Interim report, May–July 2024/25
First quarter
- In constant exchange rates, net sales increased by 1 percent mainly driven by North America. Reported sales were unchanged amounting to SEK 3,825 M (3,828).
- The book-to-bill ratio improved to 1.10 (1.00), supporting future revenue growth.
- Adjusted gross margin amounted to 37.8 percent (41.6). A sequential increase of 120 basis points was supported by an improved service margin.
- Adjusted EBIT amounted to SEK 283 M (427), corresponding to a margin of 7.4 percent (11.2). This was a result of increased operating expenses driven by higher amortization following recent product launches.
- Net income was SEK 71 M (238) and earnings per share diluted was SEK 0.18 (0.62).
- Cash flow after continuous investments amounted to SEK -891 M (-900). Lower earnings were compensated by improved working capital.
- Net sales for Elekta are expected to grow by mid-single digit for the full year of 2024/25 with an improved EBIT margin supported by the recent product launch Elekta Evo.
| Group summary | Q1 | 12 months | ||||||
| SEK M | 2024/25 | 2023/24 | Δ | RTM | 2023/24 | Δ | ||
| Book-to-bill | 1,10 | 1,00 | 9% | 1,11 | 1,09 | 2% | ||
| Net sales | 3,825 | 3,828 | 0% | 18,117 | 18,119 | 0% | ||
| Net sales in constant exchange rates | 1% | 1 | 5% | 2 | ||||
| Adjusted gross margin 3 | 37.8% | 41.6% | -3,8 ppts | 36.7% | 37.5% | -0.8 ppts | ||
| Adjusted EBITDA 4 | 600 | 707 | -15% | 3,180 | 3,287 | -3% | ||
| Adjusted EBITDA margin 4 | 15.7% | 18.5% | -2.8 ppts | 17.6% | 18.1% | -0.6 ppts | ||
| Adjusted EBIT 5 | 283 | 427 | -34% | 2,001 | 2,145 | -7% | ||
| Adjusted EBIT margin 5 | 7.4% | 11.2% | -3.8 ppts | 11.0% | 11.8% | -0.8 ppts | ||
| Gross margin | 37.0% | 41.5% | -4.5 ppts | 36.5% | 37.4% | -0.9 ppts | ||
| EBITDA | 522 | 693 | -25% | 3,018 | 3,189 | -5% | ||
| EBITDA margin | 13.6% | 18.1% | -4.5 ppts | 16.7% | 17.6% | -0.9 ppts | ||
| EBIT | 174 | 412 | -58% | 1,801 | 2,039 | -12% | ||
| EBIT margin | 4.5% | 10.8% | -6.2 ppts | 9.9% | 11.3% | -1.3 ppts | ||
| Net income | 71 | 238 | -70% | 1,135 | 1,302 | -13% | ||
| Cash flow after continuous investments | -891 | -900 | 9 | 824 | 815 | 9 | ||
| Adjusted earnings per share before/after dilution, SEK 6 | 0.41 / 0.41 | 0.65 / 0.65 | -38% | 3.38 / 3.38 | 3.62 / 3.62 | -7% | ||
| Earnings per share before/after dilution, SEK | 0.18 / 0.18 | 0.62 / 0.62 | -70% | 2.97 / 2.97 | 3.41 / 3.41 | -13% | ||
1 Compared to last fiscal year based on constant exchange rates.
2 Compared to last rolling twelve months period Aug 2022 – Jul 2023 based on constant currency.
3 Adjusted gross margin = Gross margin excluding items affecting comparability attributable to the Cost-reduction Initiative, see page 25.
4 Adjusted EBITDA = EBITDA excluding items affecting comparability attributable to the Cost-reduction Initiative, see page 25.
5 Adjusted EBIT = Operating income (EBIT) excluding items affecting comparability, see page 26.
6 Adjusted earnings per share = Net income excluding items affecting comparability, attributable to Parent Company shareholders, in relation to the weighted average number of shares (excluding treasury shares), see page 27.
Further actions to improve profitability
We continue to take action to improve profitability and we are starting to see positive signs. We have increased prices, starting to be visible in this quarter, with more to come. Our recent product launches are expected to have a positive impact on margins and sales later in the fiscal year. Elekta Evo, our latest linear accelerator, has been well received by customers, relating to clinical needs and elevating personalized care as well as increased productivity. We continue to drive cost-reduction initiatives with the target to generate annual cost savings by around SEK 250 M at the end of the fiscal year.
Gustaf Salford
President and CEO