First quarter January – March 2023
- Order intake increased 12 percent to 91.4 (81.5) MSEK (5 percent in constant currencies).
- Order backlog amounted to 649,3 (451,6) MSEK.
- Revenue increased 50 percent to 84.4 (56.3) MSEK (36 percent in constant currencies).
- EBIT amounted to 6.4 (0.2) MSEK, corresponding to a margin of 7.5 (0.3) percent.
- Cash flow from operating activities amounted to -11,9 MSEK (-4,9 MSEK)
- Net earnings amounted to 3.2 (-1.2) MSEK.
- Earnings per share amounted to 0.10 (-0,04) SEK
Significant events during the first quarter
- Christoffer Herou was appointed new CFO in January. He took up his post in May 2023.
- A radiation oncology network in Missouri, U.S. signed a premium full care service support agreement for their C-RAD surface guided radiation therapy (SGRT) systems. This was an extension and expansion of an existing agreement, and the order value was approximately 8,8 MSEK. The new agreement starts in autumn 2023.
- Nordstrahl, a leading radiotherapy practice in Nuremberg, Germany, signed an order for the Catalyst+HD™ and Sentinel 4DCT™. The order includes multiple systems, along with a multiyear service agreement. The order value was approximately 8,3 MSEK. Delivery and installation are expected to commence before the end of the year.
- C-RAD’s board proposes to the 2023 AGM, that no dividend be paid for the 2022 financial year.
Significant events after the quarter
- C-RAD announced a new order for Catalyst+HD™ and Sentinel 4DCT™ from Australian Cancer Care Associates (CCA). The total order value is approximately 23 MSEK and delivery and installation are expected to take place over the coming two years, starting second half of 2023.
CEO Cecilia de Leeuw comments on the interim report:
Our focus during the first quarter has been on growing revenue and managing costs. The activity levels in the markets are getting back to normal levels prior to covid and we can see an unmet demand for Surface Guided Radiation Therapy. Against a backdrop of continued challenging global macroeconomic conditions, we have a solid start of the year.
In the first quarter, we grew our revenues by 50 percent compared with the same period last year. The order intake was 12 percent better than the same period last year, leaving us with an order backlog of 649 MSEK by the end of the quarter. All regions increased their revenues and in particular APAC, as the Chinese market is continuing its journey back to a pre-covid situation.
The gross profit margin is on a healthy level of 65 (64) percent. The strive towards profitable growth continues and this is further visualised in the EBIT-margin of 7.5 (0.3) percent. Due to our strong order backlog, in combination with the need to secure fast deliveries, we have decided to increase our stock levels resulting in a negative impact on the cashflow.
The interest in Surface Guided Radiation Therapy (SGRT) continues to be high across the regions. There is unmet demand in all markets, both developing and advanced markets. The year started off well, with a prestigious 8 MSEK win with the leading German radiotherapy practice Nordstrahl. Despite economic headwinds, we see significant demand for SGRT systems in the EMEA market, with an 18 percent growth in order intake and a 48 percent growth in revenue. APAC continues to perform well, with a revenue growth of 64 percent, strengthened by China continuing to get back to normal.
Despite facing a market situation with cost increases impacting the speed of investment decisions, Americas was showing growth. The renewal and expansion of the multi-year services agreement with a radiation oncology network in Missouri, US, was in line with our ambition to increase services as well as growing the business in the US. Our services team has been active in installing new systems and training customer’s staff in the hospitals and clinics. The order intake for Services grew 21 percent in the first quarter compared to the same period last year. A good complement is our further enhanced cost-effective online training portal, eDucation.
After the end of the quarter, we got yet another confirmation of the importance of our state-of-the art radiation therapy systems. Australian Cancer Care Associates (CCA) selected C-RAD for their clinics across Australia. Together with our partner Gamma Gurus Pty Ltd, we will be supporting them in making SGRT available in all clinics across the CCA network to an order value of approximately 23 MSEK.
My first quarter as CEO has indeed been very active and rewarding. I continue to be impressed by our passionate and skilled team. As I have travelled to the regions there has also been an opportunity for me to receive direct feedback from our customers. Our ability to increase efficiency in the treatment workflow and the user-friendliness is well received by the customers’ clinical staff. Looking ahead, we will continue to invest and deliver on our strategy for profitable growth. Together with our industrial partners and network of distributors, we are able to make a difference in ensuring the best possible care for cancer patients around the world.
Presentation of the interim report
CEO Cecilia de Leeuw and CFO Christoffer Herou will present the interim report by webcast on Friday, May 5 at 11:00 CEST. After the presentation, there will be time for questions. The presentation will be held in English. To participate in the presentation, please register using the link below: