{"id":690,"date":"2023-10-26T13:00:00","date_gmt":"2023-10-26T12:00:00","guid":{"rendered":"https:\/\/temporary.nolato.com\/mfn_news\/continued-adaptation-of-total-costs-and-concentration-of-the-chinese-business\/"},"modified":"2023-10-26T13:00:00","modified_gmt":"2023-10-26T12:00:00","slug":"continued-adaptation-of-total-costs-and-concentration-of-the-chinese-business","status":"publish","type":"mfn_news","link":"https:\/\/temporary.nolato.com\/es\/mfn_news\/continued-adaptation-of-total-costs-and-concentration-of-the-chinese-business\/","title":{"rendered":"Continued adaptation of total costs and concentration of the Chinese business"},"content":{"rendered":"<div class=\"mfn-body\">\n<p><strong>Third quarter of 2023 in brief<\/strong><\/p>\n<ul>\n<li>Sales totaled SEK 2,340 million (2,626)<\/li>\n<li>Operating profit (EBITA) was SEK\u00a0193 million (214), excl. a non-recurring item of SEK 60 million (0)<\/li>\n<li>EBITA margin of 8.2% (8.1), excl. a non-recurring item<\/li>\n<li>Profit after tax was SEK\u00a0129 million (160), excl. a non-recurring item<\/li>\n<li>Diluted earnings per share totaled SEK 0.48 (0.59), excl. a non-recurring item<\/li>\n<li>Cash flow after investments rose to SEK\u00a0188\u00a0million (166), excl. acquisitions<\/li>\n<\/ul>\n<p>\u201cAdjusted for currency, the Group\u2019s net sales decreased by 15% in the third quarter,\u201d said Nolato\u2019s President and CEO, Christer Wahlquist. \u201cThe decrease was entirely attributable to markedly lower volumes in the Integrated Solutions business area. VHP products now account for less than 5% of the Group\u2019s total sales.\u201d<\/p>\n<p>\u201cWe are continuing to adapt total costs in order to boost profitability in all units. One of the measures we are taking is to concentrate our Chinese business, which resulted in the third quarter being impacted by a non-recurring cost of SEK 60 million at Group level,\u201d said Christer Wahlquist. \u201cWe are also looking at how we can achieve sales synergies between Integrated Solutions and Industrial Solutions by working together to market our offering to a broader section of the value chain, thus taking on even larger contracts.\u201d<\/p>\n<p>Medical Solutions sales amounted to SEK 1,320 million (1,245); adjusted for currency, this was an increase of 1%. Operating profit (EBITA) was SEK\u00a0126\u00a0million (104), with an EBITA margin of 9.5% (8.4).<\/p>\n<p>\u201cThis business area now accounts for two-thirds of Group earnings,\u201d noted Christer Wahlquist. \u201cMost of our market areas are continuing to expand, while sales in the surgery area, and particularly in vitro diagnostics (IVD), have declined.\u201d<\/p>\n<p>Integrated Solutions sales amounted to SEK 330 million (745); adjusted for currency and acquisition, this was a decrease of 57%. Operating profit (EBITA) was SEK\u00a010\u00a0million (77), with an EBITA margin of 3.0% (10.3).<\/p>\n<p>\u201cThe decline in sales was mainly attributable to a change in the sourcing strategy of a previously significant customer in the VHP area,\u201d said Christer Wahlquist. \u201cAt the same time, several of our consumer electronics customers have seen reduced end-customer demand due to the economic slowdown. Our EMC business continues to perform well in a number of areas, particularly within automotive, which is offset by the telecom area due to a markedly slower 5G roll-out.\u201d<\/p>\n<p>Industrial Solutions sales amounted to SEK 691 million (638); adjusted for currency, this was an increase of 2%. Operating profit (EBITA) grew to SEK\u00a064\u00a0million (33) and the EBITA margin to 9.3% (5.2).<\/p>\n<p>\u201cFewer disruptions in the automotive supply chain have boosted production efficiency, which had a positive impact on the margin,\u201d noted Christer Wahlquist. \u201cHowever, we saw a decline in demand for consumer discretionary goods, which we believe will impact the fourth quarter as well due to weaker economic conditions.\u201d<\/p>\n<p>Nolato received SEK 20 million in electricity subsidies from Swedish authorities, half of which are included in Medical Solutions earnings and half in Industrial Solutions.<\/p>\n<p>Cash flow after investments, excluding acquisitions, was SEK 188 million (166). The improvement in cash flow was primarily due to a more favorable change in working capital via reduced inventory and trade receivables.<\/p>\n<p>Consolidated sales totaled SEK 7,294 million (8,410) for the first nine months of 2023, a decrease of 18% adjusted for currency and acquisitions. Operating profit (EBITA) decreased to SEK 584 million (745) and the EBITA margin to 8.0% (8.9), excluding a non-recurring item.<\/p>\n<p>\u201cIn the near future, our focus is on improving our margins by adapting total costs in each unit and introducing strategic price increases,\u201d said Christer Wahlquist. \u201cOur in-depth production expertise, together with our strong customer relationships and a presence on three continents, allows us to harness business opportunities, expand our customer base and continually advance our market positions.\u201d<\/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\" rel=\"noopener\" target=\"_blank\">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\" rel=\"noopener\" target=\"_blank\">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 2023-10-26 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 class=\"mfn-primary\" href=\"https:\/\/storage.mfn.se\/548fbc2c-8fd3-4512-b80e-f288093919b5\/nolato-q3-2023-interim-report.pdf\" rel=\"noopener\" target=\"_blank\">Nolato Q3 2023 Interim Report<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Third quarter of 2023 in brief Sales totaled SEK 2,340 million (2,626) Operating profit (EBITA) was SEK\u00a0193 million (214), excl. a non-recurring item of SEK 60 million (0) EBITA margin of 8.2% (8.1), excl. a non-recurring item Profit after tax was SEK\u00a0129 million (160), excl. a non-recurring item Diluted earnings per share totaled SEK 0.48&hellip; <a class=\"more-link\" href=\"https:\/\/temporary.nolato.com\/es\/mfn_news\/continued-adaptation-of-total-costs-and-concentration-of-the-chinese-business\/\">Continue reading <span class=\"screen-reader-text\">Continued adaptation of total costs and concentration of the Chinese business<\/span><\/a><\/p>\n","protected":false},"template":"","class_list":["post-690","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\/690","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=690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}