Raufoss, April 22, 2022
Since the start of the pandemic in 2020, Nammo has seen solid growth in sales and profitability, in spite of factors like component and materials shortages and immense pressure on supply chains driving costs upward. In 2021, Nammo continued to build on its positive market and technological momentum and managed to grow market share. Nammo’s sales rose 16 percent to NOK 6.98 billion in 2021, while profit before tax increased 17 percent to NOK 644 million during the year. The positive result was built on robust US commercial ammunition sales and security of supply contracts to Nordic customers, which replenished stocks during the year.
“I am pleased with Nammo’s robust result in 2021, and our success on almost every measure. The solid performance is a clear testament to our ability to perform and deliver even in adverse circumstances. It also illustrates the strength of our products and brand, and our focus on profitable growth from a lean and effective organization. Indeed, the endurance and courage that Nammo colleagues have shown during this second year of the pandemic is nothing short of impressive” said President & Chief Executive Officer Morten Brandtzæg.
Key highlights in 2021:
- First major US production contract on new shoulder fired weapon M72 FFE (Fire from enclosure) valued at USD 498 million over five years.
- Selected for further development of the US Ramjet Artillery round after demonstrating world leading technology.
- Successfully completed sole source demonstration of US reloaded rocket motor for long-range artillery.
- Increased deliveries of ammunition under Security of Supply contracts to Norway and Finland.
- First delivery contract to Norway on new long-range artillery ammunition and qualification successfully completed in Finland.
- Achieved target of 27 percent female employees in 2021
- Maintained industry-leading levels of R&D.
“Nammo’s strong financial performance over the past two years, including an all-time high order backlog, has enabled us to continue building a robust and profitable company for the future. This is in line with our vision of Securing the Future and underscores our commitments under security of supply agreements: to supply in times of peace, unrest and conflict” said Brandtzæg.
Overall, Nammo has a solid business foundation for continued profitable growth. Its prospects are good, and the improvement measures undertaken during 2021 will support Nammo as it seeks to secure the future for its customers, shareholders and employees.
However, the war in Ukraine and persistent pandemic-related challenges will be felt during the year and perhaps beyond. Nammo will continue to concentrate its efforts on areas where it has direct impact and control to continue to build a robust business for the long-term, and work with its stakeholders to find solutions and overcome challenges.