Interim report 2023, January - September

Third quarter

• Net sales for the third quarter reached SEK 789m (624), corresponding to an increase of 26%. Currency translations had a positive effect of SEK39 m on net sales
• Order intake was SEK 492 m (675), corresponding to a decrease of 27%
• Operating profit reached SEK 223 m (179), equal to a 28.2% (28.7) operating margin
• Profit after tax totalled SEK 172 m (135). Earnings per share was SEK 3.69 (2.90)
• Cash flow from operating activities amounted to SEK 167 m (118)
• The Board of Directors have decided on updated strategic targets for the Group

First nine months

• Net sales for the first nine months reached SEK 2,265 m (1,742), corresponding to a 30% increase. Currency translations had a positive effect of SEK 119 m on net sales
• Order intake was SEK 1,877 m (2,346), corresponding to a decrease of 20%
• Operating profit reached SEK 584 m (461, adjusted operating profit previous year 434), equal to a 25.8% (26.5, adjusted 24.9) operating margin
• Profit after tax totalled SEK 460 m (356, adjusted profit after tax previous year 330). Earnings per share was SEK 9.87 (7.64, adjusted7.07)
• Cash flow from operating activities amounted to SEK 400 m (254)
• Acquisition of additionally 20% of the shares in Owasys Advanced Wireless Devices S.L.

CEO comments

NORMALIZATION OF ORDER INTAKE AND RECORD NET SALES
The third quarter of 2023 shows a mixed picture. We set new records in net sales and profitability when we can now deliver from our large order book. At the same time, we see a temporarily weakened order intake linked to the normalization of orders and customers’ inventory adjustments, which is currently affecting the entire supply chain.

The order intake for the quarter amounts to SEK 492 million (675), corresponding to an organic decline of 25%. We estimate that the quarter’s order intake is negatively affected by normalization of orders and our customers’ inventory adjustments of approximately SEK 150 million, in contrast to the corresponding quarter last year, when we had inflated orders of SEK 50 million. The recent disruptions in the global supply chain of electronic components are now resolved to a large extent, resulting in shorter delivery times. As our order book is still very large, we expect the normalization of order intake to continue for another couple of quarters. However, we estimate that order intake will improve going forward when customers’ inventory levels are in line with market demand.