Q4/19 and 2019: Strong fourth quarter as expected, stable development throughout the year

October – December 2019
– Turnover totalled EUR 154.7 million (Q4 2018: 140.2), increase 10.3%
– Operating profit EUR 10.0 (7.5) million, 6.5% (5.4%) of turnover, increase 33.2%
– Profit was EUR 9.8 (6.4) million
– Earnings per share amounted EUR 0.15 (0.10)

January – December 2019
– Turnover totalled to EUR 579.4 (1-12/2018: 563.0) million, increase 2.9%
– Adjusted operating profit* EUR 39.4 million, 6.8% of turnover
– Operating profit EUR 35.3 (37.8) million, 6.1% (6.7%) of turnover
– Profit for the review period was EUR 28.1 (28.9) million
– Earnings per share were EUR 0.44 (0.45), adjusted earnings per share EUR 0.50
– The Board of Directors proposes a dividend of EUR 0.15 (0.13) per share to be paid for year 2019

*The adjustment items during January-December include expenses related to the acquisition of Scanfil Electronics GmbH (former name HASEC-Elektronik GmbH) (EUR 0.4 million) and the impairment of Scanfil GmbH’s goodwill (EUR 3.6 million).

Future outlook

Scanfil estimates that its turnover for 2020 will be EUR 590 – 640 million and adjusted operating profit will amount to EUR 39 – 43 million. The estimation is based on our existing understanding of impact of Coronavirus. The 2020 guidance is subject to exceptional uncertainty due to the potential negative impact of the Coronavirus epidemic on customer demand and, in particular, the situation in China.

Long-term Target

Scanfil has updated its long-term target: In 2023, Scanfil is organically aiming for EUR 700 million turnover and 7% operating profit.

Key Figures

Q4/2019 Q4/2018 Change% 2019 2018 Change %
Turnover, EUR million 154.7 140.2 10.3% 579.4 563.0 2.9%
Operating Profit, EUR million 10.0 7.5 33.2% 35.3 37.8 -6.4%
Operating Profit, Adjusted, EUR million 10.0 7.5 33.2% 39.4 37.8 4.2%
Operating Profit, % 6.5 5.4 6.1 6.7
Operating Profit, Adjusted, % 6.5 5.4 6.8 6.7
Net Profit, EUR million 9.8 6.4 52.2% 28.1 28.9 -2.7%
Net Profit, Adjusted, EUR million 9.8 6.4 52.2% 32.1 28.9 11.1%
Earnings per Share, EUR 0.15 0.10 50.0% 0.44 0.45 -3.3%
Earnings per Share, Adjusted, EUR 0.15 0.10 50.0% 0.50 0.45 10.5%
Return on Equity, % 18.0 21.5
Return on Equity, Adjusted, % 20.4 21.5
Equity Ratio, % 49.1 47.7
Net Gearing, % 27.7 19.5
Net Cash Flow from Operations, EUR million 35.9 29.0 23.4%
Employees (Average) 3 530 3 414 3.4%

Petteri Jokitalo, CEO:

“The fourth quarter was our strongest, considering our turnover, totaling EUR 155 million, showing a growth of EUR 15 million, or 10%, year-on-year. A little more than one-third of this growth was organic, while the acquisition of HASEC-Elektronik GmbH in June accounted for the rest. Our annual turnover increased in all customer segments, apart from the Communication segment. The turnover of the Industrial and Medtec segments, in particular, improved significantly.

Profitability during the fourth quarter, 6.5% of turnover, was as expected. The operating profit increased by 33% from the previous year and was EUR 10 million. The performance of our plants was high in general. However, slower customer demand before Christmas and the high number of public holidays burdened our turnover and result in December as usual and as expected.

In terms of the full year, we made progress both operationally and strategically. Our 2019 turnover stood at EUR 579 million, showing an increase of 3% from the year before. The first half of 2019 was particularly challenging considering our turnover due to slower demand among a few major customers. We were able to return to a growth track during the second half, both through the HASEC acquisition and organically. In 2019, the adjusted operating profit was EUR 39.4 million, comprising 6.8% of turnover. Our operative margin developed in the correct direction, and it is approaching the targeted level of 7%. Net cash flow from operations went up by 23%, and return on equity was good at 18%. At the end of 2019, the equity ratio was strong at 49%.

