Scanfil plc: Record sales and operating profit supported by increasing customer volumes and easing components availability

Interim ReportJanuary–March

  • Turnover totaled EUR 224.6 million (1-3 2022: 196.6), an increase of 14.2%
  • Operating profit was EUR 15.1 (10.3) million, an increase of 46.3%
  • Operating profit margin was at 6.7% (5.3%)
  • Net profit was EUR 11.8 (8.0) million, an increase of 46.9%
  • Earnings per share were EUR 0.18 (0.12)
  • Dividend proposal of EUR 0.21 (0.19) per share, an increase for 10th consecutive year

Future Outlook for 2023

Scanfil revised its outlook for turnover and adjusted operating profit on 12 April.

Scanfil estimates its turnover for 2023 to be EUR 880–940 (previously issued 21 February: 820–890) million and adjusted operating profit to be EUR 56–64 (49–55) million.

KEY FIGURES  1-3 2023 1-3 2022 Change,% 1-12 2022
Turnover, EUR million 224.6 196.6 14.2 843.8
Operating Profit, EUR million 15.1 10.3 46.3 45.4
Operating Profit, % 6.7 5.3   5.4
Net Profit, EUR million 11.8 8.0 46.9 35.0
Earnings per Share, EUR 0.18 0.12 46.6 0.54
Return on Equity, % 20.3 15.2   16.1
Equity Ratio, % 46.5 45.4   45.3
Net Gearing, % 38.7 36.9   37.8
Net Cash Flow from Operations, EUR million -0.9 -13.6   10.2
Employees, Average 3,603 3,296 9.3 3,403


”The turnover for the first quarter was at a record high level reaching EUR 224.6 million with an increase of 14% compared to the previous year. The customer demand was strong in Energy & Cleantech, Medtech & Life Science, Connectivity, and Automation & Safety customer segments. In addition to a strong customer demand, the delivery volumes were supported by the rapidly improving availability of components, which was also reflected in reduced spot market purchases.

I am especially satisfied with the development of the operating profit. The operating profit for the first quarter (EUR 15.2 million) increased 47% compared to the year before. The reached operating margin of 6.7% was the highest quarterly margin in two years and it approaches the target level of 7%. The positive development of operating profit was influenced by the high utilization rate of production capacity, increased efficiency of operations resulting from the easing availability of components, and by successful management of the effects of cost inflation.

To meet the increasing customer demand and delivery volumes, we have invested in the capacity of our factories. In summer 2023, we will implement new electronics manufacturing lines for the Atlanta factory in the United States and the Sieradz factory in Poland. In addition, we plan to expand the Sieradz factory significantly with a new production building.

Scanfil’s financial position is stable and enables all the necessary growth investments. At the end of the first quarter, equity ratio was at 46.5% and net gearing at 38.7%. The working capital and inventory management continue to be a central focus area.

Scanfil’s customers’ demand outlook for 2023 has become even stronger. Especially the demand outlook for technologies that enable increased energy efficiency and drive the green transition is excellent, especially in Europe. The near-term risks of the business are mainly related to the development of the economy and geopolitical situation both in Europe and globally, and their potential influence on the demand of our customers and their operating conditions.

I am satisfied with the strong start for the year and I am confident with the strong outlook for the rest of the year. I want to thank our committed personnel for their excellent work and our customers for their support and trust”.

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