Kitron reports record numbers for Q2
Norwegian EMS provider Kitron's revenue for the second quarter was NOK 1'580 million, compared to NOK 994 million last year.
Second-quarter operating profit (EBIT) was NOK 100.2 million, compared to 73.1 million last year. EBITDA was NOK 142.7 million, compared to 97.5 million last year.
The order backlog ended at NOK 4'879 million, an increase of 113 per cent compared to last year. This reflects, according to Kitron, a strong total demand situation and built-up demand from supply chain delays. The order backlog increased within all market sectors.
Demand remains very strong, leading us to raise our revenue outlook for the year. The supply chain delays saw some relief during the second quarter, contributing to record revenues and a positive margin trend compared to the first quarter. We expect the component market deliveries to continue to show improvement over the rest of the year, leading to a more favorable outlook on the introduction and ramp-up of several electrification projects, Kitron CEO, Peter Nilsson commented in the report.
Profitability expressed as EBIT margin was 6.3 per cent in the second quarter, compared to 7.4 per cent in the same quarter last year. The EBIT margin is improved from the preceding quarters but still affected by cost increases and inefficiencies caused by supply chain delays.
Profit after tax amounted to NOK 66.3 million, compared to 48.6 million in the same quarter the previous year. This corresponds to earnings per share of NOK 0.34, up from 0.27 last year.
Operating cash flow was NOK 21.7 million, compared to NOK 109.3 million in the second quarter of 2021.
Net working capital was NOK 1 790 million, an increase of 73 per cent compared to the same quarter last year, partly reflecting the acquisition of BB Electronics. Net working capital as a percentage of revenue was 26.9 per cent compared to 25.8 per cent last year and 29.9 per cent the preceding quarter. Further reduction is expected as improvement programs deliver on advancements in the supply chain, resource management, cash and deliverables.
For 2022, Kitron has previously indicated a revenue outlook of between NOK 5'200 and 5'800 million and operating profit (EBIT) between NOK 330 million and 430 million.
Entering the the second half of 2022, Kitron sees strong demand from customers and continued ease of supply chain constraints. Profitability is improving compared to the first quarter, when rapid cost increases challenged the company.
Kitron therefore raises its revenue outlook to between NOK 5'700 and 6'100 million. Operating profit is expected to be between NOK 330 million and NOK 400 million.