Hexatronic Group AB (publ) Interim report January – March 2022
April 29 2022 - 1:00AM
Hexatronic Group AB (publ) Interim report January – March 2022
Hexatronic Group AB (publ)Interim
report January – March 2022
Events during the quarter
- The profitability target was
adjusted 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.
- The growth target was adjusted to
annual growth rate of at least 20%, over a business cycle. The
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 2021
to the Annual General Meeting.
Events since the end of the
quarter
- No significant events after the end
of the quarter
COMMENTS FROM THE CEO
A very strong start
to the year!
The year got off to a very strong start with sales growth of
119% compared with the same quarter last year, of which 73% was
organic growth. Profitability (EBITA) increased 189%, equating to a
margin of 13,3%, which exceeds our adjusted target of 12% by a good
margin. The increase in profitability is primarily a result of
strong development in the USA and the UK, as well as scale effects
with most of our factories operating at high capacity.
The cost of raw materials and transport continues to increase,
not least due to the unjust war in Ukraine. Work to pass on
increased costs of raw materials to the customer is ongoing and the
gross margin is still adversely affected by 1-2 percentage points
in the quarter. We believe the negative effect will at least
continue for the second quarter. We do not have any customers or
suppliers in Russia or Ukraine.
Sales in Europe excluding Sweden continue to develop strongly,
primarily driven by strong development in the UK and Germany. Sales
in the region increased by 127% compared with the corresponding
quarter last year. During the quarter we signed a new three-year
agreement with CityFibre, whereby we will continue to be their
biggest supplier. In Germany, the acquisition of REHAU’s telecom
business contributed strongly to the increase in sales.
Sales in our largest market, the USA, grew by 184% during the
quarter, mainly within ducts and fiber optic systems. We do not
expect the major federal funding of investment in both telecom
infrastructure (USD 65 billion) and general infrastructure (USD 100
billion) to begin being distributed until the end of this year or
early 2023.
The start-up of our factory in South Carolina is proceeding to
plan, but with a two-month delay. The factory is expected to make a
positive contribution from the fourth quarter of this year. Since
the high demand in the American market is expected to remain, we
will invest an additional MSEK 70 in more lines in the factory in
South Carolina.
Sales in Sweden were strong and increased by 22% compared with
the corresponding quarter last year. The FTTH and transport network
markets both developed positively during the quarter.
The order book has continued to develop very positively. We
ended the quarter with an order book that was 173% higher
organically than at the same time in the previous year. The high
order intake 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 highly positive view
of the market’s development, we will continue to invest in
increased production capacity and market presence.
Welcome to join us on our growth journey.
Publication
This 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 29 April 2022 at 07:00 CET.
This is Hexatronic
Hexatronic Group AB (publ) enables non-stop connectivity for
communities worldwide. We partner with customers across four
continents – from telecom operators to network owners – offering
leading-edge fiber technology and solutions for any and all
conditions. Hexatronic Group AB (publ) was founded in 1993 in
Sweden, and is listed on Nasdaq OMX Stockholm. Our global product
brands include Viper, Stingray, Raptor, InOne, and Wistom®.
Hexatronic Group AB (publ) Org nr 556168-636
- Hexatronic Group - Interim report Q1 2022
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