Kitron: Q1 2023 - Record performance and strengthened outlook

(2023-04-28) Kitron today reported first-quarter results showing record levels for revenue and profits. The outlook for 2023 is lifted due to strong demand and further easing of supply constraints.

Kitron’s revenue for the first quarter was EUR 190.6 million, compared to EUR 140.0 million last year. Compared to last year, there was revenue growth within every market sector. Growth was particularly strong within the Electrification market sector.

First-quarter operating profit (EBIT) was EUR 17.3 million, compared to 7.9 million last year. EBITDA was EUR 21.4 million, compared to 11.7 million last year.

The order backlog ended at EUR 586 million, an increase of 35 per cent compared to last year. Growth was particularly strong within the market sectors Electrification and Defence & Aerospace.

Peter Nilsson, Kitron’s CEO, comments:

“This was the sixth consecutive quarter of revenue and profitability growth, driven by the increasing demand for electronics that incorporate automation, mobility, connectivity, and autonomy in the Electrification, Industry, and Defence & Aerospace sectors. We’re pleased that high utilization has generated a record-high EBIT. We expect to improve some units further during the second quarter as ramp-ups continue and new business is added. Our strong order backlog supports continued growth, and we expect the second quarter of 2023 to continue the current trajectory.”

Profitability expressed as EBIT margin was 9.1 per cent in the first quarter, compared to 5.5 per cent in the same quarter last year.

Profit after tax amounted to EUR 13.3 million, compared to 4.5 million in the same quarter the previous year. This corresponds to earnings per share of EUR 0.07, up from 0.02 last year.

Improved Capital efficiency

Operating cash flow in the first quarter was EUR 10.4 million, compared to EUR -10.9 million in the first quarter of 2022.

Net working capital was EUR 183.7 million, an increase of 4 per cent compared to the same quarter last year. Net working capital as a percentage of revenue was 23.7 per cent compared to 27.8 per cent last year. Capital efficiency ratios have improved, and this trend is expected to continue.

Outlook

Kitron updates its outlook for 2023, reflecting further strengthening of the underlying business as well as the previously announced change of presentation currency from NOK to EUR. A positive megatrend drives the Electrification market sector, strong growth is expected for the Defence/Aerospace sector over the coming years, and demand continues to be robust in the Industry market sector. On the supply side, the component situation is broadly improving, although challenges remain in specific niches. For 2023, Kitron now expects revenues between EUR 700 and 800 million. Operating profit (EBIT) is expected to be between EUR 60 and 75 million.

Enclosed in PDF are the quarterly report and the presentation. The interim report is presented today at 08:30 a.m. CEST. The presentation will be given in English by CEO Peter Nilsson and CFO Cathrin Nylander, and will be webcast at the following link:

For further information, please contact:

Peter Nilsson, President and CEO, tel.

Cathrin Nylander, CFO, tel.

E-mail:

Kitron is a leading Scandinavian electronics manufacturing services company for the Connectivity, Electrification, Industry, Medical devices and Defence/Aerospace sectors. The group is located in Norway, Sweden, Denmark, Lithuania, Germany, Poland, the Czech Republic, India, China and the United States. Kitron has about 3 200 employees, and revenues were EUR 641 million in 2022.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

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