Cuts Drive Nepa to Operating Profit

Swedish brand tracking and consumer science firm Nepa has reported its 'strongest operating profit ever', SEK 5.9m for the third quarter of calendar 2021, compared with a loss of SEK -13.9m a year earlier, on the back of reductions in personnel costs and other expenses.

During the quarter, net sales increased by 3.2% (FX adjusted) to SEK 57.0m, and gross profit was up 1.0% on the same basis to SEK 41.9m. Operating profit (EBIT) was bolstered by temporary government aid totalling SEK 3.4m.

According to CEO P-O Westerlund (pictured), the main reason for the earnings improvement was the 'substantial' decrease in personnel costs compared to a year ago, as well as a 'significant' reduction in other operating expenses. Westerlund says the market was 'good' in the third quarter, with projects postponed from the previous quarter rolling forward, and the need of clients to understand changed consumer attitudes and buying patterns due to the pandemic.

'I am very proud that we managed to deliver on our goal to turn profitable in 2020 after a combined loss of SEK -22.9m in 2019', Westerlund stated. 'I would like to take this opportunity to thank our employees for all the hard work and outstanding efforts despite difficult circumstances. The transition we have undertaken so far in 2020 has been necessary, but it is not enough. There is still a great deal of work to be done to ensure that we can fully realise the great potential that I am convinced Nepa has and which requires a long-term perspective', he added.
Web site: www.nepa.com .