Sectra Reports Strong First Quarter with Rising Revenue Trends
Sectra's Impressive First Quarter Performance
International medical imaging IT and cybersecurity company Sectra (STO: SECT B) is experiencing significant growth, reflecting its ongoing success and customer satisfaction. This quarter showcases the highest sales and operating profit the Group has ever achieved for the first quarter, largely attributed to an increasing volume of recurring revenue.
Financial Highlights of the First Quarter
The first quarter, encompassing the months of May to July 2024, exhibited remarkable changes in key financial metrics:
Order Bookings and Sales Growth
Contracted order bookings saw a decrease of 79.3%, totaling SEK 615.0 million. Of this, SEK 543.1 million was related to guaranteed order bookings, with 22% recognized during the quarter and an estimated 25-35% expected to contribute to revenue within the next year.
Rising Net Sales
Net sales increased by 24.0%, reaching SEK 723.8 million. Recurring revenue played a significant role, contributing SEK 482.3 million, representing a growth of 21.4%. Notably, cloud recurring revenue (CRR) surged by 42.1%, indicating strong demand for cloud-based services.
Operating Profit and Profit for the Period
Operating profit also rose considerably by 44.0%, amounting to SEK 99.8 million, leading to an operating margin of 13.8%. The profit for the period was SEK 80.4 million, showcasing Sectra's strong financial health despite challenges in the market.
Comments from Leadership
Torbjörn Kronander, President and CEO of Sectra AB, highlighted the achievements of the quarter, emphasizing the successful completion of numerous customer projects. Hospitals adopting Sectra's cloud-based medical imaging services reflect the company’s growth trajectory. In addition, the launch of their new genomics IT module stands as a critical development in their Business Innovation segment, meeting the fast-evolving needs for cancer diagnostics.
Strategic Developments
The quarter's financial stability denotes a positive start to the fiscal year, driven by solid performances across various domains. Ongoing increases in recurring revenue have been pivotal in balancing results between quarters, fostering a more sustainable business model.
Further Information and CEO Presentation
Torbjörn Kronander, alongside Jessica Holmquist, CFO of Sectra AB, will present the full financial report and address inquiries in a live presentation. This offers stakeholders an excellent chance to engage with the leadership team about Sectra's progress and future outlook.
Frequently Asked Questions
What is Sectra's stock ticker symbol?
Sectra’s ticker symbol is STO: SECT B, representing its trading on the stock exchange.
What factors drove Sectra's growth in the first quarter?
The growth is attributed to increased recurring revenue, successful project deliveries, and the launch of innovative products supporting cancer diagnostics.
How much did Sectra's net sales increase in the last quarter?
Sectra’s net sales saw a significant increase of 24.0% in the first quarter, totaling SEK 723.8 million.
What is the significance of cloud recurring revenue for Sectra?
Cloud recurring revenue reflects a shift towards cloud-based solutions, showcasing a growth of 42.1%, indicating strong customer demand for these services.
Who can stakeholders contact for more information regarding Sectra?
Stakeholders can contact Dr. Torbjörn Kronander, President and CEO of Sectra AB, for further inquiries and details.
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