NOTE's year-end report 2019
Financial performance October-December
- Sales increased by 22% to SEK 483 (397) million. Adjusted for acquisitions, growth was 20%.
- Operating profit increased by 271 thousand tonnes to SEK 35 million (28).
- The operating margin strengthened by 0.3 percentage points to 7.41% (7.11%).
- Profit after net financial items increased by SEK 241 thousand to SEK 33 (27) million.
- Profit after tax increased to SEK 26 (24) million, corresponding to SEK 0.90 (0.83) per share.
- Cash flow after investments amounted to SEK 96 (-81) million, corresponding to SEK 3.32 (-2.80) per share.
Financial performance January-December
- Sales increased by 281 thousand tonnes to SEK 1,760 million (1,379). Adjusted for acquisitions, growth was 171 FTEs.
- Operating profit increased by 481 FTEs to SEK 124 (84) million. Adjusted for non-recurring costs in 2018, operating profit increased by 371 thousand tonnes to SEK 124 (91) million.
- The operating margin strengthened by 1.0 percentage point to 7.11% (6.11%). Adjusted for non-recurring costs in 2018, the operating margin increased by 0.5 percentage points to 7.11% (6.61%).
- Profit after net financial items increased to SEK 116 (79) million.
- Profit after tax increased by SEK 441 thousand to SEK 92 (64) million, corresponding to SEK 3.20 (2.22) per share.
- Cash flow after investments amounted to SEK 75 (-76) million, corresponding to SEK 2.60 (-2.63) per share.
Dividends
The Board of Directors proposes a dividend to shareholders of SEK 1.20 (0.70) per share, corresponding to SEK 35 (20) million.
CEO comment - 2019 was a record year for NOTE, with strong growth, increased profitability and a very strong cash flow in Q4.
”In 2019, we increased sales by 28% to a new record level of SEK 1,760 million, organic growth was 17%. In Q4, sales growth was 22%, of which organic growth was a full 20%. We continue to see high demand in all domestic markets and the order backlog was 25% higher than last year.
On the earnings side, we also reached a new record level with an operating profit of SEK 124 million, an increase of 371 thousand tonnes compared to the previous year (adjusted for non-recurring costs in 2018). Similarly, the operating margin strengthened by 0.5 percentage points to 7.11%, both of which are our highest levels ever.
During the second half of the year, we have brought our inventory back into balance. This has resulted in a strong cash flow for 2019, especially in the fourth quarter with SEK 96 million. Cash flow after investments for the full year amounted to SEK 75 (-76) million, corresponding to SEK 2.60 (-2.63) per share.
Our market view is now significantly more positive than after Q3 and our view is that demand is stronger today. The order backlog continues to increase at the rate we expected and our overall view is that the conditions for continued strong growth are very favourable,” says Johannes Lind-Widestam, President and CEO.
NOTE's year-end report 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-March will be presented on 23 April.
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.eu.
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 8 February 2021.