Third quarter of 2021 in brief:
• Sales increased to SEK 3,033 million (2,500)
• Operating profit (EBITA) rose to SEK 339 million (SEK 304 million, excl. a non-recurring item of SEK −17 million)
• EBITA margin of 11.2% (12.2%, excl. the non-recurring item)
• Profit after tax was SEK 257 million (211)
• Diluted earnings per share increased to SEK 0.95 (0.79)
• Cash flow after investments was SEK 116 million (SEK 82 million, excl. acquisitions)
“Nolato delivered strong growth in sales and profit during the third quarter,” said Christer Wahlquist, Nolato President and CEO. “Although we are still feeling the effects of the pandemic, operating profit rose to its highest ever level for an individual quarter. We have an excellent financial position and aim to further strengthen our global offering.”
Medical Solutions sales totaled SEK 977 million (796); adjusted for currency and acquisitions, sales decreased by 4%. Operating profit (EBITA) was SEK 100 million (103), with an EBITA margin of 10.2% (12.9).
“Volumes have continued to be adversely affected by postponed surgical operations, while there has also been a return to more normal inventory levels by several customers in other areas as pandemic-related restrictions have been eased or removed,” noted Christer Wahlquist. “The margin was adversely affected by a lower operating margin at the acquired American business, which was only included for one month last year, and high costs for the start-up of a large new IVD project.”
Integrated Solutions sales rose sharply to SEK 1,519 million (1,158). Adjusted for currency, sales increased by 39%. Operating profit (EBITA) grew to SEK 200 million (160) and the EBITA margin was 13.2% (13.8).
“Vaporiser Heating Products (VHP) volumes were very high, but they are believed to have been impacted by some inventory build-up by customers. EMC sales also increased significantly, chiefly as a result of strong relative growth in automotive, as well as healthy growth in telecom,” added Christer Wahlquist. “We expect fourth-quarter sales for this business area to be in line with or slightly lower than this year's third-quarter sales.”
Industrial Solutions sales totaled SEK 540 million (547). Adjusted for currency and acquisitions, sales decreased by 4%. Operating profit (EBITA) decreased to SEK 42 million (48) and the EBITA margin to 7.8% (8.8).
“Supply chain disruptions, in which component shortages caused some customers to halt operations or reduce production capacity periodically, adversely affected Industrial Solutions and are expected to also impact the fourth quarter this year,” said Christer Wahlquist.
Overall, consolidated Group sales for the first nine months of 2021 totaled SEK 8,464 million (6,872), which, adjusted for currency and acquisitions, is a strong increase of 15%. Operating profit (EBITA) rose to SEK 983 million (814) excluding non-recurring items of SEK +50 million (-31). The EBITA margin amounted to 11.6% (11.8), excluding non-recurring items. Diluted earnings per share increased to SEK 2.88 (2.24). Cash flow after investments was SEK 533 million (SEK 694 million, excluding acquisitions). The financial position remains strong.