NOTE's year-end report 2022
Financial performance in Q4 (October-December)
- Sales increased by 281,000,000 tonnes to SEK 1,038 (814) million. Adjusted for acquisitions and currency effects, organic growth was TSEK 81 thousand. Rebilling of extraordinary cost increases of
electronic components did not have a significant impact on growth as the corresponding re-invoicing also occurred in the fourth quarter of the previous year.
- Operating profit totalled SEK 129m (87) and corresponded to an operating margin of 12.31kt (10.61kt). Adjusted for the profit effect of SEK +15 million linked to the reversal of 50% of
the anticipated bad debt loss of SEK 30 million in Q3, 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, increased the underlying operating result by 41% to MSEK 111 (79). The corresponding
the underlying operating margin increased by 1.0 percentage point to EUR 11.21 thousand (EUR 10.21 thousand).
- Profit after net financial items totalled SEK 123 (82) million.
- Profit after tax totalled SEK 99 (68) million, corresponding to SEK 3.44 (2.39) per share.
- Cash flow after investments amounted to SEK 23 (-44) million, corresponding to SEK 0.79 (-1.54) per share. The cash flow for the quarter includes payment of additional purchase price for the acquisition of
iPRO in the UK last year by SEK -16 million. Cash flow for the corresponding quarter last year was affected by the payment of SEK -12 million for the acquisition of iPRO in the UK. Adjusted for
acquisition-related payments, cash flow for the period totalled SEK +39 (-32) million.
Financial performance in January-December
- Sales increased by 391 thousand tonnes to SEK 3,687 million (2,643). Adjusted for acquisitions and currency effects, organic growth totalled CPR 201 thousand. Approximately TSEK 51 of sales consisted of
re-invoicing of extraordinary cost increases of electronic components.
- Operating profit totalled SEK 345m (251), corresponding to an operating margin of 9.31% (9.51%). Adjusted for the anticipated bad debt loss of SEK -15 million net, and adjusted for
currency revaluations of operating assets and liabilities denominated in foreign currencies and re-invoicing of extraordinary cost increases of electronic components substantially without
margin, the underlying operating result increased by 491 thousand tpy to SEK 372 million (249). The corresponding underlying operating margin increased by 1.0 percentage points to 10.61% (9.61%).
- Profit after net financial items totalled SEK 311 (237) million.
- Profit after tax totalled SEK 254 (194) million, corresponding to SEK 8.79 (6.82) per share.
- Cash flow after investments was SEK -31 (-142) million, corresponding to SEK -1.07 (-4.97) per share. Cash flow for the year includes the payment for the acquisition of NOTE Herrljunga of
SEK -17 million and payment of an additional purchase price of SEK -16 million for the acquisition of iPRO in the UK last year. Last year's cash flow was affected by the payment for the acquisition of
iPRO by SEK -80 million. Adjusted for acquisition-related payments, cash flow for the year totalled SEK +2 (-62) million.
Dividends
To ensure maximum financial flexibility during the ongoing structural transformation of the industry, the Board proposes that no dividend be paid for 2022.
CEO comment - NOTE performed strongly in the year, with high growth and record operating profit despite the challenges on the market.
”NOTE's business performed at record levels in the year. Sales growth for 2022 totalled 391,000,000 SEK. In Q4, we saw our strongest sales figure to date, when we as a group exceeded SEK 1 billion in a single quarter for the first time. Fourth-quarter sales of SEK 1,038 million meant a growth of 28%.
NOTE also performed strongly in terms of profitability in the year. Underlying operating profit for 2022 increased by SEK 491,000,000 to SEK 372 million. The underlying operating margin increased to 10.61%, up 1.0 percentage points. In Q4, the underlying operating result amounted to SEK 111m (79) and corresponded to an underlying operating margin of 11.21ppt3 (10.21ppt3). The strong development comes despite a challenging market, partly linked to a continued uncertain market for electronic components.
We have a strong order situation with several exciting customers and projects in the start-up phase and we see good opportunities to continue our positive development. Based on the current market situation, we see good opportunities to achieve sales for Q1 of SEK 1 billion, which corresponds to growth of 25%. For the full year 2023, we reiterate our guidance of sales of at least SEK 4 billion. We are well positioned to reach our long-term targets for growth, profitability and sustainability.”, 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
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 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 30 January 2023.