Interim Report January-September 2024

Third quarter

• Order intake amounted to SEK 1,459 (1,467) million, a decrease of 1 percent
• Net sales increased 40 percent to SEK 1,780 (1,274) million. Based on constant exchange rates, net sales increased 45 percent
• EBIT amounted to SEK 547 (263) million and the EBIT margin was 31 (21) percent
• Earnings per share were SEK 4.59 (2.10)

 
January–September

• Order intake amounted to SEK 5,229 (4,832) million, an increase of 8 percent
• Net sales increased 34 percent to SEK 4,999 (3,738) million. Based on constant exchange rates, net sales increased 37 percent
• EBIT amounted to SEK 1,494 (615) million and the EBIT margin was 30 (16) percent
• Earnings per share were SEK 12.53 (5.00)

 
Outlook 2024
The Board of Directors’ opinion remains that net sales for 2024 will be at a level of SEK 6.5 billion.

CEO comments
Order intake was basically flat in the third quarter, with decreases in Pattern Generators and High Flex compensated by increases in High Volume and Global Technologies. Net sales increased 40 percent, driven mainly by Pattern Generators, but with High Volume and Global Technologies also supporting the positive development. EBIT more than doubled to SEK 547 million, corresponding to an EBIT margin of 31 percent . I am pleased to note that EBIT of SEK 1,494 million for the first nine months comfortably exceeds the full year result of SEK 1,235 million for 2023, which in turn was our strongest full year result ever.

In Pattern Generators, the photomask markets for both displays and semiconductors were stable. The division received orders for two SLXs during the quarter, including the first order for delivery to Europe. Pattern Generators will thus play a part in ensuring the production of photomasks for the semiconductor industry also on this continent.

In High Flex, major markets in Europe, such as Germany, France, and the UK reported weakening demand, with customers having lower order backlog levels. At the same time, the market in the US stabilized, albeit at a low level. During the quarter, a decision was made to relocate the High Flex division from the current premises in Täby to premises in Kista, Stockholm in the second half of 2025. This will free up production capacity for Pattern Generators and enable continued growth and improved production flows for both Pattern Generators and High Flex.

Demand for High Volume’s products improved during the third quarter, both in the Chinese domestic market and the market outside of China.

In Global Technologies, the Die Bonding business line reported strong order intake during the third quarter of the year, with strong demand for high-speed optical transceivers driven by AI applications. Demand was also healthy for PCB Test, driven by printed circuit boards used in advanced servers for training AI models. The third business line, Photonic Interconnects, which was created with the acquisition of Vanguard Automation earlier this year, received its first orders since the acquisition.

After the end of the period, the High Volume division completed the acquisition of Modus High-Tech Electronics GmbH, based in Düsseldorf, which operates in the field of automatic optical inspection of coating, soldering and components in PCB assembly. Net sales in 2023 amounted to EUR 4 million. Modus is our second acquisition in 2024, following Global Technologies’ acquisition of Vanguard Automation earlier this year. We are continuously working on strengthening our divisions and this is partly taking place through bolt-on acquisitions that will enable the divisions to remain at the forefront of their respective fields. An active acquisition strategy is an important component in achieving our financial goal of net sales of SEK 10 billion in the 2027–2030 period.
 
Anders Lindqvist, President and CEO

Financial information
Mycronic AB (publ) is listed on Nasdaq Stockholm, Large Cap. The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication through the contact persons stated below on October 24, 2024 at 8:00 a.m. CEST.

Financial reports and press releases are published in Swedish and English and are available at www.mycronic.com.

This report was reviewed by the company’s auditor.

Presentation
Mycronic will hold a presentation at 10:00 a.m. CEST on October 24, 2024, with President and CEO Anders Lindqvist and CFO and Sr VP Corporate Development Pierre Brorsson. The presentation will be webcast.