Kitron Reports Record Q3 2023 Sales, Strong Profitability

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Kitron reported record third-quarter sales and strong profitability, with margins consistently above the company’s long-term target.

Kitron's revenue for the third quarter was EUR 179.2 million, compared to 165.5 million last year. Growth was particularly strong within the Electrification market sector.

Third-quarter operating profit (EBIT) was EUR 16.2 million, compared to 11.5 million last year. EBITDA was EUR 20.7 million, compared to 15.8 million last year.

The order backlog ended at EUR 502 million, an increase of 10 per cent compared to last year, reflecting continued strong demand. The highest growth was in the market sectors Electrification and Defence & Aerospace. However, the order backlog is lower than in the preceding quarter as the gradually improving electronic component situation has reduced lead times.

Peter Nilsson, Kitron's CEO, comments:

“In the third quarter of 2023, we have once again set a new benchmark for our performance with record third-quarter sales. The quarter underscores our resilience and capability, showcasing a period marked by robust profitability and the fourth consecutive quarter with more than 9 per cent EBIT margin. As we have said before, we have expected our order backlog to normalize due to the gradually improving electronic component situation. However, our outlook holds steady, indicating a trend towards growth rather than a contraction.”

Profitability expressed as EBIT margin was 9.0 per cent in the third quarter, compared to 6.9 percent in the same quarter last year.

Profit after tax amounted to EUR 9.7 million, compared to 7.5 million in the same quarter the previous year. This corresponds to earnings per share of EUR 0.05, up from 0.04 last year.

Stable capital efficiency

Operating cash flow in the third quarter was EUR 5.0 million, compared to 14.6 million in the third quarter of 2022. Year-to-date cash flow was 24.4 million compared to 7.7 million in 2022.

Net working capital was EUR 200 million, an increase of 19 per cent compared to the same quarter last year. Net working capital as a percentage of revenue was 26.7 per cent compared to 25.8 per cent last year. Capital efficiency ratios have stabilized.

Outlook

For 2023, Kitron reiterates its outlook from the second-quarter report and expects revenues between 750 and 800 EUR million with an operating profit (EBIT) between 65 and EUR 75 million.