{"id":645,"date":"2022-05-03T13:00:00","date_gmt":"2022-05-03T12:00:00","guid":{"rendered":"https:\/\/temporary.nolato.com\/mfn_news\/external-factors-impact-volumes-and-profitability\/"},"modified":"2022-05-03T13:00:00","modified_gmt":"2022-05-03T12:00:00","slug":"external-factors-impact-volumes-and-profitability","status":"publish","type":"mfn_news","link":"https:\/\/temporary.nolato.com\/es\/mfn_news\/external-factors-impact-volumes-and-profitability\/","title":{"rendered":"External factors impact volumes and profitability"},"content":{"rendered":"<div class=\"mfn-body\">\n<p>First quarter of 2022 in brief<\/p>\n<ul>\n<li>Sales increased to SEK 2,879 million (2,645)<\/li>\n<li>Operating profit (EBITA) was SEK 267 million (308)<\/li>\n<li>EBITA margin of 9.3% (11.6)<\/li>\n<li>Profit after tax was SEK 201 million (226)<\/li>\n<li>Diluted earnings per share were SEK 0.75 (0.84)<\/li>\n<li>Cash flow after investments amounted to SEK \u221241 million (71)<\/li>\n<\/ul>\n<p>\u201cThe past quarter has once again seen fluctuating business conditions,\u201d said Christer Wahlquist, Nolato President and CEO. \u201cOur focus is always on customers, although this is resulting in temporarily higher costs and lower production efficiency, and on minimizing the impact of pandemic-related shortages of components, materials and personnel. In addition, since the invasion of Ukraine, we have been taking into account a range of geopolitical effects. Nolato therefore expects the business area\u2019s sales for the second quarter to be around 20% lower than in the first quarter of this year, but with a comparable margin.\u201d<\/p>\n<p>Medical Solutions sales in the first quarter of 2022 amounted to SEK 1,088 million (1,006); adjusted for currency, sales increased by 1%. Operating profit (EBITA) was SEK\u00a0106\u00a0million (121), while the EBITA margin decreased to 9.7% (12.0).<\/p>\n<p>\u201cThe combination of a change in the sales mix, with a greater share from the surgery segment and a lower share from IVD, along with higher material costs, is resulting in a lower margin, although the higher material costs have largely been offset,\u201d noted Christer Wahlquist. \u201cInvestments in capacity made in 2021 are still not being fully used and are consequently having a negative impact on the margin.\u201d<\/p>\n<p>Integrated Solutions sales amounted to SEK 1,140 million (1,045), which, adjusted for currency, was a decrease of 1%. Operating profit (EBITA) was SEK\u00a0123\u00a0million (125), with an EBITA margin of 10.8% (12.0).<\/p>\n<p>\u201cVolumes in the quarter were lower than previously expected, which was mainly due to the restricted supply of electronic components,\u201d said Christer Wahlquist. \u201cSince March, end-customer demand in the VHP area has been adversely affected by the situation in Eastern Europe. The EMC business is continuing to perform well. After years of development work, since spring 2017 we have produced significant volumes of VHP products for a customer as a single-source partner. This segment has gradually grown in size and become increasingly important to our customer\u2019s overall offering. As is normal, this customer is now undertaking a general assessment of its future sourcing strategy for new products in the VHP segment. Nolato has an excellent relationship with the customer in question and expects to also deliver significant volumes for the new products.\u201d<\/p>\n<p>Industrial Solutions sales amounted to SEK 653 million (595); adjusted for currency, sales increased by 5%. Operating profit (EBITA) was SEK\u00a040\u00a0million (66), with an EBITA margin of 6.1% (11.1).<\/p>\n<p>\u201cVolumes were lower than in the same quarter last year, but the passing on of price increases in materials has a positive effect on sales. A shortage of components, particularly in the automotive sector, and in other areas more recently, is adversely affecting volumes, although demand is believed to remain good,\u201d noted Christer Wahlquist.<\/p>\n<\/div>\n<div class=\"mfn-footer mfn-contacts\">\n<p><strong class=\"mfn-heading-1\">Contact<\/strong><\/p>\n<hr \/>\n<p>For further information, please contact:<br \/>Christer Wahlquist, President and CEO, +46 (0)705 804848<br \/>Per-Ola Holmstr\u00f6m, CFO, +46 (0)705 763340, <a href=\"mailto:per-ola.holmstrom@nolato.com\" target=\"_blank\" rel=\"nofollow noopener\">per-ola.holmstrom@nolato.com<\/a><\/p>\n<\/div>\n<div class=\"mfn-footer mfn-about\">\n<p><strong class=\"mfn-heading-1\">About Us<\/strong><\/p>\n<hr \/>\n<p><em>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\u2019s shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector. \u00a0<\/em><em><a href=\"https:\/\/www.nolato.com\/ir\" target=\"_blank\" rel=\"nofollow noopener\">www.nolato.com\/IR<\/a><\/em><\/p>\n<\/div>\n<div class=\"mfn-footer mfn-regulatory mfn-regulatory-mar\">\n<p><em>This information is information that Nolato is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-05-03 14:00 CEST.<\/em><\/p>\n<\/div>\n<div class=\"mfn-footer mfn-attachment mfn-attachment-general\">\n<p><strong class=\"mfn-heading-1\">Attachments<\/strong><\/p>\n<hr \/>\n<p><a href=\"https:\/\/storage.mfn.se\/2d9b0c4b-e153-4f08-b1d1-cb8b56cf04cc\/nolato-q1-2022-interim-report.pdf\" class=\"mfn-primary\" target=\"_blank\" rel=\"nofollow noopener\">Nolato Q1 2022 Interim Report<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>First quarter of 2022 in brief Sales increased to SEK 2,879 million (2,645) Operating profit (EBITA) was SEK 267 million (308) EBITA margin of 9.3% (11.6) Profit after tax was SEK 201 million (226) Diluted earnings per share were SEK 0.75 (0.84) Cash flow after investments amounted to SEK \u221241 million (71) \u201cThe past quarter&hellip; <a class=\"more-link\" href=\"https:\/\/temporary.nolato.com\/es\/mfn_news\/external-factors-impact-volumes-and-profitability\/\">Continue reading <span class=\"screen-reader-text\">External factors impact volumes and profitability<\/span><\/a><\/p>\n","protected":false},"template":"","class_list":["post-645","mfn_news","type-mfn_news","status-publish","hentry","mfn-news-tag-mfn-lang-en","mfn-news-tag-mfn-report-interim","mfn-news-tag-mfn-type-ir","mfn-news-tag-mfn-regulatory-mar","mfn-news-tag-mfn","mfn-news-tag-mfn-report-interim-q1","mfn-news-tag-mfn-regulatory","mfn-news-tag-mfn-report","entry"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"es","enabled_languages":["en","es","de","fr","ru","sv"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"de":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false},"ru":{"title":false,"content":false,"excerpt":false},"sv":{"title":false,"content":false,"excerpt":false}}},"_links":{"self":[{"href":"https:\/\/temporary.nolato.com\/es\/wp-json\/wp\/v2\/mfn_news\/645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/temporary.nolato.com\/es\/wp-json\/wp\/v2\/mfn_news"}],"about":[{"href":"https:\/\/temporary.nolato.com\/es\/wp-json\/wp\/v2\/types\/mfn_news"}],"wp:attachment":[{"href":"https:\/\/temporary.nolato.com\/es\/wp-json\/wp\/v2\/media?parent=645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}