Press release,
Stable demand and improved gross margin despite continued disruptions in the supply chain
Second quarter 2022
- Net sales decreased during the second quarter by 1,1% to 87,9 MSEK (88,9). Currency translations had a positive effect of 5,4 MSEK on net sales.
- Adjusted EBITDA decreased during the second quarter by 24,8,5% to 8,0 MSEK (10,7), corresponding to an adjusted EBITDA margin by 9,1 % (12,0)
- Operating profit was 0,9 MSEK (4,8) which correspond to operating margin of 1,0% (5,3)
- Profit for the quarter was -0,7 MSEK (4,0)
-
Result per share was -0,05
(0,27) SEK - Cash flow from operating activities for the period was 11,3 MSEK (14,4)
First half year 2022
- Net sales increased during the first half year by 2,5% to 167,5 MSEK (163,3). Currency translations had a positive effect of 11,1 MSEK on net sales.
- Adjusted EBITDA decreased during the first half year by 65,5% to 7,1 MSEK (20,5), corresponding to an adjusted EBITDA margin by 4,2% (12,6)
- Operating profit/loss was -7,0 MSEK (9,6) which correspond to operating margin of -4,2% (5,9)
- Profit for the period was -9,3 MSEK (8,4)
-
Result per share was -0,64
(0,58) SEK - Cash flow from operating activities for the period was 8,7 MSEK (17,8)
Amounts in TSEK | 2022 April-June | 2021 April-June | 2022 Jan-June | 2021 Jan-June | R12M July-June | 2021 Full Year |
Net sales | 87 945 | 88 933 | 167 459 | 163 338 | 331 007 | 326 886 |
Net sales growth, % | -1,1 | 29,2 | 2,5 | 10,6 | 9,6 | 14,1 |
Gross margin, % | 70,4 | 62,4 | 68,5 | 64,4 | 70,4 | 68,4 |
Adjusted EBITDA | 8 012 | 10 661 | 7 077 | 20 527 | 20 508 | 33 958 |
Adjusted EBITDA margin, % | 9,1 | 12,0 | 4,2 | 12,6 | 6,2 | 10,4 |
Equity ratio, % | 55,1 | 49,2 | - | - | - | 54,4 |
Cash flow from operating activities, MSEK | 11,3 | 14,4 | 8,7 | 17,8 | 17,1 | 26,2 |
Net debt/EBITDA, R12M | - | - | - | - | 0,1 | 0,3 |
Number of employees at end of period | 126 | 144 | - | - | - | 137 |
Comments by the CEO
Despite major global challenges, we managed to improve our already good gross margin during the second quarter, which is significantly higher than it was during the second quarter last year. Demand for our solutions is stable and in US for example revenues increased by over 6 percent in local currency corresponding to 24 percent in SEK compared with the same period last year. Like so many other technology companies, we were affected by a continued shortage of components. We were also affected by a deficiency of capacity at our main European supplier. We have been able to handle these imbalances in a good way through great flexibility and with price increases towards our customers.
During the quarter, we were affected by cost increases for both electronic components and input goods. We have therefore continued to increase our purchases via the spot market to be able to keep our commitments to our customers. With price increases to customers and internal efficiency, we managed to reach a gross margin that is significantly higher compared to the second quarter of 2021. Given the challenging purchasing situation and deficiency of capacity in our outsourced production, we are very pleased that we continue to have such a good gross margin. This shows that our offer can withstand price increases without losing attractiveness.
We estimate that the loss in sales of delayed deliveries due to component shortages and capacity shortages corresponded to approximately 5 percent of sales during the quarter, which is slightly less than in previous quarters. We are prepared for continued challenges the coming quarters and we will continue to work with price compensation for the cost increases we suffer.
During the period, we continued to invest in technology leadership in our areas and developed more complete solutions that give our offering increased competitiveness and bring us up in the value chain. The focus is increasingly on solutions that can contribute to a more sustainable transport system where analysis, AI and
During the quarter, our work to achieve profitability in our latest acquisition
Rail Solutions' sales has been hesitant for most of the quarter, but during the latter part of the quarter we have seen an increased level of activity and increased intake of orders.
The Group's sales during the second quarter amounted to
The quarter shows a gross margin of 70.4 percent with an adjusted EBITDA result of
Today,
The strategy and value-creating potential have not changed due to the short-term limitations in the supply chain and our investments in growth through innovation, commercial focus and acquisitions mean that we have a positive view of the company's development for the coming years.
CEO
Reporting
During the business year 2022
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