In a recent earnings call, Elekta (EKTAB), a leading provider of precision radiation therapy solutions, reported a full-year net sales increase of 5% despite a 2% decline in the fourth quarter. The company’s adjusted EBIT margin rose to 11.8% for the full year but faced a drop in Q4, attributed to inflation and increased operating expenses.
Elekta’s President and CEO, Gustaf Salford, expressed dissatisfaction with the Q4 results and outlined a strategic focus on cost reduction and leveraging new product launches.
The order backlog remained strong, and a dividend of SEK2.40 per share was proposed, reflecting confidence in the company’s financial health. Elekta’s outlook for the first half of fiscal year 2024-2025 is cautious, with expectations of improved sales and profitability in the latter half due to new product launches and productivity measures.
Key Takeaways
- Elekta’s full-year net sales grew by 5%, with an adjusted EBIT margin of 11.8%.
- Q4 saw a 2% decline in net sales and a decrease in adjusted EBIT margin to 13%.
- The company’s order backlog is robust at over SEK44 billion.
- Elekta launched the Elekta Evo and acquired intellectual property for the Pinnacle treatment planning system.
- The Board proposed a dividend of SEK2.40 per share.
- Elekta expects a weaker first half in fiscal year 2024-2025 but anticipates growth in the second half.
- The company plans to achieve mid-single-digit net sales growth for the full year with an improved EBIT margin.
Company Outlook
- Elekta anticipates a challenging first half for fiscal year 2024-2025, with a stronger performance expected in the latter half.
- The company is targeting mid-single-digit net sales growth for the full year.
- Elekta’s strategy includes driving growth through product launches and regulatory approvals.
- Future EBIT margin goals are set at 14% and higher post-2024-2025.
