Third quarter
- Net sales for the third quarter reached
SEK 624 m (472), corresponding to an increase of 32%. Currency translations had a positive effect ofSEK 41 m on net sales - Order intake was
SEK 675 m (669), corresponding to an increase of 1% - Operating profit reached
SEK 179 m (101), equal to a 28.7% (21.5) operating margin - Profit after taxes totalled
SEK 135 m (84) and earnings per share wasSEK 2.90 (1.81) - Cash flow from operating activities amounted to
SEK 118 m (148) - Acquisition has been made of all shares in the Australian company
Global M2M Pty Ltd
First nine months
- Net sales for the first nine months reached
SEK 1,742 m (1,401), corresponding to a 24% increase. Currency translations had a positive effect ofSEK 92 m on net sales - Order intake was
SEK 2,346 m (1,839), corresponding to an increase of 28% - Operating profit reached
SEK 461 m (336), equal to a 26.5% (24.0) operating margin. Adjusted operating profit reachedSEK 434 m, equal to a 24.9% adjusted operating margin - Profit after taxes totalled
SEK 356 m (276) and earnings per share wasSEK 7.64 (5.75). Adjusted profit after taxes totalledSEK 330 m and adjusted earnings per share wasSEK 7.07 - Cash flow from operating activities amounted to
SEK 254 m (405)
Comment from the CEO
Continued stable demand
We continue to see a stable demand for our solutions. Order intake amounted to
In total, we estimate the pre-purchase effect for the quarter to be approximately
The turnover for the quarter reached a new record level –
Record results, price increases and fewer spot purchases of components
As expected, we are starting to see the effects of our price increases and with a reduction in additional costs for component purchases, we see an improved gross margin amounting to almost 64%. We are now back at a gross margin in line with the levels we saw at the beginning of last year.
Despite increased costs for expansion, a return to physical meetings and travel, as well as continued investments in product development, our strong turnover together with stable gross margins, results in a record result of
Acquisition of Australian distributor Global M2M
As we communicated in the interim report for the second quarter, we acquired our distributor in
Pre-release of HMS’s 5G router
During the quarter, we completed a successful pre-release of a new 5G router with built-in support for industrial protocols. The product has attracted great interest at the trade shows where we have presented the solution. The 5G router is aimed at manufacturers of industrial equipment to offer a reliable and robust connection in an industrial environment. 5G is a technology with great potential for industrial applications. However, we estimate that it will take a few more years before 5G has a wider commercial impact in industrial applications.
Still positive outlook despite a challenging macro situation
In the short term, the future for HMS is assessed to be stable. We have a large order backlog and we do not yet see any slowdown, although many customers are concerned about how the industry will be affected by weaker consumer purchasing power, increasing energy costs and the uncertain geopolitical situation. At the same time, our customers continue to invest in digitalization, productivity improvements and sustainability. We estimate that our order intake will be somewhat weaker in the coming quarters as we already have a large order backlog where customers have placed orders earlier to build their own stock due to the long delivery times.
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
Further information can be obtained from:
Joakim Nideborn, CFO, +46 (0) 35 710 6983
This information is such that
Attachment
HMS Networks Q3 Report 2022
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