Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- C-Rad AB (FRA:24C, Financial) achieved a 112% revenue growth in Q4, driven by successful expansion in the EMEA region.
- The company reported a solid EBIT margin of 17% for Q4 and 15% for the full year, indicating strong profitability.
- C-Rad AB (FRA:24C) has a strong financial position with no long-term debt and increased cash balances by SEK32 million during the quarter.
- The company secured multiple long-term service contracts in key markets such as Sweden, Germany, Spain, and Italy, enhancing future revenue streams.
- C-Rad AB (FRA:24C) has a market-leading position in APAC, with significant contributions from China, Japan, South Korea, Thailand, Vietnam, and India, resulting in doubled revenue in the region for Q4.
Negative Points
- The full year order intake was down by 7% to SEK486 million, impacted by macroeconomic challenges.
- Revenue in EMEA declined by 39% to SEK48 million in Q4, primarily due to lower order intake earlier in the year.
- Revenue in the Americas was below expectations, affected by slower backlog conversion and installation delays.
- The company experienced a significant amount of order cancellations, totaling almost SEK15 million during the quarter.
- Gross profit for the quarter decreased to SEK79.9 million from SEK90.4 million a year ago, following a decline in revenue year-on-year.
Q & A Highlights
Q: You had solid order intake growth for services in the quarter. Was it mainly in EMEA?
A: Yes, the majority of the service order intake was in EMEA, particularly in advanced markets.
Q: Can you talk about the outlook for EMEA and if there are any significant tenders in 2025?
A: The macroeconomic situation remains challenging, particularly in Germany. We are focusing on what we can influence, but the situation is largely unchanged.
Q: How are you investing in future growth, considering the capitalized expenses have decreased by half compared to last year?
A: We are continuously investing in future growth, although not all investments are visible yet. We have added more full-time employees in R&D over the year.
Q: During the quarter, you had canceled orders of almost SEK15 million. Do you see any risk of further cancellations?
A: Cancellations are a normal part of business, and while this quarter saw a larger amount due to a thorough review of older orders, we do not consider it significant given the size of our order backlog.
Q: Are there any closing comments you would like to share?
A: We are fully committed to our mission in the fight against cancer and thank everyone for attending our Q4 presentation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
