October-
- Net sales increased by 14.1% to
EUR 28.2 million (24.7) - Net sales of Industrial Solutions Business Unit (IBU) increased by 34.5% to
EUR 4.6 million (3.4) - Net sales of Medical Business Unit (MBU) decreased by -6.6% to
EUR 12.7 million (13.6) - Net sales of Security Business Unit (SBU) increased by 41.0% to
EUR 10.9 million (7.8) - Operating profit (EBIT) was
EUR 2.8 million (3.0) - Operating margin (EBIT-%) was 9.9% of net sales (12.0%)
- Earnings per share were
EUR 0.16 (0.19) - Earnings per share (diluted) were
EUR 0.16 (0.19)
January-
- Net sales increased by 9.8% to
EUR 98.6 million (89.8) - Net sales of IBU increased by 25.8% to
EUR 16.1 (12.8) - Net sales of MBU decreased by -2.0% to
EUR 48.1 million (49.1) - Net sales of SBU increased by 23.1% to
EUR 34.4 million (27.9) - Operating profit (EBIT) excluding NRI was
6.1 EUR million (10.6) - Operating margin (EBIT-%) excluding NRI was 6.2% of net sales (11.8%)
- Operating profit (EBIT) was
EUR 5.8 million (10.6) - Operating margin (EBIT-%) was 5.9% of net sales (11.8%)
- Earnings per share were
EUR 0.35 (0.64) - Earnings per share (diluted) were
EUR 0.35 (0.63) - Dividend
EUR 0.20 per share* (0.35)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.) (*The Board of Directors’ proposal to the AGM.)
President and CEO,
“Sales in security and industrial applications increased significantly in Q4 2022. Net sales were record high, although medical sales lagged behind our expectations. Thanks to our strong cross-functional collaboration and teamwork, we were able to complete all deliveries despite COVID-19 lockdowns in
Business showed quarter-on-quarter growth throughout the year. Despite this, our annual net sales remained slightly below the
Thanks to product modifications, our ability to deliver improved and IBU quarterly sales were record high. In addition, the new customers we won during the year had a positive impact on the good development in sales. Demand continued at a good level in all industrial imaging applications.
The longer-term prospects for demand in medical applications are positive, but the markets softened as COVID-19-related challenges continued to destabilize demand dynamics. MBU sales lagged behind expectations due to the softening markets, supply chain effects of lower growth and component shortages. In addition, delays in customer payments at the end of the year postponed some of the MBU deliveries.
Recovery in the security market continued but is still behind pre-pandemic levels; furthermore, we managed to increase our market share in computed tomography (CT) and higher-end line scanner applications. In addition, new customers boosted sales at the end of the year.
In 2022, we strived for improving customer experience and maintaining our existing customer base despite component shortages. We succeeded in winning almost twenty new customers. We had around 390 active customers at the end of the review period.
One-off spot purchases, logistics costs, and the product modification projects required to support the business eroded our profitability in Q4 2022. In addition, due to component shortages, a significant number of deliveries were postponed to December, which increased the need for overtime. Our profitability nevertheless improved compared to Q3 2022, and we are confident that the positive development toward our profitability target will continue.
We aim to achieve a 15% operating margin in the medium term. In 2023, we believe that growth will continue to be good, but expect our profitability to be somewhat below the target level. The growth contributions done during the Corona years, product redesigns and wage inflation are still straining profitability until, thanks to sufficient sales and productivity growth, we reach the target level.
We are actively seeking and creating growth enablers. In Q4 2022 we decided to expand production in Oulu,
Barriers to growth are easing off and we have started 2023 from an even stronger position than before. We expect double-digit growth in all our businesses both in Q1 and H1 2023.”
Key figures
( |
10-12/2022 | 10-12/2021 | 1-12/2022 | 1-12/2021 |
Net sales | 28,226 | 24,747 | 98,580 | 89,813 |
Change in net sales, % | 14.1% | 24.3% | 9.8% | 10.1% |
Operating profit excluding NRI | 2,804 | 2,962 | 6,135 | 10,580 |
Operating margin excluding NRI, % | 9.9% | 12.0% | 6.2% | 11.8% |
Non-recurring items (NRI) | 0 | 0 | 335 | 0 |
Operating profit | 2,804 | 2,962 | 5,801 | 10,580 |
Operating margin, % | 9.9% | 12.0% | 5.9% | 11.8% |
R&D costs | 3,069 | 3,038 | 12,549 | 10,951 |
R&D costs, % of net sales | 10.9% | 12.3% | 12.7% | 12.2% |
Cash flow from operating activities | 3,730 | 3,288 | -294 | 7,121 |
Net interest-bearing debt at end of period | -20,584 | -27,633 | -20,584 | -27,633 |
Investments | 654 | 664 | 1,628 | 1,359 |
Return on investment (ROI), % | 7.5% | 15.1% | 7.5% | 15.1% |
Gearing, % | -28.4% | -37.6% | -28.4% | -37.6% |
Earnings per share, EUR | 0.16 | 0.19 | 0.35 | 0.64 |
Earnings per share (diluted), EUR | 0.16 | 0.19 | 0.35 | 0.63 |
Number of shares at the end of the period | 14,655,930 | 14,655,930 | 14,655,930 | 14,655,930 |
Weighted average number of shares outstanding | 14,655,930 | 14,605,097 | 14,655,930 | 14,500,514 |
Weighted average number of shares outstanding, diluted | 14,655,930 | 14,850,713 | 14,717,042 | 14,766,934 |
Business outlook
According to
The indirect impacts of the war in
Q4 2022 webcast
A link to the webcast is available on the company’s website at https://www.deetee.com/reports-and-presentations/webcasts/. A recording of the webcast will be available later on the same web address.
This release is a summary of
Board of Directors,
Further information
President and CEO
+358 500 449 475, hannu.martola@deetee.com
Nordea is the company’s Certified Advisor under the Nasdaq First North GM rules.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
https://mb.cision.com/Main/18787/3707690/1822004.pdf
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