Good performance in all regions generated strong organic growth
January 1-March 31, 2019
- Net sales increased by 34% to SEK 103.9 million (77.6).
- Organic growth was 31% (-20).
- Operating profit increased to SEK 34.9 million (23.2).
- The operating margin increased to 33.6% (29.9).
- Profit before tax increased to SEK 34.8 million (23.6).
- Earnings per share before and after dilution increased to SEK 1.15 (0.80).
- Cash flow from operating activities was SEK 51.1 million (6.4).
CEO's comments
The first quarter of 2019 was a good quarter for CellaVision, with sales of SEK 103.9 million (77.6) after strong organic growth in the Americas and in EMEA. Compared with the same period in 2018, sales increased organically by 31 percent, which means our sales have grown organically by more than 30 percent for three quarters in a row. It is worth noting that there is no single major order behind the quarter's performance. CellaVision's sales are volatile by nature, with fluctuations between individual quarters and between our three regions.
Profitability also progressed well during the quarter, with an operating profit of SEK 34.9 million (23.2), corresponding to an operating margin of 33.6 percent (29.9). The profitability growth is a result of CellaVision's effective indirect business model, continued sound cost control and good gross margins. Cash flow for the quarter strengthened to SEK 45.0 million (-2.4). One contributing factor to the cash flow is that high accounts receivable from the previous quarter are past due and paid-in. Exchange rate impact in the quarter was about three percent.
Market development
In Americas, sales grew by 28 percent to SEK 52.5 million (40.8) in the quarter. In the US and Canada, the number of end-user installations continues to increase and the market is developing at a steady pace. Brazil, where we established our own organization for local market support in 2018, is now also reporting rising sales.
EMEA grew by 57 percent to 38.5 million (24.6) in the quarter. Our increased activities in EMEA as of 18 months ago, with establishments of local market support organizations in key markets, are reflected in the rate of sales.
APAC had a stable quarter with six percent growth. Sales were SEK 12.9 million (12.2) and we continue to see a high level of marketing activities in all our key markets, not least China and Japan. In Australia sales are expected to pick up speed in the coming years.
Geographical expansion
Geographical expansion is crucial to CellaVision's growth. In the first quarter of the year we established our own organizations for local market support in Madrid, to address the Iberian Peninsula, and in Naples, to address the Italian market.
CellaVision, as of the first quarter of 2019, now has 17 local organizations that offer market support in more than 30 countries.
Innovation
The CellaVision® DC-1, our new product for small and mid-size laboratories, was CE marked in February and has now begun to be produced. The reception from our distribution partners have been positive. The first units were ready for delivery at the end of the quarter and the order process is activated, which means that our partners can put in orders. We see 2019 as a launch year, when sales and production will increase step by step.
In addition, during the quarter we initiated preparatory activities for applications to the American and Chinese authorities for marketing authorization for the CellaVision® DC-1 in the USA and China. These clearances are expected to come in 2020 and 2021.
We will continue to increase our investments in innovation, where we continuously strengthen our organization by recruiting talents and building a strong team. This is a prerequisite for securing our future innovation power and our growth opportunities in the short and long term.
Zlatko Rihter,
President and CEO
Key Ratios
| (MSEK) | Jan-Mar 2019 | Jan-Mar 2018 | Jan-Dec 2018 |
| Net sales | 103,9 | 77,6 | 364,8 |
| Gross profit | 77,0 | 57,7 | 270,9 |
| EBITDA | 38,3 | 25,3 | 118,4 |
| Operating profit | 34,9 | 23,2 | 111,6 |
| Operating margin, % | 33,6 | 29,9 | 30,6 |
| Profit/loss before tax | 34,8 | 23,6 | 112,1 |
| Total cash flow | 45,0 | -2,4 | 14,4 |
| Equity ratio, % | 75,3 | 81,3 | 77,9 |
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 replace 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 companys 17 local market support organizations covering 32 countries. In 2018, sales were SEK 365 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
Publication
This information constitutes information that CellaVision AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication at 8:20 a.m. CET on May 7, 2019.
