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Elos Medtech — Interim / Quarterly Report 2022
Oct 21, 2022
3039_10-q_2022-10-21_b8bb4ffe-bea5-4edd-9b54-871d65ebfeed.pdf
Interim / Quarterly Report
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SEK 231.5 million
The Group's net sales increased to SEK 231.5 (187.2) million in the third quarter of 2022
SEK 37.7 million The Group's operating profit increased to SEK 37.7 (24.2) million in the third quarter of 2022
Q3 2022 INTERIM REPORT
July – September 2022
- Net sales for the third quarter amounted to SEK 231.5 (187.2) million, an increase of 23.7 percent compared to the same quarter last year. Net sales in local currencies increased by 12.4 percent.
- Operating profit amounted to SEK 37.7 (24.2) million, corresponding to an operating margin of 16.3 (12.9) percent. Operating profit in the previous year includes a charge of SEK 11.8 million related to transaction costs in connection with the completion of the offer from the new majority owner.
- Profit after net financial items amounted to SEK 29.0 (23.3) million. Net financial items were negatively affected by exchange rates of SEK -5.3 (1.5) million and totaled SEK -8.7 (-1.0) million.
- Profit after tax amounted to SEK 21.9 (17.6) million.
- Cash flow from operating activities was SEK 55.3 (12.9) million, and SEK 25.6 (1.5) million after investments.
- Earnings per share amounted to SEK 2.71 (2.18).
January – September 2022
- Net sales for the first nine months of the year amounted to SEK 659.1 (539.4) million, an increase of 22.2 percent compared to the same period last year. Net sales in local currencies increased by 13.4 percent.
- Operating profit amounted to SEK 104.7 (75.8) million, corresponding to an operating margin of 15.9 (14.1) percent. Operating profit in the previous year includes a charge of SEK 15.6 million costs in connection with the completion of the offer from the new majority owner.
- Profit after net financial items amounted to SEK 97.6 (73.2) million. Net financial items were negatively affected by exchange rates of SEK -0.9 (3.0) million and totaled SEK -7.1 (-2.6) million.
- Profit after tax amounted to SEK 74.6 (56.0) million.
- Cash flow from operating activities was SEK 89.9 (71.6) million, and SEK 1.7 (14.1) million after investments.
- Earnings per share amounted to SEK 9.24 (6.95).
| Key performance indicators | Jul-Sep 2022 |
Jul-Sep 2021 |
Jan-Sep 2022 |
Jan-Sep 2021 |
Oct-Sep 2021/22 |
Jan-Dec 2021 |
|---|---|---|---|---|---|---|
| Net sales. SEK million | 231.5 | 187.2 | 659.1 | 539.4 | 843.3 | 723.6 |
| Growth, % | 23.7 | 26.6 | 22.2 | 26.9 | 21.5 | 24.8 |
| Operating profit before depreciation and amortization (EBITDA), SEK million |
54.6 | 38.8 | 152.9 | 117.0 | 192.5 | 156.6 |
| Operating profit before depreciation and amortization | ||||||
| (EBITDA), % | 23.6 | 20.8 | 23.3 | 21.7 | 22.8 | 21.6 |
| Operating profit (EBIT), SEK million | 37.7 | 24.2 | 104.7 | 75.8 | 130.0 | 101.1 |
| Operating profit (EBIT), % | 16.3 | 12.9 | 15.9 | 14.1 | 15.4 | 14.0 |
| Profit after financial items, SEK million | 29.0 | 23.3 | 97.6 | 73.2 | 122.4 | 98.0 |
| Undiluted and diluted earnings per share, SEK | 2.71 | 2.18 | 9.24 | 6.95 | 11.66 | 9.37 |
| Cash flow from operating activities, SEK million | 55.3 | 12.9 | 89.9 | 71.6 | 123.3 | 105.0 |
| Net debt, SEK million | 271.0 | 252.5 | 261.3 |
THE GROUP'S PERFORMANCE
Net sales July-September 2022
The Group's net sales for the quarter increased to SEK 231.5 (187.2) million. The increase of 23.7 percent compared with the third quarter of last year is attributable to all business areas: Dental 4.0 percent, Orthopedics 50.5 percent and Life Science 18.2 percent. Sales of proprietary products in Dental business area grew 37.6 percent and accounted for 16.8 (15.1) percent of total consolidated net sales. Net sales in local currencies increased by 12.4 percent. All business areas have been positively affected by currency translation. For Orthopedics, the impact in the quarter is significant, where half of the growth comes from currency translation.
