Kitron: Q4 2022 - Record revenue, profits and order backlog

15 Feb 2023 07:00 CET

(2023-02-15) Kitron today reported fourth-quarter results showing record levels
for revenue, profits and order backlog, driven by a strong market and better
component availability.

Kitron's revenue for the fourth quarter was NOK 1 813 million, compared to NOK
949 million last year. The revenue growth reflects underlying growth for all
business units, including acquisitions.

Fourth-quarter operating profit (EBIT) was NOK 165.0 million, compared to 52.3
million last year. EBITDA was NOK 203.2 million, compared to 78.4 million last
year.

The order backlog ended at NOK 6 098 million, an increase of 116 per cent
compared to last year. All market sectors show growth.

Peter Nilsson, Kitron's CEO, comments:
"We are pleased to report positive quarter-over-quarter growth in 2022, thanks
to the alleviation of supply constraints. This has allowed us to ramp up
production and meet the surging demand from our clients, leading to improved
operational efficiency and robust margins in the fourth quarter. Our diverse
market sectors continue to experience strong demand, and we anticipate this
positive trend to persist in 2023. We are seeing heightened activity among
numerous customers, particularly in the defence sector, as they drive growth and
expansion."

Profitability expressed as EBIT margin was 9.1 per cent in the fourth quarter,
compared to 5.5 per cent in the same quarter last year.

Profit after tax amounted to NOK 101.2 million, compared to 40.0 million in the
same quarter the previous year. This corresponds to earnings per share of NOK
0.52, up from 0.20 last year.

Strong turnaround in second half of year
Full-year revenue of NOK 6 487 million gave an overall increase in revenue of
75 per cent for the year. The revenue growth reflects underlying growth for all
business units, including acquisitions.

Operating profit (EBIT) for the year ended at NOK 459.6 million, compared to NOK
240.8 million in 2021, resulting in an EBIT margin of 7.1 per cent, compared to
6.5 per cent. Profit after tax was NOK 287.1 million, up from NOK 152.8 million,
corresponding to NOK 1.46 earnings per share, compared to NOK 0.85 in 2021.

Capital efficiency ratios improving
Operating cash flow in the fourth quarter was NOK 63.1 million, compared to NOK
9.0 million in the fourth quarter of 2021. For the full year, operating cash
flow was NOK 117.0 million compared to 126.3 million in 2021.

Net working capital was NOK 1 930 million, an increase of 57 per cent compared
to the same quarter last year. Net working capital as a percentage of revenue
was 26.1 per cent compared to 31.7 per cent last year. Capital efficiency ratios
are now improving. Our focus continues to be on improving the supply situation,
as well as managing resources, cash and deliverables.

Dividend
The board proposes an ordinary dividend of NOK 0.50 per share (NOK 0.25).

Outlook
Demand continues to be strong, and the EBIT margin and capital efficiency are
improving. For 2023, Kitron expects revenues between NOK 6 700 and 7 300
million. Operating profit (EBIT) is expected to be between NOK 450 and 550
million. Revenue and EBIT are now expected to be in the higher end of the
ranges.

Enclosed in PDF are the quarterly report and the presentation. The interim
report is presented today at 08:30 a.m. CET. The presentation will be given in
English by CEO Peter Nilsson and CFO Cathrin Nylander, and will be webcast at
the following link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230215_4

For further information, please contact:

Peter Nilsson, President and CEO, tel. +47 94 84 08 50
Cathrin Nylander, CFO, tel. +47 900 43 284
E-mail: investorrelations@kitron.com (mailto:investorrelations@kitron.com)

Kitron is a leading Scandinavian electronics manufacturing services company for
the Connectivity, Electrification, Industry, Medical devices and
Defence/Aerospace sectors. The group is located in Norway, Sweden, Denmark,
Lithuania, Germany, Poland, the Czech Republic, India, China and the United
States. Kitron has about 2 800 employees, and revenues were about NOK 6.5
billion in 2022.

www.kitron.com

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
Access the news on Oslo Bors NewsWeb site

582419_Kitron 2022 Q4 Report.pdf
582419_Kitron 2022 Q4 Presentation.pdf