Scanfil reaches new highs and reports record turnover
2021 proved to be a record year for Scanfil, both in terms of growth and turnover. Against headwinds caused by the ongoing pandemic and supply chain disruptions, the EMS provider recorded a turnover of EUR 696 million, up 16.9%.
The EMS provider has set a target for it self to reach EUR 700 million in turnover by 2023, and with a turnover of EUR 696 million for 2021 the company almost crossed that line – two years ahead of schedule.
Looking at Scanfil's performance during the last quarter of 2021 we see that the turnover totalled at EUR 191.7 million, an increase of 24.5% from EUR 154.1 million during the same period 2020. Fourth quarter operating profit was EUR 9.5 million, up from a EUR 4.3 million a year ago. Net profit for the quarter ended up at EUR 8.4 million, an increase from EUR 3.1 million during the fourth quarter 2020.
CEO Petteri Jokitalo says in the fiscal report that the growth during the quarter was propelled by strong customer demand and in addition increase in material costs.
For the full year of 2021, the EMS provider is reporting a turnover of EUR 695.7, an increase of 16.9% from EUR 595.3 million in 2020. Operating profit for the year was EUR 39.6 million, compared with EUR 44.4 million the previous year. 2021 net profit ended up at EUR 29.8 million, down from EUR 36.9 million in 2020.
"Adjusted operating profit in 2021 was EUR 40.3 million, 5.8% of turnover and the fourth quarter was at EUR 10.2 million, 5.3% of turnover falling short of the long-term target level of 7%," says Petteri Jokitalo, and continues to explains that. "The biggest negative effects on operating profit for the period were caused by material availability challenges, abnormal high prices paid for spot market purchases, and the relocation of production of the Hamburg factory. The challenging material situation hampered us, especially in the second half of the year."
The CEO states that the demand outlook for Scanfil's customers is strong for 2022, and the company has a clear focus – to reach a turnover of EUR 710–760 million this year and an operating profit of EUR 43–48 million.
"We aim for organic annual growth of 5–7% and an operating profit level of 7% in the longer term. To reach our growth target, we have acquired more production space at our Atlanta and Wutha factories, and started planning expansion options at our Suzhou factory. In the long run, we see North America and Asian markets as interesting expansion areas."