A CHALLENGING YEAR
“We are very happy to see that Nammo has achieved success on almost every key performance indicator. We feel this is a very good result given the challenges with the pandemic. I am proud of the endurance and courage that my colleagues have shown in the face of adversity,” says Nammo CEO Morten Brandtzæg.
Mr. Brandtzæg attributed Nammo’s success in 2020 to several factors:
- A robust COVID response – Nammo implemented measures early and decisively – following the advice of national and local health authorities.
- Reorganizing the military business in the U.S.
- Continued investment in the Nammo Lean and Six Sigma program.
- Nammo secured investment in long-term security of supply agreements.
The latter two have been multi-year efforts and contributed to the strong result for the group. Both the Earnings Before Interest and Tax (EBIT) and the Return on Sales (ROS) values are at an all-time high, NOK 564 million and 9.1% respectively.
“I believe we are seeing the effects of an efficient response to the pandemic, as well as our robust organization and operations. As a defense sector company, it is imperative for us to continue operations even in turbulent times,” states Brandtzæg.
Focus on sustainability has been strengthened in 2020. For Nammo, sustainability means that we shall act in an ethically, socially and environmentally responsible manner at all times, while maintaining solid financial results supported by sound governance.
“We are committed to supporting the UN Sustainable Development Goals (SDGs) and during 2020 decided to increase standards of performance for eight of these SDGs. Nammo shall secure good working conditions and equality for our employees, and we see that a responsible and ethical supply chain can also be a more robust one,” Brandtzæg says.
CONTINUING U.S. EXPANSION
2020 included the acquisition of Chemring Ordnance (now Nammo Perry) in Perry, Florida. This is the seventeenth acquisition since 2005. Nammo Perry will become a vital part of Nammo’s US-based operations going forward. The acquisition also represents a major milestone for Nammo through increased presence and job creation. This allows the company to take an even greater role in supporting the US defense industrial base.
THE WAY FORWARD
Brandtzæg is optimistic about the future of the company. For decades, Nammo has invested in research and development. As a niche company with highly specialized products, investing in competence and technology provides opportunities for expansion.
“We have major opportunities ahead of us, and if they come to fruition it will facilitate another round of significant growth. Our work in the field of range extension is especially promising. We need to continue to invest in products, processes and competence. This is fundamental in building a Nammo that is able to meet the future needs of our customers,” Brandtzæg says.