NOTE's interim report January-March 2023
Financial performance January-March
- Sales increased by 281,000,000 tonnes to SEK 1,051 (821) million. Adjusted for acquisitions and currency effects, organic growth was TSEK 141 thousand.
- Operating profit increased by 481 thousand tonnes to SEK 112 million (76).
- The operating margin strengthened by 1.4 percentage points to 10.71% (9.31%).
- Profit after net financial items increased by SEK 501 thousand to SEK 104 (69) million.
- Profit after tax increased by SEK 511 thousand to SEK 85 (56) million, corresponding to SEK 2.92 (1.95) per share.
- Cash flow after investments totalled SEK 49 (9) million, corresponding to SEK 1.69 (0.31) per share. Adjusted for acquisition-related payments in the period, operating cash flow was cash flow after investments was SEK 72 (9) million.
CEO commentary - For the second quarter in a row, NOTE achieved sales of over SEK 1 billion. Growth drives profitability and operating margin is now 10.7%
”NOTE's sales progressed strongly in the period, and for the second quarter in a row, NOTE achieved sales of over SEK 1 billion. First-quarter sales of SEK 1,051 million meant growth of 281,000,000 SEK. Adjusted for acquisitions and currency effects, organic growth was SEK 141,000,000. We're growing on most of our home markets, and our Swedish and Estonian business in particular is developing strongly.
Growth drives profitability and the operating margin was 10.7% for the quarter. Continued investments in our modern factories are increasing our growth, level of automation and efficiency, which benefits both us and our customers. Shortly after the end of the quarter, we completed the acquisition of the Bulgarian EMS company ATM Electronics OOD. This acquisition adds another profitable plant to the NOTE group, and another alternative for our customers looking for cost-efficient production in Europe.
The first quarter delivered positive cash flow (after investments) of SEK +49 million, and adjusted for acquisition-related payments, cash flow (after investments) was SEK +72 million. NOTE's high growth in recent years, together with the challenging situation on the electronic components market, has put pressure on NOTE's cash flow, so it's pleasing that cash flow for Q1 was so strong.
Our order backlog was just over 20% higher than at the same time last year. Given the strong order situation, we see good opportunities to continue our positive development. For the second quarter, we expect growth of 20% and to reach sales of at least SEK 4.2 billion for the full year 2023. We envisage a continued strengthening of our profitability.”, says Johannes Lind-Widestam, President and CEO.
NOTE's Interim Report for the first quarter 2023 is available from today in PDF format on its website, www.note-ems.com, and is attached to this press release. NOTE is organising a presentation for analysts, media and investors at 10:00 a.m. CET today, where President and CEO Johannes Lind-Widestam will present the report. The Interim Report for January-June will be presented on 13 July.
For further information, please contact:
Johannes Lind-Widestam, President and CEO, tel. 070-541 72 22
Frida Frykstrand, Finance Director, tel. 070-462 09 39
About NOTE
NOTE manufactures printed circuit boards (PCBA), sub-assemblies and complete products (box build). NOTE is a competitive electronics manufacturer and a stable business partner to customers with high standards. Its products are found in complex systems for electronic control, monitoring and security, for example.
The business model is based on offering advanced manufacturing, customised logistics solutions and advice at the best possible total cost through long-term customer relationships and partnerships. The customer offering covers the entire product life cycle, from design to aftermarket. Customers are primarily large companies operating on the global market, but also companies with their primary sales in northern Europe.
NOTE is established in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales in the last 12 months totalled SEK 3,917 m, and the group has some 1,400 employees. NOTE is listed on Nasdaq Stockholm. For more information, please visit www.note-ems.com.
This information is information that NOTE AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Johannes Lind-Widestam, at 08:30 CET on 19 April 2023.