Sectra reports increased sales and operating profit

IT and medical-technology company Sectra’s (STO:SECTB) net sales for the first quarter increased 13.7% to SEK 197.8 million (174.0) compared with the year-earlier period. Operating profit increased to SEK 10.1 million (0.9), corresponding to an operating margin of 5.1% (0.5) for the quarter. Profit after financial items amounted to SEK 3.5 million (6.2), corresponding to a profit margin of 1.8% (3.6). The Group’s order bookings amounted to SEK 152.1 million (175.2).

“The increase in sales occurred primarily because earnings are beginning to be generated from a few large and multi-year projects, which Sectra previously secured in the Medical Systems area,” says Jan-Olof Brüer, President and CEO of Sectra AB. “The improved net sales had a positive impact on operating profit.”

Net sales for the Medical Systems business area increased 14.3% to SEK 174.3 million (152.6) during the quarter. Operating profit for the business area increased to SEK 4.5 million (0.3), corresponding to an operating margin of 2.6% (0.2).

Net sales for the Secure Communication Systems business area amounted to SEK 17.2 million (21.3). Operating profit totaled SEK 3.0 million (3.7) during the quarter, corresponding to a continued operating margin of 17.5% (17.4).

“We continue to expand internationally and the Group’s sales in markets outside Sweden currently represent 74.7% (68.0) of the net sales during the quarter. At the same time, the consolidated profit after financial items for the quarter had a negative impact of SEK 4.5 million in the form of currency fluctuations, since sales in the international markets primarily occur in USD and EUR, and the SEK has strengthened,” says Jan-Olof Brüer.