Strong earnings and high margin
In today’s quarterly report for the third quarter, Nolato reports operating income (EBITA) of SEK 112 million (103), and an operating margin of an impressive 10.2% (9.2). The strong margin is explained by a continued focus on efficiency improvements, a renewed product portfolio and a flexible cost structure, not least in Asia. The Group’s sales amounted to SEK 1,095 million (1,119).
“Our streamlining work and profitability focus has been fruitful. Despite the slightly lower sales, the Group’s operating margin is one whole percentage point higher compared to last year. At the same time we have completed new production capacity in China, Hungary and Malaysia for future growth,” says CEO Hans Porat.
Nolato’s business model is based on a close, long-term and innovative collaboration that creates added value for both customers and shareholders. The strategic work of recent years has resulted in, among other things, market positions moving forward.
“With a strong financial position, we have the prerequisites to invest in both organic and acquired growth within Nolato Medical, while we will grow with large selected customers in northern and central Europe within Nolato Industrial. Within Nolato Telecom we are continuing to strengthen our niche position with good profitability through technically advanced solutions and continued investments in electromagnetic shielding, EMC,” says Hans Porat.
At the end of the third quarter, the equity/assets ratio amounted to 50% (45) and the net financial debt to SEK 43 million (75).
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For further information, please contact:
Hans Porat, President and CEO, +46 705 517550
Per-Ola Holmström, CFO, +46 705 763340
Nolato is a Swedish group operating in Europe, Asia and North America. Sales in 2013 amounted to SEK 4.5 billion. We develop and manufacture products made from polymer materials such as plastic, silicone and TPE for leading customers in medical technology, pharmaceuticals, telecoms, automotive, hygiene and other selected industrial sectors. Nolato shares are listed on Nasdaq Stockholm, where Nolato is a Mid Cap company in the Industrials sector.
The information is such which Nolato AB is obliged to disclose under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was made public on 28 October 2014 at 2.30 pm.
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