Nucletron, a global leader in radiation oncology,announced their full year results for 2009. Despite challenging global economic conditions, sales grew to EUR 113 million. EBITDA increased by 18% to EUR 20 million. Nucletron strives to continue to outperform the market growth in 2010 and expects profitability levels to reach 20% (EBITDA as % of sales) in the medium term.
Jos Lamers, CEO of Nucletron, comments: “Improving patient care requires innovation, teamwork and reliability. With our sharpened focus on brachytherapy, streamlined corporate structure and continued growth despite difficult global economic conditions we have delivered an excellent 2009. I look forward to another successful year ahead for Nucletron.“
Financial Highlights
Sales
Nucletron achieved strong financial results in 2009, with sales of EUR 113 million, compared to EUR 112 million in 2008. The company realised a also record-high EBITDA of EUR 20 million, up from 17 million in 2008.
When revenue is analysed by category, it is clear that sales from services provide a strong foundation for Nucletron’s business model, accounting for 46% of total sales, while products represent 54% of sales. The sales breakdown by product group shows that brachytherapy is the company’s main activity, accounting for 60%. Brachytherapy includes the afterloading platforms that contain the radioactive source, the applicators that are connected to the afterloaders and applied in or close to the tumor, seeds that are used for LDR brachytherapy, and the supporting treatment planning software solutions.
However, Nucletron has also managed to benefit from market opportunities in external beam radiotherapy (15%) and imaging (15%). External beam radiation therapy is primarily focused on software products that are used to plan the treatment of a tumor. Nucletron’s products in the imaging area help identify the shape and size of the tumor, and the relationship between the tumor and the surrounding tissue and organs. Nucletron successfully operates in the external beam market as an independent treatment planning software supplier and is recognised for its state of the art product offering and innovation.Third party products accounted for 10% of sales.
The company generated 40% of sales in Europe in 2009, with North America accounting for 28% of total sales, Asia-Pacific for 22% and emerging markets for 10%. This geographical breakdown shows that Nucletron is perfectly positioned to capitalise on the global growth of the market for cancer treatment.
Costs
Over the past two years, Nucletron has successfully implemented effective cost management schemes. Based on a globally implemented enterprise resource planning system, the company was able to determine the added value of its various operations and product groups. This led to the decision to cancel the development, manufacture and sale of two product groups in early 2009, and has resulted in strong budgetary discipline with respect to expenditure levels.
Through a system of activity-based costing, we are now able to assess the profitability of products and customer groups in all geographies, which provides us with the data we need to establish a consistent pricing policy. The increase in gross margin indicates that creating transparency with regard to the added value of the various products has already produced clear results. The increased share of R&D (which is estimated to account for 12% of sales in 2010) highlights the company’s strong focus on innovation.
Profit
Nucletron’s EBITDA for 2009 was EUR 20 million, up nearly 18% from 2008. The strong result was facilitated by an increased focus on product profitability, the pruning of the product portfolio and stringent cost control.
Cash Flow and Debt
The strong cash generation for 2009 allowed Nucletron to further reduce its net debt. While the company is not committed to any repayments, it redeemed more than EUR 7 million on its outstanding loans on a voluntary basis in 2009. By this strengthening of the balance sheet the company is providing a solid foundation for further growth steps.
In addition to the substantial increase in profit, the further formalisation of the company’s cash management operations has also contributed to this strong cash position. Improvement measures for all components of the working capital (i.e., stocks, accounts receivable and accounts payable) were introduced in 2009 and will be further implemented this year. Key priorities of these measures include centralisation of the stock function, improving suppliers’ payment terms and further specifying the credit management function.
About Nucletron
Nucletron provides state of the art radiotherapy solutions for cancer treatment that meet the evolving needs of patients, their carers and healthcare professionals around the world. Nucletron has unmatched global leadership in brachytherapy, a very precise, highly effective and well-tolerated treatment option for healthcare providers, tailored to the needs of individual patients. We work with clinical teams to constantly improve and develop an innovative portfolio of integrated products, software and services that assures excellent patient outcomes. Headquarted in Veendendaal, The Netherlands, Nucletron employs more than 500 employees, with offices in 15 countries, and products available in more than 100 countries around the world.
For further information
Nucletron B.V.
Jos Lamers, CEO
Tel: +31 3185 57250
jos.lamers@nl.nucletron.com
Visit our website www.nucletron.com
