Presentation

Elekta engages in the business of radiotherapy, providing clinical solutions for the treatment of cancers and brain disorders. The offering includes solutions for radiotherapy, stereotactic radiosurgery, oncology informatics, brachytherapy, neurosurgery, and particle therapy. Elekta is a global market leader in radiotherapy and holds ~40% of the Linac market.

Recent highlights
In its fourth quarter 2021/22, Elekta’s net sales increased by 5% y/y (FX-adjusted) and amounted to SEK 4,239m (3,667). The sales were driven by the strong growth in Americas (11%) and APAC (8%), with EMEA held flat (0%). Gross margin decreased by 1.5 percentage points to 37% (38.5) y/y due to inflation and higher costs within supply chain logistics and service.
During the quarter, Elekta announced two new partnerships, namely IBA and GE Healthcare. Elekta and IBA will work to optimize quality security solutions and the partnership with GE Healthcare aims to provide hospitals with a comprehensive offer in diagnosis and treatment of radiotherapy patients. Moreover, Elekta introduced a 10-year customer agreement with the Dutch Cancer institute AVL/NKI.
In May, Elekta launched the new radiosurgery system Elekta Esprit as part of the Oncology informatics business line. Elekta has had closely followed product launches in all business lines, Oncology Informatics, Linac, Brachy, and Neuro Solutions, with Elekta Esprit marking the most recent launch. Elekta Esprit is a radiosurgery system, characterized by high accuracy which Elekta estimate to be <0.3mm.

Outlook
As for the medium-term, Elekta continues to work toward the ACCESS 2025 goals, set to >7% net sales CAGR, EBIT margin expansion over the period, and a capital allocation of >50% of annual net profit in dividend. We expect Elekta to continue launching new innovations and enter partnerships in line with the strategy. Factset consensus, estimate sales and EBITDA to be SEK 15,946m and SEK 3,039m respectively in April 2023 (end of fourth quarter in Elekta).