Incap Corporation’s President and CEO Otto Pukk
I am happy to see that the quarter on quarter growth continued as we had expected. With better visibility towards the year end and good development in the first half of the year, we raised the outlook for 2024 and estimate the revenue in 2024 to be higher than in 2023 and the operating profit (EBIT) in 2024 to be at the same level as in 2023.
Our revenue in the strong second quarter grew 12.2% quarter on quarter and was EUR 57.6 million. Excluding sales to our largest customer, our revenue grew 30.2 % year on year. We expect the revenue to continue to increase quarter by quarter during the year. With the revenue growth, we expect also our profitability to improve.
The revenue growth in the second quarter was coming foremost from Incap India compared to previous quarter. The revenue was also positively impacted by the acquisition completed on 3.7.2023 in the US. I would like to thank our excellent Incap team for delivering these results. They have been focusing on new customer acquisition, increasing sales to existing ones, and cross-selling opportunities from our acquisition.
A year ago, we expanded our operations to the US market with the acquisition of Pennatronics Inc. We are very pleased with our acquisition and the integration of Incap US’ operations has continued as planned. Incap US operations have developed well, and the team has had success in new customer acquisition. The acquisition agreement included a potential additional earn-out based on Pennatronics results. The maximum amount of the earn-out, EUR 2.8 million, was paid in full to the sellers in June this year. After successfully entering the US market with the acquisition, we are now looking at potential acquisitions in Europe and the Asia-Pacific region.
To support our growth and keep up our competence and service level, we are constantly evaluating the latest technologies and making investments at our factories. ln the beginning of the year, we replaced a SMT production line with advanced new machinery at our factory in Slovakia. In June, we upgraded the UK factory’s SMT production line with a fully automated high-precision soldering screen printer, the first ever installed in the UK. The SMT line investment increases capacity and improves the environmental impact. Incap UK also completed in spring 2024 a roof installation project, which was designed to improve energy efficiency and enable a solar panel installation. An extension of the solar panel project is also in the pipeline for our other factories. Incap has ongoing IT projects and is planning on investing further on IT-systems.
In April, we published our first combined Annual and Sustainability Report and are further developing our sustainability reporting in accordance with the CSRD regulation. We prepare for the new reporting requirements by launching Scope 3 emissions calculations and finalizing the Double Materiality Assessment (DMA). We see ESG reporting not just as an obligatory step, but as an opportunity to improve measuring and managing our activities aiming at sustainable business and growth.
During the remainder of the year, we will keep investing in our factories, focus on new customer acquisition and increasing sales to existing customers. We will also continue pursuing shareholder value creating M&A transactions, supported with our solid financials.
