HELSINKI – Incap's fourth quarter revenue of EUR42.4 million ($45.9 million) marked a 46% decrease from the same quarter of 2022.

The company said the decrease in revenue came from high levels of inventory with its largest customer. For the full year, its revenue of EUR221.6 million ($239.6 million) represented a year-on-year decrease of 16%. 

"Overall, 2023 was a good year for the electronics contract manufacturing market, although increased inventory levels were a common problem that slowed down market development and maintained price pressure," said president and CEO Otto Pukk. "In early 2023, also Incap’s largest customer announced that their stock level had become too high and that they had to reduce their orders, leading to a decrease in our revenue.

"Our close co-operation with them to reduce their inventory levels continued in the fourth quarter of the year, and as previously estimated, we saw the full impact of the decreased volumes during the final months of the year. At the same time, we managed to keep our own inventories on a healthy level. Although the destocking exercise will still affect the first half of 2024, we believe that our operations will slowly start to grow from here on, and we have already started to gradually increase the number of employees in our factory in India."

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