“All business areas achieved good performance in the first quarter, with very strong growth in Medical Solutions and Integrated Solutions,” said Nolato President and CEO Christer Wahlquist. “Adjusted for currency and acquisitions, Group sales increased by a considerable 22%, and EBITA exceeded SEK 300 million for the first time in a single quarter.” Cash flow after investments amounted to SEK 71 million (–73) “This is once again a testament to our close customer relationships and our strong position as a global strategic partner for a raft of leading companies,” said Christer Wahlquist.
Profit after tax was SEK 226 million (177) EBITA margin of 11.6% (11.0)
Diluted earnings per share increased to SEK 8.43 (6.67) Operating profit (EBITA) rose to SEK 308 million (227)
Integrated Solutions sales totaled SEK 1,045 million (854), corresponding to organic growth of an impressive 40%. Operating profit (EBITA) rose to SEK 125 million (111) and the EBITA margin was 12.0% (13.0). “Sales were fueled by strong growth in Vaporiser Heating Products (VHP) and EMC,” said Christer Wahlquist. “In line with our previous assessment, VHP volumes ramped up in the quarter, while EMC benefited from both the 5G roll-out and our initiatives within Automotive. We expect VHP volumes to continue growing and sees sales for this business area increasing by around 15% in the second quarter compared with the first quarter of the year.” “The strong growth in Medical Solutions has led us to recently take decisions to further expand our production capacity. In addition to the expansions we have already started in Switzerland, Hungary and Sweden, we will also be expanding the existing plants in Poland and the US.”
“Growth was good in most areas, particularly in diagnostics, for which demand has increased partly because of the pandemic,” noted Christer Wahlquist. “The quarter also included a larger proportion of billing for development work and production equipment, which was around SEK 70 million higher than normal. The surgery segment continued to be negatively affected by the pandemic, particularly in the US business, but it showed an improvement towards the end of the quarter.” Medical Solutions sales for the quarter totaled SEK 1,006 million (642), corresponding to organic growth of a notable 17%. Operating profit (EBITA) rose by a remarkable 39% to SEK 121 million (87) and the EBITA margin was 12.0% (13.6).
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