEK -2.8 (-4.1) million.
• Profit after tax amounted to SEK 9.0 (6.4) million, which corresponds to SEK 1.12 (0.79) per share.
• Cash flow from operating activities was SEK 30.6 (18.4) million, and amounted to SEK 1.8 (-7.6) million after investments.
Comments from the CEO, Jan Wahlström
The fifth quarter in a row with increased profitability. Our strategic decision to adapt the organization with a focus on cost awareness and implement improvements in production has had a direct impact on earnings, which increased from SEK 12 million to SEK 14 million. During the period we noted a tendency among customers to reduce their inventories, which meant that growth was slightly lower. We will continue to place a strong emphasis on efficiencies in order to prepare for potential changes in the trading environment and the economy.
Orthopedics remains the main driver of growth and has tremendous development potential. The robotic surgery trend is strong and Elos Medtech has recently initiated a new project in this area. The expansion of our site in Memphis has now been completed, which means that production will reach full capacity earlier than expected. We are proud to have been able to report profitable growth during the period of construction.
Dental had the strongest growth during the period, driven mainly by our contract manufacturing businesses. We have continued to develop proprietary products with a strong focus on digital denistry. As planned, we have continued to register proprietary dental products for the US market.
The decline in sales in Life Science during the quarter was due to the phasing-out of Bruel&Kjaer. This is in line with our strategy and previous communication. The polymer business in the business area is growing steadily. Market demand for our contract manufacturing services is strong. To meet this demand, we have both expanded our existing production capacity and decided to add additional production space by expanding our Skara site. Planning permission has been received and soon the first sod will be turned.
Having delivered another quarter of growth, our focus remains on improving profitability.
For further information, contact:
Jan Wahlström, President and CEO, +46 70-212 18 89, e-mail: jan.wahlstrom@elosmedtech.com
Ewa Linsäter, Group CFO, +46 76-33 32 33, e-mail: ewa.linsater@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 24 October, 2019, at 14:00 (CET).
For additional information about the Elos Medtech Group, visit www.elosmedtech.com
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