Q3 17: confirming DMS is a long-term story
EARNINGS/SALES RELEASES
FACT

DMS released 9 months sales, which reached €19.3m (-5%), excluding Alpha Mos which is deconsolidated as of the start of the year.


ANALYSIS

The top-line is in line with what was achieved in H1 (€12.7m, or -4%), due to a large order that was booked in H1 16 (€1.9m). Sales in Q3 were down 6% to €6.6m. By division, DMS Imaging posted sales down 6%, although the group sees opportunities in the fact its Visionary 3D GL (radiology) and Visionary DXA (bone densitometry) solutions have been selected by Resah (Réseau des Acheteurs Hospitaliers) or the teaming up of NGI Group and MNH Group. The group also indicated it has recently won a USD1.2m contract in radiology that should support its top-line going forward. DMS Biotech posted sales of €0.4m, flat yoy. Lastly, DMS Wellness still had no turnover, with first sales expected in FY18, after the registration process is completed for its cellulite and lymphatic drainage solutions.


IMPACT

Although sales are expected to be volatile (large orders sometimes impacting the group’s top-line), it looks like we will have to revise a tick downwards our forecasts for the current year, before new segments start to deliver as of FY18.