Interim report July – September 2022

Third quarter in brief

• Net sales amounted to 19.0 million SEK (13.6), which means a sales growth of 40 percent.

• Operating profit amounted to 4.4 million SEK (2.2), corresponding to an operating margin of 23 percent (16).

• Net profit for the period amounted to 4.1 million SEK (2.3).

• Earnings per share amounted to 0.11 SEK (0.06).

First nine months in brief

•  Net sales for the first nine months amounted to 47.6 million SEK (40.1), which means a sales growth of 19 percent.

• Operating profit amounted to 5.1 million SEK (4.8), corresponding to an operating margin of 11 percent (12).

• Profit for the period amounted to 5.4 million SEK (4.8).

• Earnings per share amounted to 0.14 SEK (0.12).

Significant events during the third quarter

SyMRI NEURO is now compatible with Philips SmartSpeed, an AI-based acceleration technology for imaging.

SyMRI received regulatory approval in Malaysia.

Subsidiaries to SyntheticMR have been established in India and Japan.

Dr. Jeff Miller, Phoenix Children's Hospital, is a new member of the SyntheticMR Advisory Board.

Significant events during the first nine months

During the period, a directed new issue of shares was carried out for an amount corresponding to SEK 60 million before transaction costs. The transaction was booked during quarter 2 2022.

Significant events after the third quarter

SyMRI MSK received regulatory approval in Brazil.

New SyntheticMR received the EU Medical Device Regulation (MDR) certificate.

CEO comments

 

 

Continued strong sales development

Sales in the third quarter amounted to SEK 19.0m (13.6), which corresponds to an organic growth of 40 percent compared to the corresponding period last year. A new top listing is thereby reached, slightly higher than the sales record last quarter. Overall, the development mainly consists of larger orders from partners and increased direct sales.

An important finding is that the operating margin continues to increase with higher sales. For the period, the margin is 23 percent (16). This demonstrates leverage and improved operational efficiency. In absolute terms, the operating profit amounted to SEK 4.4m (2.2).

Establishment of resources internationally

We continue to execute on our growth plan with commitment. The response we receive from the market and partners strengthens us in the work to implement our initiatives in a focused manner. Deepening partnerships with MR scanner manufacturers is a very high priority. Among other things, it adds significant resources to sell SyMRI. The sales of the combination of SmartSpeed from Philips Healthcare and SyMRI NEURO is an example. The reception of SyMRI NEURO combined with their AI-based imaging acceleration technology has been very positive. The customers place great value in receiving more diagnostic information within a very short time through the offer.

We also see the same development with other partners. For example, the sale of SyMRI to GE Healthcare is increasing and SyMRI is also included in an increased number of business offers through Siemens Healthineers. The value of in-depth collaborations with our partners cannot be stressed enough. In addition to what is mentioned above, they are also very stable counterparts from a financial perspective. Over time, up to two-thirds of total sales are attributed to our partners.

We also continue to establish ourselves internationally with our own commercial resources with high priority. In addition to direct sales, they are among other things tasked, with working closely with the local organizations for our partners. In this way, we optimize total resources to market and sell SyMRI globally. Our experience so far is that we have chosen to focus on the right geographical regions and in line with that, we now have three subsidiaries in priority markets. For a few years now, we have had a subsidiary in the USA that covers North and South America. During the current year, we have started one in Japan and one in India, which also covers Southeast Asia.

Looking ahead

I have great confidence when I look ahead. The response from the market for our product is growing in strength. Direct sales increase and we are gaining momentum and efficiency in our own resources, commercial and others. Sales growth with increased profitability is our highest priority, together with continuously improving capital efficiency. In addition to this, I experience a continued increased commitment from our partners. Overall, SyMRI is prioritized higher in their sales processes. We have received orders that make a significant contribution during the year. We also continue to deepen our collaborations around product development, not least next-generation SyMRI in 3D. Taken together, these facts confirm the value of our offering and SyntheticMR as a partner. It strengthens my belief that we are well positioned to successfully continue to establish SyMRI as a standard of care. With undiminished vigor while maintaining cost control, we continue to implement our growth plan.

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 16-11-2022 07:46 CET.