“I think 2018 is a year that says a lot about Nammo, and who we are. We demonstrated that we are at the forefront of technological developments, pushing boundaries in ammunition and rocket motor design. We saw that the market is responding well to what we are delivering, allowing us to break new records in revenues and order stock. But it also showed that we are a company that is working hard to prepare ourselves for the future,” said Morten Brandtzæg, President and CEO of the Nammo Group.
The Group saw a revenue increase of 10.4% from 2017, as well as an order stock increase of 25%.
“What is particularly encouraging about these results is that they are not dependent on a single area or product. In fact, we have been able to bring in substantial new contracts for several different products, from both the US and Europe,” said Mr. Brandtzæg.
Major wins from 2018 included an agreement with General Dynamics to supply 30 mm armor penetrators for use by both the US Army and Navy. This multi-year agreement will see the delivery significant numbers of the high-performance tungsten rods to the US customer.
Morten Brandtzæg, President and CEO of the Nammo Group
“We are where we are today thanks to decades of technology investment, and that is also how we will build the future of Nammo.
“Ever since the first US acquisition of multipurpose-ammunition nearly 50 years ago we have been providing them with some of the most effective ammunition in their inventory, and this agreement ensures that we will continue to do so for years to come,” said Mr. Brandtzæg.
The main concern going forward is overall profitability, which at NOK 362 million was relatively unchanged from 2017. Mr. Brandtzæg sees this as a crucial challenge if the company is to maintain its market position in the long term.
“We are where we are today thanks to decades of technology investment, and that is also how we will build the future of Nammo. Continuing that level of investment, however, requires profits, so we are working hard to make sure we improve our ability to deliver just that,” said Mr. Brandtzæg.