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Sectra’s year-end report 2022/2023: Historic quarter to end another successful fiscal year—higher dividend proposed

Published: Jun 2, 2023 | Edited: Jun 13, 2023 | Financial Information | Medical Systems | Secure Communication Systems

Press release – Linköping, June 2, 2023 – International medical imaging IT and cybersecurity company Sectra (STO: SECT B) reports that sales and operating profit for the fourth quarter and for the fiscal year exceeded previous records and recurring revenue increased. Contracted order bookings doubled compared with the comparative year. This demand confirms the need for Sectra’s products and services, which help customers give patients the best possible care and increase cybersecurity in society. In light of the strong performance, the Board of Directors proposes that the Annual General Meeting (AGM) resolve that SEK 1.10 SEK per share be distributed to the shareholders through a share redemption program.

2022/2023 fiscal year

  • Contracted order bookings rose 99.8% to SEK 4,635.7 million (2,320.2), of which SEK 2,606.5 million (2,320.2) pertained to guaranteed order bookings. 
  • Net sales rose 20.6% to SEK 2,350.8 million (1,949.1). Based on unadjusted exchange rates, the increase was 12.6%. Recurring revenue accounted for SEK 1,359.9 million (1,081.4) of sales for the period, up 25.8%. Based on unadjusted exchange rates, the increase was 18.3%. Cloud recurring revenue (CRR) increased 40.4% to SEK 254.6 million (181.4).
  • Operating profit rose 18.9% to SEK 455.7 million (383.4), corresponding to an operating margin of 19.4% (19.7). Based on unadjusted exchange rates, operating profit increased 2.6%. 
  • Profit after financial items amounted to SEK 479.4 million (394.5). 
  • Cash flow from operations amounted to SEK 440.5 million (616.9).
  • It is proposed that the 2023 AGM resolve to transfer SEK 1.10 (1.00) per share to the shareholders through a share redemption program. 

Fourth quarter: February–April 2023

  • Contracted order bookings rose 16.7% to SEK 1,186.9 million (1,017.4), of which SEK 811.6 million (1,017.4) pertained to guaranteed order bookings. Of the guaranteed order bookings, 16% were recognized during the quarter and a further 23–33% are deemed to pertain to revenue within 12 months after the end of the quarter.
  • Net sales increased 11.7% to SEK 724.7 million (649.0). Based on unadjusted exchange rates, the increase was 6.7%. Recurring revenue accounted for SEK 376.6 million (280.8) of net sales, up 34.1%. Based on unadjusted exchange rates, the increase was 29.5%.  Cloud recurring revenue (CRR) increased 44.4% to SEK 72.9 million (50.5).
  • Operating profit rose 39.5% to SEK 196.8 million (141.1), corresponding to an operating margin of 27.2% (21.7). Based on unadjusted exchange rates, operating profit increased 28.0%. 
  • Profit after financial items amounted to SEK 201.9 million (141.4). 
  • Cash flow from operations amounted to SEK 382.2 million (414.4).

 
Comments from Torbjörn Kronander, President and CEO of Sectra AB
“We won larger orders than ever before, received distinctions for high levels of customer satisfaction and cybersecurity, and were even ranked as one of the best employers in Sweden. These are just some examples of why 2022/2023 was yet another successful year. These positive results are proof of our ability to deliver value and build a long-term sustainable business."

“Sectra’s growth strategy is built on taking good care of our customers. In turn, they expand their use of our solutions and recommend us to others. The inherent growth in our business models has offset the effects of the ongoing shift to services and cloud deliveries, which means that certain sales and earnings will be reported later in time. At the same time, currency movements were incredibly advantageous for us and compensated somewhat for this transition."

“The need for increased productivity in healthcare and increased cybersecurity is greater than ever, and Sectra is well positioned to meet these challenges. Our plan for the future is to continue doing what we do well: customer satisfaction, innovation and corporate culture as well as delivering secure, scalable and user-friendly solutions that generate value within medical IT and cybersecurity.” 

Read the attached year-end report for further CEO comments and information. 

Presentation of the interim report 
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: June 2, 2023, at 10:00 a.m. CEST

Follow live or listen to the recording afterward: https://investor.sectra.com/q4report2223

This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 8:15 a.m. CEST on June 2, 2023.

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