Elekta Presents Plans For Continued Growth In Key Markets
Elekta has presented a positive outlook for the coming years at its Capital Markets Day in Stockholm, Sweden. Tomas Puusepp, the company's President and CEO, opened the meeting by presenting statistics that support Elekta's stronger position in all markets, and restated the company's ambition of two million patients being treated with Elekta products every year.
During the next three years, the company expects to grow net sales by 40 per cent. Elekta has continued to significantly grow in emerging markets, and also strengthen its position in established markets. Asia has shown good growth and China is now the second largest market for Elekta. The company will continue to focus on Europe, in particular on the region's emerging markets.
Puusepp also spoke of Elekta's innovation leadership and pointed to its latest linear accelerator, Versa HD, launched in March. The company will increase its investments in R&D by more than 20 per cent to maintain its role in neuroscience and cancer care. From a financial perspective, HÃ¥kan BergstrÃ¶m, the company's CFO, stated that Elekta has shown increased efficiency and will continue to leverage its fixed cost base. In its fiscal year 2012/13, ended 30th April 2013, the selling, general and administrative cost as a ratio to net sales was 20 per cent, with a focus of lowering it down to below 18 per cent. The company also plans to expand its after-market revenue stream.
Other key highlights of the presentation included:
â¢ 11 per cent CAGR order growth in North America during recent years;
â¢ share of new order intake was approximately 50 per cent in Asia Pacific during fiscal year 2012/13;
â¢ around 50 per cent of market share in India and in China, the company's second largest market; and
â¢ Elekta became a leader in both established and emerging markets in Europe, Africa, Latin America and the Middle East.