{"id":671,"date":"2022-10-27T12:45:00","date_gmt":"2022-10-27T11:45:00","guid":{"rendered":"https:\/\/temporary.nolato.com\/mfn_news\/continued-challenging-operating-environment\/"},"modified":"2022-10-27T12:45:00","modified_gmt":"2022-10-27T11:45:00","slug":"continued-challenging-operating-environment","status":"publish","type":"mfn_news","link":"https:\/\/temporary.nolato.com\/es\/mfn_news\/continued-challenging-operating-environment\/","title":{"rendered":"Continued challenging operating environment"},"content":{"rendered":"<div class=\"mfn-body\">\n<p>Third quarter of 2022 in brief:<\/p>\n<ul>\n<li>Sales totaled SEK 2,626 million (3,033)<\/li>\n<li>Operating profit (EBITA) was SEK 214 million (339)<\/li>\n<li>EBITA margin of 8.1% (11.2)<\/li>\n<li>Profit after tax was SEK\u00a0160 million (257)<\/li>\n<li>Diluted earnings per share were SEK 0.59 (0.95)<\/li>\n<li>Cash flow after investments amounted to SEK 166 million (116)<\/li>\n<\/ul>\n<p>\u201cThe challenging operating environment continued to impact the Group\u2019s performance in the third quarter of 2022,\u201d said Christer Wahlquist, Nolato President and CEO.<\/p>\n<p>Medical Solutions sales totaled SEK 1,245 million (977). Adjusted for currency, this was an increase of 13%. Operating profit (EBITA) was SEK\u00a0104\u00a0million (100), with an EBITA margin of 8.4% (10.2).<\/p>\n<p>\u201cThe surgery area saw good growth in the quarter, while in vitro diagnostics (IVD) volumes were low due to pandemic-related inventory adjustments,\u201d noted Christer Wahlquist. \u201cIt has not yet been possible to fully charge on inflationary effects, which are resulting in higher manufacturing costs. Investments 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>Adjusted for currency, Integrated Solutions sales decreased by some 60% to SEK 745 million (1,519). Operating profit (EBITA) was SEK\u00a077\u00a0million (200), with an EBITA margin of 10.3% (13.2).<\/p>\n<p>\u201cThe decrease was in line with what we had previously communicated,\u201d said Christer Wahlquist. \u201cDemand for Vaporiser Heating Products (VHP) in Eastern Europe continues to be adversely affected following Russia\u2019s invasion of Ukraine. Our interim report for the first quarter of this year explained that our customer in the VHP segment was assessing its sourcing strategy, and this has now led to us sharing the manufacture of new products.\u201d<\/p>\n<p>The Chinese authorities have introduced new regulatory requirements that include the manufacture of products in the Vaporiser Heating Products (VHP) area in China from October 2022. The processing of licenses has been ongoing since spring 2022. Like several other companies, Nolato has not yet received any such license. Nolato has consequently not produced any VHP products in China during the current month.<\/p>\n<p>\u201cSince the spring, we have been informed that a new form of licensing applies for VHP products, and we submitted the requested information,\u201d said Christer Wahlquist.<\/p>\n<p>Industrial Solutions sales amounted to SEK 638 million (540); adjusted for currency, this was an increase of 9%. Operating profit (EBITA) was SEK\u00a033\u00a0million (42), with an EBITA margin of 5.2% (7.8).<\/p>\n<p>\u201cA component shortage, particularly in automotive but in other areas too, has continued to impact the demand that our customers are experiencing and has led to fluctuating production planning for Nolato,\u201d noted Christer Wahlquist. \u201cThis has resulted in lower production efficiency, which, together with a time lag in the charging on of cost increases, has adversely affected the margin.\u201d<\/p>\n<p>Consolidated sales totaled SEK 8,410 million (8,464) for the first nine months of 2022. Operating profit (EBITA) was SEK\u00a0745\u00a0million (SEK 983 million excl. a non-recurring item), with an EBITA margin of 8.9% (11.6% excl. a non-recurring item). Diluted earnings per share were SEK 2.05 (SEK 2.70 excl. a non-recurring item). Cash flow after investments amounted to SEK 143 million (533). The financial position remains strong.<\/p>\n<p>\u201cAs a global strategic partner with a large number of customers and a good financial position, we can look ahead with confidence, despite a range of external challenges,\u201d said Christer Wahlquist.<\/p>\n<\/div>\n<div class=\"mfn-footer mfn-contacts mfn-f7d2b6eafad2\">\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 mfn-3b308a4d228b\">\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 2022-10-27 13:45 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 class=\"mfn-primary\" href=\"https:\/\/storage.mfn.se\/2db24d60-3fdb-4276-aefd-66cef8e039ad\/nolato-q3-2022-interim-report.pdf\" target=\"_blank\" rel=\"nofollow noopener\">Nolato Q3 2022 Interim Report<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Third quarter of 2022 in brief: Sales totaled SEK 2,626 million (3,033) Operating profit (EBITA) was SEK 214 million (339) EBITA margin of 8.1% (11.2) Profit after tax was SEK\u00a0160 million (257) Diluted earnings per share were SEK 0.59 (0.95) Cash flow after investments amounted to SEK 166 million (116) \u201cThe challenging operating environment continued&hellip; <a class=\"more-link\" href=\"https:\/\/temporary.nolato.com\/es\/mfn_news\/continued-challenging-operating-environment\/\">Continue reading <span class=\"screen-reader-text\">Continued challenging operating environment<\/span><\/a><\/p>\n","protected":false},"template":"","class_list":["post-671","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-q3","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\/671","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=671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}