Electronics manufacturer Incap continued its good growth pace
Electronics manufacturer Incap Corporation, which has one of its main production units in Estonia, managed to continue its good growth pace. The group’s revenue by the end of 3rd quarter amounted to EUR 54.8 million, which was 29% more than last year same time.
Incap is an international electronics manufacturer, offering high-quality electronics solution produced by the latest technology. Company’s production takes place in Estonia and India, with headquarters in Finland and sourcing team in Hong Kong, China.
“The third quarter of 2019 showed again a strong sales performance for Incap. In January-September our revenue grew by 29% from the corresponding period a year ago,” stated Otto Pukk, the President of Incap Corporation and Managing Director of Incap Electronics Estonia, which operates a manufacturing unit in Estonian biggest island Saaremaa.
“Our revenue in Incap Group increased mainly thanks to the growing demand from our established customers, and especially in the earlier part of 2019, from the increased volumes for new customers,” Pukk added.
Revenue improved thanks to the growing demand from established customers as well as increased volumes from new customers. The company has managed to broaden its customer base especially in light vehicles, IoT and industrial electronics applications.
Operating profit (EBIT) of Incap Group grew by 45% and was 14.6% out of revenues, increasing from 12.9% year-on-year. “Despite the rapid growth in revenue, we continue our strict management of costs and keeping our organization structure lean. Thanks to these actions, as well as the efficiency improvements on our production lines, our profitability has remained at a good level,” Pukk explained.
Operating profit (EBIT) in January-September 2019 was EUR 8.0 (5.5) million and profit for the period totalled EUR 6.1 (3.9) million. Operating profit (EBIT) increased by 45% and profit for the period by 56% compared to the comparison period. The share of operating profit out of revenue increased from 12.9% to 14.6%
“After the exceptionally good first half of the year, I see that the net growth will continue but growth percentages are going back to more normal levels moving forward as the size of the business has grown. Considering third quarter is also holiday & vacation season, I ́m happy how the quarter turned out,” he brought out.
Growing production capacity
In order to improve the production capabilities, Incap Group decided to increase its production facilities in India and expand its rental contracts in Kuressaare facility in Estonia.
“In Tumkur, India, the development actions are made into the expansion of the production facility from 8,640 sqm to approximately 12,500 sqm. This expansion is expected to be completed by spring 2020. In Estonia, we are developing our production lines by upgrading our SMT (surface mount technology) -production capability. This helps us to provide our customers more value and to help them in their specific needs with even more flexibility than before,” Pukk éxplained.
The Group’s estimated revenue in 2019 will be approximately EUR 70-72 million and the operating profit (EBIT) approximately EUR 9.5-10.5 million. The Group’s revenue in 2018 amounted to EUR 59.0 million and the operating profit (EBIT) to EUR 8.6 million.
However, Pukk added that the competition in contract manufacturing is harsh. “The shortages in component availability still persist, however, the situation seems to be easing up. We are looking optimistic towards the future. Our financial position is strong and we are able to grow our business also by mergers and acquisitions should the right opportunities arise,” states Incap’s President Otto Pukk.
Incap Corporation is an international contract manufacturer. Incap's customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China, and the company currently employs approximately 770 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.