Nolato Q1 2019: Continued strong performance from Medical Solutions

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Nolato AB has today published its interim report for the first three months of 2019.

  • Sales totalled SEK 1,656 million (2,039)
  • Operating profit (EBITA) amounted to SEK 175 million (SEK 264 million incl. non-recurring items of SEK 20 million)
  • EBITA margin of 10.6% (12.0% excl. non-recurring items)
  • Profit after tax was SEK 131 million (206)
  • Basic earnings per share totalled SEK 4.98 (7.83)
  • Cash flow after investments amounted to SEK 25 million (187)
  • Sustained strong financial position

Medical Solutions sales rose to SEK 611 million (532). Adjusted for currency, sales increased by a strong 9%. Operating profit (EBITA) rose to SEK 78 million (69). The EBITA margin was 12.8% (13.0).

“Sales increased in both Medical Devices and Pharma Packaging, and most product areas experienced positive growth,” commented Nolato President and CEO Christer Wahlquist.

Integrated Solutions sales amounted to SEK 512 million (939); adjusted for currency, this was a decrease of 51%. Operating profit (EBITA) decreased to SEK 57 million (120). The EBITA margin was 11.1% (12.8).

“As announced, Vaporiser Heating Products (VHP) continued to be negatively affected during the quarter by inventory adjustments,” noted Christer Wahlquist. “We’re seeing signs that the inventory situation has normalised and that second-quarter performance will be better than previously guided. We therefore assess that sales will exceed the level achieved in the fourth quarter of 2018.”

Industrial Solutions sales were SEK 533 million (568); adjusted for currency and Group structure, the decrease was 6%. Operating profit (EBITA) decreased to SEK 44 million (57) and the EBITA margin to 8.3% (10.0).

“Inventory adjustments for a customer in the hygiene area have had a temporary negative effect,” said Christer Wahlquist. “Furthermore, restructuring of production equipment at a customer in the automotive segment has meant lower volumes in the quarter. These disruptions have also impacted the start of the second quarter.”

Nolato retains a healthy financial position, with an equity/assets ratio of 49% (47) and net financial assets of SEK 373 million (229).

For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705 804848
Per-Ola Holmström, CFO, +46 (0)705 763340

Nolato is a Swedish group with operations in Europe, Asia and North America. We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors. Nolato’s shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.

This information is information that Nolato AB is obliged to publish pursuant to the EU Market Abuse Regulation. This information is submitted through the agency of the above contact persons for publication on 8 May 2019 at 1.30 pm CET.