Incap Reports 30% Operating Profit Growth for 9M 2016

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Incap Group has reported revenue of €27.9 million for the January-September 2016 period, up by 32% compared to the same period last year. The operating profit (EBIT) amounted to €3.3 million, increasing by 30% on the comparison period last year. The operating profit margin stayed on a good level at 11.7% even though it decreased slightly towards the end of the review period as expected.

Incap Group's revenue for January-September 2016 developed favorably both in India and in Estonia, growing by 32% on the comparison period. Thanks to the ramp-up of a new customer's volume production, the manufacturing quantities in Estonia have increased enabling further strong business development of the unit. The currency fluctuation between Euro and Indian Rupee weakened the revenue by approximately €1.2 million on the corresponding period last year.

The financing position of the company remained good and the equity ratio on 30 September 2016 was 34.6%.

The construction of the expansion of the production facilities in India has proceeded on schedule, and the extension of approximately 2,000sqm is planned to be taken into operation in the beginning of 2017. The expansion enables future growth of export deliveries, which is required both by present and new potential customers. At present, the export production is running at full capacity.

Outlook for 2016

Incap's estimates for future business development are based both on its customers’ forecasts and on the company’s own assessments.

The company continues to estimate that the Group’s revenue in 2016 will be approximately €35-40 million. The operating profit (EBIT) in 2016 is estimated to be approximately at the same level or somewhat higher than in 2015, when the operating profit was €3.7 million, provided that there are no major changes in exchange rates.

Incap will publish its financial statement release for January-December 2016 in accordance with IAS 34 on Tuesday, 21 February 2017.

"The business of Incap continues proceeding with good tempo. Both units are recruiting and developing their production capacity. Our financial situation keeps improving. All in all, we have succeeded in aligning our management and business model effectively with our service promise. We are able to react fast and improve our position in continuously changing market conditions. We expect the positive trend to continue. By keeping the focus on continuous development our long-term future outlook is optimistic," said Ville Vuori, president and CEO of Incap Group.