Interim report (Q1 and Q3)
HansaMatrix Consolidated Interim Financial Report for the third quarter and 9 months of 2020
During the third quarter of 2020 HansaMatrix unaudited consolidated revenue increased by 7% compared to the third quarter of 2019 and reached 6.554 million EUR volume; reported EBITDA result was 32% higher, and reached historically highest quarterly result of 1.246 million EUR, net profit amounted to 0.330 million EUR. In the reporting period quarterly EBITDA margin of 19.02% and quarterly net profit margin of 5.04% was achieved.
During the period of 9 months of 2020 unaudited consolidated revenue reached 17.029 million EUR, down by 5%; reported EBITDA result was 2.214 million EUR, down by 27% in comparison with 9 months of 2019 and net loss amounted to 0.488 million EUR. Results represent 9 month EBITDA margin of 13%.
Riga, 2020-11-20 08:43 CET --
During the third quarter of 2020 the Company reported quarterly revenue of 6.554 million EUR – increase by 32% in comparison to the same period of 2019. The third quarter of 2020 revenue results showed 137% volume increase in comparison with previous quarter – 2020 Q2.
During first 9 months of 2020 the Company reached turnover of 17.029 million EUR, resulting in revenue volume decrease by 5% compared to the same period of 2019.
During 2020 Q3 the Company reported historically highest quarterly EBITDA result of 1.246 million EUR and operated with net profit result of 0.330 million EUR. The reported EBITDA result shows 32% increase in comparison with Q3 2019 and 137% increase compared to previous quarter of 2020 Q2. In Q3 2020 the Company reported net profit 0.330 million EUR as compared to 2019 Q3 net loss of 0.028 million EUR and 2020 Q2 net loss of 0.383 million EUR. Quarterly results represent EBITDA margin of 19.02% and net profit margin of 5.04%.
The business situation, the Company revenue, EBITDA and net profit in Q3 2020 have recovered and improved. The long-term negative COVID-19 situation impact is still present in some of the clients’ business performance, however at the same time positive market trend has emerged - increased demand in data networks sector.
Sales result, EBITDA and net profit in 2020 9m were influenced by COVID-19 global spread impacting and creating challenges in such business environment factors as personnel safety issues, supply chain disruptions, and transportation network disruptions. COVID-19 has influenced the Company performance already starting with the second half of January, 2020 when the virus gained momentum in China and Asia creating significant disruptions in the Company supply chain from this region.
HansaMatrix management believes that COVID-19 situation greatest impact on the Company business volumes concentrated in the period from February, 2020 until May, 2020. Revenue forecasts for the future business volumes indicate certain improvements, nevertheless due to still quite unpredictable development of overall COVID-19 situation in the Baltics and globally HansaMatrix revenue going further could still be negatively influenced.
2020 Q3 R&D revenue decreased by 61% compared with 2019 Q3 R&D revenue but increased by 10% compared to the previous quarter Q2 2020 revenue, and is accounting for 2.9% share of Company’s consolidated sales in 2020 Q3. R&D grant income has not been included in reported R&D sales figures.
In Q3 2020 the Company continued to manufacture the high-tech optical devices and to work on R&D projects, however the quarterly volumes have been influenced by COVID-19 situation, creating challenges in such business environment factors as personnel safety issues, supply chain disruptions, transportation network disruptions.
TTM – trailing twelve month period sales (period starting in October 1, 2019 and ending with September 30, 2020) at 2020 Q3 reached 23.640 million EUR, showing 3% increase compared to TTM sales for the period ended at 2019 Q3 and 2% increase compared to TTM sales for the period ended at 2020 Q2. EBITDA result for the TTM 12 month period reported to be 2.915 million EUR, a decrease of 18% in comparison with 12 month period ended at 2019 Q3 but 12% increase compared to TTM sales for the period ended at 2020 Q2. The TTM period resulted in a net loss of 0.397 million EUR. Averaged EBITDA margin for TTM period of 12.3% is reported.
The definitions of alternative performance indicators (APIs) used in the news release can be found on page 34 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.
HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 9 Month Period Ended September 30, 2020
Investor and media contact:
Māris Macijevskis, CFA
Management Board Member, Finance director
Phone: (+371) 6780 0002
HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial segments and other services to high added value business segments. In addition to complete manufacturing services of OEM products, the company offers an ODM business model to both start-up and established companies that seek product development partnerships.