Net sales January-September 2022
The Group's net sales for the first nine months of the year increased to SEK 659.1 (539.4) million. The increase of 22.2 percent compared with the same period last year is attributable to all business areas: Dental 12.3 percent, Orthopedics 34.6 percent and Life Science 20.9 percent. Sales of proprietary products in Dental business area grew 42.8 percent and accounted for 17.0 (14.6) percent of total consolidated net sales. Net sales in local currencies increased by 13.4 percent. All business areas have been positively affected by currency translation. For Orthopedics, the impact for the period is significant, where half of the growth comes from currency translation.
Earnings July-September 2022
The operating profit for the third quarter amounted to SEK 37.7 (24.2) million, corresponding to an operating margin of 16.3 (12.9) percent. Adjusted for currency prior year's operating profit would have been SEK 27.8 million. Operating profit in the previous year includes a charge of SEK 11.8 million related to transaction costs in connection with the completion of the offer from the new majority owner. The Group's net financial items were affected by exchange rate, mainly in relation to revaluation of loans, of SEK -5.3 (1.1) million and by a revaluation of interest rate swap, of SEK 2.1 (0.4) million.Net financial items amounted to SEK -8.7 (-0.9) million. Earnings after financial items amounted to SEK 29.0 (23.3) million and earnings after tax amounted to SEK 21.9 (17.6) million.
Earnings per share July-September 2022
Third quarter earnings per share both before and after dilution were SEK 2.71 (2.18) per share.
Earnings January-September 2022
The operating profit for the first nine months of the year amounted to SEK 104.7 (75.8) million, corresponding to an operating margin of 15.9 (14.1) percent. Adjusted for currency prior year's operating profit would have been SEK 83.0 million. Operating profit in the previous year includes a charge of SEK 15.6 million related to transaction costs in connection with the completion of the offer from the new majority owner. The Group's net financial items were affected by exchange rate, mainly in relation to revaluation of loans, of SEK -0.9 (3.0) million and by a revaluation of interest rate swap, of SEK 6.1 (2.1) million. Net financial
items amounted to SEK -7.1 (-2.6) million. Earnings after financial items amounted to SEK 97.6 (73.2) million and earnings after tax amounted to SEK 74.6 (56.0) million.
Earnings per share January-September 2022
First nine months of the year earnings per share both before and after dilution were SEK 9.24 (6.95) per share.
Investments
The Group's investments in the third quarter amounted to SEK 29.7 (11.4) million and mainly relate to investments in machinery and property for some of the Group's sites, in order to expand production capacity and continue to serve the Group's customers. In total for the year investments of SEK 88.2 (57.6) million.
Financial position and liquidity
Consolidated total assets increased during the period to SEK 1,475.7 (1,095.6) million. Equity increased by SEK 179.6 million over the period with translation of foreign subsidiaries accounting for SEK 51.1 million of the increase. Total equity amounted to SEK 814.0 (609.4) million. Equity per share, calculated on 8,068,000 shares, amounted to SEK 100.9 (75.5). At the end of the year, riskbearing capital was SEK 855.4 (636.6) million, which corresponds to 58.0 (58.1) percent of total capital. The Group's equity ratio was 55.2 (55.6) percent.
Cash flow
The Group's cash flow from operating activities for the quarter amounted to SEK 55.3 (12.9) million. Operating cash flow in the quarter amounted to SEK 25.6 (1.5) million. The Group's cash flow from operating activities for the first nine months of the year amounted to SEK 89.9 (71.6) million. Operating cash flow in the period amounted to SEK 1.7 (14.1) million. The Group's net debt increased during the period, to SEK 271.0 (252.2) million. The Group's cash and cash equivalents amounted to SEK 188.0 (101.4) million.
Personnel
The average number of employees in the Group in the third quarter was 647 compared to 528 in the previous year, which is an increase of 22.5 percent. The average number of employees in the Group in the first nine months of the year was 614 compared to 529 from the previous year, which is an increase of 16.0 percent. At the end of the period, the number of employees in the Group was 652 (541).
Events during the quarter
On September 5, 2022 the Chairman of the Board appointed Stefano Alfonsi as new President and CEO. In connection with this, Stefano stepped down as Chairman of the Board but remain a Board Member. The Board appointed Board Member Magnus René as new Chairman of the Board as of September 5, 2022.
Events after the end of the quarter
No events after the balance sheet date have occurred that materially affect the assessment of the financial information contained in this report.
