Nolato Q4 2019: Good Performance by all Business Areas

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Feb 10, 2020, 08:54 ET

TOREKOV, Sweden, Feb. 10, 2020 /PRNewswire/ --

Fourth quarter 2019:

Sales increased to SEK 2,296 million (1,781)
Operating profit (EBITA) rose to SEK 271 million (214) excl. a non-recurring item of SEK -22 million
EBITA margin of 11.8% (12.0%) excl. non-recurring items
Profit after tax was SEK 206 million (158)
Basic earnings per share increased to SEK 8.36 (6.01) excl. non-recurring items
Cash flow after investment rose to SEK 601 million (122) excl. acquisitions

"We can look back on a very strong quarter in which Group sales grew by a significant 22 percent adjusted for currency, driven in particular by Integrated Solutions, whose sales adjusted for currency rose by a remarkable 45 percent. This business area's production is conducted in China, and operations have been closed since the end of January owing to Chinese New Year and, for the past week, due to the coronavirus outbreak," said Nolato President Christer Wahlquist.

Medical Solutions sales amounted to SEK 627 million (580); adjusted for currency, sales increased by 4%. Operating profit (EBITA) increased to SEK 80 million (77) and the EBITA margin was 12.8% (13.3).

"Sales increased in both Medical Devices and Pharma Packaging," noted Nolato President Christer Wahlquist.

Integrated Solutions sales amounted to SEK 1,097 million (703); adjusted for currency, sales increased by a very strong 45%. Operating profit (EBITA) rose to SEK 147 million (99) and the EBITA margin was a very strong 13.4% (14.1).

"Nolato's customer in Vaporiser Heating Products (VHP) has launched new product variants, which made a positive contribution in the quarter as a result of inventory build-up by the customer," commented Christer Wahlquist. Good volumes of older VHP products, with high production efficiency and good capacity utilisation in mobile phones, had a positive impact on the margin."

Industrial Solutions sales amounted to SEK 537 million (505); adjusted for currency, sales increased by 10%. Operating profit (EBITA) increased to SEK 47 million (39) and the EBITA margin was 8.2% (7.7).

"New customer projects within general industry were initiated in the quarter, boosting sales," said Christer Wahlquist. "However, high start-up costs had a negative impact of just under one percentage point on the margin."

Cash flow after investment in the fourth quarter amounted to a very strong SEK 601 million (122), excluding acquisitions.

Full year 2019:

Sales totalled SEK 7,919 million (8,102)
Operating profit (EBITA) was SEK 917 million (946) excl. non-recurring items
Basic earnings per share were SEK 27.20 (SEK 27.18) excl. non-recurring items
The equity/assets ratio was 48% (50) and net financial assets were SEK 666 million (341)
The Board proposes a 4% increase in the dividend to SEK 14.50 (14.00) per share

Medical Solutions sales for the full year amounted to SEK 2,484 million (2,270); adjusted for currency, sales increased by 5%. Operating profit (EBITA) rose to SEK 320 million (295) and the EBITA margin was 12.9% (13.0).

Sales increased in both Medical Devices and Pharma Packaging, and most product areas experienced good growth. Growth in the second half of the year was affected by strong comparative figures, which contained very high development sales and billing of production equipment.

Integrated Solutions sales amounted to SEK 3,292 million (3,720); adjusted for currency, sales decreased by 18%. Operating profit (EBITA) was SEK 427 million (473). The EBITA margin was a strong 13.0% (12.7).

Industrial Solutions sales were SEK 2,159 million (2,119); adjusted for currency and Group structure, sales were unchanged. Operating profit (EBITA) totalled SEK 181 million (186), with an EBITA margin of 8.4% (8.8).

The Annual General Meeting will be held on 4 May 2020 at 4 p.m. CET in Grevie, Sweden.

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. The information was issued for publication by the above contact persons on 10 February 2020 at 2.30 p.m. CET.

For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705-804848
Per-Ola Holmström, CFO, +46 (0)705-763340

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