Year-end Report 2018
OCTOBER–DECEMBER 2018
> Net sales increased by 24 per cent to SEK 406.7 million (327.3). In USD, net sales increased 14 per cent.
> Order intake increased 12 per cent to SEK 474.7 million (422.3). In USD, order intake increased 4 per cent.
> EBITA was SEK 36.0 million (-1.1), representing an EBITA margin of 8.9 per cent (-0.3).
> Adjusted* EBITA was SEK 36.0 million (12.4), representing an adjusted* EBITA margin of 8.9 per cent (3.8).
> Operating profit was SEK 34.9 million (-2.7). Operating margin was 9.0 per cent (-0.8).
> Profit after tax amounted to SEK 34.7 million (-10.2).
> Earnings per share was SEK 2.06 (-0.74) before dilution and SEK 2.06 (-0.74) after dilution**.
FULL-YEAR 2018
> Net sales increased 15 per cent to SEK 1,617.0 million (1,400.1). In USD, net sales increased 14 per cent.
> Order intake increased 10 per cent to SEK 1,664.5 million (1,509.2). In USD, order intake increased 8 per cent.
> EBITA was SEK 132.2 million (70.2), representing an EBITA margin of 8.2 per cent (5.0).
> Adjusted* EBITA was SEK 143.8 million (113.7), representing an adjusted* EBITA margin of 8.9 per cent (8.1).
> Operating profit was SEK 127.6 million (65.6). Operating margin was 7.9 per cent (4.7).
> Earnings after tax was SEK 104.6 million (40.4).
> Earnings per share was SEK 6.37 (2.42) before dilution and SEK 6.24 (2.38) after dilution**.
> The Board of Directors proposes a dividend for the 2018 financial year of SEK 4,50 per share.
SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER
> NCAB established a new subsidiary in Malaysia in December 2018.
> In November 2018, a decision was taken to set up a company in the Netherlands. The recruitment of a Managing Director is in progress.
> In February 2019, an agreement was signed to acquire 100 per cent of the shares in Multiprint A/S in Denmark.
| KEY PERFORMANCE INDICATORS | Oct–Dec | Jan–Dec | ||||
| 2018 | 2017 | % | 2018 | 2017 | % | |
| Order intake, SEK million | 474.7 | 422.3 | 12 | 1,664.5 | 1,509.2 | 10 |
| Order intake, USD million | 52.5 | 50.7 | 4 | 191.1 | 176.8 | 8 |
| Net sales, SEK million | 406.7 | 327.3 | 24 | 1,617.0 | 1,400.1 | 15 |
| Net sales, USD million | 45.1 | 39.6 | 14 | 186.0 | 163.8 | 14 |
| Gross margin, % | 32.7 | 29.7 | 31.3 | 30.2 | ||
| EBITA, SEK million | 36.0 | -1.1 | 132.2 | 70.2 | 88 | |
| EBITA margin, % | 8.9 | -0.4 | 8.2 | 5.0 | ||
| Adjusted* EBITA, SEK million | 36.0 | 12.4 | 192 | 143.8 | 113.7 | 26 |
| Adjusted* EBITA margin, % | 8.9 | 3.8 | 8.9 | 8.1 | ||
| Operating profit/loss, SEK million | 34.9 | -2.7 | 127.6 | 65.6 | 94 | |
| Profit/loss after tax, SEK million | 34.7 | -10.2 | 104.6 | 40.4 | 159 | |
| Earnings per share before dilution**, SEK | 2.06 | -0.74 | 6.37 | 2.42 | 156 | |
| Earnings per share after dilution**, SEK | 2.06 | -0.74 | 6.24 | 2.38 | 155 | |
| Cash flow from operating activities, SEK million | 41.0 | 12.2 | 237 | 69.9 | 37.4 | 87 |
| Return on equity, % | 51.9 | 30.3 | ||||
| Average exchange rate, SEK/USD | 9.04 | 8.32 | 8.57 | 8.61 | ||
| Average exchange rate, SEK/EUR | 10.33 | 9.80 | 10.26 | 9.63 | ||
* Adjusted for non-recurring items of SEK 11.6 million in the January–December 2018 period and SEK 43.5 million for the full-year 2017, of which SEK 13.5 million is related to fourth quarter 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 shares after the stock split for each period
MESSAGE FROM THE CEO
Proud to present NCAB’s fourth quarter 2018
Normally, NCAB’s fourth quarter is the weakest quarter of the year. However, during this quarter 2018 net sales grew 24 per cent in SEK. Net sales increased 14 per cent in USD and three of four regions reported double-digit growth. Our EBITA was also much stronger than last year and margins improved. Order intake in USD grew slightly slower for the quarter than the average for the year, but our business continues to develop positively, and we still see no indication of a slowdown.
The initiatives we have undertaken in new markets in Europe continue to support our growth. In the Nordic region, we noted a high level of profitability and also clear sales growth. In Asia, demand continued to rise sharply while conditions in the USA were more difficult.
The 10 per cent tariffs introduced on imports from China may have impacted sales slightly, even if it was positive that the increase to 25 per cent has not materialized so far. Manufacturing in China remains the best alternative. The import tariffs entailed some turbulence in the market, although it is still too early to assess the implications.
I am pleased that we have continued to expand and establish operations in several new markets. As previously announced, we launched a company in Malaysia to which we are continuing to recruit personnel. Malaysia is an interesting market with substantial PCB-A production and growing demand for printed circuit boards. We are also launching operations in the Netherlands and setting up an organisation for the Benelux region. Our experience from entering new markets is that we need to invest a couple of years before we start to make profit.
We also recently announced that we are acquiring a Danish company, Multiprint, which is very exciting. We are pleased to welcome the new employees and annual sales of just over SEK 60 million to NCAB. Multiprint represents a first-rate and profitable company that will further strengthen our position in the Nordic region.
Overall, we are pleased to present another strong quarter that concludes our first year as a listed company. I would like to take this opportunity to thank all of our committed and competent employees for their contributions over the past year!
Hans Ståhl
President and CEO, NCAB Group AB
This is information that NCAB Group AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication on 22 February 2019, at 06:00 a.m. CET.
For further information, please contact:
Gunilla Öhman, IR Manager
Telephone: +46 707 63 81 25
E-mail: gunilla.ohman@ncabgroup.com
About NCAB
NCAB is a worldwide leading supplier of printed circuit boards, listed on NASDAQ Stockholm.
NCAB is offering PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost. NCAB was founded in 1993. Since its foundation, the operations have been characterized by an entrepreneurial and cost efficient culture and have over time showed strong growth and good profitability.
Today, NCAB has local presence in 17 countries in Europe, Asia and North America and customers in approximately 45 countries worldwide. Revenues in 2018 amounted to SEK 1 617 million. Organic growth and acquisitions are part of NCAB’s strategy. For more information about NCAB Group please visit us at www.ncabgroup.com.