OTHER INFORMATION
Accounting policies
This interim report has been prepared in accordance with IAS 34 Interim Reporting and the relevant provisions of the Annual Accounts Act. The interim report of the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, Interim Report. For the Group and the Parent Company, the same accounting principles and calculation bases have been applied as in the most recent annual report.
In addition to the financial statements, disclosures in accordance with IAS 34.16A are also presented in parts of the interim report.
Segment reporting
The internal financial follow-up per business area is adapted to the Group's various customer segments and uses operating profit as a measure to assess segment performance. Directly attributable items and items that can reasonably be allocated by segment have been included in the segment's operating profit.
Unallocated Group expenses refer mainly to note-related costs.
Financial instruments at fair value
For the property loans in the US, the Group swaps its variable interest rate for a fixed rate through interest rate swaps. These interest rate swaps are recognized at fair value via the income statement. Unrealized gains and losses arising from fluctuations in the fair values of the financial instruments are recognized in net financial items in the consolidated income statement. For interest rate swaps, fair value is determined based on market prices. If such prices are not available, fair value is determined by discounting the difference between the contractual interest rate and the interest rate that can be obtained at the balance sheet date for the remaining contract term. Any premiums paid for the swap contract are recognized as interest over the term of the contract. As Elos Medtech intends to hold these derivatives to maturity, mark-to-market accounting of the derivatives over time will not affect earnings or cash flow.
Fair value measurement of interest rate derivatives had a positive impact on quarterly earnings of SEK 2.1 (0.4) million, and a positive impact of SEK 6.1 (2.1) million on earnings for the first nine months of the year.
Significant risks and uncertainties
The Group's principal risks and uncertainties include operational and financial risks. Among operational risks, Elos Medtech is primarily affected by risks associated with customers and markets, but also other external factors such as price risks for materials and supplies. The Group also faces financial risks associated with changes in exchange rates and credit risks. A detailed description of the Group's risks and uncertainties, as well as how these are being managed, is provided in the Directors' Report and in Notes 42 and 44 in the 2021 Annual Report.
Uncertainty in the geopolitical environment remains high but has not yet had a relevant impact on the financial performance. However, it cannot be ruled out that this will have an effect in the future. Elos Medtech continues to focus on customer deliveries by working actively with the Group's suppliers and secure good raw material levels.
Related party transactions
The company had no transactions with related parties during the reporting period.
Parent Company
In addition to the administration of central management issues, the parent company also provide Group-wide support in IT and marketing, quality management, risk management, financing, and financial control.
The Parent Company's net sales in the second quarter amounted to SEK 7.5 (6.5) million. Profit after financial items amounted to SEK 26.5 (-6.9) million, of which SEK 31.2 (5.4) million refers to exchange rate differences mainly related to the translation of loans to subsidiaries. The result was negatively affected by SEK 2.2 million due to changed basis of calculation for the PRI pension liability. SEK 1.4 million of this change has been reported as increased financial expenses. The Parent Company reported a profit after tax of SEK 21.0 (-6.2) million. The percentage of risk-bearing capital was 55.3 (81.5) percent. The equity ratio was 55.1 (81.3) percent.
Future-oriented information
The company does not make forecasts.
Future-oriented information in this report is based on management's expectations at the time of the report. Although the Board of Directors and management feel that these expectations are reasonable, it is no guarantee that the expectations are, or will prove to be, correct. Consequently, future outcomes may vary significantly compared to the future-oriented information due to such things as changes in the market conditions for the Group's services or changes in the overall situation concerning the economy, market and competition, changes in legal requirements and other policy measures as well as fluctuations in exchange rates. The company does not undertake to update or correct any future-oriented information except as stipulated by law.
Examination by the auditors
This report has been subjected to a review by the company's auditors.
Gothenburg, October 21, 2022
Elos Medtech AB (publ)
The Board of Directors
Review report
To the Board of Directors of Elos Medtech AB (publ.)
Corp. id. 556021-9650
Introduction
We have reviewed the condensed interim financial information (interim report) of Elos Medtech AB (publ.) as of 30 September 2022 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
Gothenburg, October 21, 2022
KPMG AB
Johan Kratz Authorized Public Accountant
This is a translation from the Swedish original.
