SCANFIL PLC HALF YEAR FINANCIAL REPORT 9 AUGUST 2018 8.00 A.M.
SCANFIL GROUP’S HALF YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 2018
Q2/2018: Record turnover and operating profit, future outlook unchanged
April – June
– Turnover totalled EUR 151.7 million (Q2 2017: 132.4), up to 14.5%
– Operating profit EUR 11.2 (7.1) million, 7.4% (5.3%) of turnover
– Net profit was EUR 8.0 (4.3) million
– Earnings per share amounted EUR 0.12 (0.07)
January – June
– Turnover totalled to EUR 291.3 million (H1 2017: 254.7), up to 14.4%
– Operating profit EUR 21.5 (13.2) million, 7.4% (5.2%) of turnover
– Net profit for the review period was EUR 15.5 (10.2) million
– Earnings per share were EUR 0.24 (0.16)
Scanfil estimates that its turnover for 2018 will be EUR 545 – 585 million and the operating profit will amount to EUR 36 – 40 million.
|Q2/2018||Q2/2017||Change %||H1/2018||H1/2017||Change %||1-12/2017|
|Turnover, EUR million||151.7||132.4||15%||291.3||254.7||14%||529.9|
|Operating Profit, EUR million||11.2||7.1||59%||21.5||13.2||63%||31.3|
|Operating Profit, %||7.4||5.3||7.4||5.2||5.9|
|Net Profit, EUR million||8.0||4.3||83%||15.5||10.2||53%||25.8|
|Earnings per Share, EUR||0.12||0.07||83%||0.24||0.16||52%||0.40|
|Return on Equity, %||24.3||18.5||22.2|
|Equity Ratio, %||40.6||38.4||40.7|
|Net Gearing, %||34.1||44.8||32.6|
|Net Cash Flow from Operations, EUR million||8.5||4.7||81%||21.3|
|Employees (Average)||3 446||3 200||8%||3 254|
Petteri Jokitalo, CEO of Scanfil plc:
The second quarter was a record one in terms of sales and operating profit. We continued on the same lines as in the first quarter of this year: turnover grew by about 15% on the same period last year, and operating profit was up 59% year-on-year. With the exception of the Networks & Communication segment, every segment grew compared to the year-on-year level. The Other Industries segment grew particularly strongly, and the Urban Applications segment and the Medtec, Life Science, Environmental Measurements segment both grew by more than 10% year-on-year.
April–June operating profit was EUR 11.2 million, with operating margin at a good level of 7.4%. The return on investment was 24.3%. Profitability was driven by productivity improvement actions and good utilization rate of factories capacity, supported by high demand from customers.
Component availability continued to be an issue during the quarter. This required constant attention and actions, as well as seamless cooperation with customers and suppliers. With successful measures and good cooperation, however, we were able to ensure material availability and customer deliveries without any serious disturbance.
In April, in light of strong customer demand we increased our turnover and operating profit estimates for the year 2018. The updated guidance continues to reflect our outlook, so we expect sales and operating profit for the second half of the year to be lower than for the first half. The main reason for this is weakening demand in the Networks & Communication segment, and the declining demand outlook for the coming months in a significant customer’s deliveries in the Other Industries segment. For these customers, we expect growth to resume in early 2019. Strong fluctuation of customer forecasts has been typical for this year and, therefore, it is not possible to narrow the future guidance range for 2018.
The strong result for the first half of the year provides a sound basis for the implementation of Scanfil’s strategy. We will continue to strengthen our global delivery capability and our global factory network, to further strengthen our position as the preferred supplier for our global customers. We seek growth from new customers primarily in the Nordic countries and in Central Europe, both organically and through potential acquisitions. We are well positioned to fulfill future growth targets and, in 2020 Scanfil aims to reach sales of EUR 600 million, excluding possible acquisitions.
I am pleased with the operational performance and Scanfil’s results in the first half of 2018, and I wish to thank our personnel for their good work and good results.
The Group’s turnover for January–June was EUR 291.3 (254.7) million, an increase of 14.4% on the corresponding period for the previous year. The group’s operating profit for January–June was EUR 21.5 (13.2) million, which is 7.4% (5.2%) of turnover. Operating profit increased by approximately 62.7% on the previous year. In addition to the positive turnover trend, the overall improvement in productivity also contributed to growth in operating profit. The figures for the first half of 2017 were also to some extent negatively affected by the expenses of the discontinued Vantaa and Biatorbágy plants. The net profit for the period under review was EUR 15.5 (10.2) million.
Earnings per share for the period under review were EUR 0.24 (0.16). The return on investment was 22.7% (16.0%). The improvement in return on investment was mainly due to good profit trends.
The Group’s turnover for April–June amounted to EUR 151.7 (132.4) million and operating profit was EUR 11.2 (7.1) million, or 7.4% (5.3%) of turnover. The net profit for April–June was EUR 8.0 (4.3) million.
Publication of financial releases
This stock exchange release is a summary of the Scanfil Group’s half year financial report 1 January – 30 June 2018 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 www.scanfil.com.
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
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 10 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.