Scanfil raised its dividends 12 consecutive times – guidance on increasing turnover and operating profit

In October-December, Electronics contract manufacturer Scanfil’s net sales fell to EUR 212.3 million from EUR 220.8 million a year.

The adjusted operating profit was EUR 14.0 million, compared to EUR 13.4 million a year earlier. The adjusted operating margin improved by 6.6 % from 6.1 %.

The earnings per share in October-December were EUR 0.14 compared to EUR 0.17. Throughout the year 2024, the earnings per share were EUR 0.59.

The Board of Directors of the Company proposes a dividend of EUR 0.24. A year earlier, a dividend was paid EUR 0.23 per share. According to the proposal, the company is now raising the dividend for 12 years in a row.

In connection with the December income warning, Scanfil estimates that the turnover of 2024 will be EUR 770-780 million and the adjusted operating profit of EUR 53-54 million. Following the January-September interim report, he left a turnover of EUR 202-212 million for the rest of the year and an adjusted operating profit of EUR 13.9-14.9 million.

In analyzes published in February, Nordea and Inderes anticipate a turnover of EUR 205-207 million in the middle of the forks in October-December and a rectified operating profit of EUR 14.2-14.5 million. The forecast for analysts for dividends was EUR 0.25.

Growth

Now Scanfil estimates that the turnover of 2025 is EUR 780-920 million and the adjusted operating profit of EUR 53-66 million. Throughout the 2024 figures, the figures were EUR 779.9 million and EUR 53.1 million.

Managing director Christophe Sut says the company’s fourth quarter was the best of the year.

“The fourth quarter ended the year during which Scanfil showed that he was able to defend the operating margin and maintain a stable 6.8 % adjusted operating margin in challenging market conditions. As the whole year figures are corrected by exchange rate changes, adjustment costs and trade sales, the year’s operating margin achieved our 7.0 % long -term goal, which shows a very good operational activity for the whole year, ”Sut says in the review.

Sut reminds us of the company’s good dividend history. The dividend increase is 12 consecutive.

“Our goal is to pay our shareholders a growing dividend and keep our balance sheet strong in order to implement all strategically important growth investments,” Sut says.

Customer demand is stabilized

“On the customer side, we continued to focus on overcoming new contracts, and our sales were again very active in the last quarter. In the fourth quarter, the annual value of new winning projects was a record EUR 61.0 million and EUR 187.5 million in 2024, ”Sut says.

Sut estimates that, in the first quarter of 2025, the company will run projects won by 2024. It creates the foundation for the end of the year.

“We believe that customer demand is stabilizing and recovering. This happened to the Medtech & Life Science segment. We believe that demand will grow gradually in 2025.