CONDENSED CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
| SEK million | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct-Sep | Jan-Dec |
|---|---|---|---|---|---|---|
| Income statement | 2022 | 2021 | 2022 | 2021 | 2021/22 | 2021 |
| Net sales | 231.5 | 187.2 | 659.1 | 539.4 | 843.3 | 723.6 |
| Cost of goods sold | -147.0 | -119.1 | -415.1 | -346.7 | -536.5 | -468.1 |
| Gross profit | 84.5 | 68.1 | 243.9 | 192.7 | 306.8 | 255.5 |
| Selling expenses | -11.8 | -8.3 | -35.6 | -26.1 | -45.1 | -35.6 |
| Administrative expenses | -29.9 | -31.4 | -87.8 | -77.9 | -113.0 | -103.1 |
| Development costs | -6.1 | -3.9 | -18.6 | -12.5 | -23.8 | -17.7 |
| Other operating income/expenses | 1.1 | -0.3 | 2.7 | -0.4 | 5.1 | 2.0 |
| Operating profit | 37.7 | 24.2 | 104.7 | 75.8 | 130.0 | 101.1 |
| Financial income | 2.3 | 1.8 | 11.2 | 5.6 | 13.4 | 7.8 |
| Financial expenses | -11.0 | -2.7 | -18.3 | -8.2 | -21.0 | -10.9 |
| Profit after financial items | 29.0 | 23.3 | 97.6 | 73.2 | 122.4 | 98.0 |
| Tax expense | -7.2 | -5.7 | -23.1 | -17.2 | -28.3 | -22.4 |
| Profit after tax | 21.9 | 17.6 | 74.6 | 56.0 | 94.2 | 75.6 |
| Attributable to Parent Company shareholders | 21.9 | 17.6 | 74.6 | 56.0 | 94.2 | 75.6 |
| Undiluted and diluted earnings per share. SEK* | 2.71 | 2.18 | 9.24 | 6.95 | 11.66 | 9.37 |
| * Attributable to Parent Company shareholders' share of profit after tax. | ||||||
| Statement of comprehensive income | ||||||
| Profit after tax | 21.9 | 17.6 | 74.6 | 56.0 | 94.2 | 75.6 |
| Other comprehensive income | ||||||
| Items that will not be reclassified to profit or loss | ||||||
| Actuarial gains and losses | 4.8 | - | 11.2 | 2.9 | 4.8 | -3.5 |
| Tax | -1.0 | - | -2.3 | -0.6 | -1.0 | 0.7 |
| 3.8 | - | 8.9 | 2.3 | 3.8 | -2.8 | |
| Items that may be reclassified to profit or loss | ||||||
| Translation differences for the period | 57.0 | 11.9 | 107.7 | 25.1 | 119.0 | 36.4 |
| Tax | -7.5 | -0.9 | -11.7 | -1.9 | -12.5 | -2.7 |
| 49.5 | 11.0 | 96.0 | 23.2 | 106.5 | 33.7 | |
| Other comprehensive income. net | 53.4 | 11.0 | 105.0 | 25.5 | 110.3 | 30.9 |
| Comprehensive income for the year | 75.3 | 28.6 | 179.6 | 81.5 | 204.5 | 106.5 |
| Parent Company shareholders | 75.3 | 28.6 | 179.6 | 81.5 | 204.5 | 106.5 |
| Operating profit before depreciation and amortization | ||||||
| (EBITDA) % |
23.6 | 20.8 | 23.3 | 21.7 | 22.8 | 21.6 |
| Operating profit (EBIT) % |
16.3 | 12.9 | 15.9 | 14.1 | 15.4 | 14.0 |
| SEK Depreciation and amortization charged to earnings million |
16.9 | 14.6 | 48.2 | 41.2 | 62.5 | 55.5 |
CONDENSED CONSOLIDATED STATE-MENT OF FINANCIAL POSITION
| SEK million | |||
|---|---|---|---|
| Balance sheet | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| Assets | |||
| Intangible assets | 323.9 | 266.5 | 272.3 |
| Property, plant and equipment | 567.1 | 446.9 | 469.5 |
| Financial fixed assets | 0.5 | 1.6 | 1.4 |
| Current assets | 396.1 | 279.2 | 288.1 |
| Cash and cash equivalents | 188.0 | 101.4 | 95.1 |
| Total assets | 1 475.7 | 1 095.6 | 1 126.4 |
| Equity and liabilities | |||
| Equity | 814.0 | 609.4 | 634.4 |
| Non-current liabilities | 476.5 | 327.8 | 316.6 |
| Current liabilities | 185.2 | 158.4 | 175.4 |
| Total equity and liabilities | 1 475.7 | 1 095.6 | 1 126.4 |
CONDENSED CONSOLIDATED CASH FLOWS STATEMENT
| SEK million | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct-Sep | Jan-Dec |
|---|---|---|---|---|---|---|
| Cash flow | 2022 | 2021 | 2022 | 2021 | 2021/22 | 2021 |
