Stronger cash flow and increased order bookings in the US
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.”