First quarter of 2021: All business areas achieve sales and profit growth
Nolato reported strong results for Q1 2021, with sales increasing to SEK 2,645 million, up from SEK 2,065 million. Operating profit (EBITA) surged to SEK 308 million, with an EBITA margin of 11.6%. Profit after tax reached SEK 226 million, and diluted earnings per share climbed to SEK 8.43. Medical Solutions saw a notable 17% organic growth, while Integrated Solutions achieved 40% growth. The company plans to expand production capacity in multiple countries, responding to strong demand across business areas.
- Sales increased to SEK 2,645 million (2,065), representing strong growth.
- Operating profit (EBITA) rose to SEK 308 million (227), marking a positive trend.
- EBITA margin improved to 11.6% from 11.0%.
- Profit after tax increased to SEK 226 million (177).
- Diluted earnings per share improved to SEK 8.43 (6.67).
- Medical Solutions achieved 17% organic growth, indicating strong market demand.
- Integrated Solutions saw an impressive 40% organic growth.
- Surgery segment negatively affected by the pandemic, particularly in the US.
- Components shortage in the automotive industry slightly impacted Industrial Solutions.
TOREKOV, Sweden, May 4, 2021 /PRNewswire/ --
- Sales increased to SEK 2,645 million (2,065)
- Operating profit (EBITA) rose to SEK 308 million (227)
- EBITA margin of
11.6% (11.0)
- Profit after tax was SEK 226 million (177)
- Diluted earnings per share increased to SEK 8.43 (6.67)
- Cash flow after investments amounted to SEK 71 million (–73)
"All business areas achieved good performance in the first quarter, with very strong growth in Medical Solutions and Integrated Solutions," said Nolato President and CEO Christer Wahlquist. "Adjusted for currency and acquisitions, Group sales increased by a considerable
"This is once again a testament to our close customer relationships and our strong position as a global strategic partner for a raft of leading companies," said Christer Wahlquist.
Medical Solutions sales for the quarter totaled SEK 1,006 million (642), corresponding to organic growth of a notable
"Growth was good in most areas, particularly in diagnostics, for which demand has increased partly because of the pandemic," noted Christer Wahlquist. "The quarter also included a larger proportion of billing for development work and production equipment, which was around SEK 70 million higher than normal. The surgery segment continued to be negatively affected by the pandemic, particularly in the US business, but it showed an improvement towards the end of the quarter."
"The strong growth in Medical Solutions has led us to recently take decisions to further expand our production capacity. In addition to the expansions we have already started in Switzerland, Hungary and Sweden, we will also be expanding the existing plants in Poland and the US."
Integrated Solutions sales totaled SEK 1,045 million (854), corresponding to organic growth of an impressive
"Sales were fueled by strong growth in Vaporiser Heating Products (VHP) and EMC," said Christer Wahlquist. "In line with our previous assessment, VHP volumes ramped up in the quarter, while EMC benefited from both the 5G roll-out and our initiatives within Automotive. We expect VHP volumes to continue growing and sees sales for this business area increasing by around
Industrial Solutions sales totaled SEK 595 million (570), corresponding to organic growth of
"There was a slightly negative impact from a components shortage in the automotive industry and effects of the pandemic in some areas," added Christer Wahlquist. "However, our efficiency improvements have generated the desired effect, which is reflected by the sharp increase in earnings and the strong EBITA margin."
For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705 804848
Per-Ola Holmström, CFO, +46 (0)705 763340, per-ola.holmstrom@nolato.com
Nolato is a Swedish group with operations in Europe, Asia and North America. We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors. Nolato's shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector. www.nolato.com
Prior to publication this information constituted inside information that Nolato AB is obliged to publish pursuant to the EU Market Abuse Regulation. This information is submitted through the agency of the above contact persons for publication on May 4, 2021 at 3.00 p.m. CET.
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SOURCE Nolato
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