Year-end record 2022, January– December

January 26, 2023

HMS Networks AB

HMS Networks Abdominal

4th quarter

  • Web sales for the 4th quarter got to SEK 764 m (571 ), representing a rise of 34%. Money translations had a favorable impact of SEK 65 m on web sales

  • Order consumption was SEK 718 m (699 ), representing a rise of 3%

  • Operating revenue got to SEK 192 m (109 ), equivalent to a 25.1% (19.2) running margin

  • Earnings after tax obligations amounted to SEK 151 m (86) as well as revenues per share was SEK 3.25 (1.85 )

  • Capital from running tasks totaled up to SEK 177 m (104 )

  • Procurement of all shares in the British business Control Specialists Ltd.

Annual

  • Web sales for the year got to SEK 2,506 m (1,972), representing a 27% rise. Money translations had a favorable impact of SEK 158 m on web sales

  • Order consumption was SEK 3,064 m (2,538), representing a rise of 21%

  • Operating revenue got to SEK 653 m (446 ), equivalent to a 26.0% (22.6) running margin. Readjusted operating revenue got to SEK 626 m, equivalent to a 25.0% readjusted running margin

  • Earnings after tax obligations amounted to SEK 508 m (362) as well as revenues per share was SEK 10.89 (7.61 ). Readjusted revenue after tax obligations amounted to SEK 481 m as well as modified revenues per share was SEK 10.31

  • Capital from running tasks totaled up to SEK 431 m (508 )

  • Procurement of the continuing to be 30% of the shares in Procentec B.V.

  • Procurement of all shares in the Australian business International M2M Pty Ltd.

  • The Board of Supervisors recommend a returns for SEK 4.00 (3.00) per share

Succeeding occasions

CHIEF EXECUTIVE OFFICER remarks

A solid surface to the document year 2022
We end up the year with yet an additional solid quarter where we supply a brand-new turn over document as well as proceeded secure order consumption.

Order consumption totaled up to SEK 718 million (699 ). We remain to see some clients that position huge orders previously therefore of lengthy distribution times in the marketplace as well as proceeded unpredictability relating to the supply of semiconductors. In the quarter, we approximate that these orders total up to roughly SEK 85 million.

Turn over totaled up to a document degree of SEK 764 million (571 ), representing a natural development of 22%. We can end that throughout the quarter, we took care of to take care of the element supply concerns much better than anticipated, as well as we see a progressive renovation in our capability to supply.

In Europe, both order consumption as well as turn over stay solid, while we are starting to see indications of a stagnation in order consumption in The United States and Canada. In Asia, we remain to see order development contrasted to the previous year, although at a reduced degree than earlier in 2022.

For the complete year 2022, we get to an order consumption of SEK 3,064 million (2,538). A component of this contains very early orders from clients that intend to protect future shipments in an unpredictable market. This year’s turn over total up to SEK 2,506 million (1,972), representing a natural rise of 17%, which we are really completely satisfied with.

Throughout the 4th quarter, we see an ongoing excellent gross margin of 63.6% (60.8 ), the exact same degree as we had in the previous quarter. Our cost boosts in 2022 mean that we make up for the boost we have actually seen on elements throughout the quarter. Although we still make acquisitions instantly market at a dramatically greater expense, we see that the requirement for these acquisitions reduces every quarter. Our operating expense raised naturally by 14%, which is mostly discussed by a basic expense rising cost of living, financial investments in our sales as well as advertising and marketing company as well as enhanced IT sustain in our procedures. Altogether, we finish the year with an operating outcome on document degrees for the 4th quarter– SEK 192 million (109 ), representing an operating margin of 25%. Likewise for the complete year, we see a brand-new document with a modified operating revenue of SEK 626 million (446 ).

After a number of quarters with weak capital, we currently see an enhancement as our capital totals up to SEK 177 million (103 ). With a consecutive turn over development of over 20%, our functioning resources is additionally raising. Our web financial debt remains to reduce as well as is currently to SEK 300 million, which implies that we have a solid annual report that brings excellent possibilities for the future.

Constant inflow of brand-new Design-Wins
The ongoing element scarcity as well as distribution troubles in the electronic devices market throughout 2022 have actually compelled most of our clients to change their existing items in order to supply, therefore minimizing their concentrate on brand-new advancement in the short-term. Although, for those of our items that are offered according to our Design-Win company design (roughly 44% of HMS’s turn over) we can still see an ongoing secure inflow of brand-new clients in 2022. In total amount, we got 146 (174) brand-new Design-Wins throughout the year, as well as the complete variety of energetic Design-Wins currently totals up to 1,843 (1,790). Of these, 1,493 (1,447) remain in manufacturing, while 280 (343) are anticipated to enter into manufacturing in the coming years.

Acquisitions as well as tactical cooperations
Throughout the quarter, HMS got all shares in Control Specialists Ltd., a little British business with 3 workers as well as a yearly turn over of 0.5 MGBP. The business has a long-lasting partnership with the Procentec company in technological accreditations as well as training. We see a possibility to establish our consumer connections in UK by additionally giving these solutions for our clients within commercial networks.

After completion of the year, an extra 20% of the shares in Owasys were gotten. HMS currently has 80% as well as the various other 20% is possessed by 4 business owners, all energetic in the business.

Leads
We finish the year with an order publication of SEK 1.4 billion, which implies that we are well furnished for 2023. We anticipate to slowly decrease our huge order publication in the coming quarters as our clients’ pre-purchasing beginning to stabilize as a result of enhanced element accessibility as well as much shorter preparations. At what speed this will certainly take place as well as to what level, is hard to state, however we see that most of our clients are still prepared to maintain huge supplies to guarantee their capacity to supply.

Consumers’ readiness to buy digitalization, efficiency as well as sustainability is high as well as the underlying need is still thought about to be excellent, also if there is some problem connected to just how the market will certainly be impacted by weak customer buying power, raising power prices as well as the macro political unpredictability.

We remain to collaborate with a concentrate on long-lasting development based upon a well balanced sight of our prices. In the long-term, we think about the marketplace for Industrial ICT (Details & & Interaction Innovation) to be a fascinating location, both in regards to natural development as well as procurements.

Halmstad January 26, 2023

Staffan Dahlström

President

More info can be acquired from:
Staffan Dahlström, CHIEF EXECUTIVE OFFICER, +46 (0) 35 17 2901
Joakim Nideborn, CFO, +46 (0) 35 710 6983

This info is such that HMS Networks abdominal (publ) is required to reveal according to the EU Market Misuse Policy as well as the Stocks Markets Act. The info was sent for magazine, via the get in touch with individuals laid out over, at 07.30 CET on January 26, 2023.

HMS Networks abdominal (publ) is a market-leading supplier of options in commercial info as well as interaction modern technology (Commercial ICT). HMS creates as well as makes items under the Anybus ®, Ixxat ®, Ewon ® as well as Intesis ® brand names. Advancement occurs at the headquarter in Halmstad as well as additionally in Ravensburg, Nivelles, Igualada, Wetzlar, Buchen, Delft, Sibiu, Rotterdam as well as Bilbao. Regional sales as well as assistance are managed by branch workplaces in Germany, U.S.A., Japan, China, Singapore, Italy, France, Spain, the Netherlands, India, UK, Sweden, South Korea, Australia as well as UAE, along with via an around the world network of suppliers as well as companions. HMS utilizes over 780 individuals as well as reported sales of SEK 2,506 million in 2022. HMS is provided on the NASDAQ OMX in Stockholm in the Huge Cap sector as well as Telecom industry.

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