Q2/2020: Stable Development in Exceptional Circumstances

April – June

– Turnover totalled EUR 155.6 million (Q2 2019: 142.6), increase of 9.1%
– Operating profit EUR 10.2 (6.4) million, 6.5% (4.5%) of turnover, adjusted operating profit in
the comparison year EUR 10.3 million, 7.2% of turnover
– Net profit was EUR 8.3 (4.6) million
– Earnings per share were EUR 0.13 (0.07)
– On June 29, 2020, Scanfil announced the sale of the entire share capital of Scanfil (Hangzhou) Co., Ltd.,
a subsidiary located in Hangzhou, China.

January – June

– Turnover totalled EUR 299.6 million (H1 2019: 272.5), increase of 10.0%
– Operating profit EUR 18.8 (13.3) million, 6.3% (4.9%) of turnover, adjusted operating profit in the
comparison year EUR 17.3 million, 6.3% of turnover
– Net profit was EUR 15.8 (9.4) million
– Earnings per share were EUR 0.24 (0.15)

Future outlook

Scanfil updated on 29 June its 2020 outlook and estimates that its turnover for 2020 will be EUR 580 – 620 million and adjusted operating profit EUR 38 – 42 million.

Earlier Scanfil estimated its turnover for 2020 to be EUR 590 – 640 million and adjusted operating profit and EUR 39 – 43 million.

The 2020 guidance is subject to exceptional uncertainty due to the potential negative effects of the coronavirus pandemic on customer demand, supply chain capacity as well as the safety and operational capability of our own plants and personnel.

Long Term Target

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

In addition, Scanfil is actively exploring acquisition opportunities, especially in the Nordic countries and Central Europe.

Key Figures
Q2/2020 Q2/2019 Change% H1/2020 H1/2019 Change % 2019
Turnover, EUR million 155.6 142.6 9.1% 299.6 272.5 10.0% 579.4
Operating Profit, EUR million 10.2 6.4 58.4% 18.8 13.3 41.8% 35.3
Operating Profit, Adjusted, EUR million 10.2 10.3 -0.9% 18.8 17.3 8.8% 39.4
Operating Profit, % 6.5 4.5 6.3 4.9 6.1
Operating Profit, Adjusted, % 6.5 7.2 6.3 6.3 6.8
Net Profit, EUR million 8.3 4.6 80.3% 15.8 9.4 67.5% 28.1
Net Profit, Adjusted, EUR million 8.3 8.4 -2.0% 15.8 13.4 17.4% 32.1
Earnings per Share, EUR 0.13 0.07 79.6% 0.24 0.15 66.8% 0.44
Earnings per Share, Adjusted, EUR 0.13 0.13 -4.3% 0.24 0.21 16.9% 0.50
Return on Equity, % 18.8 12.8 18.0
Return on Equity, Adjusted, % 18.8 18.1 20.4
Equity Ratio, % 47.5 41.7 49.1
Net Gearing, % 27.0 45.6 27.7
Net Cash Flow from Operations, EUR million 16.8 7.4 127.6% 35.9
Employees (Average) 3 535 3 476 1.7% 3 530

There were no adjustment items in 2020 during the first half of the year.

Petteri Jokitalo, CEO of Scanfil plc:

The development of COVID-19 into a global pandemic affected Scanfil’s operations in many ways during the first half of the year. We prepared a plan and guidelines to prevent COVID-19 infections and ensure production and other operations across our organization. Apart from the infections and production shutdown at the Myslowice plant in Poland in April, there have been no disruptions, and our employees have remained healthy. The measures we have implemented have significantly reduced the risk of infection, which has given us more confidence about the future: we are more prepared for a second wave of the COVID-19.

To some extent, COVID-19 will change our operations permanently, and it will also offer new opportunities. The increased use of digital tools not only improves productivity but also increases employee satisfaction and the added value perceived by customers. Virtual plant and product audits reduce travel costs, the time spent on commuting, and accelerating decision-making and processes in general.

Our second-quarter turnover was EUR 155.6 million, representing an increase of EUR 13 million, 9%, compared with the corresponding period last year. We expected sales to increase notably from the first quarter of the year, and the result shows we are heading in the right direction. Customer demand grew organically, particularly in the Communication and Energy & Automation customer segments. The HASEC acquisition, which was completed a year ago, represented a bit less than two-thirds of the increase in turnover, which is mainly reflected in the growth of the Industrial customer segment. For example, there was good demand for 5G network elements, camera surveillance systems and elevator products.

