Invisio: ABGSC’s Investor Days feedback - ABG
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CEO L. Højgård Hansen gave a general business update
The pandemic has largely impacted Invisio 2020-2021
We put more hopes in to 2022
Market leader in its nicheToday, we hosted a presentation with Invisio’s CEO Lars Højgård Hansen at our ABGSC Investor Days seminar. Invisio develops and sells hearing protection and communication systems primarily to military, but also to law enforcement. Some of Invisio’s biggest customers are the US Army and the NATO countries. The product portfolio is constantly developing with the latest contribution of the Intercom system (that enables communication by easily plugging in existing system in vehicles) and Racal Acoustics (that makes hearing protection and communication systems in noisy environments) that was acquired one year ago.
The pandemic slowed growth in 2020 and 2021
The pandemic has had major effects on Invisio both in 2020 and 2021. Difficulties in visiting customers have hindered the important sales meetings and delayed military modernization programs have affected the already long sales cycles. In comparison with the 20% sales growth target, the organic sales growth was instead 3.5% in 2020 and -7% in Q1-Q3’21 compared with the same period last year. However, Racal Acoustics have performed better than expected contributing to sales by ~30% in Q1-Q3’21. The company has not suffered from component shortage, but the delivery times takes longer. Moreover, due to eased travel restrictions, Mr. Højgård Hansen mentions that they have seen some improvements in the remaining business and indicates that the order intake can improve during 2022. Mr. Højgård Hansen is not worried about that the withdrawal of the US military from Afghanistan will affect sales negatively. Instead, he highlights that their products are not dependent on war, it is still needed during training.
We expect to see growth in 2022
We forecast 2021 sales of SEK 631m, corresponding to -9% organic growth y-o-y. In 2022e, how
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