Detection Technology - In line with our expectations
DT’s Q2 result was broadly in line with our estimates. The net sales grew 11.5% on a group level to EUR 23.5m (EUR 23.8m/23.8m Evli/cons.). The operating profit grew to EUR 3.0m (EUR 3.0m/3.3m Evli/cons.). DT’s business outlook for the end of the year has improved, and the company expects double-digit growth in all business units in H2.
- Q2 result: Q2 net sales amounted to EUR 23.5m (11.5% y/y) vs. EUR 23.8m/23.8m Evli/cons. estimates. Q2 EBIT was EUR 3.0m (12.6% margin) vs. EUR 3.0m/3.3m Evli/cons. R&D costs amounted to EUR 2.6m or 10.9% of net sales (Q2’20: 2.7m, 12.7%).
- Security Business Unit (SBU) net sales decreased 11.7% to EUR 6.9m vs. EUR 7.0m Evli estimate. The security market is recovering slowly, and SBU sales decreased at the beginning of Q2, but took an upward turn at the end of the review period. Detection Technology has received a good number of orders from customers, in particular in security CT applications.
- Industrial Business Unit (IBU) net sales decreased 10.4% to EUR 3.1m vs. EUR 3.4m Evli estimate. IBU sales continue to grow although year-on-year sales decreased due to a quarter-over-quarter fluctuation.
- Medical Business Unit (MBU) net sales increased 37.4% to EUR 13.6m which was broadly in line with our estimate of EUR 13.4m. Investments in healthcare infrastructure, globally and in particular in China, as well as the demand in higher-end CT equipment, boosted sales to grow strongly.
- Detection Technology’s business outlook for the end of the year has improved, and the company expects double-digit growth in all business units in H2.