GlobeNewswire by notified

Interim report 2022, January - March

Share

First quarter

  • Net sales for the first quarter reached SEK 517 m (455), corresponding to an increase of 14%. Currency translations had a positive effect of SEK 22 m on net sales
  • Order intake was SEK 857 m (565), corresponding to an increase of 52%
  • Operating profit reached SEK 139 m (114), equal to a 26.9% (25.0) operating margin. Adjusted operating profit reached SEK 112 m, equal to a 21.7% adjusted operating margin
  • Profit after taxes totalled SEK 112 m (94) and earnings per share was SEK 2.41 (1.93). Adjusted profit after taxes totalled SEK 86 m and adjusted earnings per share was SEK 1.84
  • Cash flow from operating activities amounted to SEK 80 m (132)

Last twelve months

  • Net sales for the last twelve months reached SEK 2,034 m (1,560), corresponding to a 30% increase. Currency translations had a negative effect of SEK 25 m on net sales
  • Order intake was SEK 2,830 m (1,611), corresponding to an increase of 76%
  • Operating profit reached SEK 471 m (335), equal to a 23.1% (21.4) operating margin. Adjusted operating profit reached SEK 444 m, equal to a 21.8% adjusted operating margin
  • Profit after taxes totalled SEK 381 m (266) and earnings per share was SEK 8.09 (5.70). Adjusted profit after taxes totalled SEK 354 m and adjusted earnings per share was SEK 7.52
  • Cash flow from operating activities amounted to SEK 456 m (447)

Subsequent events

  • Acquisition of the remaining 30% of the shares in Procentec B.V.

Comment from the CEO

Strong demand but continued component shortage
The strong demand and order intake from recent quarters continued during the first quarter of 2022. Order intake increased by 52% and amounted to the new record level SEK 857 m (565). However, the global shortage of electronic components continues to be challenging for us as for many other companies. Despite this challenge, our efforts have resulted in increased invoicing for the first quarter, which increased sales by 14% compared to the corresponding quarter 2021 and amounted to SEK 517 m (455).

During the quarter, we have been affected by, and further notified of, increased costs for electronic components. We have also increased our component purchases via the “spot market” to maintain delivery capacity. With price increases to customers and increased internal efficiency, we succeed in reaching a gross margin of 61.8% (64.0%) during the quarter, which is a decrease compared to Q1, 2021 but an improvement compared with the fourth quarter 2021. Given the challenging sourcing situation, we are satisfied that we continue to achieve a relatively good gross margin.

The strong market situation in combination with longer lead times and challenges in component supply means that customers continue to place orders for delivery further out in the future than normal. We continue to build order book that now amounts to SEK 1,194 m, strengthened by approximately SEK 250 m from stocking orders in the first quarter.

Good performance in all markets
Order intake continues to be strong in all markets and we see that customers tackle the uncertainty in the global supply chain, in a similar way. They continue to place orders to increase their safety stock, which contributes to a 30% increase in order intake on all markets – this is in addition to normal demand.

Europe, our largest market, continues to develop well and customers continue to show a high willingness to invest. The increase in sales is greatest in Asia, and especially in Japan, where we see very good demand from our large customers delivering to the automotive and electronics industries.

We can also see that our offering for building automation under the Intesis brand, which primarily works towards air conditioning, shows a solid growth of 32% and thus new record levels.

Acquisition of the remaining 30% of the shares in Procentec
After the end of the quarter, we reached an agreement to acquire the remaining 30% in Procentec. Since we acquired 70% of the company during the fourth quarter of 2020, the business has developed very well. As owners of the entire company, we see further synergies, especially in expanding in North America and Asia via our sales organization. The acquisition gives us a positive non-recurring effect on our operating profit of SEK 27 m from revaluation of the option liability related to Procentec.

Profit and cash flow
We deliver an operating profit of SEK 139 m, including above mentioned non-recurring effect of SEK 27 m. Adjusted operating profit amounts to SEK 112 m (114), which is in line with the corresponding quarter in 2021. However, the conditions are different compared to last year — the market is stronger, and we see major cost increases on components. We have increased our investments in sales and marketing after the pandemic when activity was lower. This also means that we have 17% higher operating costs compared to the corresponding period last year. Despite this, we manage to reach an adjusted operating margin of 21.7%, which exceeds our long-term target of a 20% operating margin.

