© incap Electronics Production | February 13, 2018

Incap's revenues increased 26% during 2017

Revenues for the Finnish EMS provider increased by 26% YoY and the operating profit by 20% YoY. The factory expansion and renewal of production capacity was a key factor for the growth.
The group reported revenues of EUR 48.5 million for the fiscal year of 2017; up 26% from EUR 38.6 million during 2016. Full year operating profit amounted to EUR 4.5 million, compared to EUR 3.8 million during 2016.

Net profit for the fiscal year amounted to EUR 3.1 million, 47% higher than in 2016 when the company recorded a net profit of EUR 2.1 million.

“Our profitable growth continued in 2017. The Group’s revenue grew by 26% and the operating profit in terms of EBIT by 20%. The EBIT margin amounted to 9.3% indicating that we continue being among the best companies in our peer group,” president and CEO, Vesa Mäkelä, commented in the report.

In the report Mäkelä says that good planning being the best guarantee for success; stating that the factory extension in India and the modernisation of manufacturing machinery both in India and in Estonia were completed just on time.

“Getting new products into production can be successful only if we can show the customer that we have sufficient capacity and technical competence. We are able to grow the revenue further without any significant new investments in factory premises.”

The company continues to focus on industrial electronics and will consider eventual cooperation opportunities in other segments like the automotive industry and consumer goods case-by-case.

“Our present strategy fits best with our technology and competence, and it has proved to be successful also in the new customer acquisition,” says Mäkelä.

While contract manufacturing enjoys the good upturn in the market along with other industries. There are a few challenges that faces everyone; keeping up profitability levels being one of them. But also, with the increase in demand the component prices are also increasing and lead times are getting longer, and therefore, the materials management and the control of inventory values require special attention, the company states.

For now, the company’s target is to continue with the organic growth while at the same time keeping up its profitability.

“Our efficient operational model and strong financial position enable us to grow our business also through M&A,” the CEO adds.
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January 17 2019 2:20 pm V11.11.0-2