Interim Financial Report January – June 2021
Continued strong demand with solid performance
Demand for LEAX products and services remained strong in the second quarter of 2021 despite stressed global supply chains causing interruptions in our customer schedules. Net sales for the second quarter amounted to SEK 466.2 million (279.4), which is an increase of 66.9% compared to last year. The increase in net sales is explained by market recovery from last year’s Covid-19 effects, higher deliveries within our key Automotive and Commercial Vehicle programs and good demand from customers in other end markets. Solid financial performance is highlighted by achieving an Adjusted EBITDA for the second quarter of SEK 55.8 million or 12% and is driven by a strong order book, flexibility of our production facilities, and discipline around cost management.
In parallel to the daily challenges of managing supply chain disruptions and short notice customer stoppages, LEAX remained focussed on long term profitable growth and our Environmental, Social and Governance targets. After the close of the second quarter, LEAX announced that we are committing to the Science Based Targets Initiative. Over the next 18 months we will establish targets and the associated roadmaps to enable us to achieve our goals as part of this accord.
To support our long-term growth, it was announced in January that LEAX would sell our, non-core, Calibration services to Element Metech. Whilst not a material transaction the exit of the calibration services has paved the way for our global Gear Technology Team to occupy the space that calibration services has vacated at Global HQ in Köping, Sweden. This move supports the increased demand from our customers on speed and accuracy within their product development cycle.
Short-term order boards remain healthy across all sectors, but we are prepared for and will react accordingly to the continuation and volatility within the supply chain.
Summary of the second quarter of 2021
- Net Sales amounted to SEK 466,2 million (279,4)
- Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 55,8 million (-1,1)
- Earnings before tax (EBT) increased to SEK 16,7 million (-42,8)
- Profit margin before tax (EBT%) amounted to 3,6% (-15,3%)
- Cash flow from operating activities decreased to SEK 27,3 million (44,3)
- Net income for the period increased to SEK 17,0 million (-42,5)
This disclosure contains information that LEAX Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 26-08-2021 08:30 CET.
Tony Nicol, Group President and CEO
Telephone: +44 (0)755 728 67 67
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The Group is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger car industry, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group had a turnover of SEK 1,5 billion in 2020.