Hexatronic Group AB (publ) Year-End Report 2019

Hexatronic Group AB (publ)
Year-End Report 2019

(Full year 1 January – 31 December 2019)

The quarter (1 October – 31 December 2019)

• Net sales amounted to MSEK 463.2 (443.2), which represents 5% growth during the quarter.
• Reported operating result before interest, taxes and amortisation (EBITA) totalled MSEK 27.6 (24.4), which corresponds to an EBITA margin of 5.9% (5.5%). EBITA excluding patent dispute costs totalled MSEK 37.1 (28.0) which corresponds to an EBITA margin of 8.0% (6.3%).
• The operating result amounted to MSEK 20.6 (17.4).
• Net earnings totalled MSEK 14.5 (6.3).
• Earnings per share after dilution totalled SEK 0.39 (0.17).
• Cash flow from operating activities during the quarter amounted to MSEK 58.1 (51.6)

The full year (1 January – 31 December 2019)

• Net sales amounted to MSEK 1,842.3 (1,597.8), which represents 15% growth during the period.
• Reported operating result before interest, taxes and amortisation (EBITA) totalled MSEK 135.9 (114.9), which corresponds to an EBITA margin of 7.4% (7.2%). EBITA excluding patent dispute costs totalled MSEK 157.4 (122.7) which corresponds to an EBITA margin of 8.5% (7.7%).
• The operating result amounted to MSEK 106.4 (92.5).
• Net earnings totalled MSEK 67.1 (59.3).
• Earnings per share after dilution totalled SEK 1.80 (1.62).
• Cash flow from operating activities during the full year amounted to MSEK 173.9 (15.6)
• The board will propose a dividend of SEK 0.40 (0.40) per share for the financial year 2019 to the annual general meeting.

Comments from the CEO

Continued strong international growth
2019 was a year of continued strong international growth for Hexatronic. Sales excluding Sweden grew by just over 30%. The main growth was in Europe with the UK and Germany as the main drivers, along with North America. Including Sweden, sales increased by just over 15%, and 5% of this was organic. For the first time, Sweden now accounts for less than 30% of the company’s net sales. Growth during the fourth quarter was 5%, attributable in full to the acquisition of Opternus in Germany.  

Profitability for the full year increased, with a boost in EBITA* (earnings after depreciation of tangible assets) of 28.2%. The EBITA margin* increased from 7.7% to 8.5% compared with 2018 as a whole. For the fourth quarter, the EBITA margin* increased from 6.3% to 8.0%. The reported EBITA margin also increased during the year and in the fourth quarter, despite considerably higher legal costs linked to the ongoing patent dispute in the UK. The improvements in margin during the periods are primarily a result of a higher gross margin.