This release is a summary of Incap’s half-year report for January–March 2024. The complete report is attached to this release as a pdf file and available on the company’s website at www.incapcorp.com. 
 
April–June 2024 highlights 

• Revenue for the second quarter of 2024 amounted to EUR 57.6 million (4–6/2023: EUR 56.4 million) of which EUR 9.0 million was attributable to US business acquired in July 2023. Year-on-year increase was 2.1%. Excluding the impact of the company’s largest customer, revenue grew 30.2%.  

• Revenue grew 12.2% quarter on quarter.  

• Adjusted operating profit (EBIT) was EUR 7.0 million (EUR 8.3 million) or 12.1% of revenue (14.7%). Year-on-year decrease was 15.7%.    

• Operating profit (EBIT) was EUR 6.8 million (EUR 7.5 million) or 11.7% of revenue (13.3%). Year-on-year decrease was 9.9%.  

• Net profit for the period was EUR 5.1 million (EUR 5.7 million).  

• Earnings per share were EUR 0.17 (EUR 0.19).   

 
 January–June 2024 highlights 

• Revenue amounted to EUR 109.0 million (EUR 129.1 million) of which EUR 18.5 million was attributable to US business acquired in July 2023. Year-on-year decrease was   
  15.6%.   

• Excluding the impact of the company’s largest customer, revenue grew 34.2%.  

• Adjusted operating profit (EBIT) was EUR 13.2 million (EUR 19.8 million) or 12.1% of revenue (15.3%). Year-on-year decrease was 33.4%.  

• Operating profit (EBIT) was EUR 12.7 million (EUR 18.8 million) or 11.7% of revenue (14.6%). Year-on-year decrease was 32.2%.  

• Net profit for the period was EUR 10.0 million (EUR 14.1 million).  

• Earnings per share were EUR 0.34 (EUR 0.48).   

 
Unless otherwise stated, the comparison figures refer to the corresponding period in 2023. This business review is unaudited. 

Key figures 

*Adjusted operating profit (EBIT) is an alternative performance measure. Adjusted EBIT excludes non-recurring items and purchase price allocation amortisation. Adjusted EBIT provides comparable information between different financial years on operating profit. 

Outlook for 2024 

Incap updated its oulook on 18 July 2024 due to better visibility towards the year end and good development in the first half of the year. Incap estimates the revenue in 2024 to be higher than in 2023 and the operating profit (EBIT) in 2024 to be at the same level as in 2023.  

Previously Incap estimated that the company’s revenue and operating profit (EBIT) in 2024 would be lower than in 2023.   

Otto Pukk, President and CEO of Incap Corporation 

I am happy to see that the quarter on quarter growth continued as we had expected. With better visibility towards the year end and good development in the first half of the year, we raised the outlook for 2024 and estimate the revenue in 2024 to be higher than in 2023 and the operating profit (EBIT) in 2024 to be at the same level as in 2023.   

Our revenue in the strong second quarter grew 12.2% quarter on quarter and was EUR 57.6 million. Excluding sales to our largest customer, our revenue grew 30.2 % year on year. We expect the revenue to continue to increase quarter by quarter during the year. With the revenue growth, we expect also our profitability to improve.   

The revenue growth in the second quarter was coming foremost from Incap India compared to previous quarter. The revenue was also positively impacted by the acquisition completed on 3.7.2023 in the US. I would like to thank our excellent Incap team for delivering these results. They have been focusing on new customer acquisition, increasing sales to existing ones, and cross-selling opportunities from our acquisition.   

A year ago, we expanded our operations to the US market with the acquisition of Pennatronics Inc. We are very pleased with our acquisition and the integration of Incap US’ operations has continued as planned. Incap US operations have developed well, and the team has had success in new customer acquisition. The acquisition agreement included a potential additional earn-out based on Pennatronics results. The maximum amount of the earn-out, EUR 2.8 million, was paid in full to the sellers in June this year. After successfully entering the US market with the acquisition, we are now looking at potential acquisitions in Europe and the Asia-Pacific region.   

To support our growth and keep up our competence and service level, we are constantly evaluating the latest technologies and making investments at our factories. ln the beginning of the year, we replaced a SMT production line with advanced new machinery at our factory in Slovakia. In June, we upgraded the UK factory's SMT production line with a fully automated high-precision soldering screen printer, the first ever installed in the UK. The SMT line investment increases capacity and improves the environmental impact. Incap UK also completed in spring 2024 a roof installation project, which was designed to improve energy efficiency and enable a solar panel installation. An extension of the solar panel project is also in the pipeline for our other factories. Incap has ongoing IT projects and is planning on investing further on IT-systems.  

In April, we published our first combined Annual and Sustainability Report and are further developing our sustainability reporting in accordance with the CSRD regulation. We prepare for the new reporting requirements by launching Scope 3 emissions calculations and finalizing the Double Materiality Assessment (DMA). We see ESG reporting not just as an obligatory step, but as an opportunity to improve measuring and managing our activities aiming at sustainable business and growth.    

During the remainder of the year, we will keep investing in our factories, focus on new customer acquisition and increasing sales to existing customers. We will also continue pursuing shareholder value creating M&A transactions, supported with our solid financials. 

Financial reporting in 2024  

In 2024, Incap will publish the following financial reports: 

• Business review for January–September 25 October 2024 

Webcast  

Incap will hold a webcast on Friday, 26 July 2024 at 11:00 a.m. Finnish time. The result will be presented by Otto Pukk, CEO, and Antti Pynnönen, CFO, Incap Corporation.  Additionally, David Spehar, Managing Director of Incap Electronics US, will give a video update on Incap's US operations. 
 
The live webcast can be followed at https://incap.videosync.fi/q2-2024. During the webcast, the public can ask questions in the chat room at the address mentioned above. The recording of the broadcast will be available on the company's website at https://incapcorp.com/reports-and-presentations/ later that day. 

The event is targeted for analysts, portfolio managers and the media. Welcome! 

In Helsinki, 26 July 2024 

INCAP CORPORATION 
Board of Directors 

Additional information: 
Otto Pukk, President and CEO, tel. +372 508 0798 
 
Distribution 
Nasdaq Helsinki Ltd. 
Principal media 
www.incapcorp.com 
 
Incap in brief 
Incap Corporation is a trusted partner and full service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK, USA, and Hong Kong and employs approximately 1,700 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.