{"id":706,"date":"2024-05-06T12:00:00","date_gmt":"2024-05-06T11:00:00","guid":{"rendered":"https:\/\/temporary.nolato.com\/mfn_news\/improvement-in-margins-and-strong-financial-position\/"},"modified":"2024-05-06T12:00:00","modified_gmt":"2024-05-06T11:00:00","slug":"improvement-in-margins-and-strong-financial-position","status":"publish","type":"mfn_news","link":"https:\/\/temporary.nolato.com\/sv\/mfn_news\/improvement-in-margins-and-strong-financial-position\/","title":{"rendered":"Improvement in margins and strong financial position"},"content":{"rendered":"<div class=\"mfn-body\">\n<p><strong>First quarter of 2024 in brief<\/strong><\/p>\n<ul>\n<li>Sales totaled SEK 2,442 million (2,476)<\/li>\n<li>Operating profit (EBITA) increased to SEK 238 million (193)<\/li>\n<li>EBITA margin of 9.7% (7.8)<\/li>\n<li>Profit after tax was SEK 162 million (136)<\/li>\n<li>Earnings per share, basic and diluted, rose to SEK\u00a00.60 (0.50)<\/li>\n<li>Cash flow from operating activities amounted to SEK 136 million (75)<\/li>\n<li>Net financial liabilities in relation to adjusted operating profit (EBITDA) totaled 0.8 times<\/li>\n<\/ul>\n<p>Although the Group\u2019s net sales were in line with the first quarter of last year, the EBITA margin improved by 1.9 percentage points to 9.7%.<\/p>\n<p>\u201cOur efforts to strengthen the margin by adjusting total costs, combined with strategic price increases, have had the desired effect,\u201d said Christer Wahlquist, Nolato President and CEO. \u201cAdaptation of the Chinese business is going to plan and is also contributing to the positive margin trend.\u201d<\/p>\n<p>As previously announced, from the start of 2024, Nolato is reporting the Group\u2019s operations via two business areas \u2013 Medical Solutions and Engineered Solutions.<\/p>\n<p>\u201cWe are making this change because many of our customers are optimizing their resources and presence based on a global market approach and want suppliers with a globally coordinated local presence,\u201d explained Christer Wahlquist.<\/p>\n<p><strong>Medical Solutions<\/strong> sales in the first quarter totaled SEK 1,355 million (1,324); adjusted for currency and acquisitions, sales grew by 2%. Operating profit (EBITA) increased to SEK\u00a0140\u00a0million (132), with an EBITA margin of 10.3% (10.0).<\/p>\n<p>Most market areas experienced stable volumes. In vitro diagnostics (IVD) grew compared with a weak quarter last year. Several products within the Drug Delivery market area experienced lower volumes due to customers adjusting inventories, which continued to affect certain products in Surgery as well.<\/p>\n<p>As announced on April 2, Nolato signed a long-term cooperation agreement with a major existing customer to supply medical devices to administer medication, including to support weight loss and treat diabetes. At full-scale production, within a five-year period, it is estimated that this will generate annual sales in the region of SEK 700 million for Nolato.<\/p>\n<p><strong>Engineered Solutions<\/strong> sales in the first quarter totaled SEK 1,087 million (1,153), a decrease of 7% adjusted for currency and acquisitions. Operating profit (EBITA) was SEK 103 million (68) and the EBITA margin rose to 9.5% (5.9).<\/p>\n<p>Consumer Electronics volumes, particularly from a previously significant customer, saw a strong decline in this quarter as well. Automotive continued to see good growth, and volumes within Hygiene grew strongly compared with a weak quarter last year. The Other category also saw good growth, with the consumer discretionary sector recovering somewhat from an extended period of pressure due to economic conditions.<\/p>\n<p>Operations within Materials (formerly EMC) generated sales in line with last year. A good mix of new products and areas of technology within automotive, combined with new markets, are resulting in increased market share and growth. This was offset by lower sales for telecom, with network equipment volumes slowing further during the quarter.<\/p>\n<p>\u201cOverall, Nolato\u2019s global presence, in-depth production expertise and close, long-standing customer relationships enable us to continually harness business opportunities and advance our market positions,\u201d said Christer Wahlquist. \u201cCombined with the flexibility that comes from a strong financial position, we have the ability to expand alongside our customers at a good level of profitability.\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-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 2024-05-06 13:00 CEST.<\/em><\/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-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\/eb381e32-864e-4d90-ae3f-74284bf132ff\/nolato-q1-2024-interim-report.pdf\" rel=\"noopener\" target=\"_blank\">Nolato Q1 2024 Interim Report<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>First quarter of 2024 in brief Sales totaled SEK 2,442 million (2,476) Operating profit (EBITA) increased to SEK 238 million (193) EBITA margin of 9.7% (7.8) Profit after tax was SEK 162 million (136) Earnings per share, basic and diluted, rose to SEK\u00a00.60 (0.50) Cash flow from operating activities amounted to SEK 136 million (75)&hellip; <a class=\"more-link\" href=\"https:\/\/temporary.nolato.com\/sv\/mfn_news\/improvement-in-margins-and-strong-financial-position\/\">Continue reading <span class=\"screen-reader-text\">Improvement in margins and strong financial position<\/span><\/a><\/p>\n","protected":false},"template":"","class_list":["post-706","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-q1","mfn-news-tag-mfn-regulatory","mfn-news-tag-mfn-report","entry"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"sv","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\/sv\/wp-json\/wp\/v2\/mfn_news\/706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/temporary.nolato.com\/sv\/wp-json\/wp\/v2\/mfn_news"}],"about":[{"href":"https:\/\/temporary.nolato.com\/sv\/wp-json\/wp\/v2\/types\/mfn_news"}],"wp:attachment":[{"href":"https:\/\/temporary.nolato.com\/sv\/wp-json\/wp\/v2\/media?parent=706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}