CEO’S MESSAGE

JANUARY–SEPTEMBER 2021

Otto Pukk Incap CEO and PresidentIncap Corporation’s President and CEO Otto Pukk

“Our result for the third quarter was exceptional: revenue was all-time high. This is mainly due to increased demand and to a backlog from the second quarter, when the Indian factories were closed. The growth was largely enabled through capacity expansions of the Indian factory.

Profitability was on an excellent level. The EBIT was also all-time high, and the EBIT margin was among the highest in Incap’s history. The high profitability was related to the high volume and favourable product mix and to some extent supported with synergy effects in common functions such as purchasing.

ceo message

My heartfelt thanks to the entire Incap team, who quarter after quarter prove their dedication to serving our customers and show great team spirit.

With the improved visibility related to our customers’ forecasts, we have been able to further specify our outlook for 2021. We now estimate that our revenue, operating profit (EBIT) and adjusted operating profit (EBIT) will be significantly higher than in 2020. More specifically, we estimate that our full year revenue will be EUR 166–171 million and EBIT EUR 24–26 million.

The health and safety of our employees, suppliers and customers remains our first priority. We continue to take all precautions against the coronavirus at all our sites. As part of our commitment to the safety of our personnel, we have for instance organised vaccination programs for our employees.

To meet the growing demand, we have been increasing the production capacity in India. One expansion project has already been finalised and the second one is close to being finalised and the third factory project is proceeding as planned.

Component availability situation in the market continues to be challenging, and the emerging energy crisis in China might make the development more difficult to foresee. We are working closely with our suppliers and customers to keep adequate inventory levels to mitigate the risks.

In a longer perspective, we see the strong market growth trend continuing. The increasing need for sustainable energy solutions, medical equipment, emerging 5G and IoT ecosystems and the proliferation of electric vehicles contribute to the demand growth.

Our solid financial position makes it possible for us to continue to actively evaluate potential M&A opportunities. We are concentrating in companies with a strong cultural fit and good profitability. We look for opportunities for geographical expansion in markets with a well-functioning operating environment.

At this time of the year, I am happy to state that we have been well able to navigate through rough waters and I am confident that with the help of our highly professional employees we will continue to be able to offer our customers the excellent services we are known for.”

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