Fiven ASA declared second quarter report 2022.
- Total revenues reported at EUR 50.8m representing an increase of 68.1% versus Q2 2021 and sequential increase of 1.1% over Q1 2022
- The adjusted EBITDA was EUR 15.2m, versus EUR 5.8m in Q2 2021 and EUR 11.9m in Q1 2022.
- Fiven results are impacted by strong demand, higher market shares and inflationary market prices
- The price increase is compensating for power and raw material inflation as well as rising transportation costs and labor costs
- The higher market share is following shortage of SiC due to supply chain turbulences and competitors reducing their output
- The EBITDA of the quarter is also impacted by favorable appreciation of the BRL (EUR 1.5m) and inventory revaluation (EUR 0.8m)
- Q2 saw the highest petroleum coke prices for years. Power prices have remained at historically high levels
- Cash Flow from Operations reached EUR 6.2m compared with EUR 1.7m in Last Year’s Q2
- The cash balance ended at EUR 25.3m, up from EUR 23.6m year end 2021
- The June 30 leverage ratio stood at 1.31
Despite a challenging geopolitical environment along with ongoing disruptions to global supply chains, Fiven expects to fully leverage any momentum in its end markets and deliver a solid commercial performance. The management sees great opportunities in the semiconductor, power electronics, and armor market for defense applications.
Additional inflationary pressure on raw materials and power requires firm price and cost discipline. Fiven has a history of being successful in doing both. The goal remains to provide sustainable solutions for today’s and tomorrow’s industries.
The 1H financial performance has been strong. With the Ukrainian war ongoing, the growing interest rates, rapid inflation and labor costs increases as well as the unrest in the raw material and energy markets, sudden turns in the market cannot be excluded, especially in quarter 4. Still, Fiven is well positioned to stay resilient to the external forces through strong focus on costs and cash as well on continued efficiency improvement in the operation and flexible internal sourcing. Fiven is reasonably confident that also 2022 will produce a solid financial performance.
Roy Frigo an avid economist and an expert on global politics and economic pressures that can affect market conditions. He has a Masters Degree in Economics from Westminster University with previous roles including Investment Banking.
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