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Scanfil Group’s Interim Report for 1 January – 31 March 2021: Brisk trend in demand continued from the end of 2020

Scanfil Oyj
·8-min read

SCANFIL PLC INTERIM REPORT 23 APRIL 2021 9.00 A.M.

Scanfil Group’s Interim Report for 1 January 31 March 2021: Brisk trend in demand continued from the end of 2020

January - March

  • Turnover totalled EUR 163.3 million (Q1 2020: 144.1), an increase of 13.4%

  • Operating profit EUR 10.0 (8.6) million, 6.1% (6.0%) of turnover, an increase of 15.5%

  • Net profit was EUR 7.6 (7.5) million

  • Earnings per share were EUR 0.12 (0.12)

  • Dividend of EUR 0.17 per share for year 2020 to be paid on May 3, an increase in dividend for 8th consecutive year

Future Outlook

Scanfil estimates that its turnover for 2021 will be EUR 600 – 640 million and its adjusted operating profit will be EUR 40 – 44 million.

The guidance for 2021 involves uncertainty arising from the potential negative impact of the availability of certain materials, especially semiconductors, and the COVID-19 pandemic on customer demand and the delivery capability of the component supply chain.

Long-Term Target

Scanfil’s long-term target: In 2023, Scanfil is organically aiming for EUR 700 million turnover and 7% operating profit.

Key Figures

Q1/2021

Q1/2020

Change%

2020

Turnover, EUR million

163.3

144.1

13.4 %

595.3

Operating Profit, EUR million

10.0

8.6

15.5 %

44.4

Operating Profit, Adjusted, EUR million

10.0

8.6

15.5 %

39.1

Operating Profit, %

6.1

6.0

7.5

Operating Profit, Adjusted, %

6.1

6.0

6.6

Net Profit, EUR million

7.6

7.5

1.3 %

36.9

Net Profit, Adjusted, EUR million

7.6

7.5

1.3 %

32.5

Earnings per Share, EUR

0.12

0.12

1.0 %

0.57

Earnings per Share, Adjusted, EUR

0.12

0.12

1.0 %

0.50

Return on Equity, %

16.3

17.9

21.1

Return on Equity, Adjusted, %

16.3

17.9

18.4

Equity Ratio, %

52.1

48.8

54.3

Net Gearing, %

5.9

25.0

9.9

Net Cash Flow from Operations, EUR million

7.7

5.9

30.5 %

35.2

Employees (Average)

3,225

3,522

-8.4 %

3,387

CEO Petteri Jokitalo
The turnover for the first quarter was EUR 163.3 million, an increase of 13% year-on-year. The customer demand recovery that had already started in the latter part of 2020 continued positively during the quarter. Demand for products related to sustainable energy, indoor climate, automation, collection solutions and elevators developed especially strongly. The trading business, which is now expected to be completed, was still contributing about EUR 8.1 million to sales during the quarter.

COVID-19 is not over yet, and we successfully continued the fight against it; the performance of our personnel and factories has remained high this year.

Although the availability of certain materials was critical, we did not suffer from any major material restrictions during the quarter. Continuous attention was paid and lot of actions taken to mitigate the risks and ensure the materials for production.

Profitability developed as expected. The operating profit for the quarter was EUR 10.0 million, 6.1% of turnover and an increase of 16% on the previous year. A strong sales volume, especially in March, supported profitability, especially in factories in China, Poland and Estonia. However, low profit trading sales and Hamburg production transfer with an ongoing factory ramp down required extra resources and costs, which negatively impacted the operating profit margin slightly.

Scanfil’s financial position is strong, allowing the planned investments and enabling flexibility for opportunities. In the first quarter, the net cash flow from operations, before investments and financial items, was EUR 7.7 (5.6) million. The equity ratio was 52.1%, and net gearing 5.9%.

We continue the year with confidence. We have seen customers’ forecasts gradually rising, bringing confidence in demand. Key risks are associated with the continuing coronavirus pandemic and the availability of certain materials. We have identified these risks and launched appropriate mitigation actions. We are keeping our guidance unchanged and expect our turnover for 2021 to be EUR 600 – 640 million and our operating profit to be EUR 40 – 44 million.

We’ve had a good start to the year! I want to thank our committed personnel for a job well done, and our customers for their support and trust.

Financial Development

The Group’s turnover for January – March was EUR 163.3 (144.1) million, an increase of 13.4% compared to the previous year. Turnover by customer segment developed as follows:

Advanced Consumer Applications segments turnover increased compared to the previous year by EUR 11.7 million (37.7%). The key drivers behind the strong growth were new customers’ ramp-ups, good demand in elevator products and hand-over solutions.

Automation & Safety segments turnover decreased compared to the previous year by EUR 3.4 million (-8.9 %). However the turnover has been growing steadily since the third quarter of 2020. This increase came broadly from the segment’s customers.

Connectivity segments turnover increased compared to the previous year by EUR 0.7 million (9.2%). This sale growth came broadly from the segment’s customers.
Energy & Cleantech segments turnover increased compared to the previous year by EUR 5.9 million (17.1%). The key drivers behind the strong growth were good demand in reverse vending machines, energy systems and indoor climate control systems.

Medtech & Life Science segments turnover increased compared to the previous year by EUR 2.1 million (7.8%). The turnover has developed steadily since the second quarter of 2020.

The Group’s operating profit for January – March was EUR 10.0 (8.6) million, 6.1% (6.0%) of turnover. The increase in operating profit is mainly due to higher net sales. The net profit for the review period was EUR 7.6 (7.5) million. Earnings per share for the review period were EUR 0.12 (0.12). Return on investment was 17.5% (17.8%).

The Group’s effective tax rate was 18.2% (14.1%).

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Interim Report 1 January – 31 March 2021 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.scanfil.com.

Webcast Q1 results
A results conference, conducted in Finnish, will be held at 10:00 am as a webcast. You can register and join the webcast at https://scanfil.videosync.fi/2021-q1-tulos/register. Prior to the conference, the presentation material will be made available in English in here.

SCANFIL PLC

Petteri Jokitalo
CEO

Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111

Scanfil is an international manufacturing partner and system supplier for the electronics industry with 40 years of experience in demanding manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.

Typical Scanfil products are modules or integrated products for e.g. self-service application, automation systems, wireless connectivity modules, climate control systems, collection and shorting systems, analysers and environmental measurement solutions. Scanfil services are used by numerous international automation, safety, energy, cleantech, connectivity and health service providers, as well as companies operating in the field of urbanisation. Scanfil’s network of factories consists of 10 production units in Europe, Asia and North America.

Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this stock exchange release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil plc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this stock exchange release, such statements use such words as "may," "will," "expect," "anticipate," "project," "believe," "plan" and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil plc to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this stock exchange release is current only as of the date of this stock exchange release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise

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