The Board of Directors proposes a dividend of EUR 0.15 per share for 2019. If the Annual General Meeting approves the dividend proposal, Scanfil has raised the dividend for seven consecutive years, while the dividend payout ratio has remained within the target of approximately one-third of earnings per share.

Strategically, our aim is to make progress in Germany, in particular, and also more broadly in Central Europe. The region has highly attractive contract manufacturing markets, offering a huge growth potential for Scanfil: German markets alone are roughly four times larger than Nordic markets, and manufacturing services still have a low outsourcing rate. The acquisition of HASEC clearly improved Scanfil’s access to this market potential. We can provide HASEC’s customers with Scanfil’s global plant capacity and full-service range.

We have already received positive feedback from HASEC’s customers: HASEC’s operations in Germany, close to its customers’ research and development units, combined with volume production at Scanfil’s plants, close to markets in Poland, China and USA, offer excellent responses to customer demand. We have projects, resulting in increased production and turnover, in progress with a number of HASEC’s customers, and I expect new sales to materialize from this potential no later than this year.

We are in an excellent position when entering to 2020. So far, our customers’ forecasts and outlooks promise growth, we are making good progress in acquiring new customers, and we have ongoing projects to gain more market share from our current customers. We got off to a good start for a year: customer demand and customer demand in January was according to our expectations.

At the moment, there is particular uncertainty in this year’s threats from the Coronavirus epidemic, particularly in China during the first quarter. Following the Chinese New Year, our Chinese factories located in Suzhou and Hangzhou, were opened on February 10 and 11, a rough week after the original schedule, according to local authority guidance. If the extra shutdowns remain only for that week and supply chains will be recovering as estimated, we are not expecting material impacts to our sales in 2020. However, there are unknown risks associated with the spread of Coronavirus, which may have longer-term effect on our customers’ demand and supply chain operations. According to original sales forecast for 2020, the expected sales in China is about 20 % of total sales.

Our long-term goal for 2020 is to reach EUR 600 million turnover and operating profit level of 7%. We have now updated our long-term target for 2023, where we are organically aiming for EUR 700 million turnover and 7% operating profit. In addition, we are actively exploring acquisitions, especially in the Nordic countries and Central Europe.

I am satisfied with our performance in 2019. Our operations are making good progress and our strategic position in Central Europe strengthened through the acquisition of HASEC. I would like to thank our committed personnel and our customers and other stakeholders for your trust.”

Financial development

The Group’s turnover for January – December was EUR 579.4 (563.0) million, increase of 2.9% compared to the previous year. The Group’s operating profit for January – December was EUR 35.3 (37.8) million, 6.1% (6.7%) of turnover. The net profit for the review period was EUR 28.1 (28.9) million. Earnings per share for the review period were EUR 0.44 (0.45). Return on investment was 17.0% (20.2%). The weaker key figures are mainly due to the adjustment items as explained below.

The operating profit includes adjustment items of EUR 4.0 million, which consists of expenses related to the acquisition of HASEC (EUR 0.4 million) and a write-down of goodwill (EUR 3.6 million) related to Scanfil GmbH’s business operations. The business operations of Scanfil GmbH, a German subsidiary acquired in 2014, have not developed as expected, which is why the Group has recognised a write-down based on impairment testing.

The adjusted operating profit was EUR 39.4 million, or 6.8% of turnover. The adjusted operating profit increased by 4.2% year-on-year. The increase in adjusted operating profit mainly came from the increase in turnover.

The Group’s effective tax rate is 17.5% which is 2.5% less than the parent company tax rate. Tax rate was affected by the losses confirmed in the taxation of two discontinued subsidiaries which have been recognized in the results of their parent companies. The total effect is EUR 2.1 million in 2019. However the aforementioned non-deductible adjustments as well as paid withholding taxes had some negative impact.

