Interim Report January–March 2019
Robust growth in net sales and strengthened EBIT margin
“I am very pleased to note that the first quarter of 2019 was strong. Net sales grew 47 percent at the same time as EBIT improved 107 percent and EBIT margin was strengthened by almost 11 percentage points. Assembly Solutions performed well and Pattern Generators’ strong figures were boosted by the deferral of a delivery of a Prexision system from the fourth quarter of 2018 to the first quarter of 2019,” says Lena Olving, President and CEO.
- Order intake increased 10 percent to SEK 721 (656) million
- Net sales increased 47 percent to SEK 1,105 (750) million and 37 percent based on constant exchange rates
- EBIT was SEK 406 (196) million, an increase of 107 percent. The EBIT margin was 37 (26) percent
- The underlying EBIT was SEK 420 (216) million, an increase of 95 percent. The underlying EBIT margin was 38 (29) percent
- Earnings per share amounted to SEK 3.20 (1.44)
The Board’s assessment remains that consolidated net sales for 2019 will be at a level of SEK 4 billion, excluding any acquisitions made in 2019.
Events after the end of the quarter
Prexision Lite 8 was launched on April 16, 2019, and targets the small and medium-sized segments in the market for photomasks for displays. Prexision Lite 8 is a complement to the more advanced Prexision 8 and broadens the range of mask writers to address the different needs of Mycronic’s customers.
After completing another record year, we can see that the trend in the first quarter of 2019 was also strong. We had a good start to 2019, with growth of 47 percent, a sharp improvement in EBIT margin and increased order intake. This is partly explained by a deferral in revenue recognition for a Prexision system from the fourth quarter of 2018 to the first quarter of 2019, as previously communicated in the third-quarter interim report and the year-end report.
Mycronic’s goal for the year is to reach net sales of SEK 4 billion, excluding any acquisitions. By providing our customers with the best and most efficient production solutions, we enable growth at the same time as we improve the ability of our customers to achieve flexible and profitable electronics production. At the APEX Expo in San Diego at the end of January, Mycronic introduced two new compact pick-and-place machine models, which offer highly flexible electronics production with speeds up to 100,000 components per hour. At the same time, we demonstrated a complete SMT line, intended for smart factories and optimized for maximum availability even in the toughest production environments.
The Assembly Solutions business area began the year by reporting an increase in order intake, net sales and EBIT compared with the first quarter of 2018. However, the gross margin deteriorated slightly due to a less favorable regional and product mix in addition to higher material costs, while the EBIT margin improved by just over 7 percentage points and remained positive.
Our Pattern Generators business area received no orders for new mask writers during the first quarter, which was also the case in the first quarter of 2018. Net sales grew 56 percent and EBIT margin strengthened by almost 10 percentage points to 69 percent. The launch of Prexision Lite 8 in April has further broadened the range of mask writers to address the different needs of Mycronic’s customers.
Our success in delivering attractive customer solutions, and thereby recording strong growth for the past five years, is largely thanks to Mycronic’s ability to innovate and courage to always be one step ahead. The long-term and focused work by talented and dedicated employees has strengthened the company in all respects. We therefore have a solid foundation for sustained profitable growth.
I am now presenting my final quarterly report, after almost six years as CEO, and would like to thank all employees and stakeholders for making my time at Mycronic into an exceptional journey. From May 16, I will continue to follow Mycronic with great interest as a shareholder and I am confident that Team Mycronic, under the leadership of incoming CEO Anders Lindqvist, will do its utmost to continue to deliver unique production solutions that facilitate the electronics production of the future for Mycronic’s customers.
Lena Olving, President and CEO
Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap, MYCR. The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication, through the contact persons stated below on April 25, 2019, at 8:00 a.m.
Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.
For further information, please contact
|Lena Olving||Torbjörn Wingårdh||Sven Chetkovich|
|President and CEO||CFO||Acting Director IR & Corporate Communications|
|+46 8 638 52 00||+46 8 638 52 00||+46 70 558 39 19|