NCAB: "we are proud to report a stable quarter"

Net sales during the fourth quarter of 2022 increased by 5% to SEK 1.02 billion, compared with SEK 976.6 million during the same period last year. Order intake decreased by 5% to SEK 1.0 billion, compared with 1.06 during 4Q21. The company points out that order intake was abnormally high in 2021 due to the increasing lead times.

Fourth quarter EBITA increased by 17% to SEK 141.0 million from SEK 121.0 million, representing an EBITA margin of 13.7% (12.4%). Profit after tax during the quarter amounted to SEK 71.3 million, compared with SEK 75.7 million.

"Despite a turbulent macro environment and a global economic slowdown, we are proud to report a stable quarter. Net sales continued to rise, as did margins, and in addition we also had a strong cash flow. This gives us an excellent starting position for 2023," says Peter Kruk, President and CEO, NCAB Group AB.

The CEO continues to say that after seven to eight quarters of very strong growth in the global PCB market, the company saw some signs of restraint during the quarter. 

"Shortening lead times and increased focus on tied up capital among our customers and, in turn, their customers, have had a temporary negative impact on order intake. Supply chain problems in recent years have led to accumulation of inventory at several levels that are now being reduced."

However, the basic sentiment of NCAB's customer base remains positive with stable underlying demand, the CEO says. The majority of the company's customers are active in industrial applications, and NCAB has very little exposure to consumer products and other segments that operate in more cyclical markets.

Full-year net sales increased 38% to SEK 4.45 billion, compared with 3.21 billion in 2021. 2022 EBITA increased to SEK 630.9 million, compared with 406.1 million. Profit after tax amounted to SEK 417.1 million, a clear increase from SEK 285.3 million in 2021.

"We remain confident about the future. We have a strong financial position, an excellent result and good cash flow. Most of our customers are positive about their order situation and future growth opportunities. We have a good mix of countries, regions and industries and generally speaking, low market shares," Peter Kruk concludes.