LEAX Interim Financial Report Q4 and Full Year 2021
Good underlying end market demand but supply chain issues persist
Summary of the fourth quarter of 2021
- Net Sales amounted to SEK 442.7 million (463.3)
- Adjusted EBITDA amounted to SEK 39.7 million (58.6)
- Earnings before tax (EBT) improved to SEK -7.2 million (-13.4)
- Cash flow from operations increased to SEK 94.6 million (26.1)
- Net income for the period improved to SEK 2.8 million (-4.8)
- Earnings per share amounted to SEK 0.19 (-0.38)
Summary of the full year of 2021
- Net Sales amounted to SEK 1,745.1 million (1,462.9)
- Adjusted EBITDA amounted to SEK 182.8 million (122.3)
- Earnings before tax (EBT) improved to SEK 15.2 million (-55.0)
- Cash flow from operations improved to SEK 50.6 million (-40.1)
- Net income for the period improved to SEK 21.1 million (-40.5)
- Earnings per share amounted to SEK 1.58 (-3.23)
- The Board proposes a dividend for fiscal year 2021 of SEK 0 (0) per share
Comments from Group President and CEO, Tony Nicol:
Good underlying end market demand but supply chain issues persist
Year 2021 has seen LEAX end markets fully recovered from the Covid effects of 2020, which can be easily seen in our year-over-year revenue and profitability improvement. However, supply chain challenges affecting our largest customers have increased during the fourth quarter and therefore the underlying demand for the company’s products and services is not fully reflected in our numbers.
Semiconductor shortages have caused several production stoppages at key customers during the fourth quarter and led to lower sales primarily in commercial vehicle and automotive markets. Net sales in the fourth quarter of 2021 amounted to SEK 442.7 million (463.3) slightly below the fourth quarter of 2020 despite the strong underlying demand for our products.
The nature of these stoppages, with short or no notice, continues to be a challenge and we remain focused on production flexibility and cost management. Even with these headwinds we have managed to deliver a full year Operating profit of SEK 58.8 million (25.6), a significant improvement compared to 2020.
From a strategic perspective 2021 has proven to be a great success for the company. We continue to execute on diversifying our customer base and we have focused on providing higher value to our customers through continued investments in our engineering capabilities. This has resulted in a more balanced end market and product mix and earnings improvement.
Short-term demand remains strong in all LEAX end markets, but we expect a continuation of supply chain volatility.
This disclosure contains information that LEAX Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 01-02-2022 08:30 CET.
Contact
Tony Nicol, Group President and CEO
Telephone: +44 (0)755 728 67 67
E-mail: tony.nicol@leax.com
Roger Berggren, Chairman of the Board
Phone: +46 (0)70 655 99 71
Mail: roger.berggren@leax.com
Ulrika Hellberg, CFO
Phone: +46 (0)72 500 87 33
Mail: ulrika.hellberg@leax.com
About LEAX
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 200 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 1.7 billion in 2021.