Cash flow from operations amounted to SEK 80 m (130), after an increase in working capital of SEK 50 m.

Positive HMS sustainability efforts
We have recently published the HMS Annual Report 2021 where an important part is our Sustainability Report. We have continued to work intensively to map and reduce our carbon dioxide emissions, with the ambition of becoming CO2 net positive by 2025. For 2021, we achieved a reduction of -21% for our own emissions in relation to our sales. In Scopes 1 and 2, emission totals were relatively low, 285 tons, for 2021, something we are working on to further reduce. But even more important from a global perspective is that our products have helped our customers to save over 1 million tons of CO2 in 2021, through reduced energy consumption and reduced service trips.

The war in Ukraine
Russia and Belarus accounted for less than half a percent of our sales in 2021. All business has been made through distributors and we do not have our own staff in these countries. We have stopped and cancelled all existing orders to Russia and Belarus and will not take up any business in these markets until sanctions against Russia have ended. We support the Ukrainian people through donations to the Red Cross and we work actively at our units in Sweden and Romania to offer help and work to Ukrainian refugees.

Positive future outlook – despite an uncertain macro situation
We foresee continued challenges when it comes to supply of electronics components for a few more quarters, but we believe in a gradual improvement in the second half of the year. Lockdowns in China due to the corona virus and major political uncertainties make the market difficult to assess in the short term. At present, we see continued investments in increased automation and digitalization, partly driven by companies in Europe and North America who are moving their production closer to their main markets. We also see that high energy prices are accelerating electrification, the conversion to renewable energy and energy storage, areas where we are gaining more and more customers.

In the long term, we continue to believe that the market for Industrial ICT (Information & Communication Technology) will be an interesting area, both in terms of organic growth and acquisitions.

Halmstad April 14, 2022


Staffan Dahlström         
Chief Executive Officer


Further information can be obtained from:
Staffan Dahlström, CEO, +46 (0) 35 17 2901
Joakim Nideborn, CFO, +46 (0) 35 710 6983


This information is such that HMS Networks AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the contact persons set out above, at 07.30 CET on April 14, 2022.


HMS Networks AB (publ) is a market-leading provider of solutions in industrial information and communication technology (Industrial ICT). HMS develops and manufactures products under the Anybus®, Ixxat®, Ewon® and Intesis® brands. Development takes place at the headquarter in Halmstad and also in Ravensburg, Nivelles, Bilbao, Igualada, Wetzlar, Buchen and Delft. Local sales and support are handled by branch offices in Germany, USA, Japan, China, Singapore, Italy, France, Spain, the Netherlands, India, UK, Sweden, South Korea and UAE, as well as through a worldwide network of distributors and partners. HMS employs about 750 people and reported sales of SEK 1,972 million in 2021. HMS is listed on the NASDAQ OMX in Stockholm, category Large Cap, Information Technology.

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Cool Company Ltd. – Q1 2022 Business Update call16.5.2022 23:04:27 CEST | Press release

Cool Company Ltd will hold a Q1 2022 business update call for investors at 10am Oslo time on Tuesday May 31. Prior to the start of the call a presentation will be made available in the Investors section of the Cool Company Ltd. website www.coolcoltd.com We recommend that participants join the conference call via the listen-only live webcast link provided. Sell-side analysts interested in raising a question during the Q&A session that will immediately follow the presentation should access the event via the conference call dial-in information below. Please dial in 10 minutes prior to the start time to allow time for call handling. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant. a. Listen-only live webcastlink Go to the Investors section at www.coolcoltd.com and click on the link to "Webcast". To listen to the conference call from the web, you need to have installed Windows Media Player, and you

Golar releases its 2021 Environmental, Social and Governance report16.5.2022 22:53:05 CEST | Press release

