Interim Report Jan- Sept 2018

Report this content

Stockholm 16 November 2018


 >      Net sales increased 23 per cent to SEK 420.1 million (342.7). In USD, net sales increased 12 per cent.

 >      Order intake increased 21 per cent to SEK 411.2 million (340.7). In USD, order intake increased 9 per cent.

 >      EBITA was SEK 42.2 million (0.9), representing an EBITA margin of 10.1 per cent (0.2).

 >      Adjusted* EBITA was SEK 42.2 million (30.9), representing an adjusted* EBITA margin of 10.1 per cent (9.0).

 >      Operating profit was SEK 41.0 million (0.1). Operating margin was 10 per cent (0.0).

 >      Profit after tax amounted to SEK 32.5 million (-11.0).

 >      Earnings per share was SEK 1.93 (-0.79) before dilution and SEK 1.93 (-0.79) after dilution**.


 >      Net sales increased 13 per cent to SEK 1,210.3 million (1,072.8). In USD, net sales increased 14 per cent.

 >      Order intake increased 9 per cent to SEK 1,189.8 million (1,086.9). In USD, order intake increased 10 per cent.

 >      EBITA was SEK 96.2 million (71.4), representing an EBITA margin of 7.9 per cent (6.7).

 >      Adjusted* EBITA was SEK 107.7 million (101.4), representing an adjusted* EBITA margin of 8.9 per cent (9.4).

 >      Operating profit was SEK 92.7 million (68.3). Operating margin was 7.7 per cent (6.4).

 >      Profit after tax amounted to SEK 69.9 million (50.6).

 >      Earnings per share was SEK 4.28 (3.17) before dilution and SEK 4.16 (3.12) after dilution**.


 >      On 24 September, the US imposed import tariffs of 10 per cent, which included PCBs.

 >      In August, a decision was taken to establish a company in Malaysia, and the recruitment of a local Managing Director is in progress.

 >      A new office was opened in August near Stuttgart in Germany.

2018  2017  %  2018  2017  %   LTM***  2017 
Order intake, SEK million  411.2  340.7 21 1,189.8 1,086.9 9  1,612.1  1,509.2
Order intake, USD million 45.9  41.9  9 138.6 126.0 10  189.4  176.8
Net sales, SEK million  420.1  342.7  23 1,210.3 1,072.8 13 1,537.6  1,400.1
Net sales, USD million 46.7  41.7  12 141.0 124.2 14  180.8 164.0
Gross margin, %  31.4  30.9  30.8 30.3 30.6  30.2
EBITA, SEK million 42.2  0.9  96.2 71.4 35  95.0  70.2
EBITA margin, % 10.1  0.2  7.9 6.7 6.2  5.0
Adjusted* EBITA, SEK million  42.2  30.9  37 107.7 101.4 6  120.0  113.7
Adjusted* EBITA margin, %  10.1  9.0  8.9 9.4 7.8  8.1
Operating profit, SEK million  41.0  0.1  92.7 68.3 36  90.0  65.6
Profit/loss after tax, SEK million  32.5  -11.0  69.9 50.6 38  59.7  40.4
Earnings per share before dilution**, SEK 1.93  -0.79  4.28 3.17 34  3.56  2.42
Earnings per share after dilution**, SEK 1.93  -0.79  4.16 3.12 33  3.47  2.38
Cash flow from operating activities, SEK million 38.4 14.3 268 28.9 25.3 14 41.1 37.4
Return on equity, % 32.0  30.3
Average exchange rate, SEK/USD 8.95  8.14  8.58 8.61 8.51 8.54
Average exchange rate, SEK/EUR 10.41  9.56  10.23 9.58 10.13 9.63

* Adjusted for non-recurring items of SEK 11.6 million in the January–September 2018 period, SEK 25.1 million for the last twelve months and SEK 43.5 million for the full year 2017. The adjustments refer to costs for the IPO and final settlement costs related to the agreement with the Russian tax authority.

** The Annual General Meeting on 14 March 2018 resolved to approve a 10:1 stock split. Earnings per share have been calculated retrospectively based on the total number of shares after the stock split for each period.

*** LTM = last twelve months

This is information that NCAB Group AB is obligated to disclose pursuant to the EU Market Abuse Regulation and the Swedish Security Markets Act.

The information was issued for publication through the agency of the contact person set out below, on 16 November 2018 at 06:00 CET. 


Strong tailwind for NCAB during the third quarter 

This is our second quarterly report as a listed company and I am pleased to report a strong result again. Plenty has gone our way in the third quarter: we noted continued strong demand in all regions and positive growth in all countries in which we operate. In Italy, which is a new market for us, the number of customers is increasing and growth is robust.

We are also strengthening our presence in Asia with a venture in Malaysia, where NCAB is now establishing operations and recruiting staff. Malaysia is a growth market with extensive existing PCB-A manufacturing and a growing local demand for PCBs. This offers a favourable position for a company such as NCAB.

We are also continuing to gain market share. For example, we have enjoyed considerable success with a major international customer that has manufacturing units in several countries in which we operate. At the same time, we must point out that we had a positive tailwind from the USD during the third quarter. Sales in the quarter increased with 23 per cent in SEK and 12 per cent in USD.

Utilisation levels in our factories are good though with some unutilised capacity, at the same time as capacity is being expanded with investments in new factories, which is positive for us as it gives us new available capacity at good terms. 

We also reported a substantially improved EBITA, in the third quarter compared with the corresponding period last year, which is an effect of our investments into new markets now yielding increased sales.

During the period, the US imposed import tariffs of 10 per cent on items including PCBs. These tariffs are invoiced separately to all our US customers. The extra 10 per cent has not had a significant impact on our business – though the US has declared they will raise the tariff to 25 per cent from 1 January 2019. It is difficult to speculate what the implications of this may be, but it could be both positive and negative for NCAB.

I also would like to remind our followers that the fourth quarter is a seasonally weaker period regarding sales. Our order intake also shows signs of a somewhat lower growth rate. We do, however, have several exciting projects ongoing which makes us confident about our future.

Hans Ståhl 

President and CEO, NCAB Group AB 

For further information, please contact:

Gunilla Öhman, IR Manager

Telephone: +46 707 63 81 25


About NCAB

NCAB was listed at NASDAQ Stockholm, small cap on 5 June 5 2018.

NCAB is a leading supplier of printed circuit boards, taking full supplier responsibility towards its customers and with local factory presence. NCAB was founded in 1993 as a printed circuit boards trading company. Since the Company was founded, the operations have been characterized by an entrepreneurial and costefficient culture and have over time showed strong growth and good profitability.

NCAB has local presence in 15 countries and customers in approximately 45 countries worldwide. From the financial year 2008-2017, revenues have grown from SEK 374 million to SEK 1,400 million, corresponding to a compound annual growth rate of 16 percent. The increase in revenues has been driven both organically and through acquisitions. Organic growth and acquisitions are part of NCAB’s growth strategy and during the aforementioned period, four companies were acquired and integrated.

Documents & Links