In 2007, Nammo Group increased sales by 38%, of which 8% was organic growth and 30% represented by acquisitions. Sales totaled MNOK 2,745 compared with MNOK 1,991 in 2006. The operating profit increased from MNOK 270 to MNOK 390 and the EBITDA-margin increased from 16,7% to 19,0%.
Pre-tax profit for 2007 amounted to MNOK 361 compared with MNOK 270 in 2006.
As a result of the acquisitions, there was a relative decline in sales to the domestic market, from 46% to 29%. The North American market increased from 22% to 37%, and the remaining European markets remained stable at 29%. Markets in other countries saw an increase from 3% to 5%.
This development indicates a three-part market balance between Scandinavia, Europe and North America.
Furthermore, the acquisition of Talley Defense Systems forms an important part of our efforts in the American market, and will have an impact on Nammo’s development and representation in the USA in the years to come. In line with this, Nammo also acquired the launcher production from Norris Industries at the end of the year, in order to secure full control of the value chain for the shoulder-fired weapon system M72.
In February 2007, Nammo acquired 60% of DN PressTec GmbH in Germany, a supplier of semi-finished brass cups for small caliber ammunition.
As a result of the acquisitions, the number of man-years increased, in addition to an increase caused by organic growth. The number of man-years at the end of 2006 was 1277, which has now increased to 1683 in 2007.
Nammo continues to sharpen its focus on high-tech niche products.
In 2008, Nammo will celebrate its 10th anniversary, looking into the future with a strong focus on building an even stronger company based on the benefits of the merger in 1998 of ammunition businesses in Norway, Sweden and Finland.
For further information:
Morten Brandtzæg, Senior Vice President Finance & CFO
Tel: +47 61 15 21 03
Tel. : +47 61 15 22 42