Second quarter
- Net sales for the second quarter reached
SEK 474 m (355), corresponding to an increase of 33%. Currency translations had a negative effect ofSEK 33 m on net sales - Order intake was
SEK 606 m (302), corresponding to an increase of 100% - Operating profit reached
SEK 121 m (69), equal to a 25.5% (19.4) operating margin - Profit after taxes totalled
SEK 98 m (54) and earnings per share wasSEK 2.02 (1.24) - Cash flow from operating activities amounted to
SEK 126 m (115)
First six months
- Net sales for the first six months reached
SEK 929 m (716), corresponding to a 30% increase. Currency translations had a negative effect ofSEK 62 m on net sales - Order intake was
SEK 1,170 m (703), corresponding to an increase of 67% - Operating profit was
SEK 235 m (136), equal to a 25.3% (18.9) operating margin - Profit after taxes totalled
SEK 192 m (102) and earnings per share wasSEK 3.94 (2.26) - Cash flow from operating activities amounted to
SEK 257 m (170)
Subsequent events
- Acquisition of 60% of all shares in the Spanish company
Owasys Advanced Wireless Devices S.L .
The company also announces that the previously communicated date for the year-end report 2021 has been changed to
Comment from the CEO
Continued strong development but challenging component supply situation
The underlying demand continues to be strong for HMS products and we can conclude that we have yet another record quarter in terms of sales, order intake and operating profit.
Order intake during the quarter amounted to a record level of
The record-high order intake is driven by a strong recovery in all markets and increased interest in connecting machines. But it is also due to an increasingly challenging component shortage situation which means that our customers build safety stocks to prepare for longer delivery times. We estimate that we have advance purchase effects, due to customers’ concerns about component shortages, of approximately
The lack of components has partly affected our delivery capacity and we have had to postpone some deliveries. This has had a negative impact on the quarter’s sales of approximately
Furthermore, we see continually strengthened gross margins amounting to 63.7% (62.0%) and we now see the full effect of the price adjustments that were implemented at the turn of the year. We see some negative effects from increased component prices, which might affect the gross margin by a few percentage points in the coming quarters.
During the quarter, we started up several long-term investments within our development and marketing organizations to take advantage of the trends we see in increased automation and a strengthened focus on sustainability among our customers. These investments in combination with a return to more normal business travel will gradually increase our operating costs by approximately 10% until the fourth quarter.
We can also conclude a new record quarter for our operating profit, which amounts to
Cash flow continues to be strong at
All markets at record levels during the second quarter
In our large and important markets in
In
We also see an increased demand in our offering for remote control of machines where more and more machine manufacturers choose to integrate remote control as standard in their machines, which has resulted in sales growth of over 50% and order intake that has more than doubled.
Acquisition of Owasys Advanced Wireless Devices after the end of the quarter
On
Positive outlook but delivery challenges during the third quarter
The recovery after the pandemic has continued at a good pace during the second quarter and the underlying demand from our customers is expected to continue also in the coming quarters. The challenges with component supply mean that we now see longer delivery times to customers, which will affect our sales during the third quarter, as deliveries may be postponed until the following quarter. During the fourth quarter, we estimate that the situation will stabilize, and we expect to be able to deliver the majority of the orders that have been postponed from previous quarters.
We continue to work with a focus on long-term growth based on a balanced view of our costs. In the long term, we continue to believe that the market for Industrial ICT (Information & Communication Technology) will be an interesting area, both in terms of organic growth and acquisitions.
Halmstad
Chief Executive Officer Chairman of the Board
Board member Board member
Board member Board member
Board member Employee representative
Mikael Mårtensson
Employee representative
Further information can be obtained from:
Joakim Nideborn, CFO, +46 (0) 35 710 6983
This information is such that
Attachment
HMS Networks Q2 Report 2021
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