Mycronic Posts 30% Sales Growth in Q4 2021

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Mycronic releases its year-end report for January-December 2021.

Fourth quarter

• Order intake amounted to SEK 1,234 (865) million, up 43%
• Net sales increased 30% to SEK 1,295 (992) million. Based on constant exchange rates, net sales increased 27%
• EBIT amounted to SEK 204 (214) million and EBIT margin was 16 (22) percent
• Earnings per share were SEK 1.82 (1.80)

January-December 

• Order intake amounted to SEK 4,506 (3,687) million, up 22%
• Net sales increased 19% to SEK 4,635 (3,882) million. Based on constant exchange rates, the increase was 23%
• EBIT amounted to SEK 1,049 (898) million and EBIT margin was 23 (23) percent
• Earnings per share were SEK 8.48 (7.10)
• The Board of Directors has proposed a dividend of SEK 3.00 (3.00) per share to the 2022 Annual General Meeting

Outlook 2022

It is the Board of Directors’ opinion that consolidated net sales for 2022 will be at a level of SEK 5 billion, based on prevailing exchange rates. Due to the product mix of announced orders in Pattern Generators with deliveries in 2022, the Group’s EBIT margin is expected to be slightly above the long-term financial target of >15 percent.

Anders Lindqvist, President and CEO, Comments

During the final quarter of the year, order intake and net sales showed strong growth, with increases of 43 and 30 percent, respectively. Due to a different product mix, mainly lower net sales in Pattern Generators’ display segment, the Group EBIT was somewhat lower. High Flex and Global Technologies at the same time showed their best EBIT margin ever, which underscores that Mycronic stands solid with contributions from all divisions. It is gratifying to see that we achieved the ambitious goal that I announced in 2019, of achieving an EBIT margin of 10 percent in the former Assembly Solutions business area not later than in 2021. If we exclude the year’s acquisitions, which were not part of the Group when the goal was set, we achieved an EBIT margin of 11 percent in what are now High Flex, High Volume and Global Technologies, including their share of the costs for joint Group functions.

Our two acquisitions in Global Technologies and High Volume in 2021 comprise milestones for Mycronic, with the acquisition in China being completed at the beginning of November 2021. During the year the divestment of Automation Engineering, Inc (AEi) was announced. The divestment was completed after the close of the period, at the beginning of February 2022.

Pattern Generators received orders for four SLX mask writers from the semiconductor industry during the fourth quarter. In total, orders for 11 SLXs were received in 2021 and order intake since the launch in October 2019 amounts to 19 systems. We have thereby exceeded the expectations we had at the time of the launch. This is attributable to a combination of the strong development in the semiconductor industry and our customers’ appreciation of the SLX’s performance. The success of SLX system sales is further contributing to a future repeat aftermarket business. After the end of the period, a further two orders, each for one SLX, were received.

During November, High Flex participated at Productronica, a large electronics production fair that takes place in Munich every second year. At Productronica, an updated inspection system and a broader offering in the MYSmart series of products for conformal coating of circuit boards and advanced inline-dispensing solutions were launched.

High Volume’s broadening of its offering during the year, from individual dispensing solutions to complete and customized automation solutions, is beginning to reap rewards. During the fourth quarter order intake was strong from the consumer electronics and electric vehicles segments.

Regarding Global Technologies, infrastructure investments in 5G and datacenters drove the demand for optical components for tele and data communications, which are produced using our die bonding machines. The market for electrical testing of printed circuit boards also showed healthy activity.

The shortages relating to components, raw materials and distribution logistics due to the pandemic continued to have a limited impact on Mycronic during the fourth quarter. Through hard work, we have largely succeeded in delivering the products to our customers, even when this entailed additional costs for personnel, components and freight.

For 2022, my assessment and that of the Board is that Mycronic’s net sales will be at a level of SEK 5 billion. This would mean achieving our strategic ambition a year earlier than targeted. Due to the product mix of announced orders in Pattern Generators with deliveries in 2022, the Group’s EBIT margin is expected to be slightly above the long-term financial target of >15 percent. During the year, we will prepare and present new financial and strategic goals for Mycronic’s continued sustainable and profitable growth. I look forward to working with all of our fantastic employees to help our customers by providing them with innovative and sustainable production solutions and thereby enabling the electronics of the future.