Ettiketto Åtvidaberg AB

Financial Summary of Ettiketto Åtvidaberg AB's Annual Report for 2022

1. Income Statement Analysis:

• Net Sales: Ettiketto Åtvidaberg AB reported net sales of 24,000 Tkr in 2022, down from 34,500 Tkr in 2021. The decline in revenue indicates a significant challenge faced during the year, possibly due to disrupted market conditions or operational constraints such as the material shortages mentioned.

• Operating Profit (EBIT): The operating profit for Ettiketto Åtvidaberg AB was 4,399 Tkr in 2022, a drop from the previous year's 4,911 Tkr. Despite reduced revenue, maintaining positive operating profit showcases effective cost management.

• Net Profit: The profit after financial items was 2,373 Tkr in 2022, slightly down from 2,763 Tkr in 2021. It reflects some financial stability and ability to generate profits even in a year with declining sales.

• Cost Structure: There was a significant decrease in overall external and personnel costs due to moving personnel to a sister company, suggesting a possible restructuring or efficiency enhancement during the year.

2. Balance Sheet Analysis:

• Total Assets: The total assets increased to 18,032 Tkr in 2022 from 13,667 Tkr in 2021. This increase was primarily driven by an uptick in receivables from group companies, indicating robust intercompany transactions or better credit terms extended to sister companies.

• Equity and Liabilities: The company's total equity stands at 9,403 Tkr, up from 7,030 Tkr in 2021. This indicates that the company is improving its equity base, crucial for sustaining and supporting future operations.

• Liquidity Position: The current liabilities grew as well but remained manageable, ensuring the company can meet its short-term obligations. The retained earnings and shareholder equity suggest retained capital strength.

3. Cash Flow Statement:

• The report doesn't directly include a cash flow statement, but the increase in assets and stable liabilities imply a positive cash inflow, primarily from operational activities and receivables' management from related entities.

4. Key Performance Indicators (KPIs):

• Solidity: The solidity (equity to assets ratio) improved to 72.4% in 2022 from 69.6% in 2021. This reflects a strong equity base and a lower financial risk.

• Return on Equity (ROE): ROE decreased to 21.0% from 36.4%. The decline parallels the drop in net profit but remains within a healthy range indicating good returns on shareholders' investment.

• Return on Total Capital: The return on total capital also declined to 27.8% from 34.4% but still shows effective utilization of total resources in generating profit.

5. Management's Standpoint:

• The management's report speaks of no significant events or risks beyond the usual business operations, suggesting stability in the business environment.

• They project continued investments to build a strong supplier position, emphasizing sustainable and future growth through technology upgrades and skilled personnel.

6. Dividend and Equity Management:

• The board has proposed that the entire profit be retained in the company, which will likely enhance the retained earnings and equity cushion for future growth and investment opportunities.

Summary & Conclusion:

The financial health of Ettiketto Åtvidaberg AB indicates that despite a challenging year marked by reduced revenue, the company has effectively managed to retain profitability and strengthen its equity base. Cost reductions and internal restructuring seem to have cushioned the revenue dip impact. The year-over-year growth in equity and total assets, combined with a strategic focus on technology and skilled labor, positions Ettiketto Åtvidaberg AB well for sustained future growth. Key risks include its reliance on intercompany transactions, which, if managed well, also act as a testament to the group's resilience and internal strength.