Incap Group’s half-year financial report for January–June 2021: Strong revenue and profitability growth continued

Incap Corporation        Stock Exchange Release        28 July 2021 at 8:30 a.m. (EEST)
Half-year financial report

This release is a summary of Incap’s half-year financial report for January–June 2021. The complete report is attached to this release as a pdf file and available on the company’s website at

April–June 2021 highlights

  • Revenue for the second quarter 2021 amounted to EUR 33.6 million (4–6/2020: EUR 22.6 million), showing an increase of 49%.
  • Adjusted operating profit (EBIT) grew 63%, amounting to EUR 4.5 million (EUR 2.8 million) or 13.4% of revenue (12.2%).
  • Acquisition related purchase price allocation (PPA) amortisation amounted to EUR 0.1 million (EUR 0.7 million) and non-recurring costs were EUR 0.1 million (EUR 0.0 million).
  • Operating profit (EBIT) grew 103%, amounting to EUR 4.3 million (EUR 2.1 million) or 12.7% of revenue (9.3%).
  • Net profit for the period was EUR 3.2 million (EUR 1.2 million).
  • The closure of the factory in India in May–June 2021 and other effects of the coronavirus pandemic had a negative impact on revenue growth and profitability.

January–June 2021 highlights

  • Revenue grew 52% and amounted to EUR 71.3 million (1–6/2020: EUR 46.9 million).
  • Adjusted operating profit (EBIT) grew 89%, amounting to EUR 10.2 million (EUR 5.4 million) or 14.3% of revenue (11.6%).
  • Acquisition related purchase price allocation (PPA) amortisation amounted to EUR 0.3 million (EUR 1.1 million) and non-recurring costs were EUR 0.2 million (EUR 0.1 million).
  • Operating profit (EBIT) grew 130%, amounting to EUR 9.8 million (EUR 4.3 million) or 13.7% of revenue (9.1%).
  • Net profit for the period was EUR 7.8 million (EUR 2.7 million).
  • Earnings per share were EUR 1.33 (EUR 0.62).

Unless otherwise stated, the comparison figures refer to the corresponding period in 2020. This half-year financial report is unaudited.

Key figures

EUR million 4–6/21 4–6/20 Change 1–6/21 1–6/20 Change 1–12/20
Revenue 33.6 22.6 49% 71.3 46.9 52% 106.5
Non-recurring items 0.1 0.0   0.2 0.1 300% 0.1
Operating profit (EBIT) 4.3 2.1 103% 9.8 4.3 130% 12.6
EBIT, % of revenue 12.7% 9.3%   13.7% 9.1%   11.8%
Adjusted operating profit (EBIT)* 4.5 2.8 63% 10.2 5.4 89% 14.6
Adjusted EBIT*, % of revenue 13.4% 12.2%   14.3% 11.6%   13.7%
Net profit for the period 3.2 1.2 175% 7.8 2.7 186% 9.2

*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 adjusted for acquisition-related expenses.

Outlook for 2021

Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020.

The estimates are given provided that there are no major negative changes in the coronavirus pandemic situation, currency exchange rates or in component availability and they are based both on Incap’s customers' forecasts and the company's own assessments of the business development.

Otto Pukk, President and CEO of Incap Group:

“Our result despite the pandemic situation shows a solid performance by our personnel and is yet another proof of our strong business model, entrepreneurial culture and team spirit – my big thanks to the entire Incap team.

The strong revenue growth is due to growing use of electronics supported with megatrends such as digitalisation and IoT. Additionally, we have seen bigger interest in European manufacturing.

In May–June, due to the coronavirus situation in India, we first had to close our factories there for a short period of time, then later we were granted permission to resume operations partially to support the manufacturing of critical electronic equipment including applications for healthcare. The restrictions were further relaxed for export industries in general.

Our profitability improved further due to our operational excellence based on high cost awareness and strong corporate culture.

In April, we increased our revenue and operating profit estimate for 2021. Despite the partial operations at the factories in India during May–June, our estimate is that our revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020.

The global component availability situation is still challenging due to the growing demand, albeit as an EMS supplier Incap is less dependent on single component types. We are nevertheless already seeing early signals of the component situation improving towards the end of the year and early next year.

In May, we decided to make an investment in a third factory in Tumkur, Karnataka, India. The construction project is planned to start in the third quarter, and the opening of the new factory is estimated to take place in the second quarter of 2022. Through the new capacity expansion, we will be able to respond to the increasing demand and serve our customers even better.

In the spring, we continued our strong commitment to corporate responsibility and joined the UN Global Compact initiative, and I am extremely proud of the team who made it happen. Acting in a responsible and trustful way is an integral part of our mission, strategy and operations.

The EMS market demand has continued strong despite the current short term coronavirus pandemic related challenges, and we see the strong trend continuing. The increasing need for green energy, medical equipment, emerging 5G and IoT ecosystems and the proliferation of electric vehicles contribute to the demand growth.

Consolidation in the EMS market still continues. After our rights issue last autumn, we are in a solid financial position should a good M&A opportunity arise. We are actively evaluating potential M&A opportunities with a strong cultural fit and potential for geographical expansion.

Looking at the remainder of the year, we see a lot of positive development as many of our existing and potential customers’ businesses are growing in sectors supported with megatrends. Incap has a strong role in enabling our customers to achieve their targets. We are thankful that Incap is well positioned in the market, has a strong market share and is able to support our customers’ growing businesses.”

In Helsinki, 28 July 2021

Board of Directors

For additional information, please contact:
Otto Pukk, President and CEO, tel. +372 508 0798

Nasdaq Helsinki Ltd.
Principal media  

Incap Corporation is a trusted partner and full service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK and Hong Kong and employs approximately 1,900 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.