NOTE's half-year report January-June 2021
Financial performance Q2 (April-June)
- Sales increased by 281 FTEs to SEK 642 (500) million. Adjusted for acquisitions and currency effects, growth was 271 FTEs.
- Operating profit increased by 441 thousand tonnes to SEK 60 million (42).
- The operating margin increased by 1.0 percentage point to 9.31% (8.31%).
- Profit after net financial items increased by 40% to SEK 58 (42) million.
- Profit after tax increased by 40% to SEK 47 (34) million, corresponding to SEK 1.66 (1.20) per share.
- Cash flow after investments and acquisitions amounted to SEK -53 (64) million, corresponding to SEK -1.85 (2.26) per share.
The payment for the acquisition of iPRO affected cash flow by SEK -68 million.
Financial performance January-June
- Sales increased by TSEK 171 to SEK 1,144 (975) million. Adjusted for acquisitions and currency effects, growth was 191 FTEs.
- Operating profit increased by 341 thousand tonnes to SEK 100 million (75).
- The operating margin increased by 1.0 percentage point to 8.71% (7.71%).
- Profit after net financial items increased by SEK 381 thousand to SEK 96 (70) million.
- Profit after tax increased by SEK 391 thousand to SEK 78 (56) million, corresponding to SEK 2.75 (2.01) per share.
- Cash flow after investments and acquisitions amounted to SEK -49 (127) million, corresponding to SEK -1.71 (4.48) per share.
The payment for the acquisition of iPRO affected cash flow by SEK -68 million.
CEO commentary - Record order intake and expansionary acquisition boost prospects
”NOTE is continuing to progress convincingly. A strong market recovery, especially in Sweden and China, combined with continued very high new sales, helped sales increase by SEK 171,000,000 to SEK 1,144,000 in the first half-year. Adjusted for acquisitions and currency effects, organic growth was 191,000,000 tonnes. The positive trend was further strengthened in the second quarter - calculated in the same way, organic growth in Q2 was 271,000,000 SEK.
At the end of May and beginning of June, we completed an expansive acquisition of the British company iPRO. Over the past 12 months, the company had sales of just over SEK 330 million. iPRO is in a strong growth phase with several customers developing charging solutions for electric vehicles - a market that is developing very rapidly.
In terms of earnings, our positive trend continued, mainly due to growth, stable margins in ongoing customer assignments and good cost development as a result of implemented efficiency programmes. In the first half of the year, operating profit increased by SEK 341 thousand to SEK 100 million. In Q2, the increase in profit was TSEK 441 and the operating margin was TSEK 9.31 - our highest level ever.
We have reason to be very optimistic about the future. The order backlog at mid-year was at a record level, and for comparable units just over 401,000 tonnes higher than last year. Based on the current market situation, we estimate that sales for this year will amount to at least SEK 2.45 billion. For the full year, we expect increased operating profit and a stronger operating margin.”, says Johannes Lind-Widestam, President and CEO.
NOTE's half-year report is now available in PDF format on the group's website, www.note-ems.com, and is attached to this press release. Today at 10:00 a.m. CET, NOTE is organising a teleconference for analysts, media and investors where President and CEO Johannes Lind-Widestam will present the report. The Interim Report for January-September will be presented on 17 October.
For further information, please contact:
Johannes Lind-Widestam, President and CEO, tel. 070-541 72 22
Henrik Nygren, Chief Financial Officer, tel. 070-977 06 86
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 and the Securities Markets Act. The information was submitted for publication, through the agency of Johannes Lind-Widestam, at 08:30 CET on 14 July 2022.