NOTE's Interim Report January-September 2022
Financial performance Q3 (July-September)
- Sales increased by 361 thousand tonnes to SEK 930 million (685). Adjusted for acquisitions and currency effects, organic growth was TSEK 181 thousand. Approximately 61,000,000 of sales consisted of re-invoicing of extraordinary cost increases for electronic components.
- The operating result totalled SEK 57 million (64). Adjusted for an anticipated bad debt loss of SEK 30 million, and adjusted for currency revaluations of operating assets and liabilities in foreign currencies, the underlying operating result increased by SEK 371 thousand to SEK 92 million (67).
- The operating margin amounted to 6.21% (9.41%). Adjusted for the anticipated bad debt loss and adjusted for currency revaluations of operating assets and liabilities in foreign currencies and re-invoicing of extraordinary cost increases of electronic components essentially without margin, the underlying operating margin increased by 0.4 percentage points to 10.21 CGT3T (9.81 CGT3T).
- Profit after net financial items totalled SEK 47 (59) million.
- Profit after tax totalled SEK 40 (48) million, corresponding to SEK 1.37 (1.68) per share.
- Cash flow after investments was SEK -59 (-49) million, corresponding to SEK -2.04 (-1.71) per share. Cash flow for the quarter includes the payment of SEK -20 million for the acquisition of NOTE Herrljunga.
Financial performance January-September
- Sales increased by 451 thousand tonnes to SEK 2,649 million (1,829). Adjusted for acquisitions and currency effects, organic growth was 251 CGT3T. Approximately TSEK 51 of sales consisted of re-invoicing of extraordinary cost increases of electronic components.
- The operating result totalled SEK 216 million (164). Adjusted for the anticipated bad debt loss of SEK 30 million, and adjusted for currency revaluations of operating assets and liabilities in foreign currencies, the underlying operating result increased by SEK 531 thousand to SEK 261 million (170).
- The operating margin amounted to 8.21% (9.01%). After adjusting for the anticipated bad debt and excluding currency revaluations of operating assets and liabilities in foreign currencies and re-invoicing of extraordinary cost increases of electronic components essentially without margin, the operating margin increased by 0.9 percentage points to 10.21 CGT3T (9.31 CGT3T).
- Profit after net financial items totalled SEK 188 (155) million.
- Profit after tax totalled SEK 155 (126) million, corresponding to SEK 5.35 (4.42) per share.
- Cash flow after investments was SEK -54 (-98) million, corresponding to SEK -1.86 (-3.43) per share. Cash flow for the year includes the payment for the acquisition of NOTE Herrljunga of SEK -20 million. Last year's cash flow was affected by the payment of SEK -68 million for the acquisition of UK-based iPRO.
CEO comment - Continued strong development despite challenging market.
”In the period, NOTE was forced to make a provision for a feared bad debt, which affected NOTE's operating profit in Q3 by SEK 30 million. This event did not affect NOTE's underlying business, which remained strong. Our underlying operating profit for the first three quarters of the year increased by SEK 531,000,000 to SEK 261,000,000, while our underlying operating margin strengthened by 0.9 percentage points to SEK 10.21,000,000. We have then adjusted for the anticipated bad debt, currency translation effects and re-invoicing of material costs without margin. Underlying profitability was in line with our expectations and the long-term profitability target we set for the business.
NOTE's sales in the first three quarters of the year were record-strong. Despite continued and complicated challenges linked to the shortage situation on the component market, we managed to increase sales by SEK 451,000,000 to SEK 2,649,000,000. In Q3, we saw our strongest sales figure to date of SEK 930 million, a growth of 361,000 tonnes. In organic terms, the growth was 181 TPS3T.
NOTE is in a clearly expansionary phase, and its order book remains strong. At the end of the third quarter, total order bookings were more than SEK 501,000,000 higher, for comparable units, than at the corresponding point of the previous year. Based on the current market situation, we see good potential to achieve quarterly sales of SEK 1 billion for the first time ever in Q4, corresponding to growth of some SEK 251,000,000.”, says Johannes Lind-Widestam, President and CEO.
NOTE's Interim Report for January-September is available from today in PDF format on the group's website, www.note-ems.com, and is attached to this press release. NOTE is organising a conference call for analysts, media and investors at 10:00 a.m. CET today, where President and CEO Johannes Lind-Widestam will present the report. The year-end report for 2022 will be presented on 27 January 2023.
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 is one of northern Europe's leading partners for electronics manufacturing. NOTE manufactures printed circuit boards (PCBA), sub-assemblies and complete products (box build). Its customer offering covers the whole product lifecycle, from design to after-sales. NOTE is established in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales in the last 12 months were SEK 3,687 million 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 (publ) 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, on 17 October 2022 at 08.30 CET.