Hexatronic Group AB (publ) Year-end report January – December 2021
Hexatronic Group AB
(publ)Year-end
report January – December 2021
Events during the
quarter• Hexatronic
has acquired all the telecom activities of REHAU Group – one of the
main players in the German microduct market.
• Hexatronic has
aquired Data Center Systems who provides fiber connectivity
solutions to the US data center market.
• Hexatronic has
signed two contracts with existing customers on the German market
amounting to a total order value of MEUR 21.
• Hexatronic
invests 18 MUSD in a new micro duct plant in the US.
• Hexatronic has
carried out a directed share issue and raised proceeds of SEK 550
million.
Events since the end of the
period• Hexatronic
adjust the profitability target to at least 12 percent EBITA-margin
over a business cycle. The previously set profitability target was
at least 10 percent EBITA-margin on a rolling 12-month basis.
• Hexatronic’s
growth target has been adjusted to annual growth rate of at least
20%, over a business cycle. Previously set growth target was to
grow more than its market organically and with an annual growth
rate of at least 20 percent.
• The board of
Directors will propose a dividend of SEK 0.50 (0.50) per share for
the financial year 2022 to the Annual General Meeting.
COMMENTS FROM THE CEOA year of
impressive development!
2021 can be summed up as a record year, with very strong growth
both in terms of sales and profitability. The year also marked a
breakthrough for our system sales in the USA and Germany. Sales
increased by 68 percent, of which 39 percent was organic growth.
Profitability (EBITA) increased 92 percent equating to a margin of
11.3 percent, which exceeds our target of 10 percent by a good
margin. We have therefore decided to revise our goal for the EBITA
margin to at least 12 percent.
Sales during the quarter were very strong with an increase of 95
percent on the same quarter the previous year, of which 48 percent
was organic growth. Profitability for the quarter showed an ongoing
positive trend with an EBITA margin of 10.5 percent, equating to an
increase of 87 percent. Adjusted for a remeasurement of outstanding
share-based incentive programmes, the EBITA margin totalled 12.3
percent, corresponding to an increase of 119 percent. The
adjustment, which totals MSEK 21, is a direct result of the share
price development during the quarter.
We continue to see rising costs for raw materials, which
burdened the gross margin for the fourth quarter by around one to
two percentage points, and will probably also impact negatively on
the first quarter of 2022. We are working actively to pass on the
cost increases to our customers.
Sales in Europe excluding Sweden increased by 112 percent for
the year. The main drivers of this growth are Great Britain,
Germany and Norway. We had a breakthrough in Germany during the
quarter, with two major contracts worth a total of MEUR 21. In
Great Britain, an extension of the framework agreement with
CityFibre was signed after the end of the quarter with an expected
order value of 100 MGBP over three years. We remain positive in our
outlook on developments in these markets for the years to come.
Sales in our largest market, the USA, grew by 89 percent during
the year, primarily driven by a strong underlying infrastructure
market for duct, although our system sales in FTTH (Fiber to the
home) are also growing well. We retain our very positive view of
the North American market for the years ahead, particularly the
major infrastructure programmes to be implemented towards the end
of the year.
Sales in Sweden remained on a high relatively unchanged level
compared to the previous year. A slightly weaker FTTH market was
balanced out by expansion in the transport networks.
We have considerably bolstered and developed our microduct
business during the year. With the acquisition of REHAU’s telecom
business in Germany and Austria, and the acquisition of Weterings
in the Netherlands earlier in the year, we now purchase far higher
volumes of materials, have a broader product offering and a
completely different level of market presence in Europe. Along with
the upcoming duct factory in the USA, we have in a short time
become a far larger player on the global microduct market, with a
whole new level of proximity to our customers on our growth
markets.
2021 has been an intensive year for acquisitions, with a total
of seven companies acquired. In addition to REHAU’s telecom
business, we also acquired US company Data Center Systems (DCS)
during the quarter, active in fiber optic solutions for data
centers. All our acquisitions during the year provide exciting
growth opportunities over the next few years. We will remain active
in acquisitions in order to boost our presence in growth markets
and expand our offering.
The order book has continued to develop very positively. We
ended 2021 with an order book that was 179 percent higher
organically than at the same point in the previous year. The strong
order book is well distributed across most of our companies, with
those in the USA accounting for the largest increase.
With the strong order book and a continued positive view of the
market’s development, we will continue to invest in increased
production capacity. During the quarter we carried out a directed
share issue which raised MSEK 550. The main aim was to strengthen
the balance sheet for further acquisitions, as well as investments
in higher capacity.
Welcome to join us on our growth journey.
Henrik Larsson LyonPresident and CEO Hexatronic Group AB
(publ)
PublicationThis information comprises
disclosures that Hexatronic Group AB (publ) must publish according
to the EU Market Abuse Regulation and the Swedish Securities Market
Act. The information was submitted for publication, under
responsibility of the contact persons named below, on 24 February
2022 at 07:00 CET.
Please direct any questions to:• Henrik Larsson Lyon, President
and CEO, + 46 (0)70-650 34 00• Pernilla Lindén, CFO, + 46 (0)70-877
58 32
- Hexatronic Group - Year end report 2021
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