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Sectra’s three-month interim report 2024/2025: Increased recurring revenue led to a strong first quarter

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Press release – Linköping, September 6, 2024 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) is continuing to grow with satisfied customers. Sales and operating profit were the highest the Group has ever reported for a first quarter. This trend was due in part to a more even distribution across quarters as a result of increased recurring revenue and growing volumes. At the same time, these figures are no longer being boosted by currency effects.

First quarter (May–July 2024) in figures

  • Contracted order bookings decreased 79.3% to SEK 615.0 million (2,970.0), of which SEK 543.1 million (344.4) pertained to guaranteed order bookings. Of the guaranteed order bookings, 22% were recognized during the quarter and a further 25–35% are deemed to pertain to revenue within 12 months after the end of the quarter.
  • Net sales increased 24.0% to SEK 723.8 million (583.7). Based on unadjusted exchange rates, the increase was 24.7%. Recurring revenue accounted for SEK 482.3 million (397.2) of net sales, up 21.4%. Based on unadjusted exchange rates, the increase was 22.0%. Cloud recurring revenue (CRR) increased 42.1% to SEK 122.8 million (86.4). 
  • Operating profit rose 44.0% to SEK 99.8 million (69.3), corresponding to an operating margin of 13.8% (11.9). Based on unadjusted exchange rates, operating profit increased 45.8%. 
  • Profit for the period amounted to SEK 80.4 million (61.6). 
  • Cash flow from operations amounted to SEK -56.7 million (-98.3). 

Comments from Torbjörn Kronander, President and CEO of Sectra AB
“The first quarter was dominated by deliveries of previously ordered customer projects. Additional hospitals have gone live with our cloud-based services for medical imaging and we have delivered several products for secure communication to defense forces and authorities.

“In Business Innovation, the launch of the new genomics IT module marked a major milestone during the quarter. Cancer diagnostics based on genetic information (genomics) is developing quickly and has, until this point, lacked effective IT support for high production. Our new offering strengthens Sectra’s position in integrated diagnostics for cancer care, an area that we have seen grow in importance when healthcare providers evaluate potential suppliers.

“Financially speaking, we had a stable beginning to the fiscal year. Positive performances in all operating areas contributed to our highest-ever sales and operating profit figures for a first quarter. To some extent, this is because increased recurring revenue has helped to even out the results between quarters.”

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

Presentation of the interim report 
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: September 6, 2024 at 10:00 a.m. CEST
Follow live or listen to the recording afterward: https://investor.sectra.com/Q1report2425

This information constitutes information that Sectra 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 below, at 8:15 a.m. (CEST) on September 6, 2024.

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

About Sectra
Sectra contributes to a healthier and safer society by assisting health systems throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. The company, founded in 1978, is headquartered in Linköping, Sweden, with direct sales in 19 countries, and distribution partners worldwide. Sales in the 2023/2024 fiscal year totaled SEK 2,964 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit Sectra’s website.

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The first quarter was dominated by deliveries of previously ordered customer projects. Additional hospitals have gone live with our cloud-based services for medical imaging and we have delivered several products for secure communication to defense forces and authorities.
Torbjörn Kronander, President and CEO of Sectra AB
In Business Innovation, the launch of the new genomics IT module marked a major milestone during the quarter. Cancer diagnostics based on genetic information (genomics) is developing quickly and has, until this point, lacked effective IT support for high production. Our new offering strengthens Sectra’s position in integrated diagnostics for cancer care, an area that we have seen grow in importance when healthcare providers evaluate potential suppliers.
Torbjörn Kronander, President and CEO of Sectra AB
Financially speaking, we had a stable beginning to the fiscal year. Positive performances in all operating areas contributed to our highest-ever sales and operating profit figures for a first quarter. To some extent, this is because increased recurring revenue has helped to even out the results between quarters.
Torbjörn Kronander, President and CEO of Sectra AB