Scanfil plc’s half year financial report January–June 2021: In the second quarter demand continued to improve and operating profit increased


Scanfil plc Half Year Report 6 August 2021 8.00 am

Scanfil plc’s half year financial report JanuaryJune 2021: In the second quarter demand continued to improve and operating profit increased


  • Turnover totalled EUR 172.9 million (Q2 2020: 155.6), an increase of 11.1%
  • Operating profit was EUR 10.6 (10.2) million, 6.1% (6.5%) of turnover, an increase of 4.1%
  • Net profit was EUR 8.6 (8.3) million
  • Earnings per share were EUR 0.13 (0.13)
  • On 11 June 2021 Scanfil revised upwards its turnover and adjusted operating profit outlook for 2021


  • Turnover totalled EUR 336.2 million (H1 2020: 299.6), increase of 12.2%
  • Operating profit was EUR 20.6 (18.8) million, 6.1% (6.3%) of turnover, an increase of 9.3%
  • Net profit was EUR 16.2 (15.8) million
  • Earnings per share were EUR 0.25 (0.24)

Future Outlook

Due to strong customer demand Scanfil revised its outlook for 2021 on 11 June. The new outlook is as follows:

Scanfil estimates that its turnover for 2021 will be EUR 630–680 (previous, issued 18 February 2021: 600–640) million and its adjusted operating profit will be EUR 41–46 (40–44) million.

The guidance for 2021 involves uncertainty arising from the potential negative impact of the availability of certain materials, especially semiconductors, and the COVID-19 pandemic on customer demand and the delivery capability of the component supply chain.

Long-Term Target

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

Key Figures

Q2/2021 Q2/2020 Change% H1/2021 H1/2020 Change % 2020
Turnover, EUR million 172.9 155.6 11.1 % 336.2 299.6 12.2 % 595.3
Operating Profit, EUR million 10.6 10.2 4.1 % 20.6 18.8 9.3 % 44.4
Operating Profit, Adjusted, EUR million 10.6 10.2 4.1 % 20.6 18.8 9.3 % 39.1
Operating Profit, % 6.1 6.5 6.1 6.3 7.5
Operating Profit, Adjusted, % 6.1 6.5 6.1 6.3 6.6
Net Profit, EUR million 8.6 8.3 4.3 % 16.2 15.8 2.9 % 36.9
Net Profit, Adjusted, EUR million 8.6 8.3 4.3 % 16.2 15.8 2.9 % 32.5
Earnings per Share, EUR 0.13 0.13 3.8 % 0.25 0.24 2.4 % 0.57
Earnings per Share, Adjusted, EUR 0.13 0.13 3.8 % 0.25 0.24 2.4 % 0.50
Return on Equity, % 17.3 18.8 21.1
Return on Equity, Adjusted, % 17.3 18.8 18.4
Equity Ratio, % 50.2 47.5 54.3
Net Gearing, % 13.0 27.0 9.9
Net Cash Flow from Operations, EUR million 7.1 16.8 -57.8 % 35.2
Employees (Average) 3,255 3,535 -7.9 % 3,387

CEO Petteri Jokitalo:

The second quarter turnover was EUR 172.9 million, an increase of 11% compared to the previous year. Customer demand started to improve in the latter half of 2020 and this recovery strengthened further in the second quarter. Growth in demand was especially strong in the product groups concerning energy efficiency, indoor climate, automation, recycling and elevators.

Turnover growth was organic, including EUR 7.4 million of transitory separately agreed and low margin customer invoicing. This was related to the use of spot markets in materials and components, and special freights and intermediary trade. Turnover excluding these transitory invoiced items increased by EUR 10.0 million, 6.4% compared to the previous year. The additional invoicing related to the existing exceptional situation will decrease when the shortage of components eases. Intermediary trade related to the divestment of the Hangzhou factory ended in the second quarter.

The general price increase of materials and freights are compensated separately with each customer according to the valid contract terms and conditions and normal margin structure.

The results for the quarter were EUR 10.6 million, 6.1% of turnover and an increase of 4.0% compared to the previous year. Strong demand drove up the positive development of the profitability especially in Eastern Europe, China and the USA factories. In the contrast, the production transfer and the planned closure of the Hamburg factory at the end of September created additional costs and weighed down profitability.

Scanfil’s balance sheet is strong and enables all necessary investments as well as the seizing of business opportunities. Strong turnover growth, challenges in the availability of certain materials, long delivery times as well as price increases enlarged our inventories and reduced our cash flow from operations. In the first half of 2021 the net cash flow from operations before investments and financial items was EUR 7.1 (16.8) million. The equity ratio was at 50.2% and net gearing at 13.0%.

