April-
- Net sales increased by 10.8% to
EUR 25.2 million (22.8) -
Net sales of Industrial Solutions Business Unit (IBU) decreased by -6.2% to
EUR 3.7 million (4.0) -
Net sales of Medical Business Unit (MBU) increased by 22.3% to
EUR 12.4 million (10.1). -
Net sales of Security Business Unit (SBU) increased by 5.0% to
EUR 9.1 million (8.6) -
Operating profit (EBIT) excluding non-recurring items (NRI) was
EUR 1.4 million (1.2) - Operating margin (EBIT-%) excluding NRI was 5.4% of net sales (5.2%)
-
Operating profit (EBIT) was
EUR 1.4 million (0.9) - Operating margin (EBIT-%) was 5.4% of net sales (3.8%)
January-
- Net sales increased by 11.4% to
EUR 48.0 million (43.1) -
Net sales of IBU decreased by -4.7% to
EUR 7.2 million (7.5) -
Net sales of MBU increased by 18.4% to
EUR 24.5 million (20.7) -
Net sales of SBU increased by 9.7% to
EUR 16.3 million (14.9) -
Operating profit (EBIT) excluding non-recurring items (NRI) was
EUR 2.8 million (2.7) - Operating margin (EBIT-%) excluding NRI was 5.9% of net sales (6.3%)
-
Operating profit (EBIT) was
EUR 2.8 million (2.4) - Operating margin (EBIT-%) was 5.9% of net sales (5.5%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
President and CEO,
"Thanks to decent sales in medical and security applications, our net sales experienced double-digit growth despite the softness in our markets. However, our sales lagged behind our expectations in all business segments, and the double-digit growth is attributed to the soft Q2 of 2022. Profitability remained unsatisfactory, and measures are being taken to resolve this.
Sales in industrial applications improved from Q1 but were still lower than expected. Certain key customers continued to reduce their stocks, and demand in
Demand drivers in the medical market remained unchanged, but demand softened on all continents. Despite this weakening, our sales grew, driven by computed tomography (CT) applications. The growth rate is mainly explained by the weak comparison period. Increased uncertainty in the markets is expected to continue at least to the end of the year.
Our security application sales grew, but also less than we expected. Lower-than-expected demand was mainly attributed to stagnation in the Chinese market. Although markets in
Lower-than-expected quarterly sales, sales mix, increase in credit loss provision, and the last spot purchases as remnants of the component shortage impacted our profitability. The development of our profitability has been unsatisfactory. In order to improve our profitability, necessary measures are now being taken.
Regarding our other key figures, it is noteworthy that our cash flow has improved significantly thanks to enhanced trade receivables management. The downside is that it has postponed some sales.
The most significant event in H1 was the acquisition of Haobo Imaging, which we completed right after the end of Q2. This strategically important acquisition enhances customer experience by expanding our offerings to all digital X-ray detector technologies, and supports our long-term growth. Thanks to the acquisition, our product portfolio has expanded significantly, which has been enthusiastically welcomed by the markets, and we expect sales of a couple of million euros in H2 of 2023.
Our decision to invest in new facilities in Oulu,
There have been positive signals particularly in the security market, but increased uncertainty in the medical market. We expect double-digit growth in the sales of security applications and growth in the sales of industrial applications in Q3. Medical sales, on the other hand, are decreasing. Our total net sales will decline in Q3 and grow in H2 of 2023."
Key figures
( | 4-6/2023 | 4-6/2022 | 1-6/2023 | 1-6/2022 | 1-12/2022 |
Net sales | 25,219 | 22,765 | 47,972 | 43,078 | 98,580 |
Change in net sales, % | 10.8% | -3.3% | 11.4% | 2.9% | 9.8% |
Operating profit excluding NRI | 1,351 | 1,195 | 2,827 | 2,701 | 6,135 |
Operating margin excluding NRI, % | 5.4% | 5.2% | 5.9% | 6.3% | 6.2% |
Non-recurring items (NRI) | 0 | -335 | 0 | -335 | -335 |
Operating profit | 1,351 | 860 | 2,827 | 2,366 | 5,801 |
Operating margin, % | 5.4% | 3.8% | 5.9% | 5.5% | 5.9% |
R&D costs | 3,079 | 3,208 | 6,041 | 6,277 | 12,549 |
R&D costs, % of net sales | 12.2% | 14.1% | 12.6% | 14.6% | 12.7% |
Cash flow from operating activities | 2,426 | -4,194 | 1,941 | -3,528 | -294 |
Net interest-bearing debt at end of period | -18,530 | -18,506 | -18,530 | -18,506 | -20,584 |
Investments | 376 | 606 | 828 | 807 | 1,628 |
Return on investment (ROI), % | 6.5% | 13.4% | 6.5% | 13.4% | 7.5% |
Gearing, % | -27.2% | -25.8% | -27.2% | -25.8% | -28.3% |
Earnings per share, EUR | 0.03 | 0.05 | 0.09 | 0.14 | 0.35 |
Earnings per share (diluted), EUR | 0.03 | 0.05 | 0.09 | 0.14 | 0.35 |
Number of shares at the end of the period | 14,655,930 | 14,655,930 | 14,655,930 | 14,655,930 | 14,655,930 |
Weighted average number of shares outstanding | 14,655,930 | 14,655,930 | 14,655,930 | 14,655,930 | 14,655,930 |
Weighted average number of shares outstanding, diluted | 14,662,206 | 14,740,064 | 14,665,894 | 14,778,155 | 14,717,042 |
Business outlook
According to
However, the geopolitical situation,
Q2 2023 webcast
A link to the webcast is available on the company's website at https://www.deetee.com/reports-and-presentations/webcasts/. A recording of the webcast will be available later on the same web address.
This release is a summary of
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.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
https://news.cision.com/detection-technology-oyj/r/detection-technology-plc-half-yearly-report-january-june-2023,c3813000
https://mb.cision.com/Main/18787/3813000/2213554.pdf
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