NCAB Interim report, January–June 2023


> Net sales decreased 6% to SEK 1,057.5 million (1,122.0). Both net sales and order intake were negatively impacted by customers’ inventory adjustments and lower prices. In USD, net sales decreased 12%. For comparable units, the decrease for net sales was 14% in SEK, and 19% in USD.
> Order intake decreased 11% to SEK 924 million (1,036). The decrease in USD was 16%. Order intake was negatively impacted by a return to shorter lead times. For comparable units, the decrease in order intake was 19% in SEK, and 24% in USD.
> EBITA increased 5% to SEK 168.2 million (160.2), representing an EBITA margin of 15.9% (14.3). SEK 8.4 million (4.9) was charged to EBITA relating to transaction costs for the acquisition of db electronic and Phase 3 Technologies. Excluding these non-recurring costs, EBITA increased to SEK 176.6 million (165.1), representing an EBITA margin of 16.7 per cent (14.7). In addition, NCAB had costs of SEK 10 million for development of new IT systems.
> Cash flow from operating activities was SEK 152.7 million (148.2).
> Operating profit was SEK 154.5 million (150.9).
> Profit after tax was SEK 101.2 million (141.1). The decrease from 2022 was attributable to foreign currency conversion gains in 2022.
> Earnings per share before and after dilution was SEK 0.54 (0.75).


> Net sales decreased 3% to SEK 2,203.8 million (2,263.3). In USD, net sales decreased with 11%. For comparable units, net sales decreased 8% in SEK, and 15% in USD.
> Order intake decreased with 11% to SEK 1,954 million (2,207). In USD, order intake decreased with 16%. For comparable units, the decrease in order intake was 16% in SEK, and 23% in USD. Book to bill was 89%.
> EBITA increased to SEK 351.9 million (306.4), representing an EBITA margin of 16.0% (13.5). SEK 9.4 million (8.1) was charged to EBITA relating to acquisition costs for BBC, db electronic and Phase 3 Technologies. Excluding these costs, EBITA amounted to SEK 362.0 million (314.5), representing an EBITA margin of 16.4 per cent (13.9). The result includes development costs for new IT systems of SEK 20 million.
> Cash flow from operating activities was SEK 354.6 million (172.4).
> Operating profit was SEK 327.1 million (244.7).
> Return on equity was 39.4% (43.2).
>Profit after tax was SEK 226.2 million (207.3).
> Earnings per share before and after dilution was SEK 1.21 (1.11).


> On May 2, 100% of the shares was acquired in db electronic, with subsidiaries in Germany, Switzerland and France.
> On May 4, 100% of the shares was acquired in Phase 3 Technologies in San Jose, USA.
> The Annual General Meeting resolved on a dividend of SEK 1.10 per share.
> Peter Jensen, MD of NCAB Group Denmark, was appointed VP Nordics and a member of Group Management.


Strong earnings despite a softer market for the quarter

During the second quarter, we experienced some deterioration in the industrial economy, which was reflected in the purchasing managers’ index (PMI) in the USA, Europe and China. The service sector was strong in all regions despite interest rate hikes in the USA and Europe, while industrial production declined. In China, manufacturing did not have the upturn expected after opening up following the Covid lockdowns. For the printed circuit board industry, the effects of the weaker market were intensified due to inventory adjustments that were implemented at the same time, and generally weak capacity utilisation among manufacturers also led to declining prices.

NCAB is well equipped to address this new situation and we have continued to deliver strong operating profit and cash flow in all regions through our persistent purchasing efforts and effective cost control. The positive results we are seeing in the form of the number of projects and new customers won is also gratifying, and this bodes well for continued strong long-term organic growth. The lower prices during this year had a clearly negative impact on order intake and net sales apart from lower volumes in the market. The reason for the lower prices was low capacity utilisation at the manufacturers. Although this had a negative effect on net sales, we were able to successfully retain or increase our gross profit. The fact that the utilisation at our factory partners is so low, partly due to increased capacity, is a special situation. This is something that we have not seen lasting for any longer periods. Accordingly, we expect prices and gross margins to normalise over time.

In May, we were pleased to welcome Phase 3 Technologies in the USA and db electronic in Germany to NCAB. Both companies have a clear focus on quick turnarounds and prototypes and strengthen NCAB’s offering in this area in both the USA and Europe. In addition to their existing customers, we also see the opportunity to increase sales by now being able to offer customers of Phase 3 Technologies and db electronic competitive series volumes from NCAB’s factory portfolio. Through Phase 3 technologies’ location in San Jose, we also gain a strong foothold in the important Silicon Valley and a base for future growth on the American west coast.

All of the regions experienced signs of a weaker market, especially in USA and China. In Europe and, in particular, in the Nordic region, there are still segments that are performing strongly, such as heavy vehicles in automotive, electric vehicle charging, aerospace and defence.

In a scenario in which central bank interest rates continue to rise and Chinese economy is performing sluggishly, we expect the market to remain challenging in the near future. With NCAB’s flexible business model, we have been able to adapt as previously and maintain our profitability. We also foresee great opportunities in this market to use our strong financial position to capture market shares through organic growth and by way of a continuously high pace of acquisitions.

“Great opportunities to use our strong financial position to capture market shares organically and through acquisitions.”

Peter Kruk
President and CEO, NCAB Group AB

For further information, please contact:
Anders Forsén, CFO +46 (0) 8 4030 0051
Gunilla Öhman, IR Manager, +46 (0) 70 763 81 25

This half-year report has not been reviewed by the company’s auditor.
NCAB Group AB (publ)
Tel: +46 (0) 8 4030 0000
Löfströms Allé 5, SE-172 66 Sundbyberg, Sweden

NCAB Group is publishing the half-year report for 2023, January–June, on Friday 21 July at 7:20 a.m. A web-cast telephone conference will be held at 10:00 a.m. CEST on the same date, where President and CEO Peter Kruk and CFO Anders Forsén will present the report. The presentation will be followed by a Q&A session. The presentation will be held in English. For those who wish to participate via webcast, please use the link below:

For those who wish to participate via teleconference, please register on the link below. After registration, you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

Capital Markets Day                                   4 September 2023
Interim report third quarter                           7 November 2023
Year-end report                                          15 February 2024

About NCAB Group
NCAB is a worldwide leading supplier of printed circuit boards (PCBs), listed on NASDAQ Stockholm. NCAB offers PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost. NCAB was founded in 1993. Since its foundation, the operations have been characterised by an entrepreneurial and cost-efficient culture and have showed strong growth and good profitability over time. Today, NCAB has a local presence in 16 countries in Europe, Asia and North America. Net sales in 2022 amounted to SEK 4,458 million. Organic growth and acquisitions are part of NCAB’s strategy. For more information about NCAB Group, please visit us at