Interim Report January-March 2021
Mycronic AB reported its first quarter 2021 results showing mixed performance. Order intake decreased by 28% to SEK 1,027 million, while net sales surged by 75% to SEK 1,291 million, a notable increase attributed to strong growth in the High Volume and Pattern Generator divisions. EBIT rose to SEK 498 million with an improved margin of 39%. The board forecasts consolidated net sales of SEK 3.9 billion for 2021. CEO Anders Lindqvist expressed confidence in the company's resilience and growth prospects.
- Net sales increased by 75% to SEK 1,291 million.
- EBIT improved significantly to SEK 498 million, representing a 39% margin.
- Strong performance in High Volume and Pattern Generator divisions.
- Confident outlook for net sales targeting SEK 3.9 billion in 2021.
- Order intake declined by 28% to SEK 1,027 million, impacted by a tough comparison to Q1 2020.
STOCKHOLM, April 22, 2021 /PRNewswire/ -- First quarter
- Order intake amounted to SEK 1,027 (1,432) million, a decline of 28 percent
- Net sales increased 75 percent to SEK 1,291 (736) million. Based on constant exchange rates the increase was 88 percent
- EBIT increased to SEK 498 (55) million and EBIT margin was 39 (8) percent
- Earnings per share were SEK 3.99 (0.40)
"We delivered a stable start to the year. We continue to focus on helping our customers address the challenges still being created by the pandemic. We delivered growth of 75 percent and the EBIT margin improved to 39 percent, which was largely explained by good growth in the High Volume division and a strong quarter for the Pattern Generator division attributed to the delivery of a Prexision 800 Evo. The order decline of 28 percent should be viewed in relation to a challenging comparison with the first quarter of 2020 when order intake included five mask writers. This is a result that I am very satisfied with, at the same time as I can see potential for further improvements, particularly in the High Flex and Global Technologies divisions," says Anders Lindqvist, President and CEO.
Outlook 2021
It is the Board of Directors' opinion that consolidated net sales for 2021 will be at a level of SEK 3.9 billion, based on 2020 closing exchange rates.
CEO comments
We delivered a stable start to the year. We continue to focus on helping our customers address the challenges still being created by the pandemic. We delivered growth of 75 percent and the EBIT margin improved to 39 percent, which was largely explained by good growth in the High Volume division and a strong quarter for the Pattern Generator division attributed to the delivery of a Prexision 800 Evo. The order decline of 28 percent should be viewed in relation to a challenging comparison with the first quarter of 2020 when order intake included five mask writers. This is a result that I am very satisfied with, at the same time as I can see potential for further improvements, particularly in the High Flex and Global Technologies divisions.
Our approach is characterized by a long-term perspective, while the divisionalization strengthened the prerequisites to individually and directly adapt Mycronic's various parts to the changes in each market. An ability to rapidly adjust, coupled with a healthy diversification of risk, creates resilience and contributes to our platform for future growth.
During the quarter, we noted varied development among our divisions. Pattern Generators delivered three mask writers during the quarter and received an additional two orders for mask writers for the semiconductor industry, which has continued to show a great deal of interest in SLX. In the display segment, we foresee continued positive long-term market development, although we did not receive any system orders during the quarter.
The former Assembly Solutions divisions recognized a combined EBIT margin of 13 percent, which is in line with the full-year objective. The High Flex division noted a stable trend, driven by significant orders from the US and Chinese markets. High Volume continued its strong and stable trend, mainly driven by investments in automation solutions in China. Although some improvement from low levels was noted, weak volumes for camera modules to the automotive industry continue to impact the Global Technologies division. In aerospace and defense, there was a strong performance in the US market, at the same time as the Chinese optoelectronics market softness carried over from the fourth quarter, but started to improve towards the end of the first quarter.
The objective for the accumulated EBIT margin in the former Assembly Solutions divisions is at least 10 percent and I foresee favorable opportunities to reach even higher levels in the long term. We continue to ensure that we have solid and active cost control, which can be rapidly adapted, and that we have the right expertise and organization to meet the market's demands and fluctuations. At the same time, we are continuing to implement a flexible product strategy that enables us to offer our solutions more broadly to new segments and geographies. The component shortages in the market has not affected our performance in the first quarter, but we foresee that it can lead to higher costs and longer lead times going forward.
During the past year, I have been impressed by how skilled our organization is at managing change. We have a dynamic, innovative and responsible culture with a high level of commitment and innovative strength. We have a scalable, customer-centric and decentralized organization that quite simply makes us faster and more flexible. Our product portfolio comprises leading, high-quality and effective product solutions and we are continuing in parallel to invest in solutions for the future of electronics. We have a clear growth strategy and are seeking actively within attractive areas to complement and broaden our offering through carefully selected acquisitions.
In summary, our start to the year has been strong and we have created a solid platform for profitable and sustainable growth, and I feel confident that we will achieve at least SEK 5 billion in net sales not later than in 2023. The Board of Directors reiterates the year's objective of net sales of SEK 3.9 billion based on exchange rates at year-end 2020, and I look forward to the remainder of the year with confidence.
Anders Lindqvist, President and CEO
FINANCIAL INFORMATION
Mycronic AB (publ) is listed on Nasdaq Stockholm, Large Cap. The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication through the contact persons stated below on April 22, 2021, at CET 8:00 a.m.
Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.
This report was not reviewed by the company's auditor.
CONFERENCE CALL
Mycronic will host a web conference at 10:00-11:00 CET on April 22 with President and CEO Anders Lindqvist, and CFO Torbjörn Wingårdh. To take part of the presentation please dial the numbers or watch via the web link below.
Sweden: +46 8 566 427 06
UK: +44 333 300 9272
USA: +1 833 823 0590
https://mycronic-external.creo.se/210422
ADDITIONAL INFORMATION, PLEASE CONTACT
Anders Lindqvist, President and CEO
+46 8 638 52 00, anders.lindqvist@mycronic.com
Torbjörn Wingårdh, CFO
+46 8 638 52 00, torbjorn.wingardh@mycronic.com
Tobias Bülow, Director Investor Relations
+46 734 018 216, tobias.bulow@mycronic.com
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SOURCE Mycronic AB
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