Incap reports revenue growth of 50% in 3Q
The EMS provider reports significant increases in its interim report for the third quarter. “We continue to see a growing demand in several segments from existing and new customers,” says CEO Otto Pukk.
Incap’s revenue grew 50.0% and amounted to EUR 70.6 million during the third quarter of 2022, compared to EUR 47.0 million during the same period last year. Adjusted operating profit (EBIT) increased 41.7% from 7.9 million last year to EUR 11.2 million in 3Q22. Net profit for the period was EUR 7.7 million, compared to EUR 6.4 million during the same period in 2021.
“We continue to see a growing demand in several segments from existing and new customers. This contributed to the growth of our revenue in the third quarter to EUR 70.6 million. In particular, we see growth in industrial electronics, green energy and green mobility. Our efficient and cost effective decentralized operational model increased our profitability to the highest level we have seen in Incap’s history,” says Otto Pukk, President and CEO, in the report.
The CEO continues to state that the material availability situation is still difficult and that the company’s sourcing teams work together with its customers to find different solutions and alternatives to secure deliveries. But, the CEO says that they are now starting to see the market situation slowly improving.
But even with improvement on the material side, there are still many disturbances in the market caused by the pandemic, the war in Europe as well as the tensions in trade relations between USA and China.
“Many markets are now in recession, and inflation is rising and putting pressure on salaries. We have seen energy and raw material prices increasing in all units. Any significant changes in our cost structure are per our agreements passed on to our customers. I would like to emphasize that this applies to both increases and decreases,” Otto Pukk says.
Throughout the year, Incap has kept investing in its factories in Europe and India. At its European units the company continued to invest in production capabilities and capacity, and according to the CEO, the company is starting to see positive effects of these investments. The third factory project in India is scheduled for completion by the end of the year, and currently, Incap estimates that it will be ready as planned –despite recent challenging weather conditions in the region.
