The information was submitted for publication at 08.20 CET on July 16, 2019
April 1–June 31, 2019
Net sales increased by 22% to SEK 112.4 million (91.9).
Net sales increased organically by 18% (15).
Operating profit increased to SEK 37.9 million (31.6).
The operating margin amounted to 33.7% (34.4).
Profit before tax increased to SEK 37.9 million (31.8).
Earnings per share before and after dilution increased to SEK 1.27 (0.98).
Cash flow from operating activities was SEK 17.3 million (28.9).
January 1–June 31, 2019
Net sales increased by 28% to SEK 216.3 million (169.5).
Net sales increased organically by 24% (3).
Operating profit increased to SEK 72.9 million (54.8).
The operating margin increased to 33.7% (32.3).
Profit before tax increased to SEK 72.8 million (55.4).
Earnings per share before and after dilution increased to SEK 2.42 (1.78).
Cash flow from operating activities was SEK 68.4 million (35.2).
CEO’s comments
The second quarter of 2019 was yet another strong quarter for CellaVision, with organic growth of 18 percent. Sales amounted to SEK 112.4 million (91.9), which makes this quarter CellaVision's best ever. Growth was strong in the Americas and EMEA, while APAC had negative growth in the quarter. It is worth noting that there is no single major order behind the positive performance. We now have four strong quarters behind us, with growth above 30 per cent on a rolling twelve-month basis.
Profitability progressed well in the quarter, with an operating profit of SEK 37.9 million (31.6), corresponding to an operating margin of 33.7 percent (34.4). The favorable profitability growth is a result of CellaVision's effective indirect business model and good gross margins. Cash flow from operating activities for the quarter amounted to SEK 17.3 million (28.9). Worth mentioning in the light of the good growth is that cash flow from operating activities for the first half-year amounted to SEK 68.4 million (35.2).
Market development
The Americas had strong growth in the quarter and sales grew by 42 percent to SEK 66.7 million (47.0). The positive trend in the USA and Canada continues, with an increasing number of installations at end customers. Brazil, where we established our own organization for local market support in 2017, is now also reporting rising sales.
EMEA also reported a good second quarter and sales grew by 13 percent to SEK 29.9 million (26.6). Growth is above all a result of our local market support organizations now starting to be fully operational.
APAC had 14 percent negative growth in the quarter. Sales amounted to SEK 15.8 million (18.3). We see a continued high level of number of customer installations and derive the slightly weak result from changes in inventory among our distribution partners. We are conducting a lot of market activities in all our markets, not least in China, Japan and Australia.
Geographical expansion
Geographical expansion is crucial to CellaVision's growth. In the second quarter of the year we did not establish any new organizations for local market support, but we are now fully operative in our latest establishments in South East Asia, India, Italy and Spain/Portugal. We are currently evaluating the prospects of expanding to more markets. We are also reviewing the need to strengthen the current organization in some of our main markets.
Altogether CellaVision now has 17 local organizations offering 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 is now in production. The reception from our various distribution partners has been positive and most of them have now launched the CellaVision® DC-1 in their own sales channels. We have delivered a number of units during the quarter, but it is important to remember that 2019 is a launch year in which sales and production will be intensified step-by-step.
During the quarter the CellaVision® DC-1 was commercially approved in several important markets in addition to the EU countries, including Australia, Singapore, Japan and Canada. We also initiated the necessary activities to prepare for applications to the American and Chinese authorities. A clearance to sell the CellaVision® DC-1 in the USA and China is expected to be available in 2020.
Compared with the previous year, we have grown the organization of innovation by 27 percent and the cost for research and development, after capitalization, has effected the earnings in the quarter by 13.8 (8.8). We will continue to increase our investments going forward, by recruiting talents in this area, to secure our short- and long-term innovation capacity and growth potential.
Zlatko Rihter,
President and CEO
Key Ratios
| (MSEK) | Apr-Jun 2019 | Apr-Jun 2018 | Jan-Jun 2019 | Jan-Jun 2018 | Jan-Dec 2018 |
| Net sales | 112,4 | 91,9 | 216,3 | 169,5 | 364,8 |
| Gross profit | 87,1 | 69,0 | 164,1 | 126,7 | 270,9 |
| EBITDA | 41,3 | 33,4 | 79,6 | 58,6 | 118,4 |
| Operating profit | 37,9 | 31,6 | 72,9 | 54,8 | 111,6 |
| Operating margin, % | 33,7 | 34,4 | 33,7 | 32,3 | 30,6 |
| Profit/loss before tax | 37,9 | 31,8 | 72,8 | 55,4 | 112,1 |
| Total cash flow | -23,8 | -9,7 | 21,2 | -12,1 | 14,4 |
| Equity ratio, % | 74,2 | 77,4 | 74,2 | 77,4 | 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 company´s 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 July 16, 2019.
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