Interim Report January–June 2018

April–June 2018

  • Net sales increased by 11 per cent to SEK 415.8 million (376.1). In USD terms, net sales increased by 14 per cent.
  • Order intake increased by 11 per cent to SEK 409.6 million (369.3). In USD terms, order intake increased by 13 per cent.
  • EBITA was SEK 22.8 million (34.3), representing an EBITA margin of 5.5 per cent (9.1).
  • Adjusted* EBITA was SEK 32.0 million (34.3), representing an adjusted* EBITA margin of 7.7 per cent (9.1).
  • Operating profit was SEK 21.7 million (33.2). Operating margin was 5.2 per cent (8.8).
  • Earnings after tax was SEK 16.3 million (32.0).
  • Earnings per share was SEK 0.99 (2.06) before dilution and SEK 0.92 (2.03) after dilution**.

January–June 2018

  • Net sales increased by 8 per cent to SEK 790.2 million (730.1) In USD terms, net sales increased by 15 per cent.
  • Order intake increased by 4 per cent to SEK 778.6 million (746.2). In USD terms, order intake increased by 10 per cent.
  • EBITA was SEK 53.9 million (70.5), representing an EBITA margin of 6.8 per cent (9.7).
  • Adjusted* EBITA was SEK 65.5 million (70.5), representing an adjusted* EBITA margin of 8.3 per cent (9.7).
  • Operating profit was SEK 51.6 million (68.2). Operating margin was 6.5 per cent (9.3).
  • Earnings after tax were SEK 37.3 million (61.6).
  • Earnings per share were SEK 2.31 (3.97) before dilution and SEK 2.21 (3.90) after dilution**.

Significant events during and after the period

  • The company was listed on Nasdaq Stockholm on 5 June 2018.
  • The company raised SEK 100 million before transaction costs through the issuance of new shares in connection with the Initial Public Offering (IPO).
  • IPO-related costs of SEK 9.2 million were charged to the income statement in the period and a further SEK 20.0 million was charged to equity.
KEY PERFORMANCE INDICATORS  Apr–Jun Jan–Jun Full year
2018 2017 % 2018 2017 % LTM*** 2017
Order intake, SEK million 409.6 369.3 11 778.6 746.2 4 1,541.6 1,509.2
Order intake, USD million 47.2 41.9 13 92.7 84.1 10 185.4 176.8
Net sales, SEK million 415.8 376.1 11 790.2 730.1 8 1,460.2 1,400.1
Net sales, USD million 48.0 42.3 14 94.3 82.2 15 176.0 164.0
Gross margin, % 30.6 29.7 30.5 30.1 30.4 30.2
EBITA, SEK million 22.8 34.3 -34 53.9 70.5 -24 53.6 70.2
EBITA margin, % 5.5 9.1 6.8 9.7 3.6 5.0
Adjusted* EBITA, SEK million 32.0 34.3 -7 65.5 70.5 -7 108.7 113.7
Adjusted* EBITA margin, % 7.7 9.1 8.3 9.7 7.4 8.1
Operating profit/loss, SEK million 21.7 33.2 -35 51.6 68.2 -24 49.1 65.6
Profit/loss after tax, SEK million 16.3 32.0 -49 37.3 61.6 -39 16.1 40.4
Earnings per share before dilution**, SEK 0.99 2.06 -52 2.31 3.97 -42 0.81 2.42
Earnings per share after dilution**, SEK 0.92 2.03 -54 2.21 3.90 -43 0.79 2.38
Cash flow from operating activities, SEK million 11.5 4.4 160 -9.5 10.9 17.0 37.4
Return on equity, % 7.0 30.3
Average exchange rate, SEK/USD 8.67 8.81 8.38 8.86 8.31 8.54
Average exchange rate, SEK/EUR 10.33 9.68 10.14 9.59 9.91 9.63

* Adjusted for extraordinary items of SEK 9.2 million in the second quarter of 2018, 11,6 million January–June, 55.1 million for the last twelve months and SEK 43.5 million for the full year 2017. The adjustments refer to costs for the IPO and settlement costs related to the agreement with the Russian tax authority.
** The Annual General Meeting on 14 March 2018 resolved to approve a 10:1 stock split. Earnings per share have been calculated retrospectively based on the total number shares after the stock split for each period.
*** LTM = last twelve months = rolling twelve months.

This is a translation of the original Swedish interim report. In the event of difference between the English translation and the Swedish original, the Swedish interim report shall prevail.

Message from the CEO

Continued good growth for NCAB

We are proud to present our first interim report as a listed company. I would also like to welcome all our new shareholders to NCAB.

We have continued to grow in the second quarter. Net sales increased by 11 per cent in SEK and 14 per cent in USD. Our market remains strong in all regions and we are capturing market shares. We are also pleased to note that new, large customers in Germany, the United States and other markets have chosen to increase their purchases from us. This reflects the added value that we offer our customers. In Italy, where we established a presence in 2017, we already have around 40 recurring customers.

Despite high capacity utilisation at the factories in China, the rumoured price increases have not been realised, which could be due to the strengthening of the USD against the RMB. That means improved margins for the Chinese’s manufacturers in RMB.

NCAB’s results for the second quarter are slightly weaker than in the same period in 2017. This is mainly because our European operations have continued to invest in growth by recruiting new staff. Another factor is that a large share of our fixed costs is in EUR, which has strengthened versus SEK, resulting in higher reported costs. Our central costs have also increased somewhat after we became a listed company. This refers mainly to costs related to accounting, auditing, stock exchange fees and investor relations. We are confident that being a listed company will increase our credibility in the market, which in turn will help to attract more customers. We operate in a strong macroeconomic environment. However, there are many uncertainties particularly when it comes to trade barriers and customs. Our order intake for July was strong, which gives us confidence going forward.

Hans Ståhl
CEO and President, NCAB Group AB

For further information, please contact:

Gunilla Öhman, IR Manager
Telephone: +46 707 63 81 25
E-mail: gunilla.ohman@ncabgroup.com

This constitutes information which NCAB Group AB is required to publish under the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication through the above contact persons on 16 August 2018, at 06:00 CEST.