Elekta AB Unsponsored ADR Class B ( (EKTAY) ) has released its Q2 earnings. Here is a breakdown of the information Elekta AB Unsponsored ADR Class B presented to its investors.
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Elekta AB, a leader in the medical technology sector, specializes in innovative solutions for cancer treatment and precision radiation therapy. The company has been recognized for its comprehensive product portfolio and adaptive treatment technologies.
In its recent earnings report for the second quarter of the 2024/25 fiscal year, Elekta AB highlighted a focus on enhancing profitability despite a challenging market environment. The company reported a decrease in net sales by 8% to SEK 4,341 million, influenced by weak performances in Europe and Latin America. However, the launch of the Elekta Evo and a cost-reduction initiative have been positive steps forward.
Key financial highlights include a decline in adjusted gross margin to 35.7% from 36.0%, and adjusted EBIT of SEK 423 million, reflecting a margin of 9.8%. The company achieved SEK 150 million in annual run rate savings, with a target of SEK 250 million for the fiscal year. Despite these challenges, Elekta saw improved order growth in China and is optimistic about its new product launches.
Management remains cautiously optimistic, expecting a recovery in sales and profitability in the second half of the fiscal year. They aim for a mid-single-digit growth in net sales for the full year and an improved EBIT margin, driven by new product launches and strategic cost management initiatives.
