Sectra’s six-month interim report 2018/2019: Stronger cash flow and increased order bookings in the US

Press release – Linköping, December 7, 2018 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) is growing in the medical IT and cybersecurity markets through collaboration with new and existing customers. Future ventures in new markets and new product areas are having a dampening effect on earnings but are expected to make a positive contribution to long-term growth. 

Six-month period, May–October 2018 

• Order bookings amounted to SEK 637.2 million (654.4).
• Net sales increased 9.5% to SEK 633.4 million (578.5). Adjusted for currency fluctuations, sales increased 4.6%.
• Operating profit totaled SEK 94.7 million (104.1), corresponding to an operating margin of 14.9% (18.0). Adjusted for currency fluctuations, operating profit decreased 17.1%.
• Profit before tax rose 7.3% to SEK 97.3 million (90.7).
• Cash flow after changes in working capital amounted to SEK 97.7 million (74.7).

Second quarter in figures

• Order bookings amounted to SEK 350.7 million (426.8). Of the order bookings during the quarter, an estimated 60–70% pertains to invoicing within 12 months after the end of the quarter.
• Net sales increased 4.5% to SEK 327.4 million (313.4). Adjusted for currency fluctuations, sales decreased 0.7%.
• Operating profit totaled SEK 48.4 million (59.8), corresponding to an operating margin of 14.8% (19.1). Adjusted for currency fluctuations, operating profit decreased 27.7%.
• Profit before tax amounted to SEK 54.5 million (61.9).
• Cash flow after changes in working capital amounted to SEK 78.3 million (50.4). 

Torbjörn Kronander, President and CEO of Sectra AB, comments 

“The order volume in the second quarter was favorable, but as expected did not reach the exceptional level reported in the corresponding quarter in the preceding year. The US operation doubled its order bookings and accounted for the largest increase during the period.

“The order book is healthy. All operating areas and geographic markets reported an increase in sales for the six-month period. Although the second quarter was slightly weaker than the comparative quarter, we are used to relatively large fluctuations between quarters and are well above our financial goals for the most recent 12-month period.

“Healthcare and cybersecurity are growing and rapidly changing markets, where numerous opportunities are being created for companies like Sectra. With stable underlying operations with favorable profitability and long-term customer contracts, we have laid a solid foundation for growth. Our high customer satisfaction, our fantastic employees—who make a difference in society and for their fellow human beings—and our exciting future initiatives will serve as the basis for our long-term success.”

For further CEO comments and information, see the attached interim report.

Presentation of the interim report  

A teleconference 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: December 7, 2018 at 10:00 a.m. (CET)

To participate, call:

SE +46856642662

UK +442030089808

US +18557532236

The report presentation can also be followed live online: www.sectra.com/irwebcast. A recorded version 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 below, at 8:15 a.m. (CET) on December 7, 2018.

For further information, please contact: 

Torbjörn Kronander, President and CEO, Sectra AB, tel +46 705 23 52 27

Press images: flickr.com/photos/sectramedicalsystems 

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. ales in the 2017/2018 fiscal year totaled SEK 1,267 million. The Sectra share (STO: SECT B) is quoted on the Nasdaq Stockholm exchange. For more information, visit www.sectra.com.

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