| Profit after net financial items | 29.0 | 23.3 | 97.6 | 73.2 | 122.4 | 98.0 |
| Reversal of depreciation and amortization | 16.9 | 14.6 | 48.2 | 41.2 | 62.5 | 55.5 |
| Adjustment for non-cash items | 5.7 | -2.1 | -1.8 | -3.3 | -0.6 | -2.1 |
| Tax paid | -1.4 | -1.7 | -7.9 | -7.4 | -18.7 | -18.2 |
| Changes in working capital | 5.0 | -21.2 | -46.3 | -32.1 | -42.4 | -28.2 |
| Cash flow from operating activities | 55.3 | 12.9 | 89.9 | 71.6 | 123.3 | 105.0 |
| Investments in fixed assets | -29.7 | -11.4 | -88.2 | -57.6 | -116.1 | -85.5 |
| Sale of fixed assets | - | - | - | 0.1 | - | 0.1 |
| Cash flow from investing activities | -29.7 | -11.4 | -88.2 | -57.5 | -116.1 | -85.4 |
| Operating cash flow | 25.6 | 1.5 | 1.7 | 14.1 | 7.2 | 19.6 |
| Borrowings | 0.6 | 18.2 | 340.4 | 48.4 | 352.9 | 60.9 |
| Repayment of borrowings | -5.5 | -14.5 | -264.2 | -42.2 | -289.8 | -67.8 |
| Dividend to shareholders | -12.1 | -12.1 | ||||
| Cash flow from financing activities | -4.9 | 3.7 | 76.2 | -5.9 | 63.1 | -19.0 |
| Cash flow for the period | 20.7 | 5.2 | 78.0 | 8.2 | 70.4 | 0.5 |
| Cash and cash equivalents at the beginning of the period |
160.0 | 94.1 | 95.1 | 88.5 | 101.4 | 88.5 |
| Exchange rate difference in cash and | ||||||
| cash equivalents | 7.3 | 2.1 | 14.9 | 4.7 | 16.3 | 6.1 |
| Cash and cash equivalents at the end of the | ||||||
| period | 188.0 | 101.4 | 188.0 | 101.4 | 188.0 | 95.1 |
CONDENSED CONSOLIDATED STATE-MENT OF CHANGES IN EQUITY
| SEK million | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
|---|---|---|---|
| Opening balance | 634.4 | 540.3 | 540.3 |
| Total comprehensive income | 179.6 | 81.5 | 106.2 |
| Dividend | - | -12.1 | -12.1 |
| Other | - | -0.3 | |
| Closing equity | 814.0 | 609.4 | 634.4 |
KEY PERFORMANCE INDICATORS, GROUP
| Jan-Sep | Jan-Sep | Jan-Dec | ||
|---|---|---|---|---|
| 2022 | 2021 | 2021 | ||
| Return on operating capital | % | 13.2 | 11.2 | 12.0 |
| Return on equity* | % | 13.1 | 11.5 | 12.9 |
| Share of risk-bearing capital | % | 58.0 | 58.1 | 58.9 |
| Equity ratio | % | 55.2 | 55.6 | 56.3 |
| Net debt/EBITDA* | times | 1.4 | 1.7 | 1.7 |
| Investments, not including acquisitions | SEK million | 88.2 | 57.6 | 85.5 |
| Average number of employees | number | 614 | 529 | 535 |
*R12
DATA PER SHARE
| Jan-Sep | Jan-Sep | Jan-Dec | ||
|---|---|---|---|---|
| 2022 | 2021 | 2021 | ||
| Undiluted and diluted earnings per share, SEK* | SEK million | 9.24 | 6.95 | 9.37 |
| Average number of shares | thousands | 8 068.0 | 8 068.0 | 8 068.0 |
| Number of shares at the end of the period | thousands | 8 068.0 | 8 068.0 | 8 068.0 |
| Equity per share | SEK | 100.9 | 75.5 | 78.6 |
| Share price at the end of the period | SEK | 238.0 | 301.0 | 274.0 |
* Attributable to Parent Company shareholders' share of profit after tax
BUSINESS AREA INFORMATION
| Growth | Growth | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK million Net sales by business area |
Jul-Sep 2022 |
Jul-Sep 2021 |
Jul-Sep 2022 |
Jan-Sep 2022 |
Jan-Sep 2021 |
Jan-Sep 2022 |
Oct-Sep 2021/22 |
Jan-Dec 2021 |
| Dental | 74.1 | 71.2 | 4.0% | 231.7 | 206.4 | 12.3% | 301.1 | 275.8 |
| Orthopedics | 94.6 | 62.8 | 50.5% | 244.8 | 181.9 | 34.6% | 299.2 | 236.3 |
| Life Science | 62.8 | 53.1 | 18.2% | 182.6 | 151.0 | 20.9% | 243.0 | 211.4 |
| Total net sales | 231.5 | 187.2 | 23.7% | 659.1 | 539.4 | 22.2% | 843.3 | 723.6 |
The value of sales between business areas is minor.
