Kitron — Earnings Release 2023

Feb 14, 2024

Kitron: Q4 2023 - Solid end to record year

Kitron: Q4 2023 - Solid end to record year

(2024-02-14) Kitron today reported record fourth-quarter sales and strong

profitability, with margins consistently reaching the company's long-term

target.

Kitron's revenue for the fourth quarter was EUR 199.1 million, compared to

174.6 million last year. Growth was particularly strong within the

Electrification and Defence/Aerospace market sectors.

Fourth-quarter operating profit (EBIT) was EUR 18.0 million, compared to 15.9

million last year. EBITDA was EUR 22.8 million, compared to 19.6 million last

year.

Profitability expressed as EBIT margin was 9.1 per cent in the fourth quarter,

in line with the same quarter last year.

The order backlog ended at EUR 494 million, a decrease of 15 per cent compared

to the previous year and a decrease of 2 per cent from the preceding quarter,

reflecting European market sentiment. The exception to this trend is

Defence/Aerospace, where the order backlog has grown substantially over the past

year and electrical grid critical infrastructure, where growth of over 50 per

cent is expected this year.

Peter Nilsson, Kitron's CEO, comments:

"In the final quarter of 2023, we continued our streak of growth with record

fourth-quarter sales, while also reporting the fifth consecutive quarter of EBIT

margins above 9 per cent. Our annual revenue crossed the EUR 775 million mark,

reflecting an impressive year-over-year growth of 21 per cent. Looking ahead to

2024, we anticipate stable demand in the first half, with an expectation for it

to pick up in the latter half."

Profit after tax amounted to EUR 12.3 million, compared to 9.8 million in the

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

0.06, up from 0.05 last year. For the full year 2023, earnings per share were

EUR 0.26, up from 0.14 in 2022.

Stable capital efficiency

Operating cash flow in the fourth quarter was EUR 33.4 million, compared to 7.1

million in the fourth quarter of 2022. Full-year operating cash flow was EUR

59.0 million compared to 18.2 million in 2022.

Net working capital was EUR 193.8 million, an increase of 5.5 per cent compared

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

was 24.4 per cent compared to 26.1 per cent last year.

Dividend

The board proposes an ordinary dividend of NOK 0.75 per share (NOK 0.50).

Outlook

For 2024, Kitron reiterates the outlook given at the Capital Markets Day in

December and expects revenues between EUR 700 and 800 million. Operating profit

(EBIT) is expected to be between EUR 60 and 74 million.

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

report is presented today at 8.30 a.m. CET by CEO Peter Nilsson and CFO Cathrin

Nylander. It will be webcast at the following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240214_5

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 (mailto: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, Malaysia, China and the

United States. Kitron has about 3 000 employees, and revenues were EUR 775

million in 2023. www.kitron.com

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act