Detection Technology estimates that its Q2 total net sales will fall short of the previously given guidance. According to the company’s view, it is probable that Q2 net sales will decrease from the comparison period.
The weaker-than-expected development of net sales is attributed to a product quality issue in the supply chain and the challenges for the company and its customers to purchase other critical components. These have particularly affected the sales of the Medical Business Unit (MBU). Even though the product quality issue has been resolved, some MBU sales will be postponed to Q3 due to delay in the supply chain.
Strong demand will continue in all of the company’s main markets: medical, industrial, and security X-ray imaging solutions. The company keeps its H2 net sales guidance unchanged.
New business outlook:
“Due to a product quality issue in the supply chain and the component shortages, Detection Technology expects total net sales to decrease in Q2. According to the company’s view, demand will continue to be strong in all of the company’s main markets and total net sales will grow double-digit in H2 of 2022, although the shortage of materials and components is expected to postpone some of the growth in H2.
Due to the war in Ukraine, the pandemic and inflation, the global economy and the company’s businesses face uncertainty. Predictability of the company’s target markets is lower than usual, and direct and indirect risks related to the availability of materials remain elevated. The effect of material and component shortage has been acknowledged as a limiting factor in the outlook, however a further degradation in supply chain might affect the business outlook.
Detection Technology aims to increase sales by at least 10% per annum and to achieve an operating margin at or above 15% in the medium term.”
Previous business outlook published on 27 April 2022:
“According to Detection Technology’s view, demand will continue to be strong in all of the company’s main markets. The company expects double-digit growth in total net sales both in Q2 and H2 of 2022, although the shortage of materials and components is expected to postpone at least some of the growth in Q2.
Due to the war in Ukraine, the pandemic and inflation, the global economy and the company’s businesses face uncertainty. Predictability of the company’s target markets is lower than usual, and direct and indirect risks related to the availability of materials remain elevated. The effect of material and component shortage has been acknowledged as a limiting factor in the outlook, however a further degradation in supply chain might affect the business outlook.
Detection Technology aims to increase sales by at least 10% per annum and to achieve an operating margin at or above 15% in the medium term.”
In 2021, Detection Technology's net sales totaled EUR 89.8 million and operating profit was EUR 10.6 million. Detection Technology will publish the half-yearly report on 3 August 2022.
The Board of Directors, Detection Technology Plc
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