Sectra’s six-month interim report 2022/2023: Highest order bookings in Sectra’s history
Press release – Linköping, December 16, 2022 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) Sectra reported increased sales and its order bookings grew. Success in the US, increased cloud deliveries and positive currency effects contributed to this financial performance. The need for the Group’s offering in medical IT and cybersecurity was confirmed by the fact that contracted order bookings reached nearly SEK 2.9 billion for the first half of the year.
Second quarter (August–October 2022) in figures
Contracted order bookings rose 41.3% to SEK 664.2 million (470.0), of which SEK 605.6 million (470.0) pertained to guaranteed order bookings. Of the guaranteed order bookings, 15% were recognized during the quarter and a further 34–44% are deemed to pertain to revenue within 12 months after the end of the quarter.
Net sales increased 34.3% to SEK 561.7 million (418.2). Based on unadjusted exchange rates, the increase was 21.4%. Recurring revenue accounted for SEK 316.4 million (272.4) of net sales, up 16.2%. Based on unadjusted exchange rates, the increase was 6.0%. Cloud recurring revenue (CRR) increased 39.9% to SEK 59.6 million (42.6).
Operating profit rose 28.6% to SEK 107.6 million (83.7), corresponding to an operating margin of 19.2% (20.0). Based on unadjusted exchange rates, operating profit increased 2.6%.
Profit after financial items amounted to SEK 118.3 million (83.9).
Cash flow from operations amounted to SEK 38.9 million (39.6).
Six-month period (May–October 2022) in figures
Contracted order bookings rose 235.9% to SEK 2,899.6 million (863.2), of which SEK 1,310.9 million (863.2) pertained to guaranteed order bookings.
Net sales rose 26.9% to SEK 1,045.8 million (823.9). Based on unadjusted exchange rates, the increase was 16.1%. Recurring revenue accounted for SEK 626.8 million (525.4) of sales for the period, up 19.3%. Based on unadjusted exchange rates, the increase was 10.4%. CRR increased 29.7% to SEK 109.6 million (84.5).
Operating profit declined 1.1% to SEK 171.9 million (173.8), corresponding to an operating margin of 16.4% (21.1). Based on unadjusted exchange rates, operating profit decreased 20.5%.
Profit after financial items amounted to SEK 186.4 million (176.0).
Cash flow from operations amounted to SEK -25.3 million (49.4) and was mainly attributable to a settlement of current liabilities in the first quarter.
Comments from Torbjörn Kronander, President and CEO of Sectra AB
“In a time when technology companies in other industries are cutting back on staff, we are continuing to recruit. Being once again named one of the best employers in Sweden, and the very best among product companies, facilitates recruitment and in turn benefits our customers and thereby our shareholders. It is not possible to have satisfied customers without satisfied employees. Together, our employees have successfully created a workplace and a corporate culture that delivers value to our customers around the world.
“Order bookings, which are at an all-time high, continued to increase. This is largely due to the growing volumes of medical images that customers are handling in our systems, and to the fact that some contracts have long terms. Activities in secure communications also contributed to the positive order bookings trend.
“All operating areas are growing and delivered improved earnings during the quarter, even if this was partly attributable to currency effects. It is important to remember that we are comparing this performance with a pandemic year with temporarily lower costs for trade fairs, customer visits and travel. There were a good deal more of these activities and internal events in the first two quarters of the year, with an accumulated need to travel and meet customers.
“Sectra provides significant customer value and innovation in order to lead the development of a healthier and safer society together with our customers. The need for greater productivity in healthcare and for cybersecurity is more important than ever. Although the transition to service deliveries will have a short-term dampening effect on sales, it will benefit us and our customers over the long term.”
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: December 16, 2022, at 10:00 a.m. CET
Follow live or listen to the recording afterwards: https://investor.sectra.com/Q2report2223
2023 Capital Markets Day
Location: IVA Conference Center, Grev Turegatan 16, Stockholm
Date and time: January 27, 2023, 10:30 a.m. (CET)
The Capital Markets Day will be held in person. Final day for registration is December 21. Don’t wait to sign up for one of the available seats, the number of participants is limited: https://investor.sectra.com/cmd2023
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 08:15 a.m. (CET) on December 16, 2022.