July-
· Net sales increased by 12.5% to
· Net sales of Industrial Solutions Business Unit (IBU) increased by 21.5% to
· Net sales of Medical Business Unit (MBU) increased by 18.8% to
· Net sales of Security Business Unit (SBU) increased by 0.2% to
· Operating profit (EBIT) excluding non-recurring items (NRI) was
· Operating margin (EBIT-%) excluding NRI was 14.1% of net sales (13.4%)
· Operating profit (EBIT) was
· Operating margin (EBIT-%) was 14.1% of net sales (12.6%)
January-
· Net sales increased by 5.5% to
· Net sales of IBU increased by 6.4% to
· Net sales of MBU increased by 25.7% to
· Net sales of SBU decreased by -18.0% to
· Operating profit (EBIT) excluding non-recurring items (NRI) was
· Operating margin (EBIT-%) excluding NRI was 11.7% (10.6%)
· Operating profit (EBIT) was
· Operating margin (EBIT-%) was 11.7% of net sales (10.3%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
Key figures
( | 7-9/2021 | 7-9/2020 | 1-9/2021 | 1-9/2020 | 1-12/2020 |
Net sales | 23,210 | 20,628 | 65,066 | 61,653 | 81,561 |
Change in net sales, % | 12.5% | -23.4% | 5.5% | -20.4% | -20.4% |
Operating profit excluding non-recurring items (NRI) | 3,282 | 2,758 | 7,618 | 6,528 | 8,877 |
Operating margin excluding NRI, % | 14.1% | 13.4% | 11.7% | 10.6% | 10.9% |
Non-recurring items (NRI) | 0 | 163 | 0 | 163 | 163 |
Operating profit | 3,282 | 2,595 | 7,618 | 6,365 | 8,714 |
Operating margin, % | 14.1% | 12.6% | 11.7% | 10.3% | 10.7% |
R&D costs | 2,589 | 2,282 | 7,557 | 7,588 | 9,827 |
R&D costs, % of net sales | 11.2% | 11.1% | 11.6% | 12.3% | 12.0% |
Cash flow from operating activities | 783 | 2,052 | 4,659 | 4,221 | 7,522 |
Net interest-bearing debt at end of period | -23,261 | -17,557 | -23,261 | -17,557 | -19,364 |
Investments | 457 | 578 | 1,110 | 1,587 | 3,081 |
Gearing, % | -34.4% | -31.0% | -34.4% | -31.0% | -33.1% |
Earnings per share, EUR | 0.20 | 0.12 | 0.44 | 0.30 | 0.47 |
Number of shares at the end of the period | 14,578,430 | 14,375,430 | 14,578,430 | 14,375,430 | 14,375,430 |
President and CEO,
"All our businesses grew in Q3. Demand was good both in medical and industrial solutions and our sales saw double-digit growth. The dawning upward turn that was seen in the demand for security applications at the end of Q2 gained strength, our sales grew slightly and we expect better growth in the future. This strengthened our view that all our businesses will see double-digit growth in H2 of 2021, and the growth of our total net sales will speed up despite the fact that the material and component shortage slows down this anticipated growth. However, the global delivery restriction remains a risk.
Investments in healthcare infrastructure globally and particularly in
IBU saw record sales in Q3 of 2021. Demand in all main applications in the industrial market was better than expected, and our ability to deliver was better than that of our competitors. Thanks to our customer focus and good flexibility of our supply chain we were able to win new strategic customers and projects in Q3. We believe this trend will continue.
The security market has continued to normalize on all fronts, as demand is increasing also in the aviation segment. Our ability to deliver was slightly better than that of our competitors also in the security segment, but some sales were postponed due to the lack of special materials. We were glad to see that despite challenges in the availability of materials, our SBU sales were ultimately positive and that the market has taken an upward turn towards growth. We consider double-digit growth in security application sales in H2 a realistic goal.
Our profitability improved from H1, and expected sales growth in H2 will help create a positive financial result. In this respect as well it seems, that we are in line with our targets in Q4.
The implementation of the DT-2025 strategy has progressed as planned. In Q3, we focused in particular on speeding up our product development cycle, implementing production processes that bring added value in our
Our business outlook for the end of this year and the beginning of the next is strong, and we expect all our businesses to see double-digit growth both in Q4 of 2021 and H1 of 2022. The double-digit growth in MBU and IBU sales will be stronger in Q4 than in Q3 of 2021, and SBU sales will reach the double-digit growth path.
Although demand has taken an upward turn in all our markets and our outlook is positive, our business still faces some uncertainty. The global shortage of components has had indirect and direct impacts on the outcome of Q3 of 2021, and the risks related to the availability of special materials and electronic components have increased. Challenges in availability and longer delivery times have an impact on our ability to meet the growing demand. We have intensified our measures to mitigate risks and will keep our medium-term growth and profitability targets unchanged."
Sales development
Demand in both medical and industrial applications in Q3 was strong, and the growth in the demand of security applications started at the end of Q2 has gained strength. As a result, the sales of all
In the industrial market, demand was strong in all of the company's main segments: imaging solutions for the food, pharmaceutical, and mining industries. The net sales of the Industrial Solutions Business Unit (IBU) grew by 21.5%, totaling
The growth drivers of the medical X-ray imaging market remained unchanged compared to H1. Investments in healthcare infrastructure globally and particularly in
In the security market, the normalization of demand has started in all segments, and demand has taken an upward turn also in the aviation sector. Projects to standardize imaging solutions used in the aviation continued again on various continents, and investments in airports are gaining strength, particularly in
The
The company's total net sales in January-
APAC's share of total net sales was 72.6% (66.1%), that of EMEA 19.1% (22.6%), and that of the
Strategy
In Q3,
Business outlook
According to
According to
Due to the pandemic, global economy and the company's business have faced exceptional and temporary uncertainty. Predictability of the company's target markets is still lower than usual, and risks related to the availability of materials have increased. The effect of material and component shortage has been acknowledged as a limiting factor in the outlook, however a further degradation in supply chain might affect the business outlook.
Financial statements review 2021
Espoo,
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
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