NOTE's half-year report January-June 2022
Financial performance in April-June
- Sales increased by 401 thousand tonnes to SEK 898 million (642 thousand). Adjusted for acquisitions and currency effects, growth was SEK 241 thousand.
- Operating profit increased by 391 thousand tonnes to SEK 83 (60) million.
- The operating margin was 9.31% (9.31%).
- Profit after net financial items increased by SEK 221 thousand to SEK 72 million (58).
- Profit after tax increased by SEK 241 thousand to SEK 59 (47) million, corresponding to SEK 2.02 (1.66) per share.
- Cash flow after investments and acquisitions amounted to SEK -4 (-53) million, corresponding to SEK -0.14 (-1.85) per share. The cash flow
was negatively affected by the continued challenges in the electronic components market. Last year's cash flow was affected
also negatively impacted by the payment for the acquisition of UK iPRO with SEK -68 million.
Financial performance in January-June
- Sales increased by 501 thousand tonnes to SEK 1,719 million (1,144). Adjusted for acquisitions and currency effects, growth was SEK 291 thousand.
- Operating profit increased by SEK 601 thousand to SEK 159 (100) million.
- The operating margin increased by 0.6 percentage point to 9.31% (8.71%).
- Profit after net financial items increased by SEK 471 thousand to SEK 141 million (96).
- Profit after tax increased by SEK 471 thousand to SEK 115 million (78), corresponding to SEK 3.98 (2.75) per share.
- Cash flow after investments and acquisitions amounted to SEK 5 (-49) million, corresponding to SEK 0.17 (-1.71) per share. Last year's
cash flow was negatively impacted by the payment for the acquisition of UK iPRO of SEK -68 million.
CEO commentary - Q2 was a record quarter with our highest sales ever and a strong operating margin, despite challenges in both material and currency markets
”NOTE continues to progress convincingly. Despite challenges linked to the pandemic and continued shortages on the components market, NOTE's sales increased by SEK 501,000,000 to SEK 1,719,000 in the first half-year. Adjusted for acquisitions and currency effects, growth was SEK 291,000,000. In the second quarter, NOTE achieved growth of 401,000,000 SEK and a new record sales level of SEK 898 million. Organic growth in Q2, adjusted for acquisitions and currency effects, was SEK 241 thousand. We are growing in all home markets and in all customer segments.
In terms of earnings, our positive trend continued. In the first half of the year, operating profit increased by SEK 601 thousand to SEK 159 million and the operating margin strengthened by 0.6 percentage points to SEK 9.31 thousand. The operating margin for Q2 was at the same level as Q1 and was negatively affected by about one percentage point by the large fluctuations in the currency market. Underlying profitability was thus in line with our expectations.
Just after mid-year, we completed an expansive acquisition of Swedish Dynamic Precision Solutions AB. The company is progressing strongly, and is expected to generate sales of over SEK 140 million for the full year 2022, with an operating margin in line with NOTE's. Operations are conducted in leased premises of over 5,000 square metres, which significantly increases production capacity in Sweden, NOTE's largest domestic market.
We continue to expect a very strong market development and are well in line with our goal to reach sales of SEK 5bn by 2025. Our order situation is excellent and we expect sales of at least SEK 3.6 billion for the full year 2022, corresponding to full-year growth of 35%. For the second half of the year, this corresponds to a growth of 25%. We continue to look forward to increased operating profit and strengthened 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
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 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.