Scanfil Group’s Interim Report for January–September 2022: Improved profit with strong sales

Scanfil Group’s Interim Report for January–September 2022: Improved profit with strong sales


  • Turnover totaled EUR 211.9 million (7-9 2021: 167.8), an increase of 26.3%
  • Operating profit was EUR 11,5 (9.5) million, an increase of 21.5%
  • Operating margin was 5,4% (5.7%) of turnover
  • Net profit was EUR 9.4 (5.1) million, an increase of 84.1%
  • Earnings per share was EUR 0.15 (0.08)


  • Turnover totaled EUR 621.4 million (1-9 2021: 504.0), an increase of 23.3%
  • Operating profit was EUR 32.0 (30.0) million, an increase of 6.5%
  • Operating margin was 5.1% (6.o%) of turnover
  • Net profit was EUR 24.6 (21.3) million, an increase of 15.3%
  • Earnings per share was EUR 0.38 (0.33)

Future Outlook for 2022

The outlook was revised by the company on 13 July 2022 and it is as follows:

Scanfil estimates that its turnover for 2022 will be EUR 800–880 million (previous, issued on 14 April 2022: EUR 750–820 million) and its adjusted operating profit will be EUR 43–48 (unchanged) million.

The outlook involves uncertainty especially arising from the availability and price level of semiconductors and the delivery capability of the supply chain. In addition, the war in Ukraine and COVID-19 might create risks and uncertainties.

Long-term targets

Scanfil is organically striving for 5%–7% annual turnover growth and a 7% operating profit level. Scanfil aims to pay an increasing dividend of approximately 1/3 of the earnings per share.

Key Figures

  7-9 2022 7-9 2021 Change,% 1-9 2022 1-9 2021 Change,% 2021
Turnover, EUR million 211.9 167.8 26.3 621.4 504.0 23.3 695.7
Operating Profit, EUR million 11.5 9.5 21.4 32.0 30.0 6.5 39.6
Operating Profit, % 5.4 5.7   5.1 6.0   5.7
Net Profit, EUR million 9.4 5.1 84.1 24.6 21.3 15.3 29.8
Earnings per Share, EUR 0.15 0.08 83.6 0.38 0.33 15.0 0.46
Return on Equity, %       15.4 15.0   15.2
Equity Ratio, %       42.5 46.8   45.3
Net Gearing, %       44.2 25.2   28.9
Net Cash Flow from Operations, EUR million 8.0 -19.2   -3.7 -12.1 69.4 -12.5
Employees, Average       3,374 3,267 3.3 3,267


“The turnover for the third quarter of the year increased by 26 percent compared to last year, and it was EUR 211.9 million. Customer demand was strong in all customer segments. Individual customer products with a strong demand were analyzers, building heating systems, elevators, parcel lockers, reverse vending machines and process automation systems.

The availability of electronic components still caused challenges even if the situation turned out to be a little bit better than before. In order to meet customer demand, we had to buy semiconductor components on the spot market. Spot purchases affected the turnover of the third quarter approximately by EUR 20 million, which is about one third lower than in the previous quarter. Without this transitory invoicing, the turnover for the third quarter was EUR 192.3 million. We invoiced our customers for the additional costs that arose from the spot purchases, but in general without a material margin.

The operating profit improved compared to last year and the previous quarter, and it was EUR 11.5 million. The operating profit was positively affected by the still increased delivery volumes, and on the other hand, the decrease in foreign exchange rate losses. The COVID-19 did not significantly affect the operating profit in the third quarter. We expect the operating profit to develop positively in the last quarter of the year.

The net cash flow from operations turned positive in the second quarter, and it continued to strengthen in the third quarter. The net cash flow from operations in the third quarter was EUR 8 million. Strengthened net cash flow was affected by the improved profitability and halting of inventory growth. Strengthening net cash flow and the related halting of inventory growth will remain as key focus areas.

The equity ratio and net debt ratio developed positively. The equity ratio at the end of the quarter was 42.5 percent, and the net debt ratio was 44.2 percent. Scanfil’s financial position is stable, which enables needed investments to be implemented.

Our customers indicate further strengthening demand for the last quarter of the year. The near-term business risks are related to the availability of electronic components, especially semiconductors, the development of the COVID-19 pandemic, especially in China, the effects of the war in Ukraine and the economic development especially in Europe. Even if the availability of electronic components is improving, the availability issues of semiconductors are expected to continue next year. We see that spot market purchases and the resulting transitory invoicing is on a clear downward trend and to decrease rapidly as the availability of components improves. This also has a positive effect on inventories.

To strengthen our position and delivery capabilities in North America, we have decided to invest in an electronics manufacturing line (SMT line) in our factory in Atlanta.  The investment enables the manufacturing of Printed Circuit Board Assemblies used in the final products assembled in Atlanta and expanding our customer offering to both existing and new customers in the North America. The total value of the investment is about EUR 4 million and the line is expected to be in use in the third quarter of 2023.

In 2022, we have significantly invested in acquiring new production space to respond to the increase in customer demand. We have acquired new production space at the Atlanta, Suzhou, Malmö and Wutha factories. The majority, about 6,000 m², was acquired in Atlanta, and the share of other factories was under 2,000 m² each. The previously announced plan to expand the production space at Suzhou factory has been carried out this far in a significantly smaller scale than the initial 11,000 m² and by converting other premises into production space.

I want to thank our committed personnel for their excellent work in challenging conditions and our customers for their support and trust.”

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