January-
- Net sales decreased by -0.2% to
EUR 22.7 million (22.8) -
Net sales of Industrial Solutions Business Unit (IBU) increased by 5.3% to
EUR 3.6 (3.4) -
Net sales of Medical Business Unit (MBU) decreased by -20.9% to
EUR 9.5 million (12.0) -
Net sales of Security Business Unit (SBU) increased by 31.5% to
EUR 9.6 million (7.3) -
Operating profit (EBITA) was
EUR 2.3 million (1.5) - Operating margin (EBITA-%) was 10.0% of net sales (6.5%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
President and CEO,
"Q1 closed as we expected. Our overall year-on-year net sales remained stable and our financial result improved. Our security application sales were particularly strong, whereas sales in industrial applications were more modest than expected. Medical sales, however, were weak. Our market shares remain broadly unchanged.
The industrial market recovered towards the end of Q1; demand in the food sector in particular showed positive signs of recovery. Nevertheless, the development of sales in the food sector lagged behind our expectations due to customers' stocks, which resulted in our industrial sales lagging behind target. This was compensated by good development in TFT (thin-film transistor) flat panel detector sales. We expect our industrial solution sales to head towards stronger growth in Q2, thanks to improving demand in the food industry and our TFT product portfolio.
The measures of the Chinese government to modernize its healthcare sector and the related anticorruption campaign targeted at healthcare sector end operators, along with fiercer price competition and turmoil in the global medical market, curbed our medical sales more than we expected. We expect demand in medical applications to remain muted in Q2 and expect a positive turn at the beginning of Q3.
Our security application sales grew significantly in markets outside
Our year-on-year result for Q1 improved, and cash flow turned positive. We are this year making strong progress towards our operating margin target of 15 percent (EBITA). Improved productivity, sales mix, and growth in sales continue to boost our result.
During the period, we decided to expand our business to
Other important events in Q1 included the opening of our new premises in Oulu,
In our view, the reform of Chinese healthcare sector and the related anticorruption campaign will continue, and the global medical market in Q2 as well as our sales will decrease. Growth will continue in our other main markets, and both our security and industrial application sales will see double-digit growth in Q2. We expect our year-on-year total net sales to remain stable in Q2 and turn to a growth path in Q3 for the rest of the year."
Key figures
( | 1-3/2024 | 1-3/2023 | 1-12/2023 |
Net sales | 22,706 | 22,753 | 103,794 |
Change in net sales, % | -0.2% | 12.0% | 5.3% |
EBITA excluding NRI | 2,263 | 1,477 | 9,656 |
EBITA excluding NRI, % | 10.0% | 6.5% | 9.3% |
Non-recurring items (NRI) | 0 | 0 | -873 |
EBITA | 2,263 | 1,477 | 8,784 |
EBITA, % | 10.0% | 6.5% | 8.5% |
R&D costs | 2,512 | 2,962 | 11,702 |
R&D costs, % of net sales | 11.1% | 13.0% | 11.3% |
Cash flow from operating activities | 2,980 | -485 | 9,672 |
Net interest-bearing debt at end of period | -14,508 | -19,572 | -12,665 |
Investments | 1,132 | 452 | 14,426 |
Return on investment (ROI), % | 11.2% | 7.1% | 9.9% |
Gearing, % | -20.3% | -28.0% | -17.4% |
Earnings per share, EUR | 0.11 | 0.06 | 0.38 |
Earnings per share (diluted), EUR | 0.11 | 0.06 | 0.38 |
Number of shares at the end of the period | 14,655,930 | 14,655,930 | 14,655,930 |
Weighted average number of shares outstanding | 14,655,930 | 14,655,930 | 14,655,930 |
Weighted average number of shares outstanding, diluted | 14,655,930 | 14,669,582 | 14,660,912 |
Development of net sales
Recovery in the industrial market that started in the previous review period continued; NDT (nondestructive testing) being a significant growth driver. Demand in food industry applications showed signs of recovery, even though sales in the segment remained below expectations due to customers' stocks. As a result,
The measures taken by the Chinese government to modernize its healthcare sector and its anticorruption campaign targeted at healthcare end operators continued in Q1, which further delayed purchasing processes. On the other hand, fiercer price competition and turmoil in the global market also affected demand dynamics. As a result, the net sales of the Medical Business Unit (MBU) decreased by -20.9% (14.6%), totalling
The net sales of the Security Business Unit (SBU) increased by 31.5% (16.2%) year-on-year, totalling
The
Strategy implementation
During the review period,
In the review period, the company has continued the development of TFT flat panel detector solutions and their sales in the medical and industrial X-ray imaging market. According to the company's view, the new business will grow faster than its legacy business.
Business outlook
Geopolitical situation,
Half-yearly report 2024
Board of Directors,
Further information
President and CEO
+358 500 449 475, hannu.martola@deetee.com
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Distribution: Nasdaq Helsinki, key media, www.deetee.com
https://news.cision.com/detection-technology-oyj/r/detection-technology-plc-business-review-january-march-2024,c3967604
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