Financial performance in October-December
• Sales amounted to SEK 1,025 (1,080) million. Adjusted for acquisitions and currency effects, organic growth was -6%.
• Operating profit was SEK 98 (118) million. Adjusted operating profit was SEK 108 (92) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, as well as for the previous year's provisions for extraordinary doubtful debt and reversal of a contingent consideration for an acquisition.
• The operating margin amounted to 9.5% (10.9%). The adjusted operating margin was 10.5% (8.5%).
• Profit after financial items was SEK 91 (110) million.
• Profit after tax amounted to SEK 73 (91) million, corresponding to SEK 2.55 (3.15) per share.
• Adjusted for items affecting comparability, such as acquisition-related payments, operating cashflow amounted to SEK 140 (154) million. Cashflow after investments, including acquisitions, amounted to SEK 124 (108) million, or SEK 4.35 (3.73) per share.
Financial performance in January-December
• Sales amounted to SEK 3,901 (4,243) million. Adjusted for acquisitions and currency effects, organic growth was -10%.
• Operating profit was SEK 352 (430) million. Adjusted operating profit was SEK 364 (400) million, adjusted for revaluations of operating assets and liabilities in foreign currencies, the year's provision to the restructuring reserve, as well as for the previous year's provisions for extraordinary doubtful debt and reversal of a contingent consideration for an acquisition.
• The operating margin amounted to 9.0% (10.1%). The adjusted operating margin was 9.3% (9.4%).
• Profit after financial items was SEK 310 (390) million.
• Profit after tax amounted to SEK 248 (320) million, corresponding to SEK 8.61 (11.04) per share.
• Adjusted for items affecting comparability, such as acquisition-related payments, operating cashflow amounted to SEK 539 (289) million. Total cash flow after investments, including acquisitions, amounted to SEK 465 (98) million, or SEK 16.33 (3.38) per share.
Dividend
In order to ensure maximum financial freedom of action, the board intends to return regarding dividends, or share buybacks, for 2024 at the latest in connection to the notice to the Annual General meeting 2025.
CEO's comments -NOTE's proud to have achieved an underlying operating margin as high as 10.5%-our second highest ever. And this is in a weak market. We're continuing to invest in our future and the growth that's coming.
"Fourth-quarter sales of SEK 1,025 million were consistent with our expectations and in the upper interval of the guidance we issued. Given prevailing market conditions, we're satisfied even though we know our customer portfolio is stronger than this.
Despite late volume downscaling by customers, through repeated adaptations to our resources and working continuously on rationalisation, we succeeded in achieving high profitability. We think achieving an underlying margin of 10.5% in the quarter is a sign of strength. The profitability we achieved in this quarter is the second highest we've ever reported, and this is in a weak market.
Our high profitability is a major contributor to the strong cash flow we generated in the year, but the hard work our plants did on reducing excess inventory and rationalising working capital tie-up also had a positive impact. In the fourth quarter, our operating cash flow was SEK 140 million, with the corresponding number for the full year being SEK 539 million. NOTE's financial situation remains really positive.
We expect sales for the first quarter of 2025 to be in line with the fourth quarter of 2024. For the full year 2025, we're reiterating our guidance of sales in the SEK 3.9-4.3 billion interval and an operating margin in the 9.5-10.5% interval," says Johannes Lind-Widestam, president and CEO.
NOTE's Year-end Report for 2024 is now available in PDF format on the corporate web site, www.note-ems.com, and attached to this message. Today at 10.00 CET, NOTE organises a presentation for analysts, media and investors, where CEO and President Johannes Lind-Widestam presents the report. The Interim Report for January-March will be published on 24 April.
For more information, please contact:
Johannes Lind-Widestam, CEO and President, tel. +46 (0)70 541 7222
Frida Frykstrand, CFO, tel. +46 (0)70 462 0939
About NOTE
NOTE produces PCBAs, subassemblies and box build products. NOTE is a competitive EMS provider and stable business partner to customers with high standards. NOTE's products are embedded in complex systems for electronic control, surveillance and security, for example.
NOTE's business model builds on delivering high end manufacture, custom logistics solutions and consulting for the best possible total cost through long-term customer relationships and partnerships. Its customer offering covers complete product lifecycles, from design to after-sales. Primarily, its customer base consists of large corporations operating on the global market, and enterprises whose main sales are in northern Europe.
NOTE has a presence in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales over the last 12 months were SEK 3,956 million, and the group has approximately 1,500 employees. NOTE is listed on Nasdaq Stockholm. For more information, please go to www.note-ems.com.
This information is information that NOTE AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-01-27 08:00 CET.
