CellaVision AB: Strong second quarter with growth and increased profitability

GlobeNewswire

Interim report January-June 2017

April 1-June 30, 2017

· Net sales increased by 20 % to
SEK 78.7 million (65.7).

· Organic growth for the quarter
was 16% (27).

· Operating profit increased by 29% to
SEK 24.6 million (19.1).

· The operating margin was 31.3% (29.1).

· Pre-tax profit was SEK 24.2 million (21.0).

· Earnings per share was SEK 0.81 (0.71).

· Cash flow before dividend was
SEK 11.2 million (13.7).

January 1- June 30, 2017

· Net sales increased by 39 % to
SEK 171.8 million (124.0).

· Organic growth was 37 % (18).

· Operating profit increased by 78% to
SEK 59.0 million (33.1).

· The operating margin was 34.3 % (26.7).

· Earnings per share was SEK 1.87 (1.12).

· Cash flow before dividend was
SEK 26.7 million (26.8).

CEOs comments

Strong quarter with growth of 20 percent
CellaVision had a good second quarter in 2017, not least in view of the year`s very strong first quarter. In the second quarter the Group`s sales grew by 20 percent to SEK 78.7 million (65.7). Exchange rate impact was about four percent. The operating profit was SEK 24.6 million (19.1), corresponding to an operating margin of 31.3 percent (29.1). The performance is explained by CellaVision`s indirect business model, which delivers rapidly growing profitability when sales volumes increase, in combination with sound cost control.

After two strong quarters in 2017 it is important to point out that we continue as before to expect that both sales and earnings may vary considerably between different quarters, both for individual regions and for the Group as a whole.

Market development
The year`s second quarter was another strong quarter for the Americas. Sales grew by 30 percent to SEK 41.2 million (31.6). Development was good in both the USA and Canada, which are both mature markets where the majority of customers in the human healthcare market choose digital image analysis rather than traditional microscopy.

EMEA also reported a good second quarter, with sales amounting to SEK 25.1 million (18.8), corresponding to growth of 33 percent. The quarter`s sound performance was mainly achieved through strong sales in Western Europe.

APAC also reported sound sales in the second quarter, amounting to SEK 12.4 million (15.3). Due to very strong comparative figures, growth for the quarter was negative, about 19 percent. It is worth noting that China again reported a strong quarter in terms of sales.

Geographical expansion
CellaVision is continuing its ambitious establishment of local organizations for market support in interesting markets. During the quarter new organizations were established in the German-speaking part of Europe and in Brazil. Through these establishments CellaVision now has a direct presence in eleven markets and is planning further establishments in the year`s two last quarters. This is a key strategy for ensuring long-term global growth.

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