In the first quarter of 2023 the Group reported historically highest revenue in amount of 9.635 million EUR, representing increase by 60% in comparison to the same period of 2022. The Group reported quarterly EBITDA result of 1.708 million EUR, incresing 111% on year over year basis, and operated with EBITDA margin of 18%.

Riga, 2023-05-10 20:49 CEST -- In the first quarter of 2023 the Group reported historically highest revenue from contracts with customers of 9.635 million EUR, representing increase by 60% in comparison to the same period of 2022. 2023 Q1 sales results showed 11% sales volume increase in comparison with previous quarter – 2022 Q4.

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 Q1 2023, amounting to 26.6 million EUR, increasing by 10% compared to the respective figure as at the end of Q4 2022.

During 2023 Q1 the Group reported quarterly EBITDA result of 1.708 million EUR and operated with net loss result of 0.975 million EUR. The reported EBITDA result shows 111% increase in comparison with Q1 2022 and 37% increase compared to previous quarter of 2022 Q4. In Q1 2023 the Group reported net loss 0.975 million EUR as compared to the net loss of 0.046 million EUR in Q1 2022 and net loss of 0.853 million EUR in Q4 2022. Quarterly results represent EBITDA margin of 17,7%.

Significant Q1 2023 EBITDA profitability improvement compared to Q1 2022 is explained by the improvements in semiconductor availability, allowing the Company to execute manufacturing orders and to significantly improve quarterly revenue volume and also by changes in the product mix of manufactured products, where higher-added value products proportion increased compared to situation year ago.

Net profit of the Group in Q1 2023 is negatively influenced by several non-cash related items, the most significant include loss from investments in associates 1.574 million EUR and EIB warrant fair value change provisions – 0.317 million EUR due to increasing average weighted HansaMatrix share price in Q1 2023.

In Q1 2023 the Group carried out additional loss recognition in amount of 1.220 million EUR to reflect expected loss share of the Group investment in SIA Lightspace Technologies (via Lightspace Group Inc and AS Lightspace holding) due to SIA EUROLCDS ongoing legal protection process.

For better inter-period profitability comparisons, the Company calculates normalized net profit, which in Q1 2023 amounted to 1.083 million EUR, increasing substantially compared to Q1 2022 0.181 million EUR.

TTM – trailing twelve-month period sales (period starting in April 1, 2022 and ending with March 31, 2023) at 2023 Q1 reached historically highest level of 32.490 million EUR, increasing by 47% compared to TTM sales for the period ended at 2022 Q1 and increasing by 12% compared to TTM sales for the period ended at 2022 Q4. EBITDA result for the TTM 12-month period reported to be 3.811 million EUR, an increase of 15% in comparison with 12-month period ended at 2022 Q1 and 31% increase compared to TTM sales for the period ended at 2022 Q4. The TTM period resulted in a net loss of -3.075 million EUR, whereas normalized net profit in this period amounted to 1.306 million EUR. In the end of Q1 2023 averaged EBITDA margin for TTM period of 11.7% was reported.

The significant losses of the Group in the last 12 months are mostly explained by non-cash items - losses from investments in associated companies in the amount of EUR 2.776 million, losses in the amount of EUR 0.806 million related to provisions for the changes in the fair value of SIA Zinātnes parks investment (unfinished construction), as well as losses related provisions for changes in the fair value of the EIB loan in amount of 0.332 million EUR.

The definitions of alternative performance indicators (APIs) used in the news release can be found on page 39 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.

Attachments:

·         HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 3 month period ended March 31, 2023

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 network, Internet of Things, industrial and other high added value business sectors.