CellaVision AB

Interim report January-September 2018

Continued strong performance in all regions

July 1-September 30, 2018

• Net sales increased by 37 % to SEK 84.3 million (61.3).
• Organic growth increased to 33 % (-11).
• Operating profit increased to SEK 21.0 million (10.2).
• The operating margin increased to 24.9% (16.7).
• Profit before tax increased to SEK 20.7 million (9.9).
• Earnings per share before and after dilution increased to SEK 0.70 (0.32).
• Cash flow before dividend increased to SEK 22.2 million (5.6).

January 1-September 30, 2018

• Net sales increased by 9 % to SEK 253.8 million (233.2).
• Organic growth was 6% (19.5).
• Operating profit was SEK 75.8 million (69.2).
• The operating margin was 29.9% (29.7).
• Profit before tax was SEK 76.1 million (68.6).
• Earnings per share before and after dilution were SEK 2.48 (2.20).
• Cash flow before dividend was SEK 45.9 million (32.4).

CEO's comments

Third quarter

The third quarter of 2018 was another strong quarter for CellaVision with sales of SEK 84.3 million (61.3). Compared with the same period in 2017, sales increased organically by 33 percent, with growth in all our regions. Profitability progressed well in the quarter, with an operating profit of SEK 21.0 million (10.2), corresponding to an operating margin of 24.9 percent (16.7). The profitability trend is a result of CellaVision's effective indirect sales method that enables geographical expansion with continued sound cost control. Cash flow for the quarter strengthened to SEK 22.2 million (5.6). The increase is primarily a result of the higher invoicing volume.

Market development

The Americas had a strong quarter in which sales grew by 28 percent to 40.1 million (31.3). The number of installations for end customers continues to increase and market penetration is developing at a stable rate.

EMEA developed well in the third quarter, with growth in sales of 73 percent to 26.0 million (15.0). This is partly explained by weak comparative figures but is above all the result of CellaVision's consistent focus on market expansion in the region. In the past 18 months new organizations for local market support were established in the Middle East, France, Europe's German-speaking countries and the United Kingdom/Ireland. These organizations are now fully operational and make a positive contribution to development in the region.