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Detection Technology: Profitability higher than estimated - Evli

DT’s Q3 revenue declined y/y much as expected, however profitability figures came in a bit above our estimates as cost measures have already had an effect.

• DT Q3 revenue decreased by 10.2% y/y to EUR 24.5m, compared to the EUR 24.8m/24.6m Evli/consensus estimates. Adjusted EBITA landed at EUR 2.2m vs our EUR 1.6m estimate. Profitability measures helped already more than we estimated.

• Medical (MBU) top line declined by 27.0% y/y to EUR 10.8m vs our EUR 11.7m estimate. Decrease in sales was attributable to both a new anticorruption campaign in China and a high comparison period.

• Security (SBU) revenue increased by 13.7% y/y to EUR 9.7m, compared to our EUR 9.1m estimate. Activity and demand continued to recover in all security applications and especially in aviation.

• Industrial (IBU) grew by 1.6% to EUR 4.0m vs our EUR 4.0m estimate. Sales were negatively impacted by low food industry demand.

• DT expects its revenue to grow in Q4’23 (all segments grow, high single-digit growth in group revenue) as well as in Q1’24. China should grow too in Q4.
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