KISTA, SWEDEN – NOTE reported fourth quarter sales increased 22% to SEK 483 million (US$50.5 million), up 21.7% year-over-year.

Profit after tax increased to SEK 26 million, an increase of 8.3% compared to the same quarter in 2018. Operating profit was up 27% to SEK 35 million.

For full-year 2019, sales increased 28% to SEK 1.76 billion.

Profit after tax increased 44% to SEK 92 million compared to 2018. Operating profit was up 48% to SEK 124 million.

“2019 was a record year for NOTE, with strong growth, increased profitability and exceptionally strong cash flow in the fourth quarter,” said CEO Johannes Lind-Widestam. “In 2019, we increased sales by 28% to the new record level of SEK 1.76 billion. Organically, growth was 17%. In the fourth quarter, sales growth was 22%, of which organic growth was as much as 20%. We still see high demand in all home markets, and the order backlog was 25% higher than last year.

“On the profitability side, we also reached a new record level of SEK 124 million in operating profit, an increase of 37% compared to the previous year (adjusted for non-recurring costs in 2018). Calculated in the same way, the operating margin increased by 0.5 percentage points to 7.1%, which in both cases are our highest levels ever.

“During the second half of the year, we have reduced our inventory, so it is now in 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, which corresponds to SEK 2.60 (-2.63) per share.

“Our market outlook is now much more positive than after the third quarter, and our view is demand today is stronger. The order backlog continues to grow at the rate we expected, and our overall picture is the conditions for continued strong growth are very good.”

Ed.: SEK 1 = US$0.10

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