Emerging Markets To Thank For Elekta's Growth In 2012/13

Elekta has revealed its business performance for the 2012/13 fiscal year, ended 30th April 2013. Highlights of the performance included:

• Order bookings increased by 14 per cent to SEK 12,117 million, from SEK 10,815 million in the year ended 30th April 2012.

• Net sales increased by 16 percent to SEK 10,339 million, compared with SEK 9,048 in the prior year.

• Operating income amounted to SEK 2,058 million (SEK 1,837 million in the prior year), excluding non-recurring items of SEK 46 million (SEK 12 million in 2011/12).

• Net income amounted to SEK 1,351 million in 2012/13, compared with SEK 1,228 million in 2011/12. Earnings per share amounted to SEK 3.52 (2011/12: SEK 3.26) before dilution and SEK 3.52 (2011/12: SEK 3.23) after dilution.

• Cash flow after continuous investments was SEK 1,292 million, compared with SEK 503 million in the prior year.

Throughout 2012/13, Elekta strengthened its position in the Asia-Pacific region as the radiotherapy market leader. A number of countries in the region have taken a major step forward in the structural and long-term expansion of cancer care. Order bookings in Europe were strong and in line with the company's expectations. The demand scenario was reportedly favourable in most parts of Europe. The company also experienced stronger sales in the Middle East during the fourth quarter.

In North America, Elekta's sales activities gradually strengthened during the latter part of the fiscal year and the company's order bookings and sales were strong in the fourth quarter. However, the general market in the US has been affected by uncertainty regarding reimbursement levels for radiotherapy and the outcome of healthcare reform.

Elekta sees considerable potential for continued growth, primarily through expansion in emerging markets, but also by strengthening its position in established markets.

In fiscal year 2013/14, ending 30th April 2014, net sales are expected to grow by more than 10 per cent in local currency. The majority of the growth is expected to come from emerging markets. Investments in product development will increase by more than 20 per cent and EBITA is expected to grow by approximately 10 per cent in local currency. Compared with the 2012/13 fiscal year, exchange rate fluctuations are expected to have a negative impact of around 3 per cent on EBITA growth.

This article is tagged to:
Sector: Medical Devices
Geography: Sweden, Sweden, Sweden, Sweden

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