Solid profitability despite headwinds in the quarter
Third quarter 2024
- Order intake for the third quarter amounted to 99.6 (166.8) MSEK, a decrease of 40 percent. At fixed exchange rates, the decrease was 38 percent.
- Order backlog was 734.7 (751.3) MSEK.
- Revenues decreased by 10 percent to 100.1 (111.2) MSEK (7 percent at fixed exchange rates).
- EBIT amounted to 17.4 (18.9) MSEK, corresponding to a margin of 17 (17) percent.
- Net profit after tax amounted to 15.4 (10.9) MSEK.
- Earnings per share was 0.45 (0.32) SEK.
- Cash flow from operating activities was -17.2 (16.1) MSEK.
January-September 2024
- Order intake decreased by 15 percent to 318.6 (376.0) MSEK (15 percent at fixed exchange rates).
- Revenues increased by 21 percent to 347.5 (286.2) MSEK (22 percent at fixed exchange rates).
- EBIT amounted to 49.6 (32.7) MSEK, corresponding to a margin of 14 (11) percent.
- Net profit after tax amounted to 42.0 (19.6) MSEK.
- Earnings per share was 1.24 (0.58) SEK.
- Cash flow from operating activities was -3.1 (-17.4) MSEK.
CEO comment
The third quarter showed strong order intake and sales performance in APAC and the Americas, but that could not compensate for the slowdown in EMEA's main markets. Overall, the quarter showed weaker order intake and lower revenue compared to same period last year. Our focus on profitability is paying off and despite the lower revenue, the EBIT margin amounted to 17 percent.
Order intake in the quarter amounted to 100 MSEK. The EMEA has continued to be weak, well below our expectations. On a slightly longer-term basis, we think the underlying demand will drive sustainable growth. There is significant and untapped potential in an already installed base of radiotherapy equipment that would benefit from adding Surface Guided Radiation Therapy (SGRT).
The total order backlog was 735 MSEK. The time from order to delivery varies, depending on when the clinics are ready to receive our systems. Revenue was 100 MSEK, a decline of 10 percent. The gross margin of 73 percent is positively impacted by an increased share of Proton deliveries. Given lower revenue, we are satisfied with an EBIT of 17.4 MSEK for the quarter, corresponding to an EBIT margin of 17 percent. Year-to-date, EBIT was 50 MSEK with an EBIT margin of 14 percent.
Strategic Progress in the Americas
Our focus on addressing clinics with already installed base of LINACS and building successful reference sites is paying off, with important sales wins on Varian LINACs in the quarter. The US continues to demonstrate a high service attachment rate compared with other markets and we have secured sizable new service contracts and renewals during the quarter. Order intake increased 10 percent to 28 MSEK. The revenue decreased 10 percent to 23 MSEK. Latin America is an emerging market, and the interest in our offering is high. We held our first ever training for our LATAM distributors in conjunction with the ASTRO tradeshow. After the closing of the quarter, we received our first larger order in Mexico of 10 MSEK through our partner Elekta.
Another challenging quarter for EMEA
EMEA had yet another slow quarter, compared to an unusually strong comparison, with a large Spanish Proton order and two large German orders, a total of 58 MSEK. Our assessment is that lower demand is mainly explained by macroeconomic factors. We expect a slower market in EMEA for the coming quarters. As in previous quarters, we see a lack of larger tenders in the advanced markets and decisions are taking longer. Our sales activity is high, with local trade shows, increased marketing and targeted sales campaigns. We have also intensified our customer dialogue to ensure we understand their needs and maturity level. These customers are vital references for new business opportunities. There are regional highlights and room to grow in advanced and emerging markets. Central Eastern Europe continue to grow strongly, resulting in new product and services contracts. In the third quarter, order intake declined 77 percent to 23 MSEK and revenue declined 41 percent to 32 MSEK.
Continued growth in APAC
APAC is performing well, and there is a strong momentum in many markets. Revenue increased 43 percent to 45 MSEK for the third quarter and order intake increased by 11 percent to 48 MSEK. The number of LINAC installations are growing in the region, and SGRT is becoming standard of care for new installations. The uptake in the Southeast Asian markets continues, alongside additional wins in Australia where we already are market-leaders. Japan, the second-largest radiation therapy market in the world, is progressing well and as last quarter, China was positively impacted by Proton orders and deliveries, as well as new service contracts in China.
Extensive interoperability and Partnerships
The activity at the North American MedTech tradeshow ASTRO Activity was high, and we held live demos to new and existing customers from all over the world. We presented our most extensive interoperability portfolio, featuring interfaces with leading LINAC, Proton and CT vendors. Our offering's interoperability increases business opportunities and are greatly appreciated by customers with different suppliers. Our product's exceptional uptime and the unique qualities of the Field of View concept increase reliability and workflow efficiency for the clinical staff. The VitalHold solution, jointly developed with our industry partner Accuray, is now in clinical use at clinics in the US, Japan, India and France.
Building for the future
The work to strengthen the foundation to deliver on our long-term growth strategy continues. It includes developing market-leading products, growing services and increasing our market reach. Our success is dependent on a strong and dedicated organisation, who proactively is driving our growth agenda. Together with our partners, we are making a real difference to cancer patients world-wide.
Cecilia de Leeuw, President and CEO
Please find the full report at: Financial Reports | C-RAD
This document has been prepared in both a Swedish and English version. In the event of
any deviations, the Swedish version shall prevail.
C-RAD will hold a telephone conference at 11:00 am (CET) Wednesday, October 23, 2024.
If you wish to participate via webcast please use the link below. Via the webcast you are
able to ask questions verbally. Link to webcast: C-RAD Q3 report 2024
If you wish to participate via teleconference: Call Access
For further information:
Cecilia de Leeuw, CEO, +46 (0)795 85 66 77, investors@c-rad.com
Linda Frölén, CFO, +46 (0)703 03 32 53, investors@c-rad.com
About C-RAD
C-RAD develops surface-guided imaging solutions for radiation therapy to allow highly accurate dose delivery to the tumor, and at the same time, to protect healthy tissue from unwanted exposure. Using high-speed 3D cameras combined with augmented reality, C-RAD supports the initial patient setup process and monitors the patient's motion during treatment to ensure high confidence, an efficient workflow, and improved accuracy. C-RAD monitors the patient's motion without the use of tattoos or additional imaging dose, to deliver the highest level of patient safety and comfort.
C-RAD. Inspiring excellence in cancer treatment.
C-RAD AB is listed on NASDAQ Stockholm.
For more information on C-RAD, please visit http://www.c-rad.com
This information is information that C-RAD is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-10-23 08:30 CEST.
