FOURTH QUARTER (October 1 - December 31, 2020)
Manufacturing strategist HANZA Holding AB (publ), listed on Nasdaq Stockholm, today presents its year-end report for 2020. Profitability for the past year has been negatively affected by declining volumes caused by the pandemic, and by non-recurring costs linked to an action program launched by the company in April 2020 in order to meet the economic downturn. However, the company is optimistic about the future and has, among other things, started building a new factory in Estonia to meet future volume increases. New acquisitions are within the current strategy, thanks to a very strong cash flow.
- Net sales amounted to SEK 493.7 million (547.9). Sales have been negatively affected mainly by loss of volumes through the Group's action program (approx. SEK 25 M), lower volumes from the Group's largest customer, caused by the pandemic (approx. SEK 25 M), as well as currency effects (approx. SEK 15 M).
- Operating profit (EBITA) amounted to SEK 18.6 million (11.7), which corresponds to an EBITA margin of 3.8% (2.1). The operating profit has been negatively affected by volume reductions connected to the pandemic.
- Profit after tax amounted to SEK 5.2 million (5.5), which corresponds to SEK 0.15 per share (0.16).
- Cash flow from operating activities amounted to SEK 61.6 million (8.9).
FULL YEAR (January 1 - December 31, 2020)
- Net sales amounted to SEK 2,154.9 million (2,067.7). The increase is the net of acquisitions, new customers, reduced customer volumes connected to the pandemic, volume losses during the Group's action program and negative currency changes.
- Operating profit (EBITA) amounted to SEK 47.8 million (67.9), which corresponds to an EBITA margin of 2.2% (3.3). The operating profit has been negatively affected by volume reductions connected to the pandemic, as well as costs from the action program carried out at the virus outbreak, which charged the operating profit during the second quarter with SEK 24.7 million.
- Profit after tax amounted to SEK -1.4 million (23.6), which corresponds to SEK -0.04 per share (0.73).
- Cash flow from operating activities amounted to SEK 181.8 million (122.0).
- The Board will propose to the AGM a dividend of SEK 0.25 per share (0.00).
CEO Erik Stenfors comments
"We have seen how our largest manufacturing clusters have handled volume fluctuations during the pandemic in a unique way. In Sweden, the operating margin returned to over 9% during the fourth quarter, despite reduced volumes. Our work ahead is therefore focused on developing our smaller clusters in a similar way."
"We have for a long time shown strong cash flows. This was also the case in 2020, with a cash flow amounting to SEK 182 million (122). Our operating net debt could therefore be reduced by 23%, from SEK 350 million to SEK 270 million. It provides flexibility and opportunities for, among other things, new strategic acquisitions."
"The virus outbreak has temporarily overshadowed the great challenge of our time, to reduce carbon dioxide emissions. HANZA's business model supports the global climate trend, and we will continue to expand our work with developing green supply chains."
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