Elekta: Interim report, May-January 2021/22

Rhea-AI Summary

Elekta reported strong demand for its solutions in Q3, maintaining underlying order growth for the fifth consecutive quarter, with a record order backlog of SEK 4,441 M. However, revenue decreased by 3% year-over-year to SEK 3,602 M, alongside a decline in gross margin to 36.7%. EBIT fell 27% to SEK 340 M, with earnings per share at SEK 0.60, down 29%. Despite these challenges, Elekta aims for revenue growth and margin improvement moving forward.

Positive

• Strong gross order intake of SEK 4,441 M, an 8% increase in constant currency.
• Record order backlog indicates robust demand for Elekta's solutions.

Negative

• Net sales decreased by 3% to SEK 3,602 M.
• Gross margin declined from 38.7% to 36.7%.
• EBIT fell by 27% to SEK 340 M with a corresponding drop in EBIT margin.
• Earnings per share decreased by 29% to SEK 0.60.
• Cash flow after continuous investments was SEK 187 M, down 62%.

STOCKHOLM, Feb. 24, 2022 /PRNewswire/ -- The demand for Elekta's solutions continued to be strong in the third quarter, the fifth consecutive quarter with underlying order growth, resulting in Elekta's strongest order backlog ever. However, the global supply chain challenges remained, and revenue and margins came in lower than last year. We are fully committed to returning to revenue growth and margin expansion.

Gustaf Salford
President and CEO
 

Third quarter         

• Gross order intake amounted to SEK 4,441 M (3,954), corresponding to an 8 percent increase in constant currency.           
• Net sales were SEK 3,602 M (3,581), corresponding to a 3 percent decrease in constant currency            
• Gross margin amounted to 36.7 percent (38.7)            
• EBIT amounted to SEK 340 M (468), corresponding to an EBIT margin of 9.4 percent (13.1). Excluding the contribution to Elekta Foundation, EBIT was SEK 375 M, corresponding to a margin of 10.4 per-cent.            
• Earnings per share was SEK 0.60 (0.84) before/after dilution           
• Cash flow after continuous investments amounted to SEK 187 M (496)

First nine months          

• Gross order intake amounted to SEK 12,467 M (12,032), corresponding to a 5 percent growth in constant currency           
• Net sales were SEK 10,309 M (10,096), corre-sponding to a 4 percent increase in constant currency           
• Gross margin amounted to 37.5 percent (41.6)            
• EBIT amounted to SEK 1,074 M (1,361), corresponding to an EBIT margin of 10.4 percent (13.5).           
• Earnings per share was SEK 1.93 (2.39) before/after dilution           
• Cash flow after continuous investments amounted to SEK -173 M (886)

Significant events after the quarter           

• On 14 February, Elekta published preliminary results for the third quarter.

Group summary
	Q3					First nine months
SEK M	2021/22		2020/21	Δ		2021/22		2020/21	Δ
Gross order intake	4,441		3,954	8%4		12,467		12,032	5%4
Net sales	3,602		3,581	-3%4		10,309		10,096	4%4
Gross margin	36.7%		38.7%	-2 ppts		37.5%		41.6%	-4,1 ppts
EBIT 1	340		468	-27%		1,074		1,361	-21%
EBIT margin	9.4%		13.1%	-3,6 ppts		10.4%		13.5%	-3,1 ppts
Cash flow 2	187		496	-62%		-173		886	-120%
Earnings per share, SEK 3	0.60		0.84	-29%		1.93		2.39	-19%
1Including the contribution to Elekta Foundation of SEK 35 M reported in Q3 2021/22.
2After continuous investments.
3Before/after dilution.
4Based on constant currency.

For further information, please contact:
Cecilia Ketels, Head of Investor Relations
Tel: +46 76 611 76 25, e-mail: cecilia.ketels@elekta.com
Time zone: CET: Central European Time

Tobias Hägglöv, CFO
Tel: +46 76 107 47 99, e-mail: tobias.hagglov@elekta.com
Time zone: CET: Central European Time

This is information that Elekta AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 07:30 CET on February 24, 2022. (REGMAR) 

About Elekta
As a leader in precision radiation therapy, Elekta is committed to ensuring every patient has access to the best cancer care possible. We openly collaborate with customers to advance sustainable, outcome-driven and cost-efficient solutions to meet evolving patient needs, improve lives and bring hope to everyone dealing with cancer. To us, it's personal, and our global team of 4,700 employees combine passion, science, and imagination to profoundly change cancer care. We don't just build technology, we build hope. Elekta is headquartered in Stockholm, Sweden, with offices in more than 120 countries and listed on Nasdaq Stockholm. For more information, visit elekta.com or follow @Elekta on Twitter.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/elekta/r/interim-report--may-january-2021-22,c3513327

The following files are available for download:

https://mb.cision.com/Main/35/3513327/1540009.pdf	Elekta Q3 Report 21_22
https://news.cision.com/elekta/i/group-summary-q3-2021-22,c3016428	Group summary Q3 2021-22

View original content:https://www.prnewswire.com/news-releases/elekta-interim-report-mayjanuary-202122-301489401.html

SOURCE Elekta

FAQ

What were Elekta's gross order intake results for Q3 2022?

Elekta's gross order intake for Q3 2022 was SEK 4,441 M, reflecting an 8% increase in constant currency.

How did Elekta's net sales perform in Q3 2022?

Elekta's net sales decreased by 3% year-over-year to SEK 3,602 M in Q3 2022.

What was the gross margin for Elekta in Q3 2022?

The gross margin for Elekta in Q3 2022 was 36.7%, down from 38.7% in the previous year.

What was Elekta's EBIT and EBIT margin in Q3 2022?

Elekta's EBIT for Q3 2022 was SEK 340 M, with an EBIT margin of 9.4%, down from 13.1%.

How much did Elekta's earnings per share change in Q3 2022?

Elekta's earnings per share decreased by 29% to SEK 0.60 in Q3 2022.