Preliminary figures show sales growth of 13 percent and EBITA growth of 25-33 percent in the third quarter
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During the third quarter, Hexatronic’s sales were negatively affected by the Covid-19 pandemic and the effect is estimated to be 20 to 30 MSEK. Preliminary sales for the third quarter amounted to approximately 535 MSEK, which corresponds to 13 percent growth, mainly organic. EBITA for the third quarter is expected to be between 59 and 64 MSEK. The order backlog at the end of the quarter was 6 percent higher, organically, than at the same time last year. This information is provided due to the prevailing uncertainties caused by the Covid-19 pandemic.
“We see a reduced negative effect on our business due to Covid-19 in the third quarter. It was mainly in the USA that we noticed a negative effect by reduced capacity of the installers. In several markets, there are still restrictions on physical customer meetings, which effects us negatively, especially in the markets where we are in the build-up phase and have a need to meet new customers.
The impact from Covid-19 for the fourth quarter is difficult to assess. With increasing infection rates in several countries, we see that restrictions are being reintroduced, which may have a negative effect on our sales. At present, however, we estimate that we will have approximately the same impact on our operations and sales due to Covid-19 as during the third quarter.
We still believe that the experience of Covid-19 will lead to increased investments in communication networks, both fixed and wireless.
We have introduced measures to minimize the risk of our staff being infected in all our companies.
Hexatronic's financial position remains strong and plans have been prepared to limit the impact on the Group in the event of a potentially greater decline in demand", says Henrik Larsson Lyon, Hexatronic´s Chief Executive Officer.
Gothenburg, October 13, 2020
Henrik Larsson Lyon
CEO Hexatronic Group
For more information, please contact:
Henrik Larsson Lyon, CEO Hexatronic Group, +46 706 50 34 00
This is information that Hexatronic Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on October 13, 2020.
