CEO’s review

Q4/20 and 2020: Solid performance in exceptional year. Customer demand picked up towards year end.

Overall, I am satisfied with our performance in 2020. I want to thank our committed personnel and our customers and other stakeholders for your trust.

Petteri Jokitalo, CEO:

“The turnover for the first quarter was EUR 163.3 million, an increase of 13% year-on-year. The customer demand recovery that had already started in the latter part of 2020 continued positively during the quarter. Demand for products related to sustainable energy, indoor climate, automation, collection solutions and elevators developed especially strongly. The trading business, which is now expected to be completed, was still contributing about EUR 8.1 million to sales during the quarter.

COVID-19 is not over yet, and we successfully continued the fight against it; the performance of our personnel and factories has remained high this year.

Although the availability of certain materials was critical, we did not suffer from any major material restrictions during the quarter. Continuous attention was paid and a lot of actions taken to mitigate the risks and ensure the materials for production.

Profitability developed as expected. The operating profit for the quarter was EUR 10.0 million, 6.1% of turnover and an increase of 16% on the previous year. A strong sales volume, especially in March, supported profitability, especially in factories in China, Poland and Estonia. However, low profit trading sales and Hamburg production transfer with an ongoing factory ramp down required extra resources and costs, which negatively impacted the operating profit margin slightly.

Scanfil’s financial position is strong, allowing the planned investments and enabling flexibility for opportunities. In the first quarter, the net cash flow from operations, before investments and financial items, was EUR 7.7 (5.6) million. The equity ratio was 52.1%, and net gearing 5.9%.

We continue the year with confidence. We have seen customers’ forecasts gradually rising, bringing confidence in demand. Key risks are associated with the continuing coronavirus pandemic and the availability of certain materials. We have identified these risks and launched appropriate mitigation actions. We are keeping our guidance unchanged and expect our turnover for 2021 to be EUR 600 – 640 million and our operating profit to be EUR 40 – 44 million (Updated later on 11 July 2021).

We’ve had a good start to the year! I want to thank our committed personnel for a job well done, and our customers for their support and trust.”