We expect strong demand for the remainder of the year. Key risks are related to the availability of certain materials, such as semiconductors and steel, and the development of the COVID-19 situation. In particular, with regard to materials, circumstances are challenging and require constant attention and actions to secure customer deliveries. The situation with the pandemic has improved in our geographic areas of operations and we have gradually started to reduce our preventative actions in our factories. Nevertheless, the situation might change rapidly and we are conscious of the importance of active monitoring and fast response.

In June, we raised the outlook for 2021 and we expect our turnover to be EUR 630–680 million and operating profit EUR 41–46 million.

The year has been busy and eventful. Strong customer demand, challenges with material availability, the fight against COVID-19, and the Hamburg production transfer have required a lot from our staff. I want to thank our dedicated employees for a good job and our customers for their support and trust.”

Financial Development

The Group’s turnover for JanuaryJune was EUR 336.2 (299.6) million, an increase of 12.2% compared to the previous year. This turnover includes EUR 16.7 million of transitory low margin customer invoicing of which EUR 10.5 million was intermediary trading and the remaining EUR 6.1 million was low margin invoicing related to securing the availability of certain materials and deliveries. Turnover excluding transitory invoicing was EUR 319.5 million, an increase of 6.6% compared to the previous year.

Turnover by customer segment developed as follows:

Advanced Consumer Applications: Turnover increased compared to the first half of 2020 by EUR 25.0 million (35.1%). The key drivers behind this strong growth were new customer ramp-ups, and good demand in elevator products and hand-over solutions. Transitory invoicing was EUR 0.8 million.

Automation & Safety: Turnover decreased by EUR 3.2 million (-4.2%). Despite the slight negative change, the development of this segment has been steady. Transitory invoicing was EUR 2.5 million.

Connectivity: Turnover remained stable and increased compared to the first half of 2020 by EUR o.3 million (1.8%).

Energy & Cleantech: Turnover increased compared to the first half of 2020 by EUR 16.9 million (24.8%). The key drivers behind this strong growth were good demand in reverse vending machines, energy systems and indoor climate control systems. Transitory invoicing was EUR 2.4 million.

Medtech & Life Science: Turnover increased compared to the first half of 2020 by EUR 5.2 million (10.0%). Transitory invoicing was EUR 0.2 million.

Turnover of “Discontinued” was EUR 10.5 million and consisted only low margin intermediary trading.

The Group’s operating profit for January–June was EUR 20.6 (18.8) million, 6.1% (6.3%) of turnover. The operating profit was positively affected by the increase in customer demand, but received a negative impact from the Hamburg production transfer. In addition, the operating margin was lower due to a revenue of EUR 16.6 million in transitory low margin invoicing.

The net profit for the review period was EUR 16.2 (15.8) million. Earnings per share for the review period were EUR 0.25 (0.24). Return on investment was 18.1% (16.9%).

The Group’s effective tax rate was 17.9% (14.0%).

The Group’s turnover in AprilJune was EUR 172.9 (155.6) million and operating profit was EUR 10.6 (10.2) million, or 6.1% (6.5%) of turnover. Turnover increased, by 11.1% compared to the corresponding period of the previous year. This turnover includes EUR 5.4 million of transitory low margin invoicing related to price increases of materials, components and freights and securing deliveries. In addition, intermediary trade accounted for EUR 2.0 million. Turnover for the period excluding the above mentioned invoicing was EUR 165.5 million, an increase of 6.4%.

The operating profit was EUR 10.6 (10.2) million, 6.1% (6.5) of the turnover.

The Hamburg production transfer had a negative impact on the operating profit. In addition, the transitory invoicing of EUR 7.4 million affected the operating margin negatively.

The net profit in April–June was EUR 8.6 (8.3) million.

Decisions by the annual general meeting and board of directors’ authorisation

Scanfil plc’s Annual General Meeting was held on April 22, 2021 at the premises of Borenius Attorneys Ltd. Due to the COVID-19 pandemic shareholders and their proxies had to vote in advance and physical attendance at the meeting was not possible.

The Meeting authorized the Board of Directors to decide on the acquisition of the company’s own shares and to decide on share issues through one or more issues.

The Board of Directors’ proposals to the General Meeting and the minutes of the Annual General Meeting are available on the company website at

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Financial Report for Q2 and Half Year for 2021 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


In conjunction with releasing our results, we arrange a webcast on 6 August 2021 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.

Scanfil plc

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

Scanfil is an international manufacturing partner and system supplier for the electronics industry with 40 years of experience in demanding 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 are modules or integrated products for e.g. self-service application, automation systems, wireless connectivity modules, climate control systems, collection and shorting systems, analysers and environmental measurement solutions. Scanfil services are used by numerous international automation, safety, energy, cleantech, connectivity 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.

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 plc 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 plc 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