Swedish injection moulder Nolato (Toreskov; www.nolato.com) achieved another record year in 2020, defying the challenges stemming from the Covid-19 pandemic. Sales soared 18% to SEK 9.34 bn (EUR 923m), and operating profit – or EBITA – jumped 19% to SEK 1.07 bn, led by its Medical Solutions and Integrated Solutions segments. Organic sales, which exclude the impact from currency exchange rates and acquisitions, advanced 12%. Net profit gained 15% at SEK 806m.

Production volumes at the Medical Solutions segment saw strong growth led by the in-vitro diagnostics (IVD) business, which benefited from the pandemic-related demand for critical products. The company’s surgery activities were negatively affected in the fourth quarter because of postponed operations, particularly in its US business.

The acquisition of US-based medical technology specialist GW Plastics (Bethel, Vermont; www.gwplastics.com) brought additional growth opportunities and an expanded customer base (see Plasteurope.com of 29.10.2020). Segment sales rose to SEK 3.09 bn, or up 7 %, excluding currency effects and acquisitions. Operating profit increased 26% to SEK 402m, with margin at 13.0% due to high capacity utilisation and a favourable sales mix. Nolato said the strong growth means it will be expanding production capacity in Hungary, Sweden and Switzerland.

Sales of SEK 4.07 bn at the Integrated Solutions segment advanced 23%, adjusted for currency and acquisitions, mainly driven by high demand for e-cigarette components, such as vaporiser heating products (VHP). Sales in the electromagnetic compatibility business (EMC) were solid, but volumes for mobile phones remained weak. EBITA was 28% higher at SEK 548m. The EBITA margin of 13.5% was attributed to high volumes and a general subsidy to the business area from Chinese authorities.

The integration of US silicone specialist Ja-Bar Silicone – acquired in 2019 – and the additional capacity for EMC business is proceeding as planned within the segment.

Sales at the company’s Industrial Solutions segment surged 2% to SEK 2.2 bn following the commissioning of a new plant for hygiene products in the US state of Wisconsin and the integration of parts of GW Plastics (see Plasteurope.com of 18.02.2019). On an organic level, however, sales declined 1% due to production halts in the automotive industry particularly in the second quarter. As a result, EBITA slumped 7% to SEK 168m. The segment makes products primarily in polymer materials.

Nolato’s management around CEO Christer Wahlquist affirmed its overall financial targets, which include an EBITA margin of more than 10%. The company exceeded this goal in 2020, given the 11.4% outcome. It also aims to surpass last year’s organic growth in each segment, while continuing to work towards its 2025 sustainability goals.