Nolato Q3 2020: Good performance and growth by all business areas
- Sales increased to SEK 2,500 million (1,980)
- Operating profit (EBITA) rose to SEK 304 million (238) excl. a non-recurring item of SEK −17 million
- EBITA margin of 12.2% (12.0) excl. a non-recurring item
- Profit after tax was SEK 211 million (186)
- Diluted earnings per share increased to SEK 7.90 (7.01)
- Cash flow after investments excl. acquisitions was SEK 82 million (−4)
- The acquisition of GW Plastics Inc. is consolidated from 1 September
“All three of our business areas performed well and achieved growth in the third quarter,” noted Nolato President and CEO Christer Wahlquist. “On 1 September we completed the acquisition of GW Plastics, our largest acquisition to date. This considerably strengthens our position on the North American market and provides us with a solid position on the three most important continents for us; Asia, Europe and North America.”
Medical Solutions sales totaled SEK 796 million (612); adjusted for currency and acquisitions, sales grew by a strong 12%. Acquisitions contributed SEK 127 million. Operating profit (EBITA) increased to SEK 103 million (80) and the EBITA margin was 12.9% (13.1).
“Growth in production volumes was strong, primarily in segments that have seen increased demand as a result of the pandemic, including diagnostics,” noted Christer Wahlquist.
Integrated Solutions sales increased sharply to SEK 1,158 million (862), driven by sustained high volumes in Vaporiser Heating Products (VHP). Adjusted for currency and acquisitions, sales rose by an exceptional 40%. Operating profit (EBITA) increased to SEK 160 million (116) and the EBITA margin to a very strong 13.8% (13.5).
“VHP volumes have demonstrated good growth in 2020, but they have historically fluctuated between quarters. VHP volumes are expected to decrease in the fourth quarter. We have made cost reductions jointly with the customer throughout the supply chain, which also affects our sales going forward. Nolato assesses that fourth-quarter sales for this business area will be more in line with the first quarter of the year,” said Christer Wahlquist. “EMC performance returned to normal levels, having been affected by the pandemic at the start of the year. Mobile phone volumes remained weak.”
Industrial Solutions sales totaled SEK 547 million (512); adjusted for currency and acquisitions, sales grew by 4%. Acquisitions contributed SEK 18 million. Operating profit (EBITA) totaled SEK 48 million (44), with an EBITA margin of 8.8% (8.6).
“Demand from automotive-sector customers increased gradually over the quarter and other segments saw good volumes,” noted Christer Wahlquist.
The financial position is strong, even after the acquisition, with net debt amounting to SEK −535 million (+186). The equity/assets ratio was 40% (47) and decreased as a result of the acquisition.
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. www.nolato.com
Prior to publication this information constituted inside information that Nolato AB is obliged to publish pursuant to the EU Market Abuse Regulation. The information was issued for publication by the above contact persons on October 23, 2020 at 2.30 p.m. CET.