Circuits Assembly Online Magazine - Note Hits Q2 Sales High on Acquisitions and Continued Demand

STOCKHOLM -- Note reported second quarter sales increased 40% to SEK898 million ($84.8 million), a record period for sales for the EMS company.

Growth was 24% after adjustments for acquisitions and currency effects.

Operating profit rose 39% to SEK83 million. Operating margin was 9.3%, flat with last year.

The profit after one-time items was up 22% to SEK72 million. Profit after tax increased 24% to SEK59 million.

Cash flow after investments was SEK-4 million, due to negative effects of continued challenges for electronic components.

“We are growing in all domestic markets and in all customer segments," said Johannes Lind-Widestam, CEO and president, Note. "In terms of results, our positive trend continued. During the first half of the year, operating profit increased by 60% to SEK 159 million and the operating margin was strengthened by 0.6 percentage points to 9.3%. The operating margin for Q2 was at the same level as Q1 and was negatively affected by about one percentage point due to the large fluctuations in the foreign exchange market. The underlying profitability was thus in line with our expectations. Shortly after the midpoint of the year, we completed an expansive acquisition of Swedish Dynamic Precision Solutions. The company is developing strongly and is expected to have sales of just over SEK140 million for full year 2022 with an operating margin in line with Note's. The business is operating in rented premises of just over 5,000 m², which significantly increases production capacity in Sweden, NOTE's largest domestic market.

"We expect a continued strong market development and are well in line with our goal of reaching sales of SEK5 billion by 2025 at the latest. Our order situation is fantastic and we expect sales of at least SEK3.6 billion for the full year 2022, corresponding to a growth for the full year of 35%. For the second half of the year, this corresponds to a growth of 25%. We continue to look forward to increased operating profit and a stronger operating margin."

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