| SEK million | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct-Sep | Jan-Dec |
|---|---|---|---|---|---|---|
| EBITDA by business area | 2022 | 2021 | 2022 | 2021 | 2021/22 | 2021 |
| Dental | 17.1 | 19.0 | 60.8 | 52.6 | 76.0 | 67.8 |
| Orthopedics | 18.2 | 16.4 | 41.0 | 42.8 | 51.4 | 53.2 |
| Life Science | 21.1 | 16.1 | 55.2 | 40.5 | 71.4 | 56.7 |
| Unallocated Group expenses | -1.7 | -12.7 | -4.1 | -18.9 | -6.5 | -21.3 |
| Total profit before depreciation and | ||||||
| amortization | 54.6 | 38.8 | 152.9 | 117.0 | 192.3 | 156.6 |
| Depreciation and amortization by business area | ||||||
| Dental | -5.0 | -4.5 | -14.6 | -13.6 | -18.6 | -17.6 |
| Orthopedics | -7.0 | -5.3 | -19.2 | -14.3 | -24.0 | -19.1 |
| Life Science | -4.9 | -4.8 | -14.3 | -13.4 | -19.4 | -18.5 |
| Total depreciation and amortization | -16.9 | -14.6 | -48.2 | -41.2 | -62.0 | -55.5 |
| Operating profit by business area | ||||||
| Dental | 12.2 | 14.6 | 46.3 | 39.1 | 57.4 | 50.2 |
| Orthopedics | 11.3 | 11.1 | 21.9 | 28.6 | 27.4 | 34.1 |
| Life Science | 16.1 | 11.3 | 40.8 | 27.1 | 52.0 | 38.2 |
| Unallocated Group expenses | -1.7 | -12.7 | -4.1 | -18.9 | -6.5 | -21.3 |
| Total operating profit | 37.8 | 24.2 | 104.7 | 75.8 | 130.3 | 101.1 |
QUARTERLY RESULTS FOR THE GROUP
| SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
|---|---|---|---|---|---|---|---|---|
| Quarterly results | 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | 2021 | 2020 |
| Net sales | 231.5 | 233.1 | 194.5 | 184.2 | 187.2 | 181.0 | 171.2 | 154.8 |
| Cost of goods sold | -147.0 | -147.2 | -120.9 | -121.4 | -119.1 | -115.6 | -112.0 | -102.6 |
| Gross profit | 84.5 | 85.9 | 73.5 | 62.8 | 68.1 | 65.4 | 59.2 | 52.2 |
| Sales, admin and development | ||||||||
| costs | -47.8 | -49.6 | -44.4 | -39.9 | -43.6 | -39.2 | -33.8 | -32.2 |
| Other operating income and | ||||||||
| expenses | 1.1 | 1.5 | 0.2 | 2.4 | -0.3 | 0.3 | -0.4 | -1.1 |
| Operating profit | 37.7 | 37.8 | 29.2 | 25.3 | 24.2 | 26.5 | 25.0 | 18.9 |
| Financial income | 2.3 | 5.3 | 3.6 | 2.2 | 1.8 | - | 4.9 | - |
| Financial expenses | -11.0 | -4.2 | -3.0 | -2.7 | -2.7 | -3.7 | -2.8 | -5.6 |
| Profit after financial items | 29.0 | 38.8 | 29.8 | 24.8 | 23.3 | 22.8 | 27.1 | 13.3 |
| Tax expense | -7.2 | -9.1 | -6.8 | -5.2 | -5.7 | -4.4 | -7.1 | -2.2 |
| Profit after tax | 21.9 | 29.7 | 23.0 | 19.5 | 17.6 | 18.4 | 20.0 | 11.1 |
PARENT COMPANY INCOME STATEMENT
| SEK million Income statement |
Jul-Sep 2022 |
Jul-Sep 2021 |
Jan-Sep 2022 |
Jan-Sep 2021 |
Oct-Sep 2021/22 |
Jan-Dec 2021 |
|---|---|---|---|---|---|---|
| Net sales | 7.5 | 6.5 | 22.0 | 19.5 | 26.8 | 24.3 |
| Selling expenses | -2.2 | -1.6 | -6.4 | -5.9 | -8.5 | -8.0 |
