Nolato Q2 2019: Normalised Inventory Situation at Integrated Solutions

TOREKOV, Sweden, July 18, 2019 /PRNewswire/ -- Nolato AB has today published its interim report for the second quarter of 2019.

• Sales totalled SEK 1,987 million (2,302)
• Operating profit (EBITA) was SEK 233 million (266)
• EBITA margin of 11.7% (11.6)
• Profit after tax was SEK 180 million (204)
• Basic earnings per share totalled SEK 6.82 (7.75)
• Cash flow after investments amounted to SEK 178 million (352)
• Sustained strong financial position

Medical Solutions sales rose to SEK 634 million (562). Adjusted for currency, sales increased by a strong 9%. Operating profit (EBITA) rose to SEK 82 million (73). The EBITA margin was 12.9% (13.0).

"Volumes increased in both the Medical Devices and Pharma Packaging sectors, and most product areas experienced positive growth," commented Nolato President and CEO Christer Wahlquist.

Integrated Solutions sales decreased to SEK 821 million (1,186); adjusted for currency, this was a decrease of 35%. Operating profit (EBITA) decreased to SEK 107 million (140). The EBITA margin grew to a very strong 13.0% (11.8).

"Following inventory adjustments in Vaporiser Heating Products (VHP) late last year and in the first quarter of this year, the inventory situation for VHP has now normalised," noted Christer Wahlquist. "Growth in the EMC area was excellent, while volumes for mobile phones were weak in the quarter."

Industrial Solutions sales were SEK 541 million (554); adjusted for currency and Group structure, this was a decrease of 3%. Operating profit (EBITA) decreased to SEK 46 million (55) and the EBITA margin to 8.5% (9.9).

"The lower margin was due to continued unsatisfactory efficiency of one production facility, combined with lower volumes in the hygiene area," said Christer Wahlquist. "Measures implemented to enhance efficiency are gradually leading to an improvement in the margin."

Nolato retains a healthy financial position, with an equity/assets ratio of 47% (43) and net financial assets of SEK 190 million (253).

For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705 804848
Per-Ola Holmström, CFO, +46 (0)705 763340

Nolato is a Swedish group with operations in Europe, Asia and North America. We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors. Nolato's shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.

www.nolato.com

Prior to publication this information constituted inside information that Nolato AB is obliged to publish pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was submitted through the agency of the above contact persons for publication on 18 July 2019 at 2.00 p.m. CET.

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SOURCE Nolato