HANZA interim report January - June 2020: A challenging period
Manufacturing strategist HANZA Holding AB (publ), listed on NASDAQ Stockholm, today publishes its interim report for January - June 2020. The company describes how the covid-19 outbreak has had a significant negative impact on the business through a rapid sales decline of approx. 10%. The company has therefore implemented an action program that charged the result with SEK 27.5 million during the second quarter. At the same time, HANZA notes that the pandemic has created new opportunities due to an increased need to revise supply chains. This is in line with HANZA’s offer of complete and regional manufacturing close to the customer.
SECOND QUARTER (April 1 – June 30)
- Net sales amounted to SEK 559.0 million (506.6)
- Operating profit before amortizations of intangible fixed assets (EBITA) amounted to SEK -12.6 million (19.3). Excluding the action program, EBITA amounts to SEK 14.9 million. EBIT amounted to SEK -16.1 million (17.1).
- Profit after tax amounted to SEK -19.6 million (8.1), which corresponds to SEK -0.58 per share (0.26).
- Cash flow from operating activities amounted to SEK 26.7 million (47.4).
FIRST SIX MONTHS (January 1 – June 30)
- Net sales amounted to SEK 1,158.1 million (1,004.3).
- Operating profit before amortizations of intangible fixed assets (EBITA) amounted to SEK 7.8 million (38.8). Excluding the action program, EBITA amounts to SEK 35.3 million. EBIT amounted to SEK 0.7 million (34.4).
- Profit after tax amounted to SEK -13.2 million (17.2), which corresponds to SEK -0.39 per share (0.56).
- Cash flow from operating activities amounted to SEK 94.3 million (84.0).
CEO Erik Stenfors comments on the report:
“The pandemic had a significant negative impact on sales and earnings during the second quarter of the year. Excluding costs for the action program, EBITDA during the second quarter amounted to approximately SEK 36 million (38).”
“The spring also impacted HANZA's opportunities in the long term – though in a positive direction. Product manufacturing through geographically scattered contract manufacturers has clear negative cost and environmental aspects. Covid-19 has also exposed the vulnerability in global supplier networks, which has led many product-owning companies to reconsider their manufacturing strategies. This creates new business opportunities for HANZA through our unique offer which includes changing and streamlining supply chains. During the spring, the amount of customer dialogues increased significantly.”
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The information in this press release is such that HANZA must disclose it in accordance with the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.45 am (CET), July 28, 2020. Important information This press release may contain certain forward-looking statements that reflect HANZA’s current views of future events and financial and operational performance. Words such as "intends", "anticipates", "expects", "may", "plan ", "anticipate" or similar expressions regarding indications or predictions of future developments or trends, and are not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties because it is dependent on future events and circumstances. Forward-looking statements are not guarantees regarding future results or developments and actual results may differ materially from those set forth in forward-looking information.
HANZA is a knowledge-based global manufacturer that modernizes and streamlines the manufacturing industry. Through supply-chain advisory services and our own factories grouped into regional manufacturing clusters, we offer secure deliveries, increased profitability and sustainable manufacturing solutions for our customers.
HANZA was founded in 2008 and in 2019 had sales exceeding SEK 2 billion. The company has production units in seven countries; Sweden, Finland, Germany, Estonia, Poland, the Czech Republic and China. Among our clients are leading product companies such as ABB, Epiroc, GE, Getinge, Oerlikon, Saab and Siemens.
HANZA is listed on Nasdaq Stockholm's main list (ticker: HANZA).
For more information please go to: www.hanza.com