Continued market expansion and increased operating profit for Sectra

IT and medical-technology company Sectra’s net sales for the first half of the fiscal year increased 4.9% to SEK 391.7 million (373.4) compared with the year-earlier period. Operating profit rose 87.5% to SEK 16.5 million (8.8), corresponding to an operating margin of 4.2% (2.4). Profit after net financial items amounted to SEK 4.4 million (48.2), corresponding to a profit margin of 1.1% (12.9). The Group’s order bookings amounted to SEK 428.8 million (723.5).

The Sectra Group’s net sales totaled SEK 193.9 million (199.4) for the second quarter. Operating profit amounted to SEK 6.4 million (7.9), corresponding to an operating margin of 3.3% (4.0). Profit after net financial items totaled SEK 0.9 million (42.0), corresponding to a profit margin of 0.5% (21.1). The Group’s order bookings amounted to SEK 276.7 million (548.3). “This autumn we took a step into the Middle East and established links with highly reputable distributors in Saudi Arabia, the United Arab Emirates and Qatar. These markets have high standards for quality and accept only the best products in the market,” says Jan-Olof Brüer, President and CEO of Sectra AB. Net sales for the Medical Systems business areas increased 10.2% to SEK 366.4 million (332.7) during the first half of the fiscal year. Operating profit for the business area rose 9.0% to SEK 9.7 million (8.9), corresponding to an operating margin of 2.6% (2.7). Net sales for the Secure Communication Systems business area increased 3.3% to SEK 43.5 million (42.1). Operating profit rose 4.6% to SEK 6.8 million (6.5) for the first half of the fiscal year, corresponding to an operating margin of 15.6% (15.4). “The portion of the Group’s sales in markets outside Sweden accounted for 68.3% (69.8) of net sales during the first half of the fiscal year. Sales in the international markets occur primarily in USD and EUR, which have weakened in relation to SEK. Accordingly, consolidated profit after net financial items for the first half of the fiscal year had a negative impact of SEK 9.3 million in the form of currency fluctuations,” says Jan-Olof Brüer.