Organic growth of around 50 percent in core business
July 1-September 30, 2016
Net sales decreased by 8 % to SEK 68.3 million (74.5)
Currency-adjusted growth for the quarter was -9% (47).
Operating profit was SEK 19.5 million (30.3).
The operating margin was 28.5% (40.6).
Earnings per share were SEK 0.64 (1.02)
Cash flow from operating activities was SEK 8.6 million (34.5)
January 1- September 30, 2016
Net sales increased by 8 % to SEK 192.3 million (177.8).
Currency-adjusted growth was 6.1% (13).
Operating profit increased to SEK 52.5 million (49.0).
The operating margin was 27.3 % (27.6).
Earnings per share were SEK 1.76 (1.58)
Cash flow from operating activities was SEK 41.6 million (75.7)
Significant events after the period close
CellaVision signed an agreement with one more distribution partner in EMEA, Horiba
Very strong quarter for sales to human laboratories
Sales to laboratories in the human healthcare market grew at a very strong rate in the third quarter, with organic growth of around 50 percent. The net sales nonetheless fell by eight percent from SEK 74.5 million to SEK 68.3 million because we invoiced about SEK 30 million to laboratories for veterinary medicine in North America in the third quarter of 2015. Growth is eight percent for the three first quarters of the year, though we have not made any sales to the veterinary market. If we only look at sales to the human healthcare market, growth for the first three quarters of the year amounts to about 30 percent.
Exchange rate effects in the quarter were limited and had a positive impact on sales of about one percent.
The operating profit was SEK 19.5 million (30.3), equivalent to an operating margin of 28.5 percent (40.6). The lower operating profit and lower operating margin are explained by the challenging comparative figures from the third quarter of 2015 reflecting the high invoicing to veterinary laboratories.
Continued positive development in the Americas and APAC
Sales to the human healthcare market in the Americas showed strong development in the quarter, with growth in excess of 80 percent. In the USA we noted a quarter with a record number of customer installations of CellaVision analyzers. The Americas' approximate invoicing total of SEK 30 million to the veterinary market in the third quarter of 2015 makes the aggregate comparative figures challenging and altogether sales decreased by 26 percent to SEK 35.3 million (47.8). Our perception is that the Americas will continue positive development.
APAC also reported strong sales in the third quarter of the year. Sales more than tripled to SEK 20.9 million (6.3) after strong development in the Chinese market. APAC has now reported sound growth for four quarters in a row, but sales in the region are still volatile and we continue to expect major fluctuations between individual quarters.
In EMEA progress was weaker than in other regions. Sales in the quarter were SEK 12.2 million (20.4), representing a decrease of 40 percent. Our assessment of future development in the region continues to be positive, which is emphasized by the initiatives for a local presence we are now implementing.
Continued market initiatives
CellaVision is continuing the geographical expansion of local organizations for market support. Earlier in 2016 we established a direct presence in the Middle East and South Korea and in the year's third quarter expansion continued to Australia and France, where we see good growth opportunities. We are also planning for continued expansion of our support organization to other interesting markets next year. Local market support resources are a crucial factor in driving CellaVision's continued growth. Apart from this, Horiba has been added as a distribution partner in EMEA. The Horiba group is a worldwide company in several branches of which one is hematology within the in-vitro diagnostics division.
The veterinary market & Product development
CellaVision continues to address large reference laboratories in the veterinary market. We aim to sell our products to this market segment indirectly via distributors, just as in human healthcare. Development of the new technology platform for small and mid-sized human and veterinary laboratories continued according to plan during the quarter. Launch of the new products is expected to be in markets that accept CE marking in 2018. Cash flow was impacted by high trade receivables that were settled after the close of the period as well as by a slightly larger buffer inventory to secure customer demand.
Zlatko Rihter, President and Chief Executive Officer
|(MSEK)||Jul-Sep 2016||Jul-Sep 2015||Jan-Sep 2016||Jan-Sep 2015||Jan-Dec 2015|
|Operating margin, %||28,5||40,6||27,3||27,6||27,3|
|Profit/loss before tax||19,8||30,3||55,0||48,7||65,6|
|Cash flow for the period||7,4||32,4||-1,6||46,7||54,8|
|Equity ratio, %||79,9||80,5||79,9||80,5||83,3|
Questions concerning the report can be addressed to:
Zlatko Rihter, VD, CellaVision AB
Tel: 0733-62 11 06. E-post: email@example.com
Magnus Blixt, CFO, CellaVision AB
Tel: 0708-33 81 68. E-post: firstname.lastname@example.org
Link text: CellaVision AB Interim report January-September 2016
Last updated on: 27/10/2016
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