Innofactor - Fared well in challenging quarter
Innofactor’s Q3 results were slightly above our expectations and figures were fairly good given the expected COVID-19 related weakness in the quarter. The net sales amounted to EUR 14.0m (Evli EUR 13.8m), while EBITDA amounted to EUR 1.6m (Evli EUR 1.3m). Guidance remains intact. The impact of the pandemic on Q3 was in line with company expectations.
- Net sales in Q3 amounted to EUR 14.0m (EUR 14.0m in Q3/19), slightly above our estimates (Evli EUR 13.8m). Net sales in Q3 grew 0.3% y/y. Net sales grew in Finland but declined in the other Nordic countries.
- EBITDA in Q3 was EUR 1.6m (EUR 1.5m in Q3/19), above our estimates (Evli EUR 1.3m), at a margin of 11.1%. EBITDA was clearly positive in Finland and somewhat negative in the other countries due to smaller than expected net sales due to the coronavirus pandemic.
- Operating profit in Q3 amounted to EUR 0.4m (EUR 0.3m in Q2/19), above our estimates (Evli EUR 0.2m), at a margin of 2.8%.
- Order backlog at EUR 58.2m, up 9.4% y/y. Innofactor received several significant orders during the quarter and the order backlog improved q/q.
- Guidance intact: Innofactor’s net sales and EBITDA in 2020 are estimated to increase compared to 2019.
- The impact of the coronavirus pandemic on the third quarter was in line with company expectations. On a monthly level August was weaker than anticipated but September instead better than expected and the trend is expected to strengthen during the end of the year.
- Innofactor updated its strategy during Q3, with no major changes being made. The updated dividend policy was confirmed, and financial targets remain the same.