KISTA, SWEDEN – Note reported first quarter sales increased 17% year-over-year to SEK 475 million (US$47.4 million).

Profit after tax improved 11% to SEK 22 million, and operating profit was up 24% to SEK 33 million.

“During the first quarter, we increased sales by 17% to the new record level of SEK 475 million,” said president and CEO Johannes Lind-Widestam. “The growth was fully organic. Sales were adversely affected by approximately SEK 20 million (5%) of our extended production shutdown in China and disruptions in the supply of electronics components, both directly attributable to the spread of the coronavirus. Our underlying growth was thus just over 20%.

“Profit-wise we continued our positive trend. Operating profit increased by 24% to SEK 33 million, and the operating margin expanding by 0.4 percentage points to 7%, our highest level ever for the first quarter. The development was particularly strong in Sweden, Finland and Estonia.

“A positive earnings trend combined with streamlining in the working capital area contributed to a strong cash flow. Note is financially well equipped with an equity ratio of 41% and with very good liquidity.

“The order backlog continued to grow at the rate we expected and was 22% above last year's level. With the current relatively good supply of electronics components and given our strong order situation with many new projects in the ramp-up phase, there are good opportunities that sales in the second quarter will amount to about SEK 500 million, which corresponds to growth clearly exceeding 10%. However, we follow the future development of the corona situation and its impact on Note, our customers and suppliers carefully and with great humility.”

Ed.: SEK 1 = US$0.10

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