CellaVision AB: Interim report January-March 2017

Very strong start to 2017 with sales growth of 60 percent

January 1-March 31, 2017
  • Net sales increased by 60 % to SEK 93.1 million (58.3).
  • Operating profit was SEK 34.3 million (13.9).
  • The operating margin was 36.9% (23.9).
  • Profit before tax was SEK 34.5 million (14.2).
  • Earnings per share were SEK 1.06 (0.42)
Significant events after the period close
  • The company established a market support organization in the German-speaking part of Europe.
  • Distribution agreement for the veterinary market in the Americas.

CEOs comments
CellaVision had an exceptionally good first quarter in 2017. Sales for the Group grew by 60 percent to SEK 93.1 million (58.3) and the operating profit increased to SEK 34.3 million (13.9), corresponding to an operating margin of 36.9 percent (23.9). Cash flow for the quarter was SEK 15.6 million (13.0).

Market development
In the Americas, sales increased by 104 percent in the quarter and amounted to SEK 56.0 million (27.6). In the USA and Canada we now see a market maturity in which the majority of the human healthcare market chooses digital image analysis rather than traditional microscopy.

APAC also reported strong growth compared with the relatively weak first quarter of 2016. Sales growth was 188 percent, with sales of SEK 14.8 million (5.1) after a positive performance, above all in Japan and China. During the quarter we also completed the first installations in Korea, India and Indonesia.

In EMEA sales decreased by 13 percent to SEK 22.3 million (25.6) compared with the strong first quarter of 2016. We have great confidence in EMEA and are currently investing in local market support organizations in France and Germany, which are important markets for CellaVision.

Geographical expansion
The recent years' growth in the Americas is mainly due to our having had a presence for a long time, with our own local organizations for market support in the USA and Canada. This long-term work has meant that CellaVision's technology is the accepted industry standard in these countries, with consequent sound market penetration.

In 2016 we established our own local organizations for market support in four countries. We will continue with more establishments, starting first with Germany in 2017. The ambition is to build up strong positions over time in several important markets.

The veterinary market
In the first quarter of 2017 we received our first veterinary order outside the Americas, from NMBU (the Norwegian University of Life Sciences). After having adjusted the business model in 2016 for our veterinary offer, enabling us to work via different distribution partners just as in the human healthcare market, we contracted two different partners for distribution in the veterinary market; Semacare for Oceania and Sysmex for the Americas.

Development of a new technology platform, aimed at broadening our offer to include small and mid-size laboratories in both human healthcare and the veterinary market, is going as planned. The project has just entered an intensive phase with careful market preparations ahead of the launch in 2018.

Developed partnerships  
CellaVision works continually to develop collaboration with our various distribution partners. An important part of this work is the e-learning platform CellaVision® Academy, which enables our distribution partners and end customers to receive training in the use of CellaVision's analyzers cost effectively. In the first quarter of the year another training module was launched for preparation of blood smears.

CellaVision's successes in recent years have generated a strong net cash balance and this makes accelerated business development possible. The first quarter of the year showed strong growth and CellaVision's assessment continues to be that the long-term opportunities for growth are good. However, we see that even in the future we will experience major fluctuations in sales between individual quarters.

Zlatko Rihter,
President and Chief Executive Officer

Key Ratios    
(MSEK)Jan-Mar 2017Jan-Mar 2016Jan-Dec 2016
Net sales93.158.3265.0
Gross profit68.040.9188.9
Operating profit34.313.974.2
Operating margin, %36.923.928.0
Profit/loss before tax34.514.275.8
Cash flow for the period15.613.025.8
Equity ratio, %83.483.080.4


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 rationalize 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 mother company in Lund and by the market support organizations in the US, Canada, China, Japan, Dubai, Korea, Australia, France and Germany. 
In 2016 sales were SEK 265 million and sales continue to increase, with a growth target of at least 15 % per year over an economic cycle. CellaVision's registered office is in Lund, Sweden. The share is listed on the Nasdaq Stockholm, Small Cap list. Read more at  www.cellavision.com

CellaVision Interim report jan-march 2017

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Source: CellaVision AB via GlobeNewswire