Second quarter of 2022 in brief
- Sales increased to SEK 2,905 million (2,786)
- Operating profit (EBITA) was SEK 264 million (SEK 336 million excl. a positive non-recurring item of SEK 50 million)
- EBITA margin of 9.1% (12.1%, excl. non-recurring item)
- Profit after tax was SEK 190 million (291)
- Diluted earnings per share were SEK 0.71 (SEK 0.90 excl. non-recurring item)
- Cash flow after investments amounted to SEK 18 million (346)
Medical Solutions sales for the second quarter were SEK 1,214 million (1,021), which, adjusted for currency, was an increase of 8%. Operating profit (EBITA) was SEK 121 million (124), with an EBITA margin of 10.0% (12.1).
“The charging on of higher costs contributed to the increase in sales,” noted Christer Wahlquist, Nolato President and CEO. “The surgery area saw good growth in the quarter, while in vitro diagnostics (IVD) volumes were low in the quarter due to pandemic-related inventory adjustments. Investments in capacity made in 2021 are still not being fully used and are consequently having a negative impact on the margin.”
Integrated Solutions sales amounted to SEK 1,019 million (1,186); adjusted for currency, this was a decrease of 25%. Operating profit (EBITA) was SEK 109 million (154), with an EBITA margin of 10.7% (13.0).
“The EMC business is continuing to perform well, but demand for Vaporiser Heating Products (VHP) in Eastern Europe was adversely affected during the quarter following Russia’s invasion of Ukraine,” said Christer Wahlquist. “However, performance was better than previously expected, due to a SEK 100 million customer order being delivered in the final days of June, instead of early July as planned. We expect this business area’s total sales in the third quarter to be around 25% lower than in the second quarter of this year.”
Industrial Solutions sales increased to SEK 676 million (580); adjusted for currency, sales grew by 10%. Operating profit (EBITA) was SEK 37 million (62), with an EBITA margin of 5.5% (10.7).
“Volumes were more or less unchanged in the quarter, partly because of a component shortage, particularly in automotive. This has affected customer demand and led to fluctuating production planning for Nolato,” noted Christer Wahlquist. “This has resulted in lower production efficiency, which, together with a time lag in the charging on of cost increases, has had an adverse effect on profit and margin.”
Consolidated sales totaled SEK 5,784 million (5,431) for the first six months of 2022. Adjusted for currency, this was a decrease of 3%. Operating profit (EBITA) was SEK 531 million (SEK 644 million excluding a positive non-recurring item of SEK 50 million in the form of a waiver for a loan by US government authorities relating to the pandemic) and the EBITA margin was 9.2% (11.9% excluding the non-recurring item). Diluted earnings per share were SEK 1.45 (SEK 1.74 excluding the non-recurring item) and cash flow after investments was SEK –23 million (417).
The Group’s financial position remains strong, with net financial debt of SEK 640 million (194) and an equity/assets ratio of 49% (45).
“As a global strategic partner for a large number of customers, we can look ahead with confidence, despite continued external challenges in the second quarter of 2022,” said Christer Wahlquist. “We have continually advanced our market positions and have good financial flexibility. This enables us to invest in continued expansion, both organically and through acquisitions, to further bolster our global offering over time.”