NCAB Interim report January–June 2021


> Net sales increased by 31% to SEK 762.2 million (580.6). In USD, net sales increased 52%. For comparable units, net sales increased by 15%, and in USD the increase was 33%.
>Order intake increased 118% to SEK 1,057.8 million (486.2). In USD, the increase was 152%. For comparable units, order intake increased by 98%, and in USD the increase was 129%.
> EBITA increased 105% to SEK 103.8 million (50.6), representing an EBITA margin of 13.6% (8.7).
> EBITA was positively impacted by SEK 11.0 million in forgiven loans in the USA, PPP*) loans, and transaction cost of SEK 1.3 millions. EBITA, excluding the effect of the forgiven PPP loans and transaction cost, was SEK 94.1 million, corresponding to a margin of 12.3% (10.3).
> Operating profit was SEK 99.7 million (48.1). Operating margin was 13.1% (8.3).
> Profit after tax was SEK 77.9 million (20.4).
> Earnings per share was SEK 4.16 (1.21).


> Net sales increased by 30% to SEK 1,379.3 million (1,063.7). In USD, net sales increased 49%. For comparable units, growth in SEK was 9% and in USD 26%.
>Order intake increased 94% to SEK 2,036.7 million (1,049.7). In USD, order intake increased 124%. For comparable units the increase was 67% in SEK and 98% in USD.
>EBITA increased to SEK 162.1 million (88.4), representing an EBITA margin of 11.8% (8.3). SEK 3.5 million was charged to EBITA relating to transaction costs for PreventPCB and sas – electronics, but was positively impacted by the forgiven PPP*) loans. Excluding transaction costs and the PPP loans, EBITA amounted to SEK 154.6 million, corresponding to an EBITA margin of 11.2% (9.7).
>Operating profit was SEK 155.1 million (85.1). Operating margin was 11.2% (8.0).
>Profit after tax was SEK 118.7 million (60.8).
>Earnings per share was SEK 6.34 (3.46).


>The Annual General Meeting on 10 May resolved to pay a dividend of SEK 5.00 per share.
>On June 24, 100 per cent of the shares in sas – electronics, in Germany, was acquired.
*) Loan value of SEK 11, 0 million within the American program Pay check Protection Program have under the quarter been forgiven. This is booked as other income and has contributed positivly on gross margin and EBITA.

Key performance indicators Jan-Mar Jan-Mar Full year
2021 2020 % 2021 2020 % LTM 2020
Order intake, SEK million 1 057.8 486.2 11.,5 2 036.7 1 049.7 94.0 3 230.4 2 243.4
Order intake, USD million 126.2 50.0 152.4 242.7 108.1 124.5 378.4 243.8
Net sales, SEK million 762.2 580.6 31.3 1 379.3 1 063.7 29.7 2 430.9 2 115.2
Net sales, USD million 90.9 60.0 51.5 164.4 110.0 49.4 284.2 229.8
Gross margin, % 31.6 29.4 30.2 30.5 30.5 30.3
EBITA, SEK million 103.8 50.6 105.3 162.1 88.4 83.4 264.4 190.7
EBITA margin, % 13.6 8.7 11.8 8.3 10.9 9.0
Operating profit, SEK million 99.7 48.1 107.5 155.1 85.1 82.4 252.4 182.3
Operating margin, % 13.1 8.3 11.2 8.0 10.4 8.6
Profit after tax, SEK million 77.9 20.4 282.2 118.7 60.8 95.1 185.4 127.5
Earnings per share, SEK 4.16 1.21 244.0 6.34 3.46 83.0 9.90 7.03
Cash flow from operating activities, SEK million 30.3 76.9 -60.6 28.3 79.5 -64.4 143.2 194.3
Return on capital employed, % 23.8 23.7 23.8 23.7
Return on equity, % 26.1 24.3 26.1 24.3
USD/SEK – average 8.41 9.69 8.40 9.67 8.57 9.20
EUR/SEK – average 10.14 10.66 10.13 10.66 10.22 10.49



NCAB advances its positions

NCAB has had another strong quarter. Sales increased 31 per cent to SEK 762 million. Order intake continued to increase by a full 118 per cent to SEK 1,058 million. The behaviour we saw during the first quarter with order bookings being brought forward, due to uncertainty in the market in terms of component shortages and price increases, continued in the second quarter. Is this the new normal? It is still too hard to predict. However, it is satisfying, alongside this, to see strong underlying growth and that all segments and all of the new acquisitions are delivering in terms of orders, sales and earnings. The order intake for the quarter also includes a price increase effect from our suppliers that we have passed on to our customers.

In general, we are seeing increased activity from both existing and new customers with new projects. This is an indication that we are capturing market share. It is clear that electronic applications are increasing strongly due to the transition to more climate-smart solutions. We are also seeing that many of our small competitors are having difficulty in gaining priority among the leading suppliers. It is difficult for those that do not have their own staff in China to maintain relationships with the suppliers. This is also impacting customers who, to an extent, make purchases directly from factories in Asia. This entails a clear advantage for NCAB.

EBITA increased to SEK 104 million, more than double the preceding year. However, it should be pointed out that earnings included forgiveness of PPP loans for coronavirus support in the USA, which amounted to SEK 11 million. Excluding this support, NCAB increased its EBITA margin to a full 12.3 per cent (10.3) during the quarter. Our expenses for travel, trade fairs and suchlike remain low and, although we have invested in continued growth, we have not managed to recruit staff at the same high pace as we have increased income. The margin increase is gratifying and clarifies the scale effects generated by the growth. New acquisitions are making a positive contribution, with higher sales and gross profit, but can be managed without major increases in central resources, which increases the EBITA margin.

Nordic had a healthy second quarter, also in comparison with the strong second quarter of last year. Norway and Denmark shone brightest, but it is also positive to see good order intake in Sweden and Finland, which were formerly weaker.

In Europe, several countries are displaying substantial growth. These are, in particular, the UK, Germany and Benelux. Our acquired companies PreventPCB in Italy and Flatfield in the Netherlands are performing well, with increased demand from their customers. The acquisition of sas – electronics in Germany will strengthen our position. It is also encouraging to see how customers in the UK are now showing increased confidence and willingness to invest.

In North America, both the earlier operations and the acquired BBG performed well. The margins in the acquired operations have improved.

In East, sales in China continued to develop well, with several new 5G projects. Even in Russia, we see a positive rebound in the economy.

Overall, there is much that is going our way and we have strengthened our positions. We foresee underlying demand driven by several factors, such as increased electrification in many areas, the Internet of Things (IoT), to which increasing numbers of products are connected, and generally enhanced intelligence built into industrial products. Our business model – with strong local presence among customers and suppliers – benefits us particularly in these times.

We are continuing to invest in growth and to develop effective processes for acquiring and integrating new companies.

Strong presence in Asia generates new customers”

Peter Kruk
CEO and President, NCAB Group AB