LEAX Interim Financial Report Q1 2023
The first quarter in summary
• Net Sales increased to SEK 588.6 million (436.8)
• Operating profit increased to SEK 19.8 million (-5.9)
• Earnings before tax (EBT) increased to SEK 13.7 million (-8.4)
• Net income for the period increased to SEK 11.3 million (-7.3)
• Cash flow from operating activities amounted to SEK 53.7 million (31.5)
Comments from the Group President and CEO, Tony Nicol;
During the first quarter of 2023 LEAX delivered strong revenue growth which was up 35% over the same period last year. The demand increased mainly from our Heavy Commercial Vehicles and General Industry customers. The operating profit improved to SEK 20 million compared to last year’s SEK -6 million.
The significant profit improvement was a direct result of an improved supply chain, especially in the heavy commercial vehicle business. Less supply chain disturbances for our customers facilitated a higher efficiency in our production.
The current situation is more stable but the risk for disruption remains. While we remain under high inflationary pressure our adjusted prices and ongoing negotiations have also had a positive impact on our profitability in the quarter.
Returning to and improving our profitability level is critical for us to continue to invest in the technological shifts our customers and society at large are faced with. Electrification in particular, requires new and innovative processes that drive efficiency. The products are not only becoming more demanding but reducing the time our customers need to bring their products to market is increasingly more important.
To support this trend, we added a new gear profile grinding machine in our R&D and Rapid Prototyping Group.
We continue to meet and exceed our customers’ needs but must challenge ourselves to have increased flexibility and adapt rapidly to changes in demand. While this past quarter has been the most stable in some time the uncertainty in our markets remains.
About LEAX
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1,100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 1.9 billion in 2022.