Golar LNG Limited (“Golar”) is pleased to announce that it has issued its 2021 Environmental, Social and Governance (“ESG”) report. This comprehensive report describes Golar’s important role in advancing the global energy transition to a lower carbon future - championing LNG as a transition fuel in partnership with renewables, and as a reliable alternative for those in need of energy security today. As part of our target to further reduce emissions from our operations Golar has invested in a carbon capture technology company that has developed and achieved proof of concept for a CO2 capture and separation membrane technology. Subject to successful completion of a commercial pilot project with another industrial user, the technology could be used in future FLNG projects. Our 2021 ESG report is attached and will also be posted to our website. Forward-Looking Statements This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934

Inventiva reports 2022 First Quarter Financial Information and provides clinical development update16.5.2022 22:00:00 CEST | Press release

Cash position2 at €80.5m as of March 31, 2022The Group did not generate any revenue in Q1 2022Signature of a €50 million bullet credit facility agreement with the European Investment BankUpdate on lanifibranor recruitment timing for Phase III trial in patients with NASH, as well as for the two Phase II trials in patients with NAFLD and type 2 diabetes, and in combination with empagliflozine Daix (France), Long Island City (New York, United States), May 16, 2022 – Inventiva (Euronext Paris and Nasdaq: IVA) (the “Company”), a clinical-stage biopharmaceutical company focused on the development of oral small molecule therapies for the treatment of patients with non-alcoholic steatohepatitis (NASH) and other diseases with significant unmet medical needs, today reported its cash position as of March 31, 2022 and its revenues for the first quarter of 20221, and provided an update on its clinical programs. Cash Position As of March 31, 2022, Inventiva’s cash position stood at €80.5 million com

ASM INTERNATIONAL N.V. ANNOUNCES VOTING RESULTS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS16.5.2022 21:00:00 CEST | Press release

Almere, the Netherlands May 16, 2022 ASM International N.V. (Euronext Amsterdam: ASM) today announces the voting results of its Annual General Meeting of Shareholders held on May 16, 2022, at the Van der Valk Hotel in Almere, the Netherlands. The shareholders approved all resolutions as proposed to the Annual General Meeting of Shareholders. The main approved resolutions include the following: Mr. Hichem M’Saad was appointed as a member of the Management Board and as the CTO. The Remuneration Policy for the Management Board and for the Supervisory Board were approved. Also Mr. Marc de Jong was reappointed as member of the Supervisory Board. Furthermore the financial statements for the year 2021 were adopted, the shareholders discharged the members of the Management Board and Supervisory Board from liability in relation to the exercise of their duties in the financial year 2021, and the shareholders also voted in favor of a regular dividend payment of €2.50 per common share. About ASM I

Electra Gruppen AB (publ) (u.ä.t Elon AB (publ)) offentliggör prospekt avseende upptagande till handel av nyemitterade aktier på Nasdaq Stockholm i samband med apportemission16.5.2022 18:00:00 CEST | Pressemelding

ELECTRA GRUPPEN AB (publ) orgnr. 556065-4054 Pressmeddelande 2022-05-16 Electra Gruppen AB (publ) (u.ä.t Elon AB (publ)) offentliggör prospekt avseende upptagande till handel av nyemitterade aktier på Nasdaq Stockholm i samband med apportemission Electra Gruppen AB (publ) (u.ä.t Elon AB (publ)) (”Electra” eller ”Bolaget”), offentliggör idag det prospekt som upprättats inför upptagande till handel av de nyemitterade aktierna på Nasdaq Stockholm med anledning av den apportemission genom vilken Electra förvärvar samtliga aktier i Elon Group AB (”Elon”) (”Transaktionen”). Transaktionen beskrivs närmare i Electras pressmeddelande daterat den 7 december 2021. På Electras årsstämma den 28 mars 2022 bemyndigades styrelsen att besluta om apportemissionen för att genomföra Transaktionen. Den 13 maj 2022 beslutade Electras styrelse om apportemission av 9 659 223 aktier till Elon Group Holding. Prospektet som har upprättats med anledning av upptagande till handel av de nyemitterade aktierna i samb