OCTOBER-DECEMBER 2024
> Net sales decreased by 5% to SEK 830.3 million (878.6). In USD, net sales decreased 6%. For comparable units, net sales decreased 10% in SEK, and 11% in USD.
> Order intake increased 4% to SEK 906.8 million (872.7), and in USD order intake increased 3%. Order intake for comparable units decreased 2% year-on-year in SEK and was 3% lower in USD. Book to bill amounted to 1.09.
> EBITA decreased to SEK 71.6 million (119.0), representing an EBITA margin of 8.6% (13.5). SEK 0.1 million was charged to EBITA relating to transaction costs. In the previous year, total earnings were positively affected with an amount of SEK 2.0 million, pertaining to the reversal of an additional purchase consideration linked to the acquisition of Phase 3 Technologies as well as transaction costs. The costs for NCAB's new IT platform amounted to SEK 15 million (1), which include depreciation.
> Cash flow from operating activities was SEK 45.3 million (85.5).
> Operating profit was 53.3 million (103.8).
> Profit after tax was SEK 41.5 million (67.2).
> Earnings per share before and after dilution was SEK 0.22 (0.36).
JANUARY-DECEMBER 2024
> Net sales decreased 12% to SEK 3,614.0 million (4,087.8). In USD, net sales decreased 11%. For comparable units, net sales decreased 16% in SEK, and 15% in USD.
> Order intake decreased 1% to SEK 3,701.1 million (3,750.8). The decrease in USD was 1%. Order intake for comparable units decreased 6% in both SEK and USD. Book to bill was 1.02.
> EBITA decreased to SEK 449.7 million (646.9), representing an EBITA margin of 12.4% (15.8). SEK 3.7 million was charged to EBITA relating to transaction costs. Earnings were charged with approximately SEK 13 million in costs for the Group's business development conference that is held every second year for all employees. In the previous year, EBITA was positively impacted, net, by a dissolved additional purchase consideration and acquisition costs totalling SEK 13.6 million. Costs for the new IT system were charged to earnings in an amount of SEK 37 million (27).
> Cash flow from operating activities was SEK 354.2 million (700.4).
> Operating profit was SEK 386.1 million (591.4).
> Return on equity was 18.3% (31.9).
> Profit after tax was SEK 254.8 million (403.9).
> Earnings per share before dilution was SEK 1.36 (2.16). After dilution SEK 1.36 (2.15).
SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER
> On 10 October, NCAB finalised the acquisition of the PCB company DVS Global in Italy.
> The Board of Directors proposes a dividend of SEK 1.10 (1.10) per share to be paid in May.
MESSAGE FROM THE CEO
European market remained weak, but positive signs in other regions
The fourth quarter net sales of 2024 were weak for NCAB. Net sales declined primarily in the Europe segment, with the largest deterioration occurring in the UK, Benelux, Italy and Germany. Net sales in the fourth quarter were low consequent to the low order intake for the third quarter coupled with the normal seasonal variations where customers prefer delivery in January rather than in December. In addition, the third quarter order intake also included some significant orders from the defence industry with longer delivery times, thus also not contributing to near term net sales.
However, in terms of order intake, there were improvements in the market during the fourth quarter. Particularly in Nordic and East we noted a clear improvement in order intake and North America was stable. The success of aerospace and defence is contributing to the positive trend, especially in the Nordic region. Demand in the Europe segment remained weak though we could still discern the beginning of a positive trend in some countries. However, several of the major markets, including Italy, the UK and Germany, remained impacted by the weak economic situation in the manufacturing industry.
Profitability in the fourth quarter was negatively affected by low net sales. Gross margin remained at a good level though with a slightly negative impact from the new acquisitions. Activities to integrate the acquired companies during the second half of the year progressed according to plan and we look forward to seeing positive synergies over the next few years. The launch of the new business system progressed as planned and about one third of the company's sales are now on the new platform.
The total PCB market is expected to grow in 2025 according to Prismark*). In addition to continued growth in aerospace and defence, the industrial segment is also forecast to transition from contraction to expansion. Despite uncertainty in world trade, we can observe a gradual improvement in market conditions in some countries, in line with the macroeconomic situation. However, the economy remains weak in major European countries, which means we expect a weak start to the year in those markets.
There are, however, several positive signs in the market. We noted growth in order intake in three of four segments in the fourth quarter of 2024. For the full year of 2024 we have maintained good profitability and a strong financial position which gives us confidence as we continue to invest in our long-term growth and to develop leadership in technology and sustainability. In addition to organic growth opportunities, we continue to engage in positive acquisition discussions.
*) An electronics industry consulting firm
"We continue to invest in our long-term growth and to develop leadership in technology and sustainability."
Peter Kruk
President and CEO, NCAB Group AB
This interim report has not been reviewed by the company's auditor.
NCAB Group is publishing the year-end report for the full-year 2024, on Thursday 13 February at 7:30 a.m. CET. A web-cast teleconference will be held at 10:00 a.m. CET on the same date, where President and CEO Peter Kruk and CFO Timothy Benjamin will present the report. The presentation will be followed by a Q&A session. The presentation will be held in English. For those who wish to participate via webcast, please use the link below: https://ncab-group.events.inderes.com/q4-report-2024
For those who wish to participate via teleconference, please register on the link below. After registration, you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=5008284
FINANCIAL CALENDAR
Annual Report 10 April 2025
Interim report first quarter 25 April 2025
Annual General Meeting 8 May 2025
Interim report second quarter 22 July 2025
Interim report third quarter 24 October 2025
Year-end report 2025 13 February 2026
For further information, please contact:
Gunilla Öhman, IR Manager, Telephone: +46 707 63 81 25
E-mail: gunilla.ohman@ncabgroup.com
About NCAB
NCAB is a worldwide leading supplier of printed circuit boards, listed on NASDAQ Stockholm. NCAB is offering PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost. NCAB was founded in 1993. Since its foundation, the operations have been characterized by an entrepreneurial and cost efficient culture and have over time showed strong growth and good profitability. Today, NCAB has local presence in 19 countries in Europe, Asia and North America. Revenues in 2024 amounted to SEK 3,614 million. Organic growth and acquisitions are part of NCAB's strategy. For more information about NCAB Group please visit us at www.ncabgroup.com.
This information is information that NCAB Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person[s] set out above, at 2025-02-13 07:30 CET.
