Nolato

Fourth quarter of 2023 in brief

• Sales totaled SEK 2,252 million (2,364)
• Operating profit (EBITA) was SEK 177 million (163)
• EBITA margin of 7.9% (6.9)
• Profit after tax was SEK 125 million (105), excl. non-recurring items
• Diluted earnings per share were SEK 0.46 (0.39), excl. non-recurring items
• Cash flow after investments amounted to SEK 80 million (–188).

“Our focus on improving margins is going to plan and gradually generating results,” said Nolato President and CEO Christer Wahlquist. “However, the effect on profit has been partly offset by lower volumes, particularly in Integrated Solutions.”

Medical Solutions sales amounted to SEK 1,300 million (1,312); adjusted for currency, this was a decrease of 2%. Operating profit (EBITA) increased to SEK 129 million (126) and the EBITA margin to 9.9% (9.6).

“Demand within surgery was lower in the quarter, which was the reason for the negative growth. In vitro diagnostics (IVD) volumes were in line with the previous year. Other product areas were solid, but were affected by inventory adjustments ahead of year-end,” added Christer Wahlquist.

Integrated Solutions sales amounted to SEK 243 million (407); adjusted for currency, this was a decrease of 41%. Operating profit (EBITA) decreased significantly to SEK –1 million (25) and the EBITA margin was –0.4% (6.1).

“Several of our consumer electronics customers have seen reduced end-customer demand for consumer discretionary goods due to the economic slowdown. In EMC, volumes for the telecom market decreased further, while other areas performed well,” said Christer Wahlquist.

Industrial Solutions sales amounted to SEK 716 million (651); adjusted for currency, this was an increase of 7%. Operating profit (EBITA) rose sharply to SEK 53 million (18) and the EBITA margin was 7.4% (2.8).

“The performance was due to strong demand, particularly in automotive, offset by lower demand for consumer discretionary goods due to the weaker economy,” noted Christer Wahlquist.

Full year 2023

• Sales totaled SEK 9,546 million (10,774)
• Operating profit (EBITA) was SEK 761 million (908), excl. non-recurring items
• Profit after tax was SEK 545 million (656), excl. non-recurring items
• Diluted earnings per share were SEK 2.02 (2.44), excl. non-recurring items
• Cash flow after investments rose to SEK 446 million (8), excl. acquisitions
• The equity/assets ratio was 56% (54) and net financial liabilities were SEK 895 million (708)

Dividend
At the Annual General Meeting, the Board of Directors and the President and CEO will propose a dividend of SEK 1.50 per share (1.90), which corresponds to SEK 404 million (512). The pay-out ratio is 74% (78), excluding non-recurring items. The dividend yield was 2.8% on the share price as of December 31, 2023.

Annual General Meeting
The Annual General Meeting will be held on May 6, 2024. The Nomination Committee has proposed Klas Forsström, President and CEO of Munters Group AB, as a new Board member. Lars-Åke Rydh has declined to stand for re-election. The Board’s Chairman and other members have been proposed for re-election. Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by email at henrik.jorlen@gmail.com or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.

Merger of business areas
Nolato has decided to merge the Integrated Solutions and Industrial Solutions business areas to create a new Engineered Solutions business area from the first quarter of 2024.

“Many of our customers are optimizing their resources and presence based on a global market approach and want global suppliers with a local presence,” explained Christer Wahlquist. “By merging these two areas into a single business area, with a shared approach and management, we can provide customers with a global offering of multi-site solutions. This allows us to proactively develop major new accounts and realize the full potential of our existing customer base.”