In 2022 the Group reported historically highest revenue of 27.969 million EUR, representing 27% increase compared to 2021. In 2022 the Group reported EBITDA result of 2.838 million EUR and operated with 10.1% EBITDA margin. In the fourth quarter of 2022 the Group reported historically highest revenue in amount of 7.798 million EUR, representing increase by 61% in comparison to the same period of 2021. The Group reported quarterly EBITDA result of 1.170 million EUR, incresing 186% on year over year basis, and operated with EBITDA margin of 15%.

Riga, 2023-02-13 10:18 CET -- In the fourth quarter of 2022 the Group reported historically highest revenue from contracts with customers of 7.798 million EUR, representing increase by 61% in comparison to the same period of 2021. 2022 Q4 sales results showed 3% sales volume increase in comparison with previous quarter – 2022 Q3.

In 2022 the Group reported sales volume increase by 27% compared to 2021 and revenue reached historically highest yearly volume of 27.969 million EUR.

The growth of revenue was supported by strong demand in key sectors that coupled with active sales process and the global semiconductor deficit has resulted in significant order book volume as at the end of Q4 2022, amounting to 24.2 million EUR, increasing by 26% compared to the respective figure as at the end of Q3 2022.

During 2022 Q4 the Group reported quarterly EBITDA result of 1.170 million EUR and operated with net loss result of 0.922 million EUR. The reported EBITDA result shows 186% increase in comparison with Q4 2021 and 172% increase compared to previous quarter of 2022 Q3. In Q4 2022 the Group reported net loss 0.922 million EUR as compared to the net loss of 1.966 million EUR in Q4 2021 and net loss of 0.562 million EUR in Q3 2022. Quarterly results represent EBITDA margin of 15%.

In 2022 the Group reported EBITDA result of 2.838 million EUR and net loss result of 2.215 million EUR. The reported EBITDA result shows 24% decrease in comparison with 2021. In 2022, the Company operated with a net loss of 2.215 million EUR as compared to the net loss of 1.952 million EUR in 2021. In 2022, the Company operated with 10.1% EBITDA margin.

Q4 2022 EBITDA profitability improvement compared to Q4 2021 is explained by the improvements in semiconductor availability, allowing the Company to execute manufacturing orders and to significantly improve quarterly revenue volume. 2022 EBITDA profitability decrease compared to 2021 is explained by changes in the product mix of manufactured products, where higher-added value products proportion decreased, which was influenced by the global semiconductor deficit, most significantly impacting the Company in Q2 and Q3 2022.

Net profit of the Group in Q4 2022 is negatively influenced by several non-cash related items, the most significant including provisions in amount of 0.806 million EUR to reflect changes in SIA Zinatnes parks real estate project fair value and loss from investments in associates in amount of 0.340 million EUR.

The most significant non-cash items negatively influencing net profit of the Company in 12 months 2022 include loss from investments in associates 1.421 million EUR, provisions in amount of 0.806 million EUR to reflect changes in SIA Zinatnes parks real estate project fair value, European Investment Bank (EIB) loan fair value change provisions – 0.350 million EUR.

For better inter-period profitability comparisons, the Company calculates normalized net profit, which in Q4 2022 amounted to 0.388 million EUR compared to Q4 2021 negative normalized net profit of 0.310 million EUR. In 2022 normalized net profit amounted to 0.390 million EUR, compared to 2021 1.165 million EUR. Year on year decrease in normalized net profit is explained by changes in the product mix of manufactured products, where higher-added value products proportion decreased, which was influenced by the global semiconductor deficit, most significantly impacting the Company in Q2 and Q3 2022.

In 2022 (including Q4 2022) the Group carried out revaluation of fair value of warrants issued in relation to EIB financing contract, decreasing warrant balance sheet value by 0.544 million EUR (0.046 million EUR in Q4 2022), due to decreasing average weighted price of HansaMatrix stock in 2022 (in Q4 2022), which by the same amount improved net profit in 2022 (in Q4 2022).

TTM – trailing twelve-month period sales (period starting in January 1, 2022 and ending with December 31, 2022) at 2022 Q4 reached historically highest level of 27.969 million EUR, increasing by 27% compared to TTM sales for the period ended at 2021 Q4 and increasing by 12% compared to TTM sales for the period ended at 2022 Q3. EBITDA result for the TTM 12-month period reported to be 2.838 million EUR, a decrease of 24% in comparison with 12-month period ended at 2021 Q4 and 37% increase compared to TTM sales for the period ended at 2022 Q3. The TTM period resulted in a net loss of -2.215 million EUR, whereas normalized net profit in this period amounted to 0.390 million EUR. In the end of Q4 2022 averaged EBITDA margin for TTM period of 10.15% was reported.

In the reporting period HansaMatrix, based on strategic considerations, informed Central Finance and Contracting Agency of Republic of Latvia (CFCA) and discontinued the realization of European Regional Development Fund (ERDF) funding project “Development of experimental production of 3D volumetric imaging equipment and its components”. As a result CFCA has informed the Company on repayment of received EU funding in relation to this project in amount of 748 thousand EUR with potential repayment deadline December 01, 2024. The investments related to this project have been predominantly carried out in manufacturing equipment, therefore the Company is evaluating options of extending the aforementioned maturity date by agreeing with CFCA or refinancing the liability with credit institutions.

The definitions of alternative performance indicators (APIs) used in the news release can be found on page 48 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.

Attachments:

·         HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 12 month period ended September 30, 2022

Investor and media contact:
Māris Macijevskis, CFA
Management Board Member, Finance director
Phone: (+371) 6780 0002
E-mail: invest@hansamatrix.com
http://www.hansamatrix.com
 

About HansaMatrix

HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial and other high added value business sectors.