Aspocomp’s Strong Q4 Ensured Clear Growth, Improved Operating Profit for 2021

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Aspocomp Group Plc releases its financial statement for January 1 - December 31, 2021.

Outlook for 2022

Demand is expected to improve in all customer segments. However, a global shortage of components may limit growth in customer demand.

Aspocomp estimates that its net sales for 2022 will increase and its operating result for 2022 will improve from 2021. In 2021, net sales amounted to EUR 33.2 million and the operating result to EUR 2.2 million.

CEO’s Review

“Net sales growth accelerated in the last quarter of the year. Fourth-quarter net sales rose to EUR 10.8 million, a year-to-year increase of 81 percent. Net sales for the full year rose to EUR 33.2 million, higher than before the pandemic. Compared to the previous year, we achieved a fine growth of 29 percent.

The order book nearly quadrupled and reached EUR 16.5 million at the end of the year. These orders will be delivered in 2022. The growth in the order book was particularly supported by increased demand in the Semiconductor customer segment.

Net sales in the Automotive customer segment tripled in the fourth quarter. Net sales increased by EUR 2.7 million from the weak comparison period to EUR 3.6 million. Inventory levels in the automotive supply chains declined during the pandemic in line with current demand. As demand recovered in the second half of the year, inventory levels were adjusted upwards, and preparations were made for an increase in production levels. For the full year, the Automotive segment grew by 67 percent to EUR 8.9 million.

The Semiconductor Industry customer segment increased by 77 percent to EUR 2.1 million in the fourth quarter. Extensive investments in the semiconductor industry to increase semiconductor chip manufacturing capacity will significantly increase segment demand in the coming years. Full-year net sales in the segment increased by 21 percent to EUR 6.2 million.

The Security, Defense and Aerospace customer segment’s net sales rose in the fourth quarter to EUR 2.0 million, up 58 percent from the comparison period. The segment’s growth was the result of the acquisition of new aviation customers and, to an increasing extent, customers’ demand to transfer their acquisitions to European suppliers. The segment’s full-year net sales increased by 18 percent to EUR 6.1 million.

The Industrial Electronics segment’s net sales increased in the fourth quarter by 41 percent to EUR 1.9 million. The recovery in industrial investment and the growing level of digitalization in the industry increased segment demand. For the full year, the net sales of the Industrial Electronics segment increased by 63 percent to EUR 7.1 million.

The Telecommunication customer segment fell short of the previous year’s level and net sales were EUR 1.0 million, down by 18 percent in the fourth quarter. The global shortage of components slowed down product development cycles and the needs for printed circuit boards in product development fell short of the previous year’s level. Full-year net sales were EUR 4.5 million, down by 16 percent from the previous year.

The operating result rose to EUR 1.2 million in the fourth quarter, representing 11.5 percent of net sales. The full-year operating result rose to EUR 2.2 million, or about 7 percent of net sales. Operating profit increased mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs. The share of quick-turn deliveries remained below the pre-COVID-19 level.

The strong and extended order book improves visibility and demand is expected to remain positive, although there are still market problems with the availability of production materials and semiconductor components.”

Impact of the COVID-19 pandemic

The recovery in the general market situation continued and had a positive effect on the company’s demand in the fourth quarter. Demand has grown, and the company’s order book level has risen significantly. The COVID-19 pandemic and the effects of related restrictions on supply chains in the electronics industry have been partially mitigated.

The company’s production at the Oulu plant has continued normally and delivery capacity has been reasonable. The company has continued to invest in new capacity and increased its product development investments in new products and more challenging technologies.

The pandemic has not affected the company’s liquidity. The cash situation has remained good and the credit facilities have not been used. The company has not identified any need to recognize write-downs of goodwill.

Net Sales and Earnings

October-December 2021

Fourth-quarter net sales amounted to EUR 10.8 (5.9) million, a year-on-year increase of 81 percent. Growth was broad-based in the fourth quarter. Growth was strongest in the Automotive, Semiconductor Industry and Security, Defense and Aerospace segments.

The five largest customers accounted for 54 (43) percent of net sales. In geographical terms, 84 (89) percent of net sales were generated in Europe and 16 (11) percent on other continents.

The operating result for the fourth quarter amounted to EUR 1.2 (-0.0) million. Operating profit increased in the fourth quarter mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs. Fourth-quarter operating result was 11.5 (-0.8) percent of net sales.

Net financial expenses amounted to EUR 0.0 (0.1) million. Earnings per share were EUR 0.17 (0.02).

The order book at the end of the review period was EUR 16.5 (4.4) million. Growth in the order book was particularly supported by increased demand in the Semiconductor Industry customer segment. All of the deliveries for the accumulated order book are scheduled for 2022.

Financial year 2021

Net sales amounted to EUR 33.2 (25.6) million, a year-on-year increase of 29 percent.

During the financial year, the Automotive segment increased by 67 percent to EUR 8.9 million. Inventory levels in the automotive supply chains declined during the pandemic in line with current demand. As demand recovered, inventory levels were adjusted upwards, and preparations were made for an increase in production levels.

In 2021, net sales in the Semiconductor Industry segment increased by 21 percent to EUR 6.2 million. Extensive investments in the Semiconductor industry to increase semiconductor chip manufacturing capacity increased segment demand. Net sales growth strengthened towards the end of the year.

The Security, Defense and Aerospace customer segment’s full-year net sales increased by 18 percent to EUR 6.1 million. The segment’s growth was the result of the acquisition of new aviation customers and, to an increasing extent, customers’ demand to transfer their acquisitions to European suppliers.

The Industrial Electronics segment’s full-year net sales increased by 63 percent to EUR 7.1 million. The recovery in industrial investment and the growing level of digitalization in the industry strengthened the segment’s demand.

In the Telecommunication customer segment, the global shortage of components slowed down product development cycles and the needs for printed circuit boards in product development fell short of the previous year’s level. Full-year net sales were EUR 4.5 million, down by 16 percent from the previous year.

The five largest customers accounted for 48 (41) percent of net sales. In geographical terms, 84 (85) percent of net sales were generated in Europe and 16 (15) percent on other continents.

The full-year operating result amounted to EUR 2.2 (-0.1) million. The operating result was 6.8 (-0.5) percent of net sales. Operating profit increased mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs.

Net financial expenses amounted to EUR 0.0 (0.3) million, including a deferred exchange gain of EUR 0.2 million. Earnings per share were EUR 0.31 (-0.01).