41% organic growth and 12% better EBIT

Life cycle business up 52% y-o-y

Webcast at 11.00 CET

Sales in line and EBIT 12% better
Orders came in at SEK 72m (-9% vs. ABGSCe SEK 79m), corresponding to an organic growth of 24%. Sales were in line at SEK 60.5m (0% vs. ABGSCe SEK 60.3m), corresponding to an organic growth was 41% (ABGSCe 43%). EBIT at SEK 6.0m (12% vs. ABGSCe SEK 5.4m) was better than expected, for a margin of 9.9% (ABGSCe 8.9%). Net profit: SEK 5.6m (31% vs. ABGSCe SEK 4.3m). EMEA continues to be very strong while Americas saw a healthy increase in volumes. APAC declined 7% versus a strong comparable quarter. Service came in better than expected, up 52% y-o-y and 10% sequentially and product mix drove 3pp. better gross margin. The backlog was SEK 352m, up 25% y-o-y.

Pandemic accelerating shift to advanced treatments
The impact of the pandemic has started to normalize, driving the strong growth versus a heavily impacted quarter last year. The company believes that the pandemic has accelerated the implantation of advanced radiation therapy modalities, where SGRT has its largest patient benefit. The company has solid momentum going into its seasonally stronger H2.

Positive EBIT revisions expected & webcast 11.00 CET
Although order where slightly below our expectations we believe focus should be on the solid sales, stronger profitability, and large sequential increase in the life cycle business. Our initial view is that the report could lead to positive consensus EBIT revisions of 3-4%. Going into numbers, the share was up 4% yesterday. There is a webcast today at 11.00 CET today. Pre-registration required: https://us06web.zoom.us/webinar/register/WN_LOhzz3_hTyC-f5bPbebmOw

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