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Kitron reported a doubling of revenues and improved margins, driven by a strong market and better component availability.
Kitron's revenue for the third quarter was NOK 1 664 million, compared to NOK 831 million last year. The revenue growth reflects both the acquisition of Danish EMS provider BB Electronics AS and underlying growth for other business units.
Third-quarter operating profit (EBIT) was NOK 116.3 million, compared to 50.1 million last year. EBITDA was NOK 158.9 million, compared to 75.7 million last year.
The order backlog ended at NOK 4 847 million, an increase of 89 per cent compared to last year, reflecting very strong demand.
Peter Nilsson, Kitron's CEO, comments:
“Third-quarter revenues doubled from the same period last year, and we raise our full-year outlook for the second quarter in a row. This reflects both a strong market and an easing of supply constraints. This, in turn, feeds through to improved margins and capital ratios. We expect these positive trends to continue with a solid finish for 2022.”
Profitability expressed as EBIT margin was 7.0 per cent in the third quarter, compared to 6.0 per cent in the same quarter last year.
Profit after tax amounted to NOK 75.2 million, compared to 19.5 million in the same quarter the previous year. This corresponds to earnings per share of NOK 0.38, up from 0.11 last year.
Operating cash flow was positive NOK 139.0 million, compared to negative NOK 70.2 million in the third quarter of 2021.
Net working capital was NOK 1 778 million. Net working capital as a percentage of revenue was 25.8 per cent compared to 31.8 per cent last year. Capital efficiency ratios are now improving. The focus continues to be on improving the supply situation, as well as managing resources, cash and deliverables.
For 2022, Kitron has previously indicated a revenue outlook of between NOK 5 700 and 6 100 million and an operating profit (EBIT) between NOK 330 million and 400 million. At this point, Kitron sees strong demand from customers and continued ease of supply chain constraints. Profitability is improving compared to the start of the year, when rapid cost increases challenged the company.
Kitron therefore raises its revenue outlook to between NOK 6 200 and 6 400 million. Operating profit is expected to be between NOK 390 million and NOK 430 million.