STOCKHOLM – NCAB reported first quarter net sales increased 85% to SEK 1.14 billion (US$116.1 million). In US dollars, net sales increased 66%. For comparable units, net sales increased 60%, and in US dollars 42%.
Profit after tax was SEK 66.2 million, an increase of 62.7% year-over-year.
EBITA for the first quarter increased 151% to SEK 146.3 million. EBITA was negatively impacted by an additional purchase consideration for the acquisition of Prevent, which was SEK 3.2 million higher than the provision.
Operating profit was SEK 93.8 million, up 69.3% compared to the same period last year. Operating profit was burdened by impairment losses of SEK 43.2 million for the termination of NCAB’s Russian operations.
Orders increased 20% to SEK 1.17 billion, compared to SEK 978.9 million in the first quarter of 2021. In US dollars, the increase was 8%. For comparable units, orders rose 2%, while the decrease in US dollars was 8%.
On Jan. 2, 100% of the shares was acquired in Meta Leiterplatten in Germany.
On Feb. 28, all deliveries were halted to customers in Russia, and on Apr. 8, NCAB divested its operations in Russia to the Russian management for 1 Ruble.
The company’s goal is net sales of SEK 8 billion and EBITA of SEK 1 billion in 2026.
“Despite the turbulent times, there is strong demand for NCAB’s products and services,” said CEO Peter Kruk. “It is positive that order intake has continued to grow and exceeds net sales despite a stabilization in lead times. Our conclusion is demand for PCBs is continuing to rise, while NCAB is also growing its market share. The acquisitions completed in 2020 and 2021 have also made a significant contribution.
“Order intake rose 20% year-over-year to SEK 1.17 billion, slightly higher than net sales of SEK 1.14 billion for the quarter, an increase of 85% or 42% for comparable units in US dollars. Demand is strong in all customer segments and industries, both traditional industries and greentech, such as electrification and IoT. EBITA increased 151% to SEK 146 million, with an EBITA margin of 12.8%.
“Our conclusion is demand for PCBs is continuing to rise, while NCAB is also growing its market share. The continued strong growth in net sales was a natural consequence of the higher order intake we witnessed in the third and fourth quarters of 2021. The higher EBITA margin was the result of synergies from our acquisitions but also from general scale effects.
“In the Nordic segment, it was highly gratifying to see broad net sales increases in all countries, with the greatest contribution from Norway and Denmark. The acquisition of Elmatica in Norway also yielded a very positive contribution.
“In the Europe segment, we noted the main net sales increases in the UK, Germany, Benelux and Italy. Our acquisitions, Flatfield in the Netherlands and Prevent in Italy, have been successful, and the minor acquisitions, sas and Meta in Germany, have clearly strengthened our market position, which is generating new customers. Net sales also increased in North America, both in our previous NCAB operations and in the acquired BBG and RedBoard.
“The East segment faced greater challenges during the quarter. Russia’s war in Ukraine led initially to the cessation of PCB deliveries to Russia, regardless of whether or not these were included in sanctions. We subsequently conducted an analysis and assessment of our operations in Russia and concluded we could see more risks than opportunities by continuing to operate in the country. This culminated in the divestment of the Russian operations to the management of NCAB Russia in April after the end of the quarter. This was a difficult decision. Our staff and management have been experienced, knowledgeable and loyal – many for more than 20 years. NCAB has however concluded there was no value of the Russian operation, neither in the short nor medium term. The cost to us was about SEK 43 million, which was booked as a write-down.
“Our order intake in China was weaker as many Chinese customers were forced to close due to new outbreaks of coronavirus and restrictions. However, production at our Chinese factory partners has progressed well, though some delivery delays were seen due to freight problems. Like so many other companies, some of our customers are experiencing problems with component deliveries.”
Ed.: SEK 1 = US$0.10