BROMMA, SWEDEN – NCAB posted fourth quarter net sales up 90% to SEK 976.6 million (US$104.5 million). In US dollars, net sales increased 87%. For comparable units, net sales increased 57%, and in US dollars, the increase was 55%.
Profit after tax for the October to December period was SEK 75.3 million, an increase of 113.9% compared to the fourth quarter of 2020.
Operating profit was SEK 113.7 million, an increase of 126.9% year-over-year.
EBITA increased 132% to SEK 121 million. EBITA was negatively impacted by transaction costs for the acquisition of Elmatica in the amount of SEK 3.1 million. EBITA, excluding the effect of transaction costs, was SEK 124.1 million.
Orders increased 57% to SEK 1.07 billion. In US dollars, the increase was 55%. For comparable units, orders increased 29%, and in US dollars, the increase was 27%.
For full-year 2021, net sales increased 52% to SEK 3.22 billion. In US dollars, net sales increased 63%. For comparable units, net sales increased 30%, and in US dollars 39%.
Profit after tax was SEK 284.9 million, up 123.5% compared to 2020. Operating profit was SEK 387.2 million, growth of 112.4%.
EBITA increased 111% to SEK 406.1 million. Excluding transaction costs and PPP loans, EBITA amounted to SEK 402.5 million.
Orders for the year increased 80% to more than SEK 4 billion. In US dollars, orders increased 93%. For comparable units, the increase was 55% in SEK and 66% in US dollars.
On Oct. 19, 100% of the shares of Elmatica in Norway were acquired.
During the year, NCAB signed a new credit facility of SEK 1.265 billion, which increased its credit line by approximately SEK 750 million with the aim of securing acquisition financing.
On Jan. 2, 100% of the shares in META Leiterplatten in Germany were acquired.
At year-end, Robert Balson was appointed VP North America and president NCAB USA.
“We can look back on another strong quarter with substantial growth in sales and improved profitability compared with the previous year,” said Peter Kruk, CEO, NCAB Group. “We are pleased with the high demand and organic growth, and that order intake is clearly exceeding net sales, which will support continued growth. Our growth relative to the market shows we are gaining market shares. Our local presence in the production chain through our factory management organization makes a great difference by offering us a strong position to secure delivery times by enabling continuous improvements in technology, quality and sustainability.
“In addition to our organic growth, which is derived from all different industries and regions, we also noted robust performance from our acquisitions. PreventPCB, which was acquired in the first quarter, has been integrated into our existing Italian operations and developed favorably. The integration of sas-electronics and RedBoard Circuits has continued according to plan. Elmatica, based in Norway, joined us during the quarter, and META Leiterplatten in Germany was acquired at year-end. Elmatica is a larger acquisition and has operations in several countries. With the acquisition of Elmatica, we also gained a team of senior leaders with extensive industry know-how. For example, we appointed a new director of technology for the Group from Elmatica.
“The PCB market is highly fragmented with many local or regional players. Many of these are under increasing pressure from the growing demands for new technology, quality improvements and sustainability. We can see major opportunities to acquire these companies and help them step up to the next level and further develop their customer relations. It is clear from analysis of our acquired companies and their performance that they have developed very well since being integrated into NCAB.
“Among the segments, Nordic has performed well and grown both organically and through the acquisition of Elmatica. It is also good to see how the margin has improved. The integration of Elmatica has begun, and it is clear it is a very good addition to NCAB, and we anticipate synergies in a number of areas.
“We have invested heavily in growth in our Europe segment for several years, and we can now clearly see our efforts have yielded results. We are gaining market shares, and sales to new customers are now really bearing fruit. The strong order intake is particularly promising for 2022. Plenty of work remains to be done, as it is a large market where we have a relatively small market share.
“During the quarter, North America reported a sharp increase in sales and orders. The improvement in profitability was a result of the gradual shift to more high-tech products in both our own operations and in those of our acquired companies.
“For East, the quarter was positive in terms of earnings and sales, despite extensive Covid restrictions in parts of the region. Profitability is at a high level due to the high technology content and high level of service.
“Supply chains remained under pressure during the fourth quarter, though the situation has stabilized, and we can see signs of improvement. This has also led to a higher working capital. We now also see a more uncertain political situation globally, and the coronavirus pandemic may still affect supply chains.
“All in all, we can look back on another very strong quarter in all areas. We are proud of our strong organic growth and with the successful completion of first-rate acquisitions. A continued strong order intake also paints a positive picture for 2022.”
Ed.: SEK 1 = US$0.11
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