LEAX Interim Financial Report Q4 2022 and Full Year 2022

Continued Growth with Lingering Challenges

The fourth quarter in summary

• Net Sales increased to SEK 501.0 million (442.7)
• Operating profit decreased to SEK -10.9 million (4.8)
• Earnings before tax (EBT) decreased to SEK -17.9 million (-7.2)
• Net income for the period decreased to SEK -67.2 million (2.8)
• Cash flow from operating activities amounted to SEK 32.5 million (106.5)

The full year in summary

• Net Sales increased to SEK 1,923.5 million (1,745.1)
• Operating profit decreased to SEK 2.3 million (58.8)
• Earnings before tax (EBT) decreased to SEK -17.1 million (15.2)
• Net income for the period decreased to SEK -72.3 million (21.1)
• Cash flow from operating activities amounted to SEK 116.8 million (137.2)

Comments from the Group President and CEO, Tony Nicol;

In 2022 LEAX delivered strong growth with revenue up 10% over 2021 with business wins mainly in General Industry and Mining & Construction, but also due to pricing adjusted for inflation.  

Operating profit for 2022 decreased to SEK 2.3 million (58.8) driven by zero lead time order delays at key heavy commercial vehicles and passenger car customers. Inflationary costs and the delayed timing of cost recovery also had an impact. Group profitability was directly affected by lower production volume for passenger cars where the China Covid policy forced a significant customer to shut for several weeks.

Inflationary costs have impacted our result in the fourth quarter, but this remains a timing effect as we continue to use contractual mechanisms and negotiation to recover these costs.

During the fourth quarter LEAX has reorganised its entities to better reflect its operating environment. This resulted in a dissolution of deferred taxes on group level which affected net income for the full year and fourth quarter with a one-time increase in income taxes.

Our business outlook remains difficult to forecast with the macroeconomic uncertainty that has become the norm in the global economy. The instability of the global supply chain has been in many ways unprecedented and the fallout from higher input costs including energy will continue to disrupt our industry. Despite this uncertainty we see continued sales growth and a clear path toward improving our profitability. Our capital expenditures in the range of SEK 100 million in 2022 continue to reflect the confidence our Board has in our ability to execute our strategy of providing sustainable value for all LEAX stakeholders. 

I would like to acknowledge our team and business partners for their commitment, professionalism and effort throughout a year that presented multiple challenges. Despite these challenges we have continued to develop people, process, and drive performance. In 2022 we have strengthened our equity highlighted by the SEK 300 million that AMF entrusted in LEAX. Our commitment to exceed our customers’ expectations was rewarded by winning two supplier of the year awards and being rewarded with a strengthened business pipeline.

Our vision of being a leader within our industry remains in our line of sight. We believe that solid execution with increased agility and flexibility is the key to future success in managing the conditions that we face.

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.