Interim report April – June 2023

Second quarter in brief

• Net sales amounted to 21.2 million SEK (18.7), which means a sales growth of 13 percent.
   
• Operating profit amounted to 2.8 million SEK (4.4).
   
• Net profit for the period amounted to 3.6 million SEK (4.7).
   
• Earnings per share amounted to 0.09 SEK (0.12).
   

First half year in brief

• Net sales for the first half year amounted to 37.4 million SEK (28.6), which means a sales growth of 31 percent.
   
• Operating profit amounted to 0.8 million SEK (0.8).
   
• Profit for the period amounted to 1.3 million SEK (1.3).
   
• Earnings per share amounted to 0.03 SEK (0.04).

Significant events during the second quarter

During the second quarter SyMRI received regulatory approval in South Korea. After the approval, we have received our first orders.

Significant events during the first half year

During the first quarter SyMRI received regulatory approval in Singapore, UK and Canada. After the approval, we have received our first orders in Canada and Singapore.

Significant events after the second quarter

Nothing to report.

CEO comments

 

The first half of the year in line with the growth plan

Sales in the quarter amounted to SEK 21.2 million (18.7). A new top listing is thus reached, just under SEK 1 million higher than the sales record in the fourth quarter of the previous year. The outcome corresponds to organic growth of 13 percent compared to a strong second quarter last year. Sales development mainly consists of larger orders from partners and increased direct sales in prioritized geographic markets. Operating profit amounted to SEK 2.8 million (4.4). This corresponds to a margin of 13 percent (23). The cost increase compared to the same period last year stems from planned investments in line with our growth plan. As previously communicated, we have reached a level of costs that is currently reasonable and relevant to our business model. Going forward, we should be able to grow revenues with increasing operating margins. The cost mass and the resources we thereby have at our disposal are sufficient for the time being for the revenue volumes we expect to reach. Cost control and conversion of results to cash are central focus areas for me. The cash will rise from the level we had per quarter two until the year end. A new peak in sales was also reached for the first half of the year. The outcome for the first six months of the year amounted to SEK 37.4 million (28.6), which corresponds to organic growth of 31 percent. This is completely in line with our plan and thus reiterates that in 2023 we expect revenues in excess of SEK 90.0 million and an operating margin after depreciation of at least 20 percent.

Sales growth within existing cost framework

In our stated ambition to continue scalable growth, we can state with satisfaction that sales are increasing in our priority markets. In USA, EU, India and Japan, we already have our own resources for direct sales as well as the capacity from our established partners. In the period, SyMRI was approved for clinical use in South Korea and we have already received several orders. Earlier this year, we received corresponding approvals in Canada, the UK and Singapore. All in all, these are markets with high potential, which provides the conditions for increased penetration globally. We are developing our market presence in these countries within the existing cost framework. In addition to increasing own direct sales, our partners are building momentum in the sale of SyMRI through various prioritized initiatives. Among other things, Philips Healthcare continues to successfully establish SyMRI in combination with its AI-based acceleration technology under the name Smart Quant Neuro. Another example is GE Healthcare, which continues to actively market and sell SyMRI under the name MAGiC Neuro to its customers worldwide.

Expectant look ahead

SyntheticMR has the conditions in place to continue implementing our growth plan and reach set goals. From the existing cost level, we will continue to grow with scale. Our partners are accelerating their efforts to market and sell SyMRI. The partnerships bring access to SyMRI to more customers and thereby contribute to our endeavor to support a faster workflow and the objective decision support to healthcare. They also provide great opportunities for our product development and we are enthusiastic about the increased rate of work. High priority is next-generation SyMRI in 3D. A major success is that with the certification according to the MDR (Medical Device Regulation), we can now start selling the product in the EU as soon as we are ready to launch. The response from the market for SyMRI and the value the product provides to the customer is continuously increasing. Our installed base until now is relatively small in terms of market share. The potential is great and drives us in our ambition to successfully establish SyMRI as a standard in healthcare.

Ulrik Harrysson

 

CEO, SyntheticMR AB (publ)

This is a translation of the Swedish version of the report. When in doubt, the Swedish wording prevails.


 

This disclosure contains information that SyntheticMR AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-08-2023 08:05 CET.