Revenue and operating profit of electronics manufacturer Incap increased significantly
Electronics manufacturer Incap Corporation, which has one of its main production units in Estonia, managed to increase its operating profit significantly. The group’s revenue for 2018 amounted to EUR 59 million, which was 21.5% more than last year. Net profit for the financial period amounted to EUR 5.8 million.
Incap is an international electronics manufacturer, offering high-quality electronics solution produced by the latest technology. Company’s production takes place in Estonia and India, with headquarter in Finland and sourcing team in Hong Kong. China. The group’s revenue for 2018 was 21.5% more than last year.
"Our business performed well throughout 2018. The fourth quarter of the year was strong both in terms of revenue and profitability exceeding our expectations. Our revenue increased mainly thanks to growing demand from the established customers, and we were also able to increase the volumes with new customers,” stated Otto Pukk, the CEO of Incap Corporation and Managing Director of Incap Electronics Estonia, which operates a manufacturing unit in Estonian biggest island, Saaremaa.
“I am especially delighted of the good profitability. The operating profit amounted to EUR 8.6 million, corresponding to 14.6 percent of revenues. In Electronics Manufacturing Services business this is generally considered to be a good level,” said Pukk, who is today the only Estonian leading Finnish stock exchange company.
Estonian President Kersti Kaljulaid, who visited Incap’s production in Saaremaa couple weeks ago, stated that Incap is a good example how it is possible to develop a world-class industry outside the capital of a country.
“With the ambition of being on top of technology, at every moment, while making production process as flexible as possible, Incap is a role model for many other production companies. It is especially good to see, that while doing so, the company is also focusing a lot on building up a team and taking care of employees,” was President appreciating Incap’s managers.
When developing Incap’s operations the company continues to focus on functions, which bring the highest added value to their customers. “We maintained a lean organizational structure and continued strict management of costs, and consequently, this together with revenue increase, our profitability clearly improved,” Pukk added.
Along with the increased demand from the customers, Incap focuses on improving and increasing manufacturing capacity. In India, the factory expansion with a new production line was necessary to meet the growing demand. Furthermore, the development actions implemented in our factory in Estonia resulted in increased efficiency. In order to secure the customer deliveries Incap will continue its investments in developing the production capabilities and capacity further.
Pukk admits that the electronics manufacturing services business has suffered from problems in component availability during the whole year. “Thus, we increased our inventories measuredly and continued to cooperate closely with our suppliers to secure on-time deliveries to our customers,” he said.
Pukk also added, that Incap is continuing the work to expand its customer base. Alongside the established industrial companies we are also co-operating with several promising technology start-ups.”
Incap faces the future with confidence as the use of electronics in various application areas is expanding worldwide. “Prospects for contract manufacturing services currently look bright but as an Electronic Manufacturing Service provider we need to be ready to adjust quickly to the possible market changes. However, I trust that our effective business model keeps us competitive also in the future. Our financial position is solid and we are in a good position to grow our business also through mergers and acquisitions should the right opportunity arise," he added.
Incap Corporation is an international contract manufacturer. Incap's customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China, and the company currently employs approximately 770 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.