HansaMatrix receives new order worth 5 MEUR

HansaMatrix, a developer and manufacturer of electronic systems products, has received its first production order from a new aquaculture customer in the Nordic countries. The projected revenue from this order is 5 million euros over three years.

Under the terms of the confidentiality agreement, the name of the client is not disclosed. The HansaMatrix board is pleased with the order, as it demonstrates the team’s ability to execute its growth strategy in the face of a shortage of electronic components. It also confirms the company’s ability to take advantage of the growing trend to locate production orders geographically closer to the customer in order to reduce the current uncertainty in global supply chains and strengthen HansaMatrix’s position in the region.

Turnover Down 3%, EBITDA Up 24%

In 2021, HansaMatrix’s consolidated revenue was 21.96 million euros, down 3% year-on-year, Labs of Latvia wrote. Increasing share of high value-added products in the product portfolio and operational efficiency improvements led to a 24% increase in EBITDA to 3.76 million euros.

HansaMatrix had a net loss of 0.5 million euros in 2021. EBITDA margin of 17.1% was achieved in the first 12 months of last year.

Consolidated revenues for Q4 2021 amounted to 4.84 million euros, down 13% compared to Q4 2020. EBITDA was 0.44 million euros, down 47% year-on-year. An EBITDA margin of 8.99% was achieved in the period. The decrease in EBITDA and EBITDA margin is attributable to the worldwide shortage of electronic components, which hinders production execution.

The net loss reported in Q4 is 0.52 million euros. For a better comparison of profitability between periods, the Group has calculated its normalized net profit, which was negative in Q4 2021 at 0.31 million euro and positive in 2021 as a whole at 1.02 million euro.

Sales Growth in the Baltics and Nordic Countries

In 2021, the company’s main sales driver continued to be its Baltic customers, which accounted for 52% of total sales. The Nordic countries and the rest of the EU account for 27% and 6% market shares respectively. Non-EU delivery customers account for 15% of total sales. Compared to 2020, sales in the Baltics increased by 15% in 2021 and by 19% in the Nordic countries. The increase in the Nordics is due to manufacturing services for IoT and industrial customers in the region. Sales in the rest of the EU show a 50% decrease, while sales outside the EU show a 34% decrease.

In 2021, sales continued to be dominated by data networking products (52%) and industrial products (31%). Optics and photonics products accounted for 5% of turnover, internet of things 8%, and other products 3%.

Compared to the 2020 results, in 2021:

• Sales of data networking products increased by 13%,
• Sales of industrial products decreased by 22%,
• Sales of optics and photonics products decreased by 7%,
• Sales of internet of things products increased by 62%,
• Sales of other products decreased by 45%.

New Contracts

In October last year, HansaMatrix signed a contract to manufacture and supply electronic components to a new customer in the Nordic countries in the industrial market sector related to the health and wellness industry. The planned deliveries will amount to up to 2 million euros per year, starting in the first quarter of 2022. Under the terms of the agreement, the name of the client is not disclosed, Labs of Latvia wrote.

In August, HansaMatrix signed a 1.4 million USD contract to manufacture and supply highly complex electronic components to an international customer outside the European Union in the industrial market segment, Labs of Latvia reported. In August, the company also signed a 3.3 million euro contract for the production and supply of electronic devices to an industrial customer in Germany, Labs of Latvia wrote.

“We are pleased with the signing of a new, substantial contract with a customer in Germany, which indicates an increase in demand from the industrial sector in EU countries as COVID-19 restrictions are easing,” HansaMatrix CEO Jānis Sams said earlier.

It also confirms the growing trend to locate production orders geographically closer to the customer in order to reduce the current uncertainty in global supply chains.

New Management

Last September, Ilmārs Osmanis, founder of HansaMatrix, resigned from the Supervisory Council, wrote Labs of Latvia. He remains a significant shareholder in HansaMatrix and will advise the company’s management where necessary. Osmanis now devotes his knowledge and energy to the development of LightSpace Technologies, a 3D photonics, and optical solutions company.

“We are growing rapidly, the workload is increasing significantly, so I have decided to focus my full attention on the development of augmented reality products,” commented Osmanis.

Osmanis was on the HansaMatrix Supervisory Council in May. Prior to that, he was Chairman of the Board for many years. Since May, Jānis Sams, former COO and member of the board, has been Chairman of the Board of HansaMatrix, wrote Labs of Lavia.

A Fast-Growing High-Tech Company

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

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

The HansaMatrix Group comprises SIA HansaMatrix Pārogre, SIA HansaMatrix Ventspils, SIA HansaMatrix Innovation, SIA Zinātnes parks and AS Lightspace Holding.

Source: labsoflatvia.com