Thursday, April 29, 2021

Nokia's financial performance improves in Q1 2021

Nokia reported Q1 2021 sales of EUR 5.076 billion, up 3% over the same period last year, and up by 9% at constant currency. Gross margin rose to 37.9% from 35.3% a year earlier. There was an operating profit of EUR 431 million, compared with a loss of EUR 76 million a year ago.

Pekka Lundmark, president and CEO of Nokia, comments: "We have delivered a robust start to the year with strong net sales, operating margin and cash flow. Today’s results demonstrate that we are on track to deliver on our three-phased plan to achieve sustainable, profitable growth and technology leadership as announced at our recent Capital Markets Day.

"I was particularly pleased by strong sales growth across our Network Infrastructure business group driven by increasing demand for next generation connectivity; good progress in Mobile Networks in securing full portfolio competitiveness; continued double-digit sales growth with our Enterprise customers; double-digit sales growth in North America; and good net sales development for Nokia Technologies.

"At this point, we are maintaining our Outlook for the full year, as we want to see how 2021 continues to develop. The solid first quarter provides a good foundation for achieving the higher end of the 7 to 10% comparable operating margin range. We expect our typical quarterly earnings seasonality to be less pronounced in 2021, and we continue to monitor overall market developments including visibility for semiconductor availability. I am proud of how we have continued to successfully deliver to our customers during the global semiconductor shortage."