Sectra’s nine-month interim report 2019/2020: Sectra is growing with satisfied customers—tops ranking for seventh consecutive year

Press release – Linköping, March 4, 2020 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) is growing by making its customers successful. Order bookings have increased throughout the year and several new customers started using Sectra’s medical imaging system during the third quarter. At the same time, existing customers are extending their use of Sectra products. This is reflected in Sectra’s financial figures, with a historically strong third quarter that enabled the company to fulfill its three financial goals.

Nine-month period in figures

• Order bookings increased 6.6% to SEK 1,095.5 million (1,027.9).
• Net sales rose 22.8% to SEK 1,153.5 million (939.4). Adjusted for currency fluctuations, sales increased 19.6%.
• Operating profit rose 31.3% to SEK 171.8 million (130.8), corresponding to an operating margin of 14.9% (13.9). Adjusted for currency fluctuations, operating profit increased 24.5%. 
• Profit before tax amounted to SEK 176.3 million (137.9). 
• This result includes nonrecurring items (refer to page 10 of the attached interim report). These items had a positive net effect of SEK 1.4 million on operating profit.
• Cash flow after changes in working capital amounted to SEK 215.2 million (180.4). 

Third quarter in figures

• Order bookings increased 10.3% to SEK 431.1 million (390.7). Of the order bookings during the quarter, 25% were recognized during the third quarter and 32% to 42% pertain to revenue within 12 months after the end of the quarter.
• Net sales increased 38.8% to SEK 457.4 million (329.5). Adjusted for currency fluctuations, sales increased 34.9%.
• Operating profit rose 98.6% to SEK 99.7 million (50.2), corresponding to an operating margin of 21.8% (15.2). Adjusted for currency fluctuations, operating profit increased 87.6%.
• Profit before tax amounted to SEK 100.7 million (51.4). 
• This result includes nonrecurring items (refer to page 10 of the attached interim report). These items had a positive net effect of SEK 1.4 million on operating profit.
• Cash flow after changes in working capital amounted to SEK 134.1 million (80.0). 

Torbjörn Kronander, President and CEO of Sectra AB, comments

“When our customers successfully improve their quality of care and become more efficient in their daily work, or increase their cybersecurity with the help of our solutions, then we succeed as well. With a long-term approach based on creating value for customers, patients and society as a whole, we were able to report our strongest third quarter performance to date.  

“We are growing with satisfied customers, the only sustainable way to attract new customers and retain existing ones. The Imaging IT Solutions operating area reported the greatest increase in sales, but Business Innovation and Secure Communications grew as well. At the same time, new customers entailed major costs during the installation phase, which had a negative impact on Sectra’s finances in the first half of 2019/2020. Major installation projects lead to fluctuations between individual quarters, since a large portion of earnings are reported when installation go live. Installations for several new healthcare customers during the third quarter resulted in increased revenue, pushing the earnings trend in the right direction. As a result, we met our three financial goals.”

See the attached interim report for further CEO comments and information. 

Presentation of the interim report 
A presentation will be held by Torbjörn Kronander, President and CEO of Sectra AB, and Mats Franzén, CFO of Sectra AB. The presentation will be held in English. 

Time: March 4, 2019 at 10:00 a.m. (CET).
Follow online via investor.sectra.com/q3report1920 or call:
SE +46850558356 
UK +443333009267 
US +18335268395 

A recorded version after the conference will also be available via this link after the conference.

This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:15 a.m. (CET) on March 4, 2020.

For further information, please contact:
Dr. Torbjörn Kronander, CEO and President Sectra AB, +46 (0) 705 23 52 27

About Sectra
Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. Thereby, Sectra contributes to a healthier and safer society. The company was founded in 1978, has its head office in Linköping, Sweden, with direct sales in 19 countries, and operates through partners worldwide. Sales in the 2018/2019 fiscal year totaled SEK 1,413 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit https://sectra.com/.

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