CellaVision AB: CellaVision ABs strongest quarter ever with continued growth
The information was submitted for publication at 08.20 CET on July 16, 2019
April 1June 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 1June 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).
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 CellaVisions 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
CellaVisions 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).
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 is crucial to CellaVisions 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
Altogether CellaVision now has 17 local organizations offering market
support in more than 30 countries.
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
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.
President and CEO
(MSEK) Apr-Jun 2019 Apr-Jun 2018 Jan-Jun 2019 Jan-Jun 2018 Jan-Dec
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,
Magnus Blixt, CFO, CellaVision AB, Tel: 0708-33 81 68
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
companys growth target is 15 % per year over an economic cycle.
CellaVisions registered office is in Lund, Sweden. The share is listed on
the Nasdaq Stockholm, Mid Cap list.
Read more at www.cellavision.com
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.
* CellaVision AB: Interim Report January-June 2019