HansaMatrix reaches EUR 7.8 million in revenue in Q4 2022

The high-tech company HansaMatrix reached a revenue of 7.8 million euros in Q4 2022, according to operational data. This represents an increase of 61.3% compared to Q4 2021 and 2.9% compared to Q3 2022.

The company attributes the increase in revenue to growing customer demand in the data networking and industrial sectors, including the launch of production of recently acquired customer products. The increase in revenue was driven by active supply chain management and organisation of component deliveries, as well as the downward trend in the global semiconductor shortage.

HansaMatrix previously forecasted that the company would reach revenues of 26-28 million euros in 2022 and 32-34 million euros in 2023.

Reaching new highs

HansaMatrix achieved its highest-ever revenue for the same period in the first nine months of 2022: 20.17 million euros, according to the consolidated interim financial report. Revenues are up 18% compared to the same period last year. Nine-month EBITDA is 1.67 million euros, while EBITDA margin is 8.3%.

In the first nine months of 2022, the group reported a loss of 1.29 million. The group’s net profit for the first nine months of 2022 was negatively impacted by a number of non-cash flow items, including losses on investments in associates, changes in the fair value of the EIB loan, exchange rate fluctuations, and interest expenses related to leases. For a better comparison of profitability between periods, the group has calculated a normalised net profit which was positive for the first nine months of 2022 at 0.002 million euros.

In the 2021 financial year, HansaMatrix’s consolidated revenue from contracts with customers was 21.96 million euros. This is 2.77% less than in the previous financial year 2020.

BaltCap group company to buy HansaMatrix

At the end of November 2022, the Competition Council adopted a decision to allow the private equity and venture capital investment fund BaltCap group company Emsco to acquire HansaMatrix. Emsco intends to make a voluntary share buyback offer to HansaMatrix shareholders in accordance with the procedure set out in the Share Buyback Law and has submitted a merger notification to the Competition Council. Having assessed the information provided by Emsco and available to the Competition Council, it has been concluded that the merging parties and their related undertakings do not operate in the same relevant market or in a vertically related market.

In the further process, Emsco will apply to the Financial and Capital Market Commission for authorisation to make a voluntary share buy-back offer. This offer is planned to be made to all HansaMatrix shareholders in accordance with the procedure provided for by the laws and regulations and after obtaining all necessary approvals.

KS BaltCap Latvia Venture Capital Fund already owns 9.95% of HansaMatrix. The remaining owners are currently Macro Riga (30.57%), KS ZGI-4 AIF (15.06%), KS FlyCap Investment Fund I AIF (8.89%), funds managed by IPAS CBL Asset Management (6.56%), funds managed by Swedbank Investeerimisfondid (5.41%) and funds managed by Swedbank Investment Management Company (5.1%).

More and more production contracts

In December 2022, HansaMatrix received a new USD 4.4 million production order from an existing aerospace customer outside the European Union. In August, the company signed a production contract and received a 3 million euro order to manufacture and supply aquaculture systems to a new industrial market customer in the Nordic countries. In February, HansaMatrix reported its first production order for the manufacture and supply of aquaculture systems for this customer, Labs of Latvia reported. The order is expected to amount to five million over three years. Last year, the company also received a production order for the manufacture and supply of overhead power line fault indicator systems for an industrial market customer in the Nordic countries. The planned deliveries in 2022 and 2023 will amount to 5.3 million euros.

In October 2021, HansaMatrix signed a contract for the production and supply of electronic components for a new industrial market customer in the Nordic countries. The planned deliveries will amount to up to 2 million euros a year. In August 2021, the company signed a 1.4 million USD contract to manufacture and supply high-complexity electronic components to an international industrial market customer outside the European Union, Labs of Latvia wrote. In August 2021, HansaMatrix also signed a manufacturing contract worth 3.3 million euros for the production and supply of electronic devices to an industrial market customer in Germany.

Fast-growing high-tech company

HansaMatrix is a high-tech company that develops and industrialises new electronic products and systems and provides a full range of manufacturing services in the high value-added market segments of data networking equipment, IoT, industrial systems, and other products.

In addition to providing manufacturing services to original equipment manufacturers, the company offers a business model for the production of original development products for startups as well as larger companies in need of a product development partner.

The HansaMatrix group comprises HansaMatrix Pārogre, HansaMatrix Ventspils, HansaMatrix Innovation, Zinātnes parks, and Lightspace Holding.

Author: Anda Asere (labsoflatvia.com). Publicity photo.