Concentric AB announces preliminary results for the third quarter 2021, in connection with the acquisition of EMP Inc.

Rhea-AI Summary

Concentric AB reported preliminary results for Q3 2021, showing net sales of MSEK 515, up from MSEK 324, and operating income of MSEK 114, significantly higher than last year's MSEK 57. This results in an operating margin of 22.2%, compared to 17.5% last year. Additionally, Concentric announced the acquisition of EMP Inc. for MSEK 1,260, aimed at enhancing its e-pump electrification strategy. EMP is projected to contribute revenues of MSEK 1,095 and adjusted EBITDA of MSEK 147 for the year ending December 2021.

Positive

• Net sales increased to MSEK 515, up from MSEK 324.
• Operating income rose to MSEK 114, compared to MSEK 57 last year.
• Operating margin improved to 22.2% from 17.5%.
• Strategic acquisition of EMP Inc. is expected to support growth in e-pump electrification.
• Forecast revenues from EMP expected at MSEK 1,095 for the next 12 months.

Negative

• Acquisition cost of MSEK 1,260 may strain financial resources.

SKÅNES FAGERHULT, Sweden, Oct. 26, 2021 /PRNewswire/ -- Concentric AB today announces its operating result for the third quarter 2021, which is in line with the company's expectations. The Group's net sales is estimated to be MSEK 515 (324) and the operating income is expected to be MSEK 114 (57), resulting in operating margin 22.2% (17.5). All figures in this press release are preliminary and the final report for the third quarter 2021 will be published on November 3, 2021 at 08:00am CET.

Concentric released simultaneously a press release announcing the acquisition of EMP Inc. for MSEK 1,260 (MUSD 147) in a transformational deal to support Concentric's e-pump electrification strategy. EMP will be consolidated into Concentric's accounts, subject to any post-closing conditions, from 29 October 2021. For the 12-month period ending December 2021, EMP forecast revenues of about MSEK 1,095 (MUSD 127) and adjusted EBITDA of about MSEK 147 (MUSD 17).

This information is of the type that Concentric AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.00 CET on 26 October, 2021.

CONTACT:

For additional information please contact Marcus Whitehouse, telephone +44-121-445 6545

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/concentric-ab/r/concentric-ab-announces-preliminary-results-for-the-third-quarter-2021--in-connection-with-the-acqui,c3440041

The following files are available for download:

https://mb.cision.com/Main/1643/3440041/1486102.pdf

Release

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SOURCE Concentric AB

FAQ

What were Concentric AB's preliminary results for Q3 2021?

Concentric AB reported net sales of MSEK 515 and operating income of MSEK 114, resulting in an operating margin of 22.2%.

How much did Concentric AB acquire EMP Inc. for?

Concentric AB announced the acquisition of EMP Inc. for MSEK 1,260.

What financial impact is expected from the acquisition of EMP Inc.?

EMP Inc. is forecasted to generate revenues of about MSEK 1,095 and adjusted EBITDA of MSEK 147 for the 12-month period ending December 2021.

When will Concentric AB publish its final Q3 2021 report?

The final report for Q3 2021 will be published on November 3, 2021, at 08:00am CET.

What is the purpose of acquiring EMP Inc. by Concentric AB?

The acquisition aims to support Concentric's e-pump electrification strategy, enhancing its market position.