CellaVision (CEVI) Q3 2024 earnings summary

Executive summary

• Net sales grew 6% year-over-year in Q3 2024 to SEK 179m, with organic growth of 9% and a negative currency effect of -3%.

• EMEA sales surged 66% to SEK 98m, offsetting a 20% decline in Americas and a 47% drop in APAC, with EMEA benefiting from early orders and targeted initiatives.

• Strategic partnerships advanced, including joint training, digital education, and e-learning module delivery.

• Clinical validation for the bone marrow application is underway, targeting a CE mark launch in H2 2025, with trials ongoing in Europe and expanding to the US.

• EBITDA increased to SEK 49m, with margin improving to 27% from 26% in Q3 2023.

Financial highlights

• Gross margin improved to 68% from 66% year-over-year, driven by price increases.

• Operating expenses rose to SEK 83m, mainly from higher admin and R&D costs.

• Cash flow from operating activities was SEK 41m, down from SEK 73m in Q3 2023, mainly due to working capital changes.

• R&D expenses were SEK 40m, representing 22% of sales, reflecting clinical trial activity and product development.

• Earnings per share rose to SEK 1.30 from SEK 1.09 year-over-year.

Outlook and guidance

• EMEA momentum expected to continue, supported by strategic sales and marketing initiatives.

• Americas sales expected to recover as US market stabilizes post-political uncertainty, but delays may persist until after the election.

• APAC underlying demand remains strong despite quarterly volatility, with shipment phasing impacting results.

• R&D spending expected to remain at current elevated levels as product roadmap matures.

• Financial ambition targets a CAGR of 15% and EBITDA margin above 30% over the economic cycle.