Expected operating profit exceeding SEK 65 million for full year despite a weak second quarter
April 1 - June 30, 2015
- Net sales decreased by 5.0% to SEK 51.5 million (54.2).
- The operating profit was SEK 8.3 million (10.8).
- The operating margin was 16.0 % (19.9).
- The pre-tax profit was SEK 7.7 million (11.4).
- Earnings per share were SEK 0.21 (0.38).
- CellaVision launched CellaVision® Remote Review Software Vet.
- The distribution agreement with Siemens was extended to
include China.
- Net sales increased by 6.0% to SEK 103.3 million (97.4).
- The operating profit increased to SEK 18.8 million (18.3).
- The operating margin decreased to 18.2% (18.8).
- The pre-tax profit decreased to SEK 18.5 million (18.9).
- Earnings per share decreased to SEK 0.55 (0.63).
- Follow-up order in the veterinary market worth more than SEK 30 million and expected operating profit for the full year
2015 exceeding SEK 65 million (42.8). - Revised operating margin target from 15% to 20% over
an economic cycle.
CEO's comments
After seven quarters of growth, sales decreased in the second quarter by five percent compared to the strong quarter in 2014, when growth was 50 percent. EMEA continues to show a strong trend with 35 percent growth while both Americas (-17 %) and APAC (-63 %) had decreasing sales. The operating margin was in line with expectations at 16 percent.During the quarter we had a positive exchange rate effect for both EUR and USD with a positive impact on sales of about ten percent compared with the same period in the previous year.
As previously communicated, we have revised our financial targets concerning the operating margin from 15 % to 20 % over an economic cycle. The main reason for the new target is the scalable and cost-effective business model.
CellaVision continues to successfully penetrate the veterinary market segment. After the close of the second quarter we received a follow-up order of more than SEK 30 million for a customer with a large number of laboratories in North America. The order will be delivered and installed before the end of 2015.
The veterinary market segment is a new segment for us that we initially defined as limited and strongly consolidated between a few major actors. We now regard the veterinary market segment more positively for two reasons; CellaVision's technology adds greater value and the market segment probably has greater potential than initially estimated. CellaVision's solution for veterinary laboratories makes centralization of the laboratories' expertise possible, which contributes to cost savings and more effective workflows. With the increased analytical capacity, more blood samples can be analyzed than before. In future CellaVision will continue to evaluate and address the veterinary medicine market segment to map potential for future business.
During the quarter CellaVision introduced an organizational change to develop our scalable and cost-effective business model. CellaVision has established a global function-oriented organization including market support organizations with a local presence in our key regions. Apart from this, we will further develop our technology with innovations close to the customer through a strengthened product manager organization and development of our research and development organization towards an agile working method. The ambition is to create a fleet-footed organization with clear roles to meet the requirements and needs of the market.
CellaVision continues to maintain a high pace of innovation and during the quarter launched CellaVision® Remote Review Software Vet intended for the veterinary market. In addition to this is the technical pre-study for the future technology platform that targets the market segment not yet penetrated by CellaVision of about 100 000 small and mid-size laboratories in human
hematology proceeding according to plan.
Zlatko Rihter, President and Chief Executive Officer
Key Ratios
| (MSEK) | Apr-Jun 2015 | Apr-Jun 2014 | Jan-Jun 2015 | Jan-Jun 2014 | Jan-Dec 2014 |
| Net sales | 51,5 | 54,2 | 103,3 | 97,4 | 216,9 |
| Gross profit | 36,7 | 36,3 | 73,0 | 64,3 | 145,1 |
| Operating profit | 8,3 | 10,8 | 18,8 | 18,3 | 42,8 |
| Operating margin, % | 16,0 | 19,9 | 18,2 | 18,8 | 19,7 |
| Profit/loss before tax | 7,7 | 11,4 | 18,5 | 18,9 | 43,4 |
| Cash flow for the period | -26,7 | -30,0 | 14,4 | -11,7 | -6,0 |
Questions concerning the report can be addressed to:
Zlatko Rihter, CEO, CellaVision AB
Tel: 0733-62 11 06. E-post: zlatko.rihter@cellavision.se
Magnus Blixt, CFO, CellaVision AB
Tel: 0708-33 81 68. E-post: magnus.blixt@cellavision.se
Link text: CellaVision AB Interim Report January-June 2015
