C-RAD

Second quarter April–June 2024

• Order intake increased 8 percent to 127.4 (117.8) MSEK (8 percent in constant currencies).
• Order backlog amounted to 734.0 (679.1) MSEK.
• Revenue increased 43 percent to 129.4 (90.6) MSEK (42 percent in constant currencies).
• EBIT amounted to 18.1 (7.4) MSEK, corresponding to a margin of 14.0 (8.2) percent.
• Cash flow from operating activities amounted to -2.6 (-22.0) MSEK.
• Net earnings amounted to 10.6 (5.4) MSEK.
• Earnings per share amounted to 0.31 (0.16) SEK

Period January–June 2024

• Order intake increased 5 percent to 219.0 (209.2) MSEK (5 percent in constant currencies).
• Revenue increased 41 percent to 247.4 (175.0) MSEK (41 percent in constant currencies).
• EBIT amounted to 32.3 (13.8) MSEK, corresponding to a margin of 13.1 (7.9) percent.
• Cash flow from operating activities amounted to 14.0 (-33.9) MSEK.
• Net earnings amounted to 26.7 (8.7) MSEK.
• Earnings per share amounted to 0.79 (0.26) SEK.

Significant events during the second quarter

• Jonas Reinhammar took up the position of interim CFO on 13 May. On 20 June, C-RAD announced the appointment of Linda Frölén as its new CFO, who will take up the post no later than 30 September.
• On 15 May, C-RAD held its Annual General Meet-ing, which appointed Mats Thorén as a new Board member.

Significant events after the quarter

• The Board of C-RAD has decided to buy back its own shares for the benefit of C-RAD’s long-term performance share programme. This decision co-vers a maximum of 100,000 class B shares.

CEO Cecilia de Leeuw comments on the interim report:

C-RAD maintains a high level of activity and continue to show profitable growth. Order intake grew, the revenue growth was strong and EBIT more than doubled. Our strategy to develop world-class products and to establish a global market reach provides a solid platform and strengthens our resilience, even in macro-economically challenging times. To support our continued growth and the increasing global installed base, we are strengthening the organisation and further automating our operations.

This is a strong quarter, with revenue growing 43 percent to 129 MSEK. Despite a challenging macro-economic situation, order intake increased 8 percent to 127 MSEK, increasing the backlog to 734 MSEK. Order intake for Services grew 8 percent as well, to 24 MSEK. Gross margin is slightly higher because of a larger share of proton systems delivered than normal. Our drive towards profitable growth is shown in the EBIT of 18.1 MSEK, corresponding to an EBIT margin of 14 percent. Overall, our resilience can be seen not only in our broad market reach, but also as our technology is used for both linear accelerators and proton machines, as well as for simulation CT.

Demand in APAC high
APAC is continuing its strong performance, and the activity level is high in all markets. The order intake of 68 MSEK is an increase of 21 percent, with orders from Japan, Australia, and Southeast Asian markets, showing the importance of our significant market reach. China’s order intake was supported by several proton orders. The strong growth of 92 percent to a revenue of 67 MSEK in the quarter was positively impacted by the China registration and a strong backlog conversion supported by the delivery of proton orders. In addition, we are seeing continued growth in Japan, with SGRT installations on both new LINAC installations as well as replacements.

Continued focus on Americas
The customer outreach programme and our strengthened service organisation are showing positive results. This not only provides us with an increased understanding of our customers’ maturity level, but we have also received multiple renewals and new service contracts during the quarter.
We have won new proton orders, underpinning our leading position in the Proton segment. We see potential in Latin America and are experiencing good momentum even if it is still early days. As an example, we now have a second SGRT system in Colombia. Order intake of 28 MSEK is a strong pick up of 221 percent from a weak comparison quarter. Revenue increased 18 percent to 15 MSEK.

Slower in EMEA with regional highlights
With our latest wins in the quarter, we now support most of the radiotherapy institutes in Austria. This confirms our market leadership in the country. Central Eastern Europe continues to show remarkable growth and, in this quarter, we are expanding in Romania and are pioneering by making SGRT the standard of care in Kosovo. Order intake for EMEA as a whole was impacted by the lack of larger tenders and delays to planned tenders as well as slower decision-making. Order intake is down 31 percent while revenues increased 11 percent to 48 MSEK.

Looking back at the ESTRO tradeshow in May, the interest in our technology is high. We had four times more visitors than last year and it is our best show so far. Our focus on word-class products, global reach and strengthened services was well received by new and potential customers and clinics.

We have been growing rapidly in recent years, with an increasing global business. In line with our growth strategy, we are investing and strengthening the foundation by increasing automation in our administrative processes and operations. In late September, Linda Frölén will be joining as CFO and embarking on the exciting C-RAD journey together with the team.

C-RAD celebrating 20 years
It all started with a group of researchers from Karolinska Institute and the Royal Institute of Technology, who had an idea of enhancing cancer treatment without increasing radiation. The foundation of C-RAD was born.
Today, we are a global company, with more than 1,800 delivered systems world-wide. We are constantly evolving, working closely with our customers and clinical partners. Our products and services are present in the entire patient radiotherapy workflow, from simulation to treatment. We were first out in the market with Deep Inspiration Breath Hold (DIBH) for breast cancer, more than a decade ago. Today, our technology is used for multiple cancer types, including lung, prostate and brain cancers.
Bringing our global team, customers and partners together in Uppsala this June, along with our founding father Professor Anders Brahme, was indeed a proud moment for the C-RAD team.
We develop technologies that help cancer patients and improve their quality of life. Every day, we are supporting the clinics together with our partners, to ensure that all people with cancer receive the best possible care, regardless of where they live in the world.

Presentation of the interim report
CEO Cecilia de Leeuw will present the interim report together with Jonas Reinhammar, interim CFO, on Thursday 18 July at 11:00 CET. After the presentation, there will be time for questions. The presentation will be held in English. To participate in the presentation, please register using the link below:

https://us06web.zoom.us/webinar/register/WN_vYb177xYQmuG9maH_YN6hw