Elma Interim Results 2023:
Elma increases order income and net sales and continues transformation process despite lower profitability
CH-Wetzikon, August 15, 2023 – In the first half of 2023, the Elma Group continued its transformation process and significantly increased both order income and net sales. In order to ensure deliveries to serve the high demand for customized system solutions, inventories were deliberately built up and the headcount of new specialists and skills increased. On the other hand, the sharp fluctuations in production volumes due to unreliable supply chains, particularly in the Americas region, had a negative impact on the results.
EBIT include expenses associated with the transformation and related adjustments to the organization and business processes. In order to benefit from the positive market environment, Elma intends to create scalable structures and drive forward the necessary digitalization with a new generation of IT tools (ERP, PDM, CRM). The higher costs associated with these investments led to lower profitability compared with the previous year. While the Europe and Asia regions made positive profit contributions to, the Americas region recorded a loss as a result of the still insufficient supply of important electronic components, higher purchase prices and significantly higher personnel costs. Overall, Elma closes the first half of 2023 with a lower profit compared with the previous year.
- Elma continues to grow thanks to unabated strong demand for customized system solutions
- Order income increased by 8.3% to CHF 97.4 million (previous year: CHF 89.9 million); adjusted for currency effects +12.3%
- Net sales of CHF 79.5 million increased by 6.3% (previous year: CHF 74.7 million); adjusted for currency effects +9.9%
- EBIT of CHF 0.7 million (previous year: CHF 1.0 million); profit of CHF 0.6 million (previous year: CHF 1.4 million)
- Net debts increased by CHF 5 million to CHF 15.6 million (December 31, 2022: CHF 10.6 million)
- Equity ratio of 47.3% (December 31, 2022: 51.7%)
Elma Electronic is a global manufacturer of electronic packaging products for the embedded systems market – from components, backplanes, power supply solutions, storage boards and chassis platforms to fully integrated systems. To ensure our integrated solutions are optimized to our customers’ needs, Elma partners with leading board manufacturers in the industry. Elma also provides enclosure solutions and rotary switches for demanding applications for electronic companies. The company has a broad base of proven standard products which can be tailored to individual applications: Elma offers services from the initial concept to volume production. Elma’s reliable solutions, flexibility, and design expertise are key reasons why the leading companies in the world choose Elma time and again.
This communication contains statements that constitute “forward-looking statements”. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Elma’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Elma’s past and future filings and reports and in past and future filings, press releases, reports and other information posted on Elma Group companies’ websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Elma disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.