Incap presented a major increase in 2021 and plans to continue the growth
Incap Corporation, a trusted partner and full-service provider in Electronics Manufacturing Services, presented its financial statements for 2021 with strong growth and profitability. While the company also operates in Kuressaare, the largest island in Estonia, the President of the company sees that the growth of the whole group will continue.
While revenue of Incap increased in 2021 59% and amounted to EUR 169.8 million (1–12/2020: EUR 106.5 million) and adjusted operating profit (EBIT) increased by 84%, amounting to EUR 26.8 million (EUR 14.6 million) or 15.8% of revenue (13.7%), the President of the company believes that there is still a strong potential to higher growth.
As a global Electronics Manufacturing Services (EMS) company, Incap is also active on Estonian island in Saaremaa. Incap Estonia offers both large industries and smaller start-ups electronic equipment solutions using state-of-art technology. Electronics manufactured at Incap Estonia can be found, for example, in remote electricity meters, electric light vehicles, smart street lights in different regions of Estonia, as well as in the equipment of the world's largest marine group. For example, the battery racks produced by Incap Estonia help Estonia's first hybrid ship Tõll to transport passengers and goods from the island to the mainland, and soon a camera with electronics produced in Kuressaare will fly with NASA to the Moon.
2021: strong year under difficult circumstances
Otto Pukk, the President and CEO of Incap Corporation explained that worsening component availability and factory close-downs in India required a lot more planning from Incap than usual. “But our team showed their commitment and stepped up to the challenge,” Pukk stated.
In fact, he brought out that despite the difficult circumstances, the last quarter of 2021 was once again a great one for the whole company with revenue reaching an all-time high, EUR 51.4 million, even with some material availability issues. The company’s full-year revenue amounted to EUR 169.8 million which is 59% more than in 2020.
Electronics in high demand
President of Incap explained that high market demand and the capacity expansions at Incap’s Indian factories contributed to the company’s growth. “We are continuing to increase the capacity in India and estimate now that the third factory under construction will be fully finalised by the end of this year,” he added.
Pukk described that the activity in the electronics industry market continued on a high level in 2021. “The growing need for electronics manufacturing services is driven by, for instance, the growth of sustainable energy solutions, the proliferation of electric vehicles and the related government investments in green energy and vehicle charging infrastructure,” Pukk stated.
Continuing challenges
“Looking forward, the component availability situation is still difficult, which makes planning increasingly challenging and requires a lot of extra effort,” said the President of Incap. “Tight component availability is forcing us to keep our inventory levels high, which may impact our working capital needs.”
Having said that, Pukk estimates that Incap can continue on its growth path in 2022. “Our order book is at an all-time high level, and we are increasing our capacity to meet the growing demand. We also continue to evaluate M&A opportunities, concentrating in companies with a strong cultural fit and good profitability.”
Incap Corporation has operations in Estonia, Finland, India, Slovakia, the UK and Hong Kong and employs approximately 2,500 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.
INCAP ESTONIA - Electronics Manufacturing in Kuressaare (incapcorp.com)