CellaVision AB: Year-end bulletin 2016, Strong close to 2016 and a very strong start of 2017

The information is such that CellaVision AB (publ) is obligated to disclose pursuant to the Swedish Securities Market Act and the Financial Instruments Trading Act.).  The information was released for public disclosure on February 7, 2017 at 08.20.

CEOs comment

A strong quarter in the human healthcare market 
2016 closed with a strong quarter for CellaVision. Sales were SEK 72.8 million (61.6), corresponding to growth of 18 percent with a positive exchange rate impact of about four percent. This was achieved despite the fact that the comparative quarter in 2015 included a sale to the veterinary market of about SEK 4 million that was not repeated in 2016. Growth for the human healthcare market was 24 percent. The operating profit increased by 32 percent to SEK 21.6 million (16.4), corresponding to an operating margin of 29.8 percent (26.7) and the cash flow was SEK 27.4 million (8.1). 

CellaVision's largest regions, the Americas and EMEA, performed well in the quarter. Sales in EMEA increased to SEK 26.7 million (18.0) and during the quarter we established an organization for market support in France. The Americas continues to perform well and CellaVision grew by 46 percent in the human health care market in the quarter. Net sales were SEK 40.1 million (30.4) and growth was 32 percent including both human healthcare as well as the veterinary market.

After a period of growth, APAC reported a weaker fourth quarter, with a decrease in sales of 54 percent to SEK 6.0 million (13.2). During the quarter we signed an agreement with a new distribution partner, Semacare and a market support organization was established in Oceania.

Full year 2016: Breakthrough in APAC and 27 percent global growth in the human healthcare market
2016 was a successful year for CellaVision, with sales of SEK 265.0 million (239.4), corresponding to growth of eleven percent. The favorable development is a result of our breakthrough in APAC, which grew by 70 percent and accounted for 18 percent of our sales and the strong performance in the human healthcare market, which grew globally by 27 percent. The Americas reported strong performance in the human healthcare market, which increased by 34 percent and including the veterinary market, the total increase was two percent in the Americas. Growth in EMEA was four percent.

Continued investment in market penetration
2016 showed clearly the crucial importance of a direct presence in the form of own organizations for market support. During the year we continued our establishment in the Middle East, South Korea, Australia and France. In the first quarter of 2017 we will establish a direct presence in Europe's German-speaking markets and we are planning for further establishments during the year.

New strategy for the veterinary market and stronger cooperation with distributors
During the year we adjusted our strategy for the veterinary market and will use an indirect business model with sales via distribution partners for that market as well. The distribution agreement for Oceania with Semacare is the first example of this. The veterinary market continues to be fragmented and our activities must be seen as long-term investments.