Oj Electronics A/S

Operating review

Development in activities and financial positionProfit/loss for the yearThe Group has generated a revenue of DKK 471 million. The growth was 11.1% against last year’s revenue.  Growth was achieved through a strong development at some of the larger customers of the Group and through existing market segments. Throughout the year the Group was favoured by a strong demand on the back of the Covid-19 decline. In some segments the demand was higher than possible supply. The Group still sees growth as a result of investments and co-creation with our customers in development of leading products and solutions for the market. The current investment rate is in balance with the overall growth of the company. On a continuous basis, the Group invests in re-designing components and solutions in order to optimize availability of the company products. These activities have been intensified through the year. Processes and procedures are optimized through designated initiatives in order to stay competitive. Some build up demand for activities and investments has resulted in increases in the fixed costs for the Group.  The Operating profit is DKK 61 million equivalent to an Operating margin of 13%. This is a decrease compared to last year where Operating margin was 17.8%. A major investment in maintaining and securing the supply chain is the main driver for the decline in Operating margin. The result for the year is a profit of DKK 45 million, which is a decrease, compared to last year at DKK 19 million.New productsWe focus on energy-efficient products and an increased demand for products supporting cross system optimizations and connectivity. A large part of the products contain functionality for use in connection with or over the Internet. High comfort remains a focus point with market adaptation of the product specifications.The Group has invested in extensive product developments. Products are based on specific customers and market expectations and have resulted in several platforms that will form the framework for more products in the coming years.Re-design for availability has renewed technology in selected products and solutions.InvestmentsThe Group invests in improved operating processes and manufacturing and has a strong supplier base under continuous improvement. The investments strengthen the profit and reduces risk in the coming years.Capital resourcesThe Group's primary capital resources comprise liquid assets and unutilized credit facilities. Current capital resources are estimated to be sufficient to realize the budgeted activity for 2023/24.