The information is such that CellaVision AB (publ) is obligated to disclose pursuant to the Swedish Securities Market Act and the Financial Instruments Trading Act.). The information was released for public disclosure on February 7, 2017 at 08.20.
| October 1- December 31, 2016
Significant events after the periods close
| January 1 - December 31, 2016
|
CEOs comment
A strong quarter in the human healthcare market
2016 closed with a strong quarter for CellaVision. Sales were SEK 72.8 million (61.6), corresponding to growth of 18 percent with a positive exchange rate impact of about four percent. This was achieved despite the fact that the comparative quarter in 2015 included a sale to the veterinary market of about SEK 4 million that was not repeated in 2016. Growth for the human healthcare market was 24 percent. The operating profit increased by 32 percent to SEK 21.6 million (16.4), corresponding to an operating margin of 29.8 percent (26.7) and the cash flow was SEK 27.4 million (8.1).
CellaVision's largest regions, the Americas and EMEA, performed well in the quarter. Sales in EMEA increased to SEK 26.7 million (18.0) and during the quarter we established an organization for market support in France. The Americas continues to perform well and CellaVision grew by 46 percent in the human health care market in the quarter. Net sales were SEK 40.1 million (30.4) and growth was 32 percent including both human healthcare as well as the veterinary market.
After a period of growth, APAC reported a weaker fourth quarter, with a decrease in sales of 54 percent to SEK 6.0 million (13.2). During the quarter we signed an agreement with a new distribution partner, Semacare and a market support organization was established in Oceania.
Full year 2016: Breakthrough in APAC and 27 percent global growth in the human healthcare market
2016 was a successful year for CellaVision, with sales of SEK 265.0 million (239.4), corresponding to growth of eleven percent. The favorable development is a result of our breakthrough in APAC, which grew by 70 percent and accounted for 18 percent of our sales and the strong performance in the human healthcare market, which grew globally by 27 percent. The Americas reported strong performance in the human healthcare market, which increased by 34 percent and including the veterinary market, the total increase was two percent in the Americas. Growth in EMEA was four percent.
Continued investment in market penetration
2016 showed clearly the crucial importance of a direct presence in the form of own organizations for market support. During the year we continued our establishment in the Middle East, South Korea, Australia and France. In the first quarter of 2017 we will establish a direct presence in Europe's German-speaking markets and we are planning for further establishments during the year.
New strategy for the veterinary market and stronger cooperation with distributors
During the year we adjusted our strategy for the veterinary market and will use an indirect business model with sales via distribution partners for that market as well. The distribution agreement for Oceania with Semacare is the first example of this. The veterinary market continues to be fragmented and our activities must be seen as long-term investments.
Innovation
The project for a new technology platform for small and mid-size laboratories is in an intensive phase, covering both product development and launch preparations. The launch, as previously communicated, is planned for 2018. During the year we launched upgraded veterinary software and a major upgrade of CellaVision® Remote Review with even better network potential. In 2016 the CellaVision® DM9600 was approved by the Chinese authorities, making all CellaVision's analyzers approved for sale in all relevant markets.
The order inflow at the start of the first quarter of 2017 has been exceptionally good and we expect substantially increased sales in the Americas, APAC and EMEA. The result of all three of our regions performing well sum up to a very strong organic sales growth for the first quarter compared with the same period last year.
Zlatko Rihter,
President and Chief Executive Officer
| Key Ratios | ||||
| (MSEK) | Oct-Dec 2016 | Oct-Dec 2015 | Full year 2016 | Full year 2015 |
| Net sales | 72.8 | 61.6 | 265.0 | 239.4 |
| Gross profit | 52.8 | 46.4 | 188.9 | 174.2 |
| EBITDA | 23.9 | 17.8 | 82.4 | 73.0 |
| Operating profit | 21.6 | 16.4 | 74.2 | 65.5 |
| Operating margin, % | 29.8 | 26.7 | 28.0 | 27.3 |
| Profit/loss before tax | 20.8 | 16.8 | 75.8 | 65.6 |
| Cash flow for the period | 27.4 | 8.1 | 25.8 | 54.8 |
| Equity ratio, % | 80.4 | 83.0 | 80.4 | 83.0 |
Questions concerning the Year-end bulletin 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 rationalize 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 mother company in Lund and by the market support organizations in the US, Canada, China, Japan, Dubai, Korea, Australia and France.
In 2016 sales were SEK 265 million and sales continue to increase, with a growth target of at least 15 % per year over an economic cycle. CellaVision's registered office is in Lund, Sweden. The share is listed on the Nasdaq Stockholm, Small Cap list. Read more at www.cellavision.com
