Sectra’s nine-month interim report 2020/2021: Increased order bookings and the industry’s most satisfied customers for the eighth consecutive year

Mar 12, 2021 | Financial Information | Medical Systems | Secure Communication Systems

Press release – Linköping, March 12, 2021 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) has received a top ranking in customer satisfaction surveys in the category of diagnostic imaging systems for radiology in the US, Canada and Europe as well as in the category of digital pathology. As a result of having the market’s most satisfied customers for many years, demand for the company’s offerings is high and order bookings increased 79% compared with the year-earlier period. The third quarter of the preceding fiscal year was extremely strong and the results for this year did not quite reach the same level. The results were hampered by limited delivery opportunities in certain areas of the operations due to the COVID-19 pandemic and by a stronger SEK. Based on unadjusted exchange rates, sales for the nine-month period were on par with the year-earlier period. With tight restrictions still in place in several countries, the heightened risk of delivery delays is expected to continue in the coming quarter. However, Sectra is relatively well equipped to manage the pandemic based on a strong financial position, positive cash flows and a significant share of recurring revenue.

Nine-month period, May 2020–January 2021 in figures

  • Order bookings increased 79.1% to SEK 1,962.4 million (1,095.5). 
  • Net sales declined 4.1% to SEK 1,106.2 million (1,153.5). Based on unadjusted exchange rates, net sales increased 0.4%.
  • Operating profit rose 8.4% to SEK 186.2 million (171.8), corresponding to an operating margin of 16.8% (14.9). Based on unadjusted exchange rates, operating profit increased 19.5%. 
  • Profit before tax amounted to SEK 181.8 million (176.3). 
  • The figures include items affecting comparability related to the Secure Communications operating area. These items had a net effect of negative SEK 0.5 million on operating profit.
  • Cash flow after changes in working capital increased to SEK 258.5 million (215.2).

Third quarter, November 2020–January 2021 in figures

  • Order bookings increased 38.7% to SEK 598.0 million (431.1). Of the order bookings during the quarter, 17% were recognized as revenue during the quarter and a further estimated 22% to 32% pertains to revenue within 12 months after the end of the quarter.  
  • Net sales declined 13.8% to SEK 394.2 million (457.4). Based on unadjusted exchange rates, the decrease was 3.3%. 
  • Operating profit declined 30.7% to SEK 69.1 million (99.7), corresponding to an operating margin of 17.5% (21.8). Based on unadjusted exchange rates, operating profit decreased 12.7%. 
  • Profit before tax amounted to SEK 67.8 million (100.7). 
  • Cash flow after changes in working capital amounted to SEK 136.7 million (134.1). 

Comments from Torbjörn Kronander, President and CEO of Sectra AB
“Satisfied customers are the ultimate proof that our employees and solutions deliver substantial value, which helps to improve the efficiency and quality of healthcare and increase cybersecurity in society. Customer value that in turn creates value for our employees and shareholders. Although the products we offer are highly appreciated, customer satisfaction largely comes down to our employees and how we work together within the company and in consultation with our customers. The foundation for our success in this regard lies in our corporate culture. How we listen to customers to ensure we understand and deliver solutions to their problems, and an entrepreneurial spirit that drives us to achieve innovations that increase customer value.

“Our earnings and sales did not quite reach the levels reported in the comparative quarter. Given that the third quarter of 2019/2020 was a record-breaking quarter and that we are now burdened by a pandemic and a stronger SEK, we are nevertheless pleased with our results.

“Even if the pandemic results in a temporary decline in demand in some markets and areas, people will still fall ill and society will still need cybersecurity. With long-term initiatives, investments in existing customer offerings and innovation, we create value for our customers. That way, we help make society healthier and safer.”

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

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

Time: March 12, 2021 10:00 CET

Follow live or listen to the recording afterward at investor.sectra.com/q3report2021

To participate by phone, please call one of the following numbers five to ten minutes before the conference begins:

SE +46856642706
UK +443333009034
US +18446251570

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 March 12, 2021.

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 2019/2020 fiscal year totaled SEK 1,661 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit https://sectra.com/.

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