The market situation proved difficult, especially for many of our customers in the Consumer Applications segment. For example, with the pandemic escalating, the use of self-service equipment for consumers decreased significantly, and customers responded quickly by cutting their forecasts and orders. However, we expect the situation to be temporary and believe that demand will pick up during the second half of the year, provided that the number of infections in Europe remains under control.

The delivery capability of the supply chain did not set any significant restrictions on our deliveries during the second quarter.

The operating profit was EUR 10.2 million, or 6.5% of turnover. COVID-19 caused extraordinary costs and loss of productivity during the second quarter, and I am pleased with the level of operating profit we achieved in these exceptional circumstances.

Scanfil has a strong financial position. The payment of dividends in May and the investments made in early 2020 have been financed from net cash flow from operating activities without increasing debt. At the end of the second quarter, we had around EUR 19 million in cash assets and an unused credit limit of around EUR 34 million. The equity ratio was 47.5%, and net gearing was 27.0%.

Our investments continued according to the plan during the second quarter and were mainly related to the robotization and automatization of electronics manufacturing, as well as the surface treatment of mechanical products.

At the end of June, we announced the sale of our Hangzhou plant in China. Scanfil’s focus in China will now be on the manufacture of electronics and integrated products at the Suzhou plant. At the beginning of July, we announced our plan to close down our Hamburg plant and continue production at Scanfil’s other plants in Germany and Poland. The aim of these measures is to secure and improve the performance and competitiveness of Scanfil’s network of plants in the long term.

We have updated our guidance, and we expect our turnover for 2020 to be EUR 580–620 million and our operating profit to be EUR 38–42 million. Our estimate is based on our customers’ current demand forecasts, while it is clear that this year continues to involve a great deal of uncertainty and risk.

We can be pleased with the results we achieved during the first half of the year in exceptional circumstances. I would like to thank our customers and suppliers for their support and trust, and all our employees for a job well done.

Financial Development

The Group’s turnover for January – June was EUR 299.6 (272.5) million, increase of 10.0% compared to the corresponding period of the previous year.

The effect of the HASEC acquisition, made a year ago, on turnover growth was about two-thirds, which is mainly reflected in the sales growth of the Industrial segment. The Communication and Energy & Automation segments grew organically. The negative effects of COVID-19 were mostly seen in the Consumer Applications segment, in which sales decreased clearly.

The Group’s operating profit for January – June was EUR 18.8 (13.3) million, 6.3% (4.9%) of turnover. The previous year’s operating profit includes adjustment items of EUR 4.0 million, which consists of expenses related to the acquisition of HASEC-Elektronik GmbH (EUR 0.4 million) and a write-down of goodwill (EUR 3.6 million) related to Scanfil GmbH’s business operations. Adjusted operating profit for the previous year was EUR 17.3 million, or 6.3% of turnover. The operating profit increased by 8.8% compared to adjusted operating profit from previous year. The increase in the operating profit mainly resulted from the positive development of the turnover. The net profit for the review period was EUR 15.8 (9.4) million.

Earnings per share for the review period were EUR 0.24 (0.15). Return on investment was 16.9% (12.7%). The improvement in the key figures is mainly due to the better result than in the previous year.

The Group’s turnover in April–June was EUR 155.6 (142.6) million, and its operating profit was EUR 10.2 (6.4) million, or 6.5% (4.5%) of turnover. Turnover increased by 9.1% compared to the corresponding period of the previous year. The operating profit for the second quarter of the previous year includes adjustment items totaling EUR 3.8 million. Adjusted operating profit for the second quarter of 2019 was MEUR 10.3. EUR, 7.2% of net sales.The result in April–June was EUR 8.3 (4.6) 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 2020 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

Webcast Q2 results

In conjunction with releasing our Q2 results, we arrange a webcast on 7 August 2020 at 10.00 am. You can follow the webcast The presentation is in Finnish, and it will be held by CEO Petteri Jokitalo. On-demand recording from the webcast will be available on the company’s webpages later the same day.

The material presented in the webcast will be available around 10.00 am in Scanfil’s webpages


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 over 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 production units in Europe, Asia and North America.

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.