Sectra’s nine-month interim report 2022/2023: The industry’s most satisfied customers for the tenth consecutive year
Press release – Linköping, March 10, 2023 – International medical imaging IT and cybersecurity company Sectra’s (STO: SECT B) enterprise imaging module for radiology once again received a top ranking in customer satisfaction surveys in the US, Canada and Asia/Oceania. Satisfied customers are the foundation for the Group’s growth in all operating areas, which is reflected in Sectra’s positive financial performance during the nine-month period.
Third quarter (November 2022–January 2023) in figures
- Contracted order bookings rose 24.9% to SEK 549.2 million (439.6), of which SEK 484.0 million (439.6) pertained to guaranteed order bookings. Of the guaranteed order bookings, 23% were recognized during the quarter and a further 37–47% are deemed to pertain to revenue within 12 months after the end of the quarter.
- Net sales increased 21.9% to SEK 580.3 million (476.2). Based on unadjusted exchange rates, the increase was 14.5%. Recurring revenue accounted for SEK 356.4 million (275.2) of net sales, up 29.5%. Based on unadjusted exchange rates, the increase was 21.9%. Cloud recurring revenue (CRR) increased 55.4% to SEK 72.1 million (46.4).
- Operating profit rose 27.2% to SEK 87.0 million (68.4), corresponding to an operating margin of 15.0% (14.4). Based on unadjusted exchange rates, operating profit increased 8.6%.
- Profit after financial items amounted to SEK 91.1 million (77.0).
- Cash flow from operations amounted to SEK 83.6 million (153.1).
Nine-month period (May 2022–January 2023) in figures
- Contracted order bookings rose 164.7% to SEK 3,448.8 million (1,302.8), of which SEK 1,795.0 million (1,302.8) pertained to guaranteed order bookings.
- Net sales rose 25.1% to SEK 1,626.0 million (1,300.1). Based on unadjusted exchange rates, the increase was 15.6%. Recurring revenue accounted for SEK 983.3 million (800.6) of sales for the period, up 22.8%. Based on unadjusted exchange rates, the increase was 14.3%. CRR increased 38.7% to SEK 181.7 million (131.0).
- Operating profit rose 6.9% to SEK 258.9 million (242.2), corresponding to an operating margin of 15.9% (18.6). Based on unadjusted exchange rates, operating profit decreased 12.3%.
- Profit after financial items amounted to SEK 277.5 million (253.1).
- Cash flow from operations amounted to SEK 58.3 million (202.5).
Comments from Torbjörn Kronander, President and CEO of Sectra AB
“Sustainable investments in innovation and corporate culture allow us to deliver the secure, flexible and scalable solutions that our customers appreciate. Our awards for high customer satisfaction and our ranking as one of Sweden’s best employers demonstrate that we are achieving our goals of delivering customer value and building a sustainable business."
“Satisfied customers and happy employees are reflected in our financial performance. All operating areas are growing and delivered improved earnings during the quarter. The trend we were already seeing within Secure Communications in the previous quarter continued, and we are pleased to see how the operating area contributed to the positive performance for the nine-month period. Many countries are investing more in defense and cybersecurity, which combined with our previous investments has led to high order bookings as well as drastically improved earnings."
“During the fiscal year, we increased our sales of cloud-based services, which is delaying our net sales and earnings compared to selling the same system under a traditional license model. Our costs for travel and trade fairs also increased compared to the very low levels during the pandemic years. However, these were offset by currency movements that were advantageous for Sectra."
“Sectra is a customer-oriented and innovative company delivering a positive performance. We are active in industries that need to grow regardless of the economy and we are well positioned with stable, growing finances and positive cash flow as well as new products and business ideas. Together with visionary customers, we continue to invest in the future in order to lead the development towards a healthier and safer society, in both the short and long term. This permeates all of our business areas, and we are looking forward to the future with confidence.”
Read the attached interim report for further CEO comments and information.
Presentation of the interim report
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.
Time: March 10, 2023 at 10:00 a.m. (CET)
Follow live or listen to the recording afterward: https://investor.sectra.com/Q3report2223
This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 8:15 a.m. (CET) on March 10.
Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. Thereby, Sectra contributes to a healthier and safer society. The company was founded in 1978 and is headquartered in Linköping, Sweden. Sectra currently has direct sales in 19 countries and sells its products worldwide through partnerships. Sales in the 2021/2022 fiscal year totaled SEK 1,949 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit Sectra’s website.