| Administrative expenses | -10.2 | -18.0 | -31.3 | -35.5 | -42.4 | -46.6 |
| Other operating income/expenses | - | - | 0.2 | -0.1 | 0.2 | -0.1 |
| Operating profit | -4.9 | -13.1 | -15.5 | -22.0 | -23.9 | -30.4 |
| Income from investments in Group companies | - | - | 19.4 | 19.0 | 44.4 | 44.0 |
| Interest income, Group companies | 4.7 | 1.1 | 8.8 | 3.3 | 10.0 | 4.5 |
| Other interest income and similar income | 31.2 | 5.4 | 55.8 | 11.4 | 60.6 | 16.2 |
| Other interest expense and similar charges | -4.5 | -0.3 | -9.1 | -1.2 | -9.3 | -1.4 |
| Profit after financial items | 26.5 | -6.9 | 59.4 | 10.5 | 81.8 | 32.9 |
| Appropriations | - | -0.8 | - | -0.8 | -2.0 | -2.8 |
| Tax on profit for the year | -5.6 | 1.5 | -8.7 | 1.7 | -12.9 | -2.5 |
| Profit after tax | 21.0 | -6.2 | 50.8 | 11.4 | 67.0 | 27.6 |
* Profit after tax is the same as comprehensive income for the year.
CONDENSED PARENT COMPANY BALANCE SHEET
| SEK million | |||
|---|---|---|---|
| Balance sheet | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| Assets | |||
| Intangible assets | 2.7 | 3.8 | 3.3 |
| Property, plant and equipment | 0.2 | 0.3 | 0.2 |
| Financial fixed assets | 700.5 | 410.5 | 412.8 |
| Current assets | 52.3 | 36.5 | 62.5 |
| Cash and cash equivalents | 72.5 | 26.3 | 26.9 |
| Total assets | 828.2 | 477.4 | 505.7 |
| Equity and liabilities | |||
| Equity | 451.3 | 384.2 | 400.5 |
| Untaxed reserves | 7.0 | 5.0 | 7.0 |
| Provisions for pensions | 10.7 | 8.2 | 8.5 |
| Non-current liabilities | 307.7 | 19.4 | 17.2 |
| Current liabilities | 51.5 | 60.6 | 72.5 |
| Total equity and liabilities | 828.2 | 477.4 | 505.7 |
RECONCILIATION BASIS FOR ALTERNATIVE PERFORMANCE MEASURE
The interim report presents certain financial performance measures of earnings trend, financial position and cash flow that are not defined in accordance with IFRS. These performance measures are intended to serve as important supplementary performance indicators of the Group's performance and financial position and the purpose is to provide a better understanding of the business. Elos Medtech's definitions of these measures may differ from other companies' definitions of the same concepts. The alternative performance measures presented in the interim reports should not be regarded as a replacement to terms and concepts in accordance with IFRS. They are instead intended as a supplement.
Calculations of non-IFRS performance measures that are not mentioned elsewhere in the interim report are presented below. For complete information regarding the calculation and reasons for using alternative performance measures, please see: www.elosmedtech.com.
