Incap's revenue and profitability growth continues
The second quarter was the best one in Incap’s history, in terms of revenue and operating profit.
Revenue grew 82.2% and amounted to EUR 61.2 million, compared to EUR 33.6 million during the same period last year. Adjusted operating profit (EBIT) increased by 96.4%, amounting to EUR 8.8 million, compared with EUR 4.5 million.
"During the first six months of 2022 the war in Ukraine and lock-downs in China continued to affect global business environment and we have not seen the full effects of them yet. The rising general inflation and cost of manufacturing as well as constrained component availability continued. Nevertheless, we performed well with improved revenue and profitability. I am grateful to our team who has worked very hard to secure materials and keep Incap’s customer commitments," says Otto Pukk, President and CEO of Incap in a press release.
Operating profit (EBIT) increased by 101.6%, amounting to EUR 8.6 million, compared with EUR 4.3 million last year. Net profit for the period was EUR 5.7 million, a clear improvement from EUR 3.2 million during last.
The CEO says that the company's profitability improved due to the current product mix and the work of the company's employees in sourcing materials in a tough market. With continued component availability constraints and supply chain challenges, the company is keeping inventories on a high level to support future growth.
"To respond to the growing market demand, we have been investing in our factories in India and Europe. The third factory project in India is scheduled for completion by the end of the year and is progressing according to plan. In Europe, Incap Estonia is upgrading its two existing SMT production lines and adding a third to its factory in Kuressaare. The new production lines will be opened in the third quarter this year. Incap Slovakia is also investing in new technology by replacing one of the current SMT lines and by adding a new selective soldering machine to the factory," Otto Pukk continues.
Incap says that it estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2022 will be clearly higher than in 2021. The increase in the revenue and operating profit estimate is driven by improved visibility related to the customers' forecasts and the company's own assessments of the business development.