Scanfil is gearing for future growth
Turnover took a hit during Scanfil's first quarter and decreased 11.5%. The EMS provider faced lower market demand compared to last year and the focus was therefore on improving operations and protecting the operating margin.
The turnover for the first quarter was EUR 198.9 million, a decrease of 11.5% from 224.6 million during the comparison period. The turnover decreased by EUR 25.7 million of which EUR 6.4 million were spot market purchases. Excluding spot market purchases, turnover decreased by 8.6%.
Operating profit for the quarter was EUR 12.7 million, a decrease of 15.8% from EUR 15.1 million in the comparison period. The profit for the quarter amounted to 9.8 million euros, down 17.1% from 11.8 million euros.
"As expected, we faced lower market demand compared to the corresponding period of 2023. The focus in the first quarter of 2024 was on improving the efficiency of our operations. The outcome was a solid 6.8% operating margin excluding layoff costs and changes in foreign exchange rates. Reported operating profit was EUR 12.7 million, with an operating margin of 6.4%, compared to 6.7% last year," says CEO Christophe Sut.
The CEO continues and says the outlook for 2024 will remain two-fold. During the first half of the year, the market is expected to remain sluggish, which affects our turnover and operating profit.
"In these circumstances, we will continue to work on protecting the operating margin and preparing for future growth. We expect the market to pick up in the second half of the year allowing us to further improve our performance."
Scanfil estimates that its turnover for 2024 will be EUR 820–900 million, and an adjusted operating profit of EUR 57–65 million.
