Order intake and net sales
The Mikron Group reported order intake of CHF 408.0 million in 2022, representing an increase of 33.5% compared with the prior year (CHF 305.7 million).
Posting annual net sales of CHF 309.4 million, the Mikron Group exceeded the prior year result of CHF 289.5 million by 6.9%. Europe remains Mikron’s most important market, with 49% (including Switzerland) of total net sales in 2022 (2021: 50% including Switzerland). Accounting for a share of 30%, North America remains in second place (previous year: 33%). The strongest market segment by far remains the pharmaceutical and medtech sector at 55% (previous year: 56%). The automotive industry contributed 12% (prior year: 11%) to total net sales.
Order backlog and capacity utilization
At CHF 270.7 million, the Mikron Group’s order backlog at the end of 2022 was 53.2% higher than the prior-year figure (CHF 176.7 million). As some of these orders are long-term projects, a significant portion of the order backlog from the end of 2022 will not impact the Mikron Group’s sales until 2024. Capacity utilization was high in all three divisions throughout the year.
In the 2022 financial year, the Mikron Group succeeded in significantly improving its EBIT and profit. Compared with the previous year, Mikron increased its EBIT from CHF 17.6 million to CHF 26.4 million (+50.0%) and achieved an EBIT margin for 2022 of 8.5% (2021: 6.1%). The Group improved its annual profit from CHF 17.0 million to CHF 24.2 million (+42.4%). The profit per share for 2022 came to CHF 1.47 (prior year: CHF 1.04).
Financial result, income taxes and profit
The financial result improved compared to the previous year and amounted to CHF -0.8 million (2021: CHF -0.9 million), CHF -0.3 million of which was related to net exchange rate losses (prior year: CHF 0.6 million). The interest on fixed-term deposits on bonds and their valuation to optimize financial results were netted against other financial expenses such as fees for bank guarantees. Profit before taxes amounted to CHF 25.6 million (prior year: CHF 16.7 million), on which income taxes of CHF 1.4 million (prior year: CHF -0.3 million) were booked. The tax expense was reduced by CHF 3.1 million from tax-loss carry-forwards and tax credits.
The investment property in Nidau (Switzerland) generated net income of CHF 0.7 million (prior year: CHF -0.4 million) including an impairment of CHF 0.4 million based on an update to the third-party market value assessment performed at the end of 2022.
Balance sheet, financing and equity ratio
Overall, the Mikron Group’s balance sheet remains very strong. Mikron is free of net debt and reports a healthy equity ratio.
Cash and cash equivalents plus current financial assets of CHF 64.4 million significantly exceed interest-bearing liabilities of CHF 5.6 million. The net cash position remained at a high CHF 58.8 million or 19% of net sales (prior year: 16%). Net working capital increased to CHF 6.3 million from CHF -2.0 in the prior year.
Totaling CHF 133.7 million, non-current assets decreased by CHF -1.7 million. In line with strategy, investments of CHF 8.7 million (prior year: CHF 21.0 million) were made in production equipment and a building extension for the automation and machining business and a number of IT projects to improve efficiency and security. The total amount of expenditure for new product development and enhancements (capitalized and non-capitalized) was about 2.1% of net sales. Amortization and depreciation totaled CHF 8.6 million (prior year: CHF 9.1 million). The long-term financial liabilities of CHF 3.8 million mainly relate to finance leases for production equipment and the mortgage for one production facility.
Since June 2020, Mikron has been able to draw on a CHF 50.0 million credit agreement with a bank consortium which is available for bank guarantees to secure advance payments from customers and for fixed advances that are currently not being used. An additional CHF 20.0 million of the mortgage can be drawn under this credit agreement for two production sites in Switzerland. The credit agreement was extended during 2022 and will expire at the end of June 2025 and requires Mikron to achieve certain key financial figures (covenants). The Group met these by a comfortable margin. The renewal of the credit agreement has been secured with the existing partner banks.
In 2022, shareholders’ equity rose to CHF 186.0 million (end of 2021: CHF 165.1 million). This represents a strong equity ratio of 54% (prior year: 55%, with significantly lower balance sheet total).
Cash flow from operating activities stood at CHF 27.6 million (2021: CHF 50.7 million.) Prior year cash flow from operating activities benefited from a decrease of the net working capital of CHF -25.7 million, while the net working capital increased by CHF 3.0 million in 2022. A total of CHF 11.4 million (prior year: CHF 20.4 million) was used for investment in non-current assets.
The operating free cash flow after investing activities of CHF -10.9 million (excluding changes in financial assets) amounts to CHF 16.6 million (prior year: CHF 31.1 million).
Cash flow from financing activities amounted to CHF -6.1 million in the year under review (prior year: CHF -17.4 million).
Distribution to shareholders
At the General Meeting on 26 April 2023, the Board of Directors of the Mikron Group will propose a distribution to the shareholders of CHF 0.40 (prior year: CHF 0.24) per share.
At the end of 2022, the share price stood at CHF 8.80 (prior year: CHF 7.70 per share). The precise share performance is available at all times on the Mikron Group website. Based on the year-end share price, the Mikron Group is valued at CHF 147.1 million.
Corporate Financial Statements of Mikron Holding AG
Mikron Holding AG is the legal owner (directly or indirectly) of all subsidiaries of the Mikron Group, the owner of the Mikron trademark, and the treasury center for the Mikron Group. The CFO and a small Group finance team are employed by the separate Mikron company, and costs are charged back to Mikron Holding AG. Excluding the net finance result of CHF 4.6 million (prior year: CHF 28.7 million), the trademark fees charged to the companies nearly covered the costs incurred. In the 2022 financial year, no dividend income from subsidiaries was booked (2021: CHF 0.1 million). The financial statements of Mikron Holding AG show a very high equity ratio of 77%.