LEAX Interim Financial Report Q3 2023

Quarterly results lower but strategic momentum continues

The third quarter in summary

•                           Net Sales increased to SEK 457.9 million (445.9)

•                           Operating profit decreased to SEK -12.6 million (-5.7)

•                           Earnings before tax (EBT) decreased to SEK -30.3 million (-12.5)

•                           Net income for the period decreased to SEK -33.1 million (-16.4)

•                           Cash flow from operating activities amounted to SEK 20.1 million (17.2)

The first nine months in summary

•                           Net Sales increased to SEK 1,605.2 million (1,422.4)

•                           Operating profit increased to SEK 39.7 million (13.2)

•                           Earnings before tax (EBT) increased to SEK 13.1 million (0.8)

•                           Net income for the period increased to SEK 4.0 million (-5.1)

•                           Cash flow from operating activities amounted to SEK 123.0 million (84.4)

Comments from the Group President and CEO, Tony Nicol;

In Q3 2023, LEAX continued to execute well on its strategic initiatives. Net sales for the third quarter amounted to SEK 457.9 million (445.9) which is an increase of 2.7% compared to the same period last year. The increase is derived from pricing but offset by somewhat weaker production volumes.

In the third quarter Operating profit decreased to SEK -12.6 million (-5.7) compared to same period last year. The decrease was driven by weaker production volumes and unfavourable product mix. During the quarter we have experienced a significant drop in orders for our largest Battery Electric Vehicle passenger car program. Higher interest rates have contributed to the slowing of sales and specifically those of BEVs which are generally more expensive than their combustion engine counterparts.

Operating profit for the first nine months amounted to SEK 39.7 million (13.2) which is an increase of 200.8% compared to same period last year. Our overall performance for the first nine months has improved through growth in key markets, lower volatility, and cost recovery activities. Challenges remain on project delays and costs that have been higher than projected throughout the period.

Although we still see fluctuations in customer end market demand, the return to more normalized order patterns has allowed greater attention on our strategic initiatives. Business activity including new customer inquiries remains high. We continue to win new business in all the markets we serve. Our push towards higher engineering content in our products and services remains in focus.

We have also strengthened our executive management team by appointing a new EVP/CFO and a VP Procurement. These executive appointments are designed to bring clarity and speed to our decision-making process and to improve communication and accountability throughout our entire organisation.

Contact

Tony Nicol, Group President and CEO 
Telephone: +44 (0)755 728 67 67
E-mail: tony.nicol@leax.com
 

About LEAX

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 designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 1.9 billion in 2022.