Good sales growth in all regions
April 1-June 30, 2018
- Net sales increased by 17% to SEK 91.9 million (78.7).
- Organic growth was 15%.
- Operating profit was SEK 31.6 million (24.6).
- Operating margin was 34.4% (31.3).
- Earnings before tax were SEK 31.8 million (24.2).
- Earnings per share were SEK 0.98 (0.81).
- Cash flow before dividend was SEK 26.1 million (11.2).
January 1-June 30, 2018
- Net sales decreased by 1% to SEK 169.5 million (171.8).
- Organic sales decreased with 3% (+37).
- Operating profit was SEK 54.8 million (59.0).
- Operating margin was 32.3% (34.3).
- Earnings before tax were SEK 55.4 million (58.7).
- Earnings per share were SEK 1.78 (1.87).
- Cash flow before dividend was SEK 23.7 million (26.7).
CEO's comments
The second quarter of 2018 is CellaVision's second best quarter ever, with sales of SEK 91.9 million (78.7). Compared with the same period of 2017, the sales increased organically by 15 percent and we had stable sales growth in all our regions. Profitability developed well during the quarter, with an operating profit of SEK 31.6 million (24.6), corresponding to an operating margin of 34.4 percent (31.3). The positive profitability trend is a result of CellaVision's effective indirect sales model that enables geographical expansion with continued sound cost control. Cash flow before dividend for the quarter increased to SEK 26.1 million (11.2). The increase is primarily a result of the higher sales.
Market development
The Americas reported strong growth in the quarter. Sales grew by 14 percent to SEK 47.0 million (41.2). The number of end customer installations continues to increase and market penetration is developing according to plan.
EMEA reported a stable quarter, with sales amounting to SEK 26.6 million (25.1), corresponding to a growth of six percent. It is particularly gratifying to be able to state that the markets in France, European German-speaking countries and the Middle East, where we recently established a local organization for market support, have performed well during the quarter. However, our continued assessment is that it will take another few quarters before we will see the full benefit from our market investments in these countries.
CellaVision is conducting intensive marketing in APAC and is continually strengthening its position in all key markets in the region and we are now seeing the results. In the second quarter of 2018 our long-term efforts resulted in strong growth, with sales that increased by 48 percent to SEK 18.3 million (12.4).
Geographical expansion
Geographical expansion is crucial to CellaVision's growth. During the quarter we established our own organization for local market support in Mumbai, India as part of our establishment in new interesting markets. This means that CellaVision is directly represented in 14 markets and we can offer market support in more than 25 countries.
Distribution expansion
During the quarter CellaVision signed supplementary agreements with Nihon Kohden for the Middle East and Horiba globally for small and mid-size laboratories. The new agreements are an important part of the commercialization plan for our new technology platform.
Innovation
Development of a new technology platform, aimed at broadening our offer to include small and mid-size laboratories in both human healthcare and the veterinary market, is progressing according to plan. The project is in an intensive phase, with careful market preparations ahead of the launch in late 2018. The system, which will be called CellaVision DC-1, is currently undergoing preparations for external clinical studies, which are a central part of the coming CE registration.
Geographical expansion and innovation are key strategies for CellaVision's future growth. In 2018 we will add a number of new geographical markets with their own local organization for market support, while putting major focus on innovation and product development. We will continue to strengthen our organization and we are actively recruiting more leading-edge expertise to ensure our future innovative power and growth.
Zlatko Rihter,
President and CEO
Key Ratios
| (MSEK) | Apr-Jun 2018 | Apr-Jun 2017 | Jan-Jun 2018 | Jan-Jun 2017 | Jan-Dec 2017 |
| Net sales | 91.9 | 78.7 | 169.5 | 171.8 | 309.3 |
| Gross profit | 69.0 | 56.6 | 126.7 | 124.7 | 223.2 |
| EBITDA | 33.4 | 26.7 | 58.6 | 63.1 | 99.3 |
| Operating profit | 31.6 | 24.6 | 54.8 | 59.0 | 90.9 |
| Operating margin, % | 34.4 | 31.3 | 32.3 | 34.3 | 29.4 |
| Profit/loss before tax | 31.8 | 24.2 | 55.4 | 58.7 | 90.3 |
| Total cash flow | -9.7 | -24.6 | -12.1 | -9.0 | 22.4 |
| Equity ratio, % | 77.4 | 82.2 | 77.4 | 82.2 | 80.1 |
Questions concerning the interim report can be addressed to:
Zlatko Rihter, VD, CellaVision AB, Tel: 0733-62 11 06,
E-mail: zlatko.rihter@cellavision.se
Magnus Blixt, CFO, CellaVision AB, Tel: 0708-33 81 68
E-mail: magnus.blixt@cellavision.se
About CellaVision
CellaVision is an innovative, global medical technology company that develops and sells its own leading systems for routine analysis of blood and other body fluids in health care services. The products replaces manual laboratory work, and secure and support effective workflows and skills development within and between hospitals. The company has leading-edge expertise in image analysis, artificial intelligence and automated microscopy. Sales are via global partners with support from the parent company in Lund and by the market support organizations in the US, Canada, China, Sweden, Japan, United Arab Emirates, South Korea, Australia, France, Germany, Brazil, Great Britain, Mexico and India. In 2017, sales were SEK 309 million and the company's growth target is 15 % per year over an economic cycle. CellaVision's registered office is in Lund, Sweden. The share is listed on the Nasdaq Stockholm, Mid Cap list. Read more at www.cellavision.com (http://www.cellavision.com/)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: CellaVision AB via Globenewswire
