01—Abstract
Summary
Summary of the 20-F filed March 13, 2023. Cited figures are marked; the original filing is the authoritative source.
Celestica Inc.'s 2022 Form 20-F filing reveals a year of significant growth and strategic advancements.
The company experienced a substantial 29% increase in revenue, reaching $7.25 billiona, driven by robust performance across both its Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS) segments. The ATS segment saw strong demand and new program ramps, particularly in Industrial and Aerospace & Defense, while the CCS segment benefited from growth in Communications and Enterprise markets, notably the strong performance of its Hardware Platform Solutions (HPS) business. This growth was achieved despite ongoing global supply chain constraints, which Celestica effectively managed through advanced planning and collaboration.
Celestica's strategic focus on diversifying its portfolio towards higher-margin services and expanding its HPS offerings is evident in its results. The company also highlights its commitment to operational efficiency, talent development, and sustainability initiatives, underscoring a proactive approach to navigating the dynamic industry landscape.
Key risks identified include customer concentration, global economic uncertainty, and supply chain volatility, which the company actively manages. The company's financial health appears solid, with healthy cash flow from operations supporting investments and shareholder returns.
02—Key points
Key Highlights
- Revenue surged by 29% to $7.25 billion in 2022, driven by strong performance in both ATS and CCS segments.
- ATS segment revenue grew 29% to $3.0 billion, supported by Industrial and Aerospace & Defense businesses.
- CCS segment revenue increased 29% to $4.3 billion, with significant growth in the HPS business (up 59% to $1.83 billion).
- Segment margins improved, with ATS segment margin reaching 4.7% and CCS segment margin improving to 5.1%.
- Celestica continued to manage global supply chain constraints effectively, mitigating material impacts on revenue.
- The company's top 10 customers accounted for 66% of total revenue, with two customers individually representing 11% of total revenue in 2022.
- Share repurchases for cancellation totaled $34.6 million in 2022, repurchasing 3.4 million shares.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Celestica Inc kept $0.02.
- Revenue$7.25B100.0%
- Cost of revenue−$6.60B91.0%
- Gross profit$649.7M9.0%
- Operating costs−$360.4M5.0%
- Operating income$289.3M4.0%
- Interest, other & tax−$109.2M1.5%
- Net income$180.1M2.5%
Where FY2022 revenue went
$7.25B- Cost of revenue: $6.60B, 91% of revenue
- Net income: $180.1M, 2.5% of revenue
- R&D: $46.3M, 0.6% of revenue
- SG&A: $267.3M, 3.7% of revenue
- Other operating costs: $46.8M, 0.6% of revenue
- Interest, other & tax: $109.2M, 1.5% of revenue
Kept 2.5% as net incomeNet income $180.1M · 2.5%R&D $46.3M · 0.6%Other operating costs $46.8M · 0.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 13, 2023Financial Statements
| Revenue | $7.25B |
| Cost of Revenue | $6.60B |
| Gross Profit | $649.70M |
| R&D Expenses | $46.30M |
| SG&A Expenses | $267.30M |
| Operating Income | $289.30M |
| Net Income | $180.10M |
| EPS (Basic) | $1.46 |
| EPS (Diluted) | $1.46 |
| Shares Outstanding (Basic) | 123.50M |
| Shares Outstanding (Diluted) | 123.60M |
05—Questions
Frequently Asked Questions
What was Celestica's revenue performance in 2022?
Celestica reported a significant increase in revenue, with a 29% rise to $7.25 billion in 2022, compared to $5.63 billion in 2021. This growth was broad-based across both the Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS) segments.
How did Celestica manage supply chain challenges?
Celestica effectively managed global supply chain constraints through advanced planning processes, supply chain management, and close collaboration with customers and suppliers. While these constraints led to extended lead times for certain components and higher inventory levels, the company largely mitigated their impact on revenue during most of 2022.
What is the significance of the Hardware Platform Solutions (HPS) business?
The Hardware Platform Solutions (HPS) business, part of the CCS segment, is a key growth driver for Celestica. In 2022, HPS revenue grew by 59% to $1.83 billion, accounting for 25% of total revenue, up from 20% in 2021. This business typically has a higher margin profile and is expected to continue its growth trajectory.
What are the main risks facing Celestica?
Key risks identified in the filing include significant customer concentration (top 10 customers represent 66% of revenue), uncertainty in the global economic and political environment, challenges in managing customer demand volatility, and ongoing supply chain constraints. The company also faces intense competition and pricing pressures in the EMS industry.
06—Continue