Elos Medtech AB: Elos Medtech Interim Report January 1 - September 30, 2021

2021-10-20 08:00:00

GOOD DEVELOPMENT IN ALL BUSINESS AREAS

July - September 2021
  • Net sales for the third quarter amounted to SEK 187.2 (147.9) million, an increase of 26.6 percent compared to the same period last year. Net sales in local currencies increased by 27.1 percent.
  • Operating profit for the year was SEK 24.2 (17.9) million, corresponding to an operating margin of 12.9 (12.1) percent. In the third quarter of last year government grant and subsidies due to Covid-19 had a positive impact of SEK 4.4 million on operating profit.
  • Operating profit includes a charge of SEK 11.8 million related to transaction costs in connection with the completion of the offer from the new majority owner.
  • Profit after net financial items amounted to SEK 23.3 (14.2) million. Exchange rate differences and revaluation of interest rate swaps had a positive impact on net financial items of SEK 1.1 (-1.3) million and SEK 0.4 (0.4) million, respectively, resulting in a net financial loss of SEK -1.0 (-3.7) million.
  • Profit after tax amounted to SEK 17.6 (12.6) million.
  • Cash flow from operating activities was SEK 12.9 (41.9) million, amounting to SEK 1.5 (32.2) million after investments.
  • Earnings per share amounted to SEK 2.18 (1.56).

CEO JAN WAHLSTRÖM COMMENTS ON Q3

The third quarter developed well and sales growth for the quarter was 27 percent compared to a covid-affected weak quarter in 2020. All business areas reported strong sales and earnings. The operating profit is in line with last year's figure and meets our long-term target of 13 percent.

In Dental we are seeing a solid development in contract manufacturing as well as proprietary products. The introduction of Elos Accurate® Hybrid Base H™ with a higher cylinder, the latest member of our digital product portfolio, was well received in the United States.

In Life Science we achieved a good quarter in terms of both sales and earnings. The performance was partly a result of inventory effects. We have also noted a recovery among customers who for a long time have been affected by the pandemic.

The growth in Orthopedics has remained and the business area is operating at a high pace. However, restoring a balance in recruitment in the US will continue to pose a challenge as will strengthening our pool of engineering and technical expertise globally. Organizationally, we are still operating with a relatively slim organization.

As the world begins to return to what we view as normal we are doing the same. We have participated with proprietary products at dental trade fairs in the US and Germany and at an orthopedics fair in the US. Yet in the so-called `new normal' we are also seeing tendencies toward a higher cost environment going forward that is primarily due to macroeconomic factors such as inflation and higher raw material prices.

With TA Associates as our new majority owner and a new Board in place, we are entering the next chapter in Elos Medtech's journey. We would like to express our gratitude to the previous Board of Directors and will continue to pursue our adopted goal - to sustainably grow faster than the market. In order to secure our long-term growth in line with our strategic business plan, we are now investing in both machinery and technical solutions as well as in the skills of our highly valued employees. We are doing this with strong confidence and commitment with the aim of meeting our customers' future needs for specialized capacity and skills.

Cision