OEM International, a Sweden-headquartered technology trading firm, reported a record performance in the second quarter with net sales rising 17% year-on-year to SEK 1.56 billion. That result topped a market consensus of SEK 1.52 billion compiled from two analysts.
The company said the sales increase comprised two components: 8% organic growth and a further 9% attributable to recent acquisitions.
Profitability metrics improved alongside the top-line advance. EBITA for the quarter rose 37% compared with the prior year, reaching SEK 241 million, which the company described as an all-time high. The EBITA margin widened to 15.4% from 13.2% a year earlier, a change the company linked to a higher gross margin.
Incoming orders expanded at an even faster clip than sales, increasing 23% to SEK 1.68 billion. The regions cited as the largest contributors to the order increase were the rest of Europe, Finland, The Baltic States, and China.
On a per-share basis, OEM International reported earnings of SEK 1.26 for the quarter.
The company did not include specific guidance or an outlook for the coming quarters or the full year in its announcement.
Contextual analysis
The quarter combined solid organic momentum with an acquisition-related boost to produce a record sales level and an improved margin profile. Incoming orders outpaced net sales growth, indicating demand strength in the reported period, and the geographic contributors to the order book were notably the rest of Europe, Finland, The Baltic States, and China.
However, management chose not to provide forward-looking guidance in the release, leaving the next quarters open to greater uncertainty in the view of market participants.