| SEK million | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct-Sep | Jan-Dec |
|---|---|---|---|---|---|---|
| Growth | 2022 | 2021 | 2022 | 2021 | 2021/22 | 2021 |
| Reported net sales | 231.5 | 187.2 | 659.1 | 539.4 | 843.3 | 723.6 |
| Net sales for the corresponding period last year | 187.2 | 147.9 | 539.4 | 425.2 | 694.2 | 580.0 |
| Change in net sales | 44.3 | 39.3 | 119.7 | 114.2 | 149.1 | 143.6 |
| Growth, % | 23.7 | 26.6 | 22.2 | 26.9 | 21.5 | 24.8 |
| Net sales adjusted for exchange rate changes | ||||||
| Exchange rate changes | 18.8 | -0.6 | 42.0 | -16.7 | 43.7 | -15.0 |
| Net sales for the corresponding period last year | ||||||
| adjusted for exchange rate changes | 206.0 | 147.3 | 581.4 | 408.5 | 737.9 | 565.0 |
| Growth adjusted for exchange rate changes, % | 12.4 | 27.1 | 13.4 | 32.1 | 14.3 | 28.2 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct-Sep | Jan-Dec | |
|---|---|---|---|---|---|---|
| EBITDA | 2022 | 2021 | 2022 | 2021 | 2021/22 | 2021 |
| Reported operating profit | 37.7 | 24.2 | 104.7 | 75.8 | 130.0 | 101.1 |
| Depreciation/amortization | 16.9 | 14.6 | 48.2 | 41.2 | 62.5 | 55.5 |
| EBITDA | 54.6 | 38.8 | 152.9 | 117.0 | 192.5 | 156.6 |
| Risk-bearing capital | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
|---|---|---|---|
| Equity | 814.0 | 609.4 | 634.4 |
| Deferred tax liability | 41.4 | 27.2 | 28.9 |
| Risk-bearing capital | 855.4 | 636.6 | 663.3 |
| Net debt | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
|---|---|---|---|
| Non-current interest-bearing provisions for pensions | 60.3 | 62.7 | 69.9 |
| Non-current interest-bearing liabilities | 374.7 | 237.4 | 217.2 |
| Current interest-bearing liabilities | 24.0 | 53.8 | 69.3 |
| Total liabilities | 459.0 | 353.9 | 356.4 |
| Cash and cash equivalents | -188.0 | -101.4 | -95.1 |
| Net debt | 271.0 | 252.5 | 261.3 |
| Liquidity reserve | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
|---|---|---|---|
| Cash and cash equivalents | 188.0 | 101.4 | 95.1 |
| Bank overdraft facilities granted | 0.0 | 67.4 | 67.5 |
| Liquidity reserve | 188.0 | 168.8 | 162.6 |
Nomination Committee
In accordance with the resolution at Elos Medtech's Annual General Meeting on May 3, 2022, based on the list of shareholders kept by Euroclear, as of August 31, 2022, the Chairman of the Board has offered the three shareholders in the company with the largest voting rights as well as the shareholder with the largest proportion of equity to appoint members to the Nomination Committee. The following individuals have been appointed to be members of Elos Medtech's Nomination Committee for the 2023 Annual General Meeting: Lovisa Lander, appointed by EM Intressenter AB (TA Associates), Thomas Öster, appointed by the Öster family (incl. companies), Kent Molin, appointed by the Molin family, Jonas Fridh, appointed by Bank Julius Baer & Co LTD. The Chairman of the Nomination Committee is Lovisa Lander, who has been appointed by the Nomination Committee. The Chairman of the Board, Magnus René, is a co-opted member of the Nomination Committee.
Shareholders who wish to submit proposals to the Elos Medtech Nomination Committee may send an e-mail to valberedning@ elosmedtech.com with the heading "To the Nomination Committee" or letter to Elos Medtech AB, Torsgatan 5B, SE-411 04 Gothenburg, marked "To the Nomination Committee", no later than January 20, 2023.
Financial calendar
| Activity | Date |
|---|---|
| Year-End Report 2022 | February 23, 2023 |
| Annual Report 2022 | April 2023 |
| Interim Report January-March 2023 | April 26, 2023 |
| Interim Report January-June 2023 | July 14, 2023 |
| Interim Report January-September 2023 | October 19, 2023 |
| Year-End Report 2023 | February 22, 2024 |
The Annual General Meeting 2023 will be held on May 3, 2023.
Publication
This information in this report is information that Elos Medtech AB (publ) is required to publish under the EU Market Abuse Regulation. The information was submitted (by the contact person specified below) for publication on October 21 at 03:00 p.m. (CET).
Elos Medtech AB (publ) is a Swedish limited liability company, whose B shares are listed on Mid Cap, NASDAQ Stockholm AB. Elos Medtech's corporate governance is based on Swedish legislation and the company's listing agreement with NASDAQ Stockholm AB.
This is a translation of the Swedish version of the Interim Report January-September. When in doubt, the Swedish wording prevails.
For questions about the report, please contact:
Stefano Alfonsi President and CEO Mob: +44 772 04 98 342 Email: [email protected]
Ewa Linsäter Chief Financial Officer Mob: +46 766 33 32 33 Email: [email protected]
FIND US HERE
Elos Medtech AB (publ)
Torsgatan 5B SE-411 04 Gothenburg Sweden Tel: +46 10 171 20 00 Corp. ID no: 556021-9650 [email protected] www.elosmedtech.com