Scanfil Group Interim Report for January-September 2022: Improving Profits with Strong Sales


Scanfil Group Interim Report for January-September 2022: Improving Profits with Strong Sales


  • Revenue amounted to €211.9 million (7-9 2021: 167.8), an increase of 26.3%
  • Operating income amounted to €11.5 (9.5) million, an increase of 21.5%
  • Operating margin was 5.4% (5.7%) of revenue
  • Net profit amounted to 9.4 (5.1) million euros, an increase of 84.1%
  • Earnings per share were EUR 0.15 (0.08)


  • Revenue was €621.4 million (1-9 2021: 504.0), an increase of 23.3%
  • Operating profit amounted to 32.0 (30.0) million euros, up 6.5%
  • Operating margin was 5.1% (6.0%) of revenue
  • Net profit amounted to 24.6 (21.3) million euros, an increase of 15.3%
  • Earnings per share were EUR 0.38 (0.33)

Future outlook for 2022

The outlook was revised by the company on July 13, 2022 and is as follows:

Scanfil estimates its 2022 revenue to be €800-880 million (previously reported on April 14, 2022: €750-820 million) and adjusted operating profit to be €43-48 million. euros (unchanged).

The outlook involves uncertainty arising from, among other things, the availability and price level of semiconductors and the ability to deliver the supply chain. Additionally, the war in Ukraine and COVID-19 could create risks and uncertainties.

Long term goals

Scanfil is organically striving to achieve annual revenue growth of 5-7% and an operating profit level of 7%. Scanfil aims to pay a growing dividend of around 1/3 of earnings per share.

Key figures

7-9 2022 7-9 2021 To change,% 1-9 2022 1-9 2021 To change,% 2021
Turnover, million euros 211.9 167.8 26.3 621.4 504.0 23.3 695.7
Operating profit, in millions of euros 11.5 9.5 21.4 32.0 30.0 6.5 39.6
Operating profit, % 5.4 5.7 5.1 6.0 5.7
Net profit, million euros 9.4 5.1 84.1 24.6 21.3 15.3 29.8
Earnings per share, EUR 0.15 0.08 83.6 0.38 0.33 15.0 0.46
Return on equity, % 15.4 15.0 15.2
Equity ratio, % 42.5 46.8 45.3
Net gearing, % 44.2 25.2 28.9
Net operating cash flow, in millions of euros 8.0 -19.2 -3.7 -12.1 69.4 -12.5
Employees, Average 3,374 3,267 3.3 3,267


“The turnover for the third quarter of the year increased by 26% compared to last year and amounted to 211.9 million euros. Customer demand was strong across all customer segments. Individual customer products with high demand were analyzers, building heating systems, elevators, parcel lockers, reverse vending machines and process automation systems.

The availability of electronic components was still a problem even if the situation turned out to be a little better than before. In order to meet customer demand, we had to purchase semiconductor components on the spot market. Cash purchases affected third quarter sales by around 20 million euros, around a third less than in the previous quarter. Without this transitional invoicing, the turnover for the third quarter amounts to 192.3 million euros. We invoice our customers for the additional costs generated by cash purchases, but in general without a material margin.

Operating profit improved compared to last year and the previous quarter, and amounted to 11.5 million euros. The operating result was positively influenced by the still rising delivery volumes and, on the other hand, by the reduction in exchange losses. COVID-19 did not materially impact operating profit in the third quarter. We expect a positive development of operating profit in the last quarter of the year.

Operating cash flow turned positive in the second quarter and continued to strengthen in the third quarter. Net operating cash flow in the third quarter amounted to 8 million euros. Stronger net cash flow was impacted by improved profitability and halt in inventory growth. Strengthening free cash flow and the associated halt in inventory growth will remain priority areas.

The equity ratio and the net debt ratio evolved positively. The equity ratio at the end of the quarter was 42.5% and the net debt ratio was 44.2%. Scanfil’s financial situation is stable, allowing it to make the necessary investments.

Our customers indicate a further strengthening of demand for the last quarter of the year. Short-term commercial risks are related to the availability of electronic components, in particular semiconductors, the development of the COVID-19 pandemic, in particular in China, the effects of the war in Ukraine and economic development, in particularly in Europe. Even though the availability of electronic components is improving, semiconductor availability issues are expected to continue into next year. It can be seen that purchases on the spot market and the resulting transient billing have a clear downward trend and decrease rapidly as the availability of components improves. This also has a positive effect on stocks.

In order to strengthen our position and our delivery capabilities in North America, we decided to invest in an electronic manufacturing line (SMT line) in our Atlanta plant. The investment enables the manufacture of printed circuit board assemblies used in final assembled products in Atlanta and the expansion of our customer offering to existing and new customers in North America. The total value of the investment is approximately 4 million euros and the line is expected to be commissioned in the third quarter of 2023.

In 2022, we have invested significantly in the acquisition of new production spaces to meet the increase in customer demand. We have acquired new production space in factories in Atlanta, Suzhou, Malmö and Wutha. The majority, around 6,000 m², was acquired in Atlanta, and the share of the other factories was less than 2,000 m² each. The previously announced plan to expand the production space of the Suzhou factory has been achieved on a much smaller scale than the initial 11,000 m² and by converting other premises into production space.

I would like to thank our committed staff for their excellent work in difficult conditions and our customers for their support and trust.


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