Neways swings profit in 2021
While the EMS provider’s 2021 turnover is slightly lower than the previous year, the company’s net result recovered strongly and increased to EUR 8.7 million, compared to a net loss of EUR 3.9 million in 2020.
“In the second half year we continued the strong trend as seen in the first half of 2021. We saw a strong improvement in our margin, primarily as a result of more deliberate choices, positive mix effects and a strong focus on offering greater added value. We also managed to limit the impact of international supply chain disruptions on our margins. In combination with our OneNeways transformation, this led to recovery and improvement of our profitability,” says CEO Eric Stodel in a press release
Net turnover for the year amounted to EUR 469.5 million, 1.9% lower than in 2020, which the company states was largely due to the rationalisation of less profitable customers. Growth with existing clients was also dampened by the continued material shortage and supply chain disruptions.
“Due to the rationalization of less profitable customers, turnover is slightly lower in 2021 than in 2020, and turnover growth with existing clients was limited by shortages of materials and supply chain disruptions. On the other hand, strong demand resulted in a well-filled order book at the start of the new year,” the CEO continues.
Order intake saw an increase of 47.4% to EUR 613.5 million in 2021. The company says that order portfolio increased to EUR 364.3 million at year-end 2021, an increase of 61.9% compared with year-end 2020. This was according to Neways driven by the recovery of the Automotive sector, the increasing demand in Medical and the continued growth in demand in Semiconductor.
The company swung to profit in 2021 as net result increased to EUR 8.7 million, compared to a net loss of EUR 3.9 million in 2020.
“In 2022, the ongoing supply chain disruptions, high energy costs and rising inflation could have a dampening effect on our turnover growth and/or our profitability. Despite this, we are in a good starting position for 2022. Our order portfolio is well filled and we will continue to offer high-grade solutions in order to strengthen our competitive position and improve our profitability,” Eric Stodel concludes.