Mycronic Posts Interim Report January–June 2024

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Mycronic releases its interim report for January-June 2024.

Second quarter

• Order intake amounted to SEK 2,125 (1,748) million, an increase of 22 percent
• Net sales increased 23 percent to SEK 1,527 (1,245) million. Also based on constant exchange rates, net sales increased 23 percent
• EBIT amounted to SEK 348 (170) million and the EBIT margin was 23 (14) percent
• Earnings per share were SEK 2.94 (1.37)

January–June

• Order intake amounted to SEK 3,770 (3,365) million, an increase of 12 percent
• Net sales increased 31 percent to SEK 3,219 (2,464) million. Based on constant exchange rates, net sales increased 32 percent
• EBIT amounted to SEK 947 (352) million and the EBIT margin was 29 (14) percent
• Earnings per share were SEK 7.94 (2.90)

Outlook 2024

The Board of Directors adjusts its opinion regarding net sales for 2024, from being at a level of SEK 6.25 billion to being at a level of SEK 6.5 billion.

Anders Lindqvist, President and CEO, comments:

Order intake increased 22 percent during the second quarter, driven mainly by Pattern Generators and with positive contributions from High Flex and High Volume. Net sales also posted a strong trend, with an increase of 23 percent. EBIT more than doubled to SEK 348 million, corresponding to an EBIT margin of 23 percent.

In Pattern Generators, the photomask markets for both displays and semiconductors were positive during the second quarter. Prexision 8000 Evo, our most advanced mask writer for displays to date, and MMX, our first metrology system for photomasks for semiconductors, were launched at the beginning of April. Both were well received by the market and we won our first MMX order already in May. During the quarter, the division received orders for eight systems: one Prexision 80 Evo, one Prexision 8 Evo, one Prexision Lite 8 Evo, four SLXs and one MMX.

The High Flex market for production equipment strengthened slightly compared with the preceding quarter, but can still be considered as cautious. Demand in Europe was good, whereas the US was characterized by uncertainty ahead of the autumn election.

High Volume’s Chinese domestic market for consumer electronics noted healthy demand during the second quarter while orders from the electric vehicle industry outside China were slow.

In Global Technologies, the PCB test business line reported healthy demand for its products, driven by printed circuit boards used in advanced servers for training AI models, as well as investments in South-East Asia as part of a supply chain diversification. In parallel, demand in die bonding slowed. The integration of Vanguard Automation, which was acquired at the beginning of the second quarter and forms a new business line within the division, progressed according to plan.

In May, the Science Based Target initiative (SBTi) approved Mycronic’s two proposed new climate targets, which will now replace our previously communicated climate target. The reason for the change is to include most of Mycronic’s climate impact in our sustainability targets and to ensure that this is in line with the aim of the Paris Agreement to limit global warming to 1.5°C. We undertake to reduce absolute greenhouse gas emissions in Scope 1 and 2 by 56 percent by 2030, with 2022 as base year. We also commit to reduce indirect greenhouse gas emissions from the use of sold products during the same period. The emissions from sold products, included in Scope 3, represent the absolute majority of our emissions. Our target is to reduce these by 52 percent in relation to our gross profit, with 2022 as the base year. This approval represents a milestone for us and I am pleased that we now have a solid foundation for our efforts to reduce greenhouse gas emissions in line with the Paris Agreement.