The turnover of the Industrial customer segment increased by EUR 38.7 million. Nearly half of this increase came from the acquisition of the business operations of HASEC, now Scanfil Electronics GmbH, during the second quarter. In addition, the turnover of the Medtec & Life Science segment increased by EUR 10.2 million. Slightly more than one third of this growth came from the acquisition of HASEC. Energy and Automation segment showed an increase of EUR 3.9 million.

The turnover of the Consumer Applications segment decreased by EUR 18.4 million. This decrease was mainly attributable to the discontinued manufacturing of a significant customer’s single product during the year. The decrease of EUR 18.0 million in the Communication customer segment mainly resulted from a decrease in demand by a single customer.

The Group’s turnover in October–December was EUR 154.7 (140.2) million and its operating profit was EUR 10.0 (7.5) million, 6.5% (5.4%) of turnover. The turnover increased by 10.3% and the operating profit by 33.2% compared with the corresponding quarter in the previous year. The result in October-December was EUR 9.8 (6.4) million.

On May 22, 2019, Scanfil plc signed an agreement on the acquisition of the entire share capital of HASEC, now Scanfil Electronics GmbH, a German electronics contract manufacturer. The acquisition was completed on June 17, 2019 and the business operations of Scanfil Electronics GmbH have been consolidated with the Scanfil Group since June 17, 2019. This had an effect of EUR 19.9 million on the Group’s turnover and an effect of EUR -0.1 million on its net result during the review period January-December. The purchase price was EUR 10.3 million, from which EUR 3.8 million was preliminarily allocated to long-term customer relationships, where net deferred tax liabilities were EUR 1.1 million and EUR 1.6 million was recognised in unallocated goodwill. Information on the acquired net assets is provided in the tables of the interim report.

Annual General Meeting 2020 and Board of Directors’ proposals to the Annual General Meeting

Scanfil plc’s Annual General Meeting will be held on 23 April 2020 at the company’s head office in Sievi, Finland.

Dividend for 2019

The company aims to pay dividends amounting to approximately 1/3 of its annual result on a regular basis.

The parent company’s distributable funds are EUR 43,485,669.92 including retained earnings EUR 12,168,378.38. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.15 (0.13) per share be paid for a total of EUR 9,704,998.95 for the financial year ending on 31 December 2019 .The dividend matching day is 27 April 2020. The dividend will be paid to those shareholders who, on the matching day, are entered in the Company’s Register of Shareholders, kept by Euroclear Finland Ltd. The dividend payment day is 5 May 2020.

No significant changes have taken place in the company’s financial position since the end of the financial year. In the view of the Board of Directors, the proposed dividend pay-out will not put the company’s liquidity at risk.

The proposal of Scanfil plc’s nomination committee to the General Meeting for the composition of Scanfil plc’s Board of Directors will be published in connection with the invitation to the General Meeting.

The company publishes a notice of the Annual General Meeting later separately.

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Financial Statement Release 1 January – 31 December, 2019 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at

Press conference and webcast

A press and analyst conference in Finnish will be held on February 19, 2020 from 10 am to 11 am at Hotel Kämp, Akseli Sali, Pohjoisesplanadi 29, 00100 Helsinki. The result will be presented by CEO Petteri Jokitalo. CFO Kai Valo will also be present.

The press conference can be followed by a live webcast at In the webcast it is possible to ask questions in writing. A recording of the press conference will be available on the same day at

Presentation materials for the event will be available at approximately 10 am on the Scanfil website at


Petteri Jokitalo

Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111

Distribution NASDAQ OMX, Helsinki
Major Media

Scanfil is an international contract manufacturer and system supplier for the electronics industry with 40 years of experience in demanding contract manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.

Typical Scanfil products include mobile and communications network devices, automation system modules, frequency converters, lift control systems, analysers, various slot and vending machines, and devices related to medical technology and meteorology. Scanfil services are used by numerous international automation, energy, IT and health service providers, as well as companies operating in the field of urbanisation. Scanfil’s network of factories consists of 11 production units in Europe, Asia and North America. The total number of employees is about 3,500.

Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this stock exchange release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this stock exchange release, such statements use such words as “may,” “will,” “expect,” “anticipate,” “project,” “believe,” “plan” and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this stock exchange release is current only as of the date of this stock exchange release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise.