Ericsson reports second quarter results 2022

Ericsson said organic sales grew by 5 percent driven primarily by Networks in North America and Europe in second quarter results 2022. Reported sales were SEK 62.5 (54.9) b.
Ericsson CEO Borje Ekholm on new brandReported gross income increased to SEK 26.3 (23.9) b. driven by higher sales. Gross margin was 42.1 percent (43.4 percent) impacted by lower IPR revenues of SEK 0.9 b YoY and supply chain cost, partly offset by timing of software sales in a large contract and underlying improvements.

Reported EBIT amounted to SEK 7.3 (5.8) b. as a result of higher sales and higher gross income. EBIT margin was 11.7 percent (10.6 percent).

Reported EBITA amounted to SEK 7.5 (6.1) b. with an EBITA margin of 12.0 percent (11.1 percent). EBITA margin rolling four quarters was 14 percent.

Networks reported EBIT margin was 19.2 percent (21.7 percent) impacted by lower IPR revenues, increased component and logistics costs, and proactive investments in supply chain resilience, partly offset by timing of software sales in a large contract.

Reported net income was SEK 4.7 (3.9) b.

Free cash flow before M&A was SEK 4.4 (4.1) b. Net cash on June 30, 2022, was SEK 70.3 b. compared with SEK 43.7 b. on June 30, 2021.

Borje Ekholm, President and CEO of Ericsson, said: “Strong business momentum continued during the second quarter. Rollout of 5G networks and market share gains resulted in a 5 percent organic sales growth in the quarter. We have adjusted our group structure to strengthen execution of our strategy to be a leading mobile infrastructure provider and to establish a focused enterprise business.”