Year-end report January –
Events during the quarter
Hexatronic acquired the fiber optic companies Baltronic Group OÜ, based inEstonia and the Canadian companyToronics Inc. (name changed toHexatronic Canada Inc ).
Hexatronic acquired 90 percent of the shares in Qubix S.pA., an Italian supplier of structured cabling.
Hexatronic won new submarine cable orders totalling approximately MSEK 115.
- Lennart Sparud announced that he is leaving his role as CFO in
Hexatronic Group . The recruitment process for a replacement is in the final phase.
Events since the end of the period
- Hexatronic Hexatronic won new submarine cable orders totalling approximately MSEK 60.
Hexatronic signed a strategic supply agreement with Vocus inAustralia .
- The Board of Directors will propose a dividend of
SEK 0.50 (0) per share for the financial year 2020 to the Annual General Meeting.
Hexatronic adjusted the profitability target to 10 percent EBITA on rolling 12 months basis (from 9 percent).
COMMENTS FROM THE CEO
Strong profitability growth and high acquisition activity
2020 was a year of strong growth in profitability for
The quarterly EBITA margin of 11 percent was very strong and resulted in an increase in EBITA of 139 percent compared to the corresponding period last year. The strong development in profitability during the year is primarily attributable to scale effects: our production plants have seen higher capacity utilisation, and we have reduced costs of materials by using new materials, and thanks to reduced material prices.
Sales continue to develop well, even though we did not achieve our growth target of at least 20 percent. Sales growth totalled 13 percent, of which organic growth 11 percent. Our assessment is that we lost 5 to 10 percent of sales during the year due to the COVID-19 pandemic.
Sales growth in
Sales in
Sales in
The Cash flow was also strong during the year, with cash flow from operating activities of MSEK 250 (174 in 2019). The strong cash flow, combined with higher profitability, gives us a strong financial position for future acquisitions.
We made four acquisitions during the year. These have added the Baltics and
Looking into 2021, we see continued increasing demand in all our growth markets. Our judgement is that the Swedish market will remain at much the same level as in 2020.
We will continue to invest in strengthening our organisations in primarily
We have raised our profitability target to EBITA of at least 10 percent on a rolling 12-month basis (from 9 percent), given the opportunities we can now see moving forward.
The order book has continued to develop positively. We entered 2021 with an order book that was 93 percent higher organically than at the same point last year. Excluding marine cable projects, the order book was 47 percent higher than at the same point last year.
The development of the COVID-19 pandemic and its impact on us does entail some ongoing uncertainty, even though we handled the situation well in 2020. In the longer term, we believe that experiences from COVID-19 will have a positive impact on investments in communication networks.
Thank you for joining us on this journey.
President and CEO
Publication
This information comprises disclosures that
Financial calendar
Interim Report January-
Interim Report April-
Interim Report July-
Year-End Report 2021:
Annual General Meeting
The AGM will be held on
Please direct any questions to:
•
• Lennart Sparud, CFO, + 46 (0)70-558 66 04
Sofierogatan 3a, 412 51 Göteborg, Sverige
www.hexatronicgroup.com
Attachment
- 2021-02-24
Hexatronic Group - Year-end report 2020
© OMX, source