{"id":728,"date":"2024-10-25T06:45:00","date_gmt":"2024-10-25T05:45:00","guid":{"rendered":"https:\/\/temporary.nolato.com\/mfn_news\/profitable-growth-and-strong-cash-flow\/"},"modified":"2024-10-25T06:45:00","modified_gmt":"2024-10-25T05:45:00","slug":"profitable-growth-and-strong-cash-flow","status":"publish","type":"mfn_news","link":"https:\/\/temporary.nolato.com\/es\/mfn_news\/profitable-growth-and-strong-cash-flow\/","title":{"rendered":"Profitable growth and strong cash flow"},"content":{"rendered":"<div class=\"mfn-body\">\n<p><strong>Third quarter of 2024 in brief<\/strong><\/p>\n<ul>\n<li>Sales totaled SEK 2,401 million (2,340)<\/li>\n<li>Operating profit (EBITA) rose to SEK\u00a0235 million (193, excl. non-recurring item)<\/li>\n<li>EBITA margin of 9.8% (8.2, excl. non-recurring item)<\/li>\n<li>Profit after tax was SEK\u00a0164 million (129, excl. non-recurring item)<\/li>\n<li>Basic and diluted earnings per share increased to SEK 0.61 (0.48, excl. non-recurring item)<\/li>\n<li>Strong cash flow from operating activities, totaling SEK 327 million (280)<\/li>\n<\/ul>\n<p>The Group\u2019s net sales, adjusted for currency, grew by 5% in the third quarter compared with the same quarter last year. Cash flow from operating activities was strong, increasing to SEK 327 million (280) via improved profit and reduced working capital requirements.<\/p>\n<p><strong>Business area performance<\/strong><\/p>\n<p>Medical Solutions sales amounted to SEK 1,355 million (1,320); adjusted for currency, this was an increase of 5%. Operating profit (EBITA) increased to SEK\u00a0145\u00a0million (126) and the EBITA margin to 10.7% (9.5). The Drug Delivery customer area experienced particularly healthy volumes for most of its products, but in vitro diagnostics (IVD) also grew compared with a weak quarter in the previous year. Furthermore, a customer recalled a product earlier this year, which is currently having a negative impact and will continue into the fourth quarter.<\/p>\n<p>Engineered Solutions sales amounted to SEK 1,046 million (1,020); adjusted for currency, this was an increase of 4%. Operating profit (EBITA) increased to SEK\u00a0103\u00a0million (74) and the EBITA margin to 9.8% (7.3). The margin strengthened due to a favorable product mix and cost savings, with adjustments to the Chinese business initiated a year ago proving successful. The fact that the business area is developing as planned enables us to focus our energy more on addressing new market segments. However, end-customer activity in the automotive industry has been markedly lower, which will also adversely impact volumes in the fourth quarter, with an estimated longer shutdown of production around the Christmas period than usual.<\/p>\n<p>Materials (previously EMC) has experienced strong growth for new products and areas of technology in the automotive segment and new markets, which is resulting in increased market share. Following an extended period of reduced volumes for network equipment within Telecom, volumes grew from low levels during the quarter.<\/p>\n<p><strong>Comments from the CEO<\/strong><\/p>\n<p>Christer Wahlquist, President and CEO of Nolato AB, commented:<\/p>\n<p>For the first time since Q2 2022, we reported growth versus the same quarter of the previous year. The primary reason is the ramp down of a previously significant VHP customer, and this is no longer having an impact. At the same time, our adjusted EBITA margin rose to 9.8%, which is an improvement of 1.6 percentage points compared with last year. The activities we have implemented to boost profitability are beginning to bear fruit. In addition, we have delivered extremely strong cash flow both during the quarter and the first nine months of the year. Combined with our solid financial position, this gives us the opportunity to proactively develop the full potential of our existing customer base, along with the impetus to approach new customers.<\/p>\n<p><strong>First nine months of 2024 in brief<\/strong><\/p>\n<p>The Group\u2019s sales amounted to SEK 7,282 million (7,294), which is unchanged when adjusted for currency and acquisitions. Consolidated operating profit (EBITA) grew to SEK\u00a0718\u00a0million (584, excl. non-recurring item), with an EBITA margin of 9.9% (8.0, excl. non-recurring item). On an accumulated basis after the first nine months of the year, cash flow from operating activities was very strong, at SEK 897 million (595).<\/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 2024-10-25 07:45 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\/48c58ef1-42b2-4485-802f-29725dec8c16\/nolato-q3-2024-interim-report.pdf\" rel=\"noopener\" target=\"_blank\">Nolato Q3 2024 Interim Report<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Third quarter of 2024 in brief Sales totaled SEK 2,401 million (2,340) Operating profit (EBITA) rose to SEK\u00a0235 million (193, excl. non-recurring item) EBITA margin of 9.8% (8.2, excl. non-recurring item) Profit after tax was SEK\u00a0164 million (129, excl. non-recurring item) Basic and diluted earnings per share increased to SEK 0.61 (0.48, excl. non-recurring item)&hellip; <a class=\"more-link\" href=\"https:\/\/temporary.nolato.com\/es\/mfn_news\/profitable-growth-and-strong-cash-flow\/\">Continue reading <span class=\"screen-reader-text\">Profitable growth and strong cash flow<\/span><\/a><\/p>\n","protected":false},"template":"","class_list":["post-728","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\/728","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=728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}