Incap Corporation’s President and CEO Otto Pukk
It was great to see a strong third quarter for Incap despite the challenges in the EMS market. We continued to grow quarter to quarter, as anticipated. In the third quarter, we continued to focus on new customer acquisition, increasing sales to existing ones, and cross-selling opportunities. I am proud of our teams and the good developments in all units.
To bring out some highlights, our unit in India is returning to its higher output, and the team in the US has exceeded our pre-acquisition expectations and is showing excellent results. We had higher order levels and continued to work on driving synergies between our different teams, resulting in additional sales. We also worked on enhancing our processes and improving the management of ESG data in order to comply with the regulation.
Our revenue for the third quarter increased by 23.4% to EUR 61.8 million thanks to solid performance in all units. We also continued with strong profitability in double digits. Our year-on-year increase for EBIT was 37.6%, amounting to EUR 7.9 million.
To support our growth and maintain our competence and service excellence, we consistently evaluate new technologies and invest in our manufacturing. In the third quarter, our team in the UK worked on installing a modern vertical storage system in the factory. Meanwhile, our team in India implemented the installation of solar panels on the roof of the third and newest factory in Tumkur, improving the carbon footprint in our manufacturing.
We always aim to maintain a good dialogue with our customers and organised various customer and supplier events in Slovakia, as well as a customer day in October in Estonia. Our teams participated in several cooperative events and trade shows, while also placing strong emphasis on numerous internal events and trainings held for our employees. In August, we brought our Sourcing and HR teams together to focus on creating synergies across various areas, including sourcing, culture and values, ESG, and HR. This collaborative effort aimed to enhance our overall effectiveness. We are committed to continuously driving synergy effects and will continue to work together to achieve our goals.
We worked on finalizing our Double Materiality Assessment on group level with the help across all levels of our organization, laying a strong foundation for further development of our sustainability reporting in accordance with CSRD regulations. In October, we launched internal CSRD reporting to identify any gaps in the new reporting platform and ensure we are aligned with our goals and regulation requirements.
Our outlook for the year remains unchanged. Looking ahead, we must acknowledge the uncertainties in the market. Factors such as the economic slowdown in Europe, US elections, geopolitical tensions in Europe, Middle East and South-East Asia could all impact demand in the short-to-medium term. As expected with the increase in component availability, overall visibility in the market has reduced. However, we remain optimistic about the long-term outlook for electronics and the positive trends in the industry. We feel confident in Incap’s ability to tackle these potential changes in the market.
Our financial position remains strong, and we will continue to focus on pursuing M&A, concentrating on companies with a strong cultural fit and good profitability.
