C-RAD (CRAD) Q3 2024 earnings summary

Executive summary

• Q3 order intake fell 40% year-over-year to 99.6–100 million SEK, mainly due to EMEA weakness, while APAC and Americas showed growth and global expansion continued, especially in Southeast Asia, Latin America, and the U.S.

• Profitability remained solid with a 73% gross margin and 17% EBIT margin, and net profit rose 42% to 15.4 MSEK, despite macroeconomic headwinds.

• The company maintains a strong product portfolio, investing in market readiness, patient-centric innovation, and customer engagement.

• Year-to-date, revenues grew 21% to 347.5 MSEK, EBIT increased 52% to 49.6 MSEK, and net profit more than doubled to 42.0 MSEK.

• Cash at quarter end was 118.7 MSEK, with no long-term debt and a robust balance sheet.

Financial highlights

• Q3 revenue was 100.1 MSEK, down 10% year-over-year, with gross profit at 72.7 MSEK and gross margin at 73% (up from 65%).

• EBIT for Q3 was 17.4 MSEK (margin 17%), and net earnings were 15.4 MSEK; order backlog stood at 734.7–735 MSEK.

• Operating expenses were 53.7 MSEK in Q3, slightly up year-over-year but down from Q2.

• Cash flow from operating activities was negative in Q3 (-17.2 MSEK), mainly due to increased receivables from proton order deliveries.

• Equity/asset ratio was 69% at quarter-end.

Outlook and guidance

• Underlying gross margin is expected to be 63%-65%, with potential boosts from proton deliveries; timing of future proton deliveries remains uncertain.

• Management remains confident in long-term growth, citing untapped potential in advanced and emerging markets, especially for SGRT and retrofit opportunities.

• EMEA is expected to remain slow due to macroeconomic factors and fewer large tenders.

• External risks such as geopolitical instability and inflation are being closely monitored.