Nynomic's Q4 Performance Showcases Growth Amid Conservative FY24 Outlook

Nynomic has reported a 5% year-on-year increase in its Q4 sales, amounting to €34.6 million, largely due to the acquisition of development projects and a significant rise in orders from its Green Tech segment. The company's full-year sales for 2023 have seen a 1% increase to €118 million, aligning with its guidance yet slightly below market expectations. Despite these figures falling short of predictions, the semiconductor and green technology provider has demonstrated robust profitability, especially in the fourth quarter, with an EBIT margin of 20.5%.

Notably, the Q4 margin reflects a 6.6 percentage point increase from the previous year, supported by investments in future growth, including research and development and personnel. This investment has not hindered financial performance, as evidenced by a 0.2 percentage point year-on-year growth in FY23 EBIT margin to 13.1%. The company's management remains optimistic, projecting further EBIT margin increase in FY24 amidst conservative sales growth expectations. Growth is anticipated in multiple sectors, thanks to sustained demand from semiconductor clients and expansions in precision farming and medtech.

Nynomic also plans to continue its acquisition strategy, targeting one to two companies in the next six to twelve months to bolster its technology portfolio. This approach aligns with the company's medium-term objectives of reaching €200 million in sales with an EBIT margin between 16% and 19%. Analysts reaffirm a BUY rating for Nynomic, adjusting the target price to €52. The company's strategic focus and potential for further acquisitions underscore its growth ambition and commitment to enhancing its market position.