Kitron — Earnings Release 2023

Oct 25, 2023

Kitron: Q3 2023 - Record third-quarter sales and strong profitability

Kitron: Q3 2023 - Record third-quarter sales and strong profitability

(2023-10-25) Kitron today reported record third-quarter sales and strong

profitability, with margins consistently above the company's long-term target.

Kitron's revenue for the third quarter was EUR 179.2 million, compared to 165.5

million last year. Growth was particularly strong within the Electrification

market sector.

Third-quarter operating profit (EBIT) was EUR 16.2 million, compared to 11.5

million last year. EBITDA was EUR 20.7 million, compared to 15.8 million last

year.

The order backlog ended at EUR 502 million, an increase of 10 per cent compared

to last year, reflecting continued strong demand. The highest growth was in the

market sectors Electrification and Defence & Aerospace. However, the order

backlog is lower than in the preceding quarter as the gradually improving

electronic component situation has reduced lead times.

Peter Nilsson, Kitron's CEO, comments:

"In the third quarter of 2023, we have once again set a new benchmark for our

performance with record third-quarter sales. The quarter underscores our

resilience and capability, showcasing a period marked by robust profitability

and the fourth consecutive quarter with more than 9 per cent EBIT margin. As we

have said before, we have expected our order backlog to normalize due to the

gradually improving electronic component situation. However, our outlook holds

steady, indicating a trend towards growth rather than a contraction."

Profitability expressed as EBIT margin was 9.0 per cent in the third quarter,

compared to 6.9 per cent in the same quarter last year.

Profit after tax amounted to EUR 9.7 million, compared to 7.5 million in the

same quarter the previous year. This corresponds to earnings per share of EUR

0.05, up from 0.04 last year.

Stable capital efficiency

Operating cash flow in the third quarter was EUR 5.0 million, compared to 14.6

million in the third quarter of 2022. Year-to-date cash flow was 24.4 million

compared to 7.7 million in 2022.

Net working capital was EUR 200 million, an increase of 19 per cent compared to

the same quarter last year. Net working capital as a percentage of revenue was

26.7 per cent compared to 25.8 per cent last year. Capital efficiency ratios

have stabilized.

Outlook

For 2023, Kitron reiterates its outlook from the second-quarter report and

expects revenues between 750 and 800 EUR million with an operating profit (EBIT)

between 65 and EUR 75 million.

Enclosed in PDF are the quarterly report and the presentation. The interim

report is presented today at 8.30 a.m. CEST. The presentation will be given in

English by CEO Peter Nilsson and CFO Cathrin Nylander, and will be webcast at

the following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20231025_2

For further information, please contact:

Peter Nilsson, President and CEO, tel. +47 94 84 08 50

Cathrin Nylander, CFO, tel: +47 900 43 284

E-mail: investorrelations@kitron.com

Kitron is a leading Scandinavian electronics manufacturing services company for

the Connectivity, Electrification, Industry, Medical devices and

Defence/Aerospace sectors. The group is located in Norway, Sweden, Denmark,

Lithuania, Germany, Poland, the Czech Republic, India, China and the United

States. Kitron has about 3 200 employees, and revenues were EUR 641 million in

2022. www.kitron.com

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act