Hexatronic Group AB (publ) Interim report January – September 2022
October 28 2022 - 1:00AM
Hexatronic Group AB (publ) Interim report January – September 2022
Hexatronic Group AB
(publ)Interim report
January – September 2022
Events during the quarter
- Hexatronic signs a 3-year strategic partner agreement with Open
Fiber USA, to a value of more than MUSD 40.
- Hexatronic signs an agreement to acquire the data center
specialist Impact Data Solutions Ltd., that offers consultation,
design, and installation of fiber, copper, and containment
solutions to support data center and colocation projects.
- Hexatronic acquires the German multimedia home network provider
homeway GmbH.
Events since the end of the quarter
- Hexatronic completed the acquisition of Impact Data Solutions
Ltd.
- Hexatronic has signed a binding asset purchase agreement to
acquire all business activities of Rochester Cable from TE
Connectivity, one of the main designers and manufacturers of harsh
environment electro-optical cables in the USA.
Comments from the CEOStrong development in
profitability
The strong trend witnessed during the first half of the year
continued during the third quarter. We achieved sales growth of 91
percent compared with the same quarter last year, of which 53
percent was organic growth. Profitability (EBITA) increased 200
percent, with a margin of 18.3 percent, which far exceeds our
target of at least 12 percent. The improved profitability is
primarily a result of continued strong development in the US and
UK, as well as scale effects with most of our factories operating
at high capacity.
We can see that most raw material prices and transport costs
have stabilized during the quarter, while energy prices have risen.
Some uncertainty regarding how raw material prices will develop
remains, with increasing inflation and a general uncertainty.
Sales in our largest market, North America, developed very well,
with a growth rate of 159 percent. The growth is led by sales in
the US, with strong sales for our ducts, as well as sales of Fiber
To The Home (FTTH) systems. Sales in Canada also developed
strongly. Our new duct factory in Clinton, South Carolina, will
begin production during the fourth quarter of this year. Production
lines will be installed progressively. Full production will be
reached towards the end of Q2 2023. The factory will represent a
major contribution to an even stronger position in North
America.
Sales in Europe excluding Sweden also continued to develop
strongly, primarily thanks to the UK and Germany. Sales in the
region increased by 83 percent compared with the corresponding
quarter last year.
Sales in Sweden remained strong and increased by 45 percent
compared with the corresponding quarter last year. The increase is
mainly due to a weak comparison quarter in 2021.
Sales in the rest of the world grew by 22 percent, primarily as
a result of our two acquisitions in Australia in 2021.
We made two acquisitions during the quarter. homeway GmbH
strengthens our offering in buildings, primarily in Germany. The
acquisition of IDS Ltd gives us a European platform for growing our
business in data centres, alongside DCS in the US. Rochester Cable,
for which we signed an agreement after the end of the quarter,
strengthens our offering in fiber optic solutions for harsh
environments.
Incoming orders continued to develop strongly. We ended the
quarter with an order book that was 168 percent higher organically
than at the same point in the previous year. We see no signs of
incoming orders slowing down, or of the level of activity
decreasing on the markets where we operate. In the event of a
recession, we expect that we would see some negative impact.
Welcome to join us on our growth journey.Henrik Larsson
LyonPresident and CEO Hexatronic Group AB (publ)
Please direct any questions
to:Henrik Larsson Lyon, CEO Hexatronic
Group, +46 706 50 34 00Pernilla Lindén, CFO Hexatronic Group,
+46 708 77 58 32
The information was submitted for publication, through the
agency of the contact person set out above, at 07:00 CET on October
28, 2022. This is a translation of the Swedish version of the
interim report. When in doubt, the Swedish wording prevails.
Hexatronic creates sustainable networks all over the world. We
partner with customers on four continents – from telecom operators
to network owners – and offer leading, high-quality fiber
technology for every conceivable application. Hexatronic Group
(publ.) was founded in Sweden in 1993 and the Group is listed on
Nasdaq OMX Stockholm. Our global brands include Viper, Stingray,
Raptor, InOne, and Wistom®.
- Hexatronic Group - Interim report Q3_2022
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