Kitron: Q1 2022 – Very strong demand and record order backlog
27 Avril 2022 - 07:00AM
Kitron: Q1 2022 – Very strong demand and record order backlog
(2022-04-27) Kitron today reported first-quarter results showing
very strong demand and record order backlog, but also revenue
constraints due to a challenging component supply situation.
Kitron’s revenue for the first quarter was NOK 1 429
million, compared to NOK 938 million last year. The revenue growth
reflects the acquisition of the Danish EMS provider BB Electronics
AS, which was consolidated effective 1 January. Adjusted for this,
organic revenue growth was 4 per cent. Demand is very strong, but
revenue growth was limited by ongoing component shortages.
Nevertheless, there was strong growth within the Connectivity
market sector, which partly reflects BB Electronics’ strong
position within this sector.
Profitability expressed as EBIT margin was 5.5 per cent in the
first quarter, compared to 7.0 per cent in the same quarter last
year. The EBIT margin in the quarter is mainly affected by revenue
delays and inefficiencies caused by the component situation, but
increased energy costs also have a negative effect.
The order backlog ended at NOK 4 222 million, an increase of 105
per cent compared to last year. This is a record and is impacted by
the acquisition of BB Electronics. However, even excluding BB
Electronics, the organic order backlog growth was 53 per cent. This
reflects a strong total demand situation but also includes revenue
delays due to the component shortages.
Peter Nilsson, Kitron’s CEO, comments: “Very strong demand and
the acquisition of BB Electronics led to record revenue and order
backlog in the first quarter, by a substantial margin. However, the
material supply situation continues to limit revenue growth and
cause operational inefficiencies. Given these challenges, I am
pleased that Kitron delivered a solid first quarter, and I remain
optimistic about the rest of 2022.”
First-quarter operating profit (EBIT) was NOK 78.1 million,
compared to 65.4 million last year. EBITDA was NOK 116.2 million,
compared to 90.2 million last year.
Profit after tax amounted to NOK 44.4 million, compared to 44.7
million in the same quarter the previous year. This corresponds to
earnings per share of NOK 0.23, down from 0.25 last year.
Ratios affected by constraints in supply chain Operating cash
flow was negative NOK 106.9 million, compared to positive NOK 78.3
million in the first quarter of 2021.
Net working capital was NOK 1 709 million, an increase of
65 per cent compared to the same quarter last year, partly
reflecting the acquisition of BB Electronics. Net working capital
as a percentage of revenue was 29.2 per cent compared to 27.9 per
cent last year. Capital efficiency ratios are heavily affected by
the supply situation, with material decommitments and new delivery
dates. The material constraints continue to be difficult. Our focus
going forward is on balancing demand with the constraints in
supply, executing demand into deliveries and improving cash
flow.
Outlook For 2022, Kitron expects revenue between NOK 5 200 and 5
800 million, including BB Electronics. Operating profit (EBIT) is
expected to be between NOK 330 and 430 million. Growth is driven by
the Electrification, Connectivity and Industry market sectors.
Currently, the growth is constrained by the material supply
situation.
Enclosed in PDF are the quarterly report and the presentation.
The interim report is presented today at 08:30 a.m. CEST. The
presentation will be given in English by CEO Peter Nilsson and CFO
Cathrin Nylander, and will be webcast at the following link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220427_5
For further information, please contact: Peter Nilsson,
President and CEO, tel. +47 94 84 08 50 Cathrin Nylander, CFO, tel.
+47 900 43 284 E-mail: investorrelations@kitron.com
About Kitron Kitron is a leading Scandinavian electronics
manufacturing services company for the Connectivity,
Electrification, Industry, Medical devices and Defence/Aerospace
sectors. The group is located in Norway, Sweden, Denmark,
Lithuania, Germany, Poland, the Czech Republic, China and the
United States. Included the acquisition of BB Electronics in
January 2022, Kitron has about 2 500 employees, and pro forma
revenues were about NOK 5 billion in 2021.
www.kitron.com
This information is subject to the disclosure requirements
pursuant to section 5 -12 of the Norwegian Securities Trading
Act.
- Kitron 2022 Q1 Report
- Kitron 2022 Q1 Presentation
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