{"id":678,"date":"2023-02-08T14:00:00","date_gmt":"2023-02-08T13:00:00","guid":{"rendered":"https:\/\/temporary.nolato.com\/mfn_news\/challenging-operating-environment-continues\/"},"modified":"2023-02-08T14:00:00","modified_gmt":"2023-02-08T13:00:00","slug":"challenging-operating-environment-continues","status":"publish","type":"mfn_news","link":"https:\/\/temporary.nolato.com\/fr\/mfn_news\/challenging-operating-environment-continues\/","title":{"rendered":"Challenging operating environment continues"},"content":{"rendered":"
\n

Fourth quarter 2022<\/strong>
\u2022 Sales totaled SEK 2,364 million (3,146)
\u2022 Operating profit (EBITA) was SEK 163 million (336)
\u2022 EBITA margin of 6.9% (10.7)
\u2022 Profit after tax was SEK\u00a0105 million (271), excl. non-recurring items
\u2022 Diluted earnings per share were SEK 0.39 (1.01), excl. non-recurring items
\u2022 Cash flow after investments amounted to SEK \u2212188 million (\u221287)<\/p>\n

The Group\u2019s sales decreased by 34% in the fourth quarter, mainly as a result of reduced VHP production volumes in Integrated Solutions, due to Russia\u2019s invasion of Ukraine and a change in the customer\u2019s sourcing strategy. Sales were also adversely affected by the halt in VHP operations from the start of the fourth quarter until 5 December as a result of licensing in China.<\/p>\n

\u201cThe challenging external factors, with lower volumes and general cost inflation, have resulted in lower margins,\u201d said Christer Wahlquist, President and CEO of Nolato. \u201cWe have also seen a continued component shortage, particularly in automotive, which has impacted the demand our customers are experiencing. This has led to lower production efficiency. Intensified efforts were therefore made in the quarter to boost the efficiency of internal processes, reduce total costs, and pass on cost increases in materials, labor and energy to customers.\u201d<\/p>\n

Medical Solutions sales amounted to SEK 1,312 million (1,063); adjusted for currency, this was an increase of 9%. Operating profit (EBITA) was SEK\u00a0126\u00a0million (112), with an EBITA margin of 9.6% (10.5).<\/p>\n

\u201cThe combination of a change in the sales mix, with a greater proportion from the surgery area and a lower proportion from IVD, had a negative impact on the margin,\u201d noted Christer Wahlquist. \u201cPrevious investments in capacity are still not being fully used and are consequently having a negative impact on the margin.\u201d<\/p>\n

Integrated Solutions sales amounted to SEK 407 million (1,476); adjusted for currency, this was a decrease of some 78%. Operating profit (EBITA) was SEK\u00a025\u00a0million (192), with an EBITA margin of 6.1% (13.0).<\/p>\n

\u201cDemand for VHP products has been adversely impacted by the situation in Eastern Europe and by dual-sourcing effects,\u201d said Christer Wahlquist. \u201cVolumes in the first quarter of 2023 are also expected to remain at similar levels as in the fourth quarter of 2022. The EMC business is continuing to perform well, however.\u201d<\/p>\n

Industrial Solutions sales amounted to SEK 651 million (609); adjusted for currency, this was a decrease of 2%. Operating profit (EBITA) decreased to SEK\u00a018\u00a0million (38) and the EBITA margin to 2.8% (6.2).<\/p>\n

\u201cDisruptions to the supply chain at the start of the quarter had an impact, leading to lower volumes, primarily in automotive, while the charging on of cost increases made a positive contribution to sales,\u201d said Christer Wahlquist. \u201cDemand for products supplied to areas in the consumer discretionary sector was slightly lower, and this is expected to continue in 2023, due to worse economic conditions and more restrained consumer spending.\u201d<\/p>\n

\u201cWe are intensifying efforts to further reduce our total costs and boost efficiency to improve our margins,\u201d said Christer Wahlquist. \u201cMeanwhile, our diversified customer portfolio and good financial position allow us to continue to focus on advancing our position as a global strategic partner with production on three continents.\u201d<\/p>\n

Full year 2022<\/strong>
\u2022 Sales totaled SEK 10,774 million (11,610)
\u2022 Operating profit (EBITA) was SEK\u00a0908 million (1,319 excl. non-recurring items)
\u2022 Diluted earnings per share were SEK 2.44 (3.70), excl. non-recurring items
\u2022 Cash flow after investments amounted to SEK 8 million (446)
\u2022 The equity\/assets ratio was 54% (47) and net financial liabilities were SEK 708 million (51)<\/p>\n

Dividend<\/strong>
At the Annual General Meeting, the Board of Directors and the President and CEO will propose an unchanged dividend of SEK\u00a01.90 per share (1.90), which corresponds to SEK 512 million (512). The pay-out ratio is 78% (51), excluding non-recurring items. The dividend yield was 3.5% on the share price as of December 31, 2022.<\/p>\n

Annual General Meeting<\/strong>
The Annual General Meeting will be held on May 3, 2023. The Nomination Committee proposes the re-election of the Chairman of the Board and other Board members.<\/p>\n<\/div>\n

\n

Contact<\/strong><\/p>\n

\n

For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705 804848
Per-Ola Holmstr\u00f6m, CFO, +46 (0)705 763340, per-ola.holmstrom@nolato.com<\/a><\/p>\n<\/div>\n

\n

About Us<\/strong><\/p>\n

\n

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>www.nolato.com\/IR<\/a><\/em><\/p>\n<\/div>\n

\n

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 2023-02-08 14:00 CET.<\/em><\/p>\n<\/div>\n

\n

Attachments<\/strong><\/p>\n

\n

Nolato Q4 2022 Year End Report<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Fourth quarter 2022\u2022 Sales totaled SEK 2,364 million (3,146)\u2022 Operating profit (EBITA) was SEK 163 million (336)\u2022 EBITA margin of 6.9% (10.7)\u2022 Profit after tax was SEK\u00a0105 million (271), excl. non-recurring items\u2022 Diluted earnings per share were SEK 0.39 (1.01), excl. non-recurring items\u2022 Cash flow after investments amounted to SEK \u2212188 million (\u221287) The Group\u2019s… Continue reading Challenging operating environment continues<\/span><\/a><\/p>\n","protected":false},"template":"","class_list":["post-678","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-regulatory","mfn-news-tag-mfn-report","mfn-news-tag-mfn-report-interim-q4","entry"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"fr","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\/fr\/wp-json\/wp\/v2\/mfn_news\/678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/temporary.nolato.com\/fr\/wp-json\/wp\/v2\/mfn_news"}],"about":[{"href":"https:\/\/temporary.nolato.com\/fr\/wp-json\/wp\/v2\/types\/mfn_news"}],"wp:attachment":[{"href":"https:\/\/temporary.nolato.com\/fr\/wp-json\/wp\/v2\/media?parent=678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}