Incap Corporation | Stock Exchange Release | October 25, 2023 at 09:00:00 EEST

This release is a summary of Incap’s business review for January–September 2023. The complete report is attached to this release as a pdf file and available on the company’s website at

July–September 2023 highlights

  • Revenue amounted to EUR 50.0 million (7–9/2022: EUR 70.6 million), a decrease of 29%.
  • Adjusted operating profit (EBIT) amounted to EUR 6.4 million (EUR 11.2 million), a decrease of 43%, or 12.7% of revenue (15.9%). Non-recurring items were mainly related to the acquisition.
  • Operating profit (EBIT) amounted to EUR 5.7 million (EUR 10.9 million), a decrease of 48%, or 11.4% of revenue (15.5%).
  • Net profit for the period was EUR 4.4 million (EUR 7.7 million).
  • On 5 July 2023, Incap acquired Pennatronics Inc., an Electronics Manufacturing Services company based in Pennsylvania, USA.

January–September 2023 highlights

  • Revenue amounted to EUR 179.2 million (1–9/2022: EUR 185.1 million), a decrease of 3%.
  • Adjusted operating profit (EBIT) amounted to EUR 26.2 million (EUR 27.1 million), a decrease of 3%, or 14.6% of revenue (14.6%).
  • Operating profit (EBIT) amounted to EUR 24.5 million (EUR 26.3 million), a decrease of 7%, or 13.7% of revenue (14.2%).
  • Net profit for the period was EUR 18.5 million (EUR 18.9 million).
  • Earnings per share were EUR 0.63 (EUR 0.65).
  • Since the beginning of the year, workforce has been reduced by 1,136 people at Incap´s factories in India.

Unless otherwise stated, the comparison figures refer to the corresponding period in 2022. This business review is unaudited.

Key figures

EUR million 7–9/23 7–9/22 Change 1–9/23 1–9/22 Change 1–12/22
Revenue 50.0 70.6 -29.1% 179.2 185.1 -3.2% 263.8
Non-recurring items 0.1 0.2 -44.4% 0.9 0.4 104.5% 0.6
Operating profit (EBIT) 5.7 10.9 -47.6% 24.5 26.3 -6.7% 38.9
EBIT, % of revenue 11.4% 15.5% 13.7% 14.2% 14.8%
Adjusted operating profit (EBIT)* 6.4 11.2 -43.2% 26.2 27.1 -3.3% 40.0
Adjusted EBIT*, % of revenue 12.7% 15.9% 14.6% 14.6% 15.1%
Net profit for the period 4.4 7.7 -42.9% 18.5 18.9 -2.4% 27.6

*Adjusted operating profit (EBIT) is an alternative performance measure. Adjusted EBIT excludes non-recurring items and purchase price allocation amortisation. Adjusted EBIT provides comparable information between different financial years on operating profit.

Outlook for 2023

Incap estimates that its revenue for 2023 will be EUR 210–220 million and EBIT EUR 24–28 million. The outlook includes the newly acquired Incap US (Pennatronics Inc.) business.

The lower operating profit estimate is due to Incap’s largest customer’s updated sales forecast. The customer’s destocking will take longer than expected. Incap expects to see the full impact of the decreased volumes during the fourth quarter.

The estimates are given provided that unexpected events impacting Incap’s business environment do not occur, for example, in the availability of components.

Otto Pukk, President and CEO of Incap Corporation:

“I am happy to note that our sales to most of our customers but the largest one increased in the third quarter. This is the result of a great team effort and success in new customer acquisition and growing existing accounts, supported with the good EMS market demand. As communicated earlier, the decrease in our revenue is related to our largest customer's need to reduce their inventories. We continue to work closely with our customer to help them reduce their inventory levels; however, the destocking is taking longer than expected. We expect to see the full impact of the decreased volumes during the fourth quarter. With the growth of other customers’ business and the recent acquisition of Pennatronics Inc., our dependency on the largest customer has significantly reduced.

Our revenue in the third quarter of the year was EUR 50 million, 29% below last year’s third quarter, but excluding the impact of our largest customer, our revenue grew over 30%. Despite the lower revenue, our relative profitability stayed on a healthy level: EBIT in the third quarter was EUR 5.7 million or 11.4% of revenue. Thanks to our flexible operational model, we have been able to efficiently reduce our variable costs. In order to adjust to the lower volume level, we have taken hard measures and reduced workforce by 1,136 people at our factories in India. This has been tough for everyone involved, and I would like to thank the team for their efforts and commitment during this tough adjustment period.

Our recent acquisition of Pennatronics, now known as Incap Electronics US, Inc., creates a foothold for further expansion in the U.S. and broadens our customer base. The integration of Incap US is proceeding very well. We are already visiting customers jointly and exploring cross-selling opportunities. We are seeing growing interest in Europe and India from customers on the other side of the Atlantic and vice versa.

We are continuing the good dialogue with our customers and organise different customer events for them. In Slovakia, we had the factory’s 20-year jubilee, and in Estonia, we will organise our yearly Customer Day event later in October.

With the growing demand, we have made investments in our factories. In Estonia, a new SMT line was commissioned, increasing the capacity by 50%. In Slovakia, the factory expansion project was finalised, and the plant now has 1,200 additional square metres for production. In India, production in the third factory has started.

Our estimate for 2023 is that our revenue will be EUR 210–220 million and EBIT EUR 24–28 million, including Incap US. While component availability is continuing to improve, we still see some price pressure on the market. However, with a more global and balanced customer base, tight cost control and our committed team, we believe that we will be able to continue to grow organically and to keep a good relative profitability level. We will also continue to focus on pursuing M&A, concentrating in companies with a strong cultural fit and good profitability.”

Financial reporting in 2024

Incap will publish its financial reporting schedule for 2024 in December 2023.


Incap will hold a webcast on Wednesday, 25 October 2023 at 1:00 p.m. Finnish time. The result will be presented by Otto Pukk, CEO, and Antti Pynnönen, CFO, Incap Corporation.  

The live webcast can be followed at During the webcast, the public can ask questions in the chat room at the address mentioned above. The recording of the broadcast will be available on the company's website at later that day.

The event is targeted for analysts, portfolio managers and the media. Welcome!

In Helsinki, 25 October 2023

Board of Directors