Ericsson, the leading telecom equipment maker for mobile operators, announced financial result for fourth quarter and full-year 2021.
Fourth quarter highlights
Group sales grew by 2 percent. Sales in Mainland China declined by SEK -1.8 b. (-3 percentage points), meaning that excluding Mainland China organic sales growth was 5 percent. Reported sales were SEK 71.3 (69.6) billion.
Gross margin improved in all segments to 43.5 percent (40.6 percent) excluding restructuring charges. Reported gross margin was 43.2 percent (40.6 percent).
EBIT excluding restructuring charges improved to SEK 12.3 b. (17.3 percent EBIT margin) from SEK 11.0 b. (15.8 percent EBIT margin). Reported EBIT was SEK 11.9 (11.0) b.
Networks organic sales increased by 3 percent, despite significant market share loss in Mainland China. EBIT margin excluding restructuring charges was 23.6 percent (21.5 percent).
Digital Services organic sales were flat and EBIT excluding restructuring charges was SEK 0.4 (0.5) b.
Reported net income was SEK 10.1 (7.2) b. EPS diluted was SEK 3.02 (2.26).
Full-year highlights
Group organic sales grew by 4 percent, with an increase in Networks sales of 7 percent. Reported sales were stable at SEK 232.3 b. The loss of market share in Mainland China impacted sales by SEK -7.7 b. and the growth rate by -3 percentage points, meaning that excluding Mainland China, organic sales growth was 8 percent.
Gross margin excl. restructuring charges was 43.5 percent (40.6 percent), driven primarily by strengthened operational leverage in Networks.
EBIT margin excluding restructuring charges improved to 13.9 percent (12.5 percent), reaching the 2022 group target already in 2021.
Reported net income was SEK 23.0 (17.6) b. EPS diluted was SEK 6.81 (5.26).
