Summary
Flex Ltd. reported a solid financial performance for the second quarter and first half of fiscal year 2022, ending October 1, 2021. Net sales increased by 4% to $6.2 billion for the quarter and by 13% to $12.6 billion for the six-month period compared to the prior year. This growth was driven by strong performance in both the Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS) segments, with notable strength in Lifestyle, Consumer Devices, Industrial, and Automotive end markets. Profitability saw significant improvement, with gross profit increasing and gross margin expanding to 7.5% for the quarter and 7.4% for the six-month period, up from 6.6% and 6.3% respectively. Operating income also showed a substantial increase. A key contributor to the improved "Interest and other, net" line item was a $149 million gain related to a Brazilian tax credit. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders.
Financial Highlights
51 data points| Revenue | $6.62B |
| Cost of Revenue | $6.13B |
| Gross Profit | $491.00M |
| SG&A Expenses | $225.00M |
| Operating Income | $251.00M |
| Interest Expense | $38.00M |
| Net Income | $227.00M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.48 |
| Shares Outstanding (Basic) | 469.00M |
| Shares Outstanding (Diluted) | 474.00M |
Key Highlights
- 1Net sales increased by 4% to $6.2 billion for the three months ended October 1, 2021, and by 13% to $12.6 billion for the six months ended October 1, 2021, compared to the prior year periods.
- 2Gross profit margin improved to 7.5% for the quarter and 7.4% for the six-month period, up from 6.6% and 6.3% respectively in the prior year.
- 3Strong segment performance, with Flex Agility Solutions (FAS) net sales up 4% (quarterly) and 10% (year-to-date), and Flex Reliability Solutions (FRS) net sales up 5% (quarterly) and 16% (year-to-date).
- 4Recognized a $149 million gain from a Brazilian tax credit, significantly boosting the 'Interest and other, net' line item.
- 5Total shareholders' equity increased to $3,514 million as of October 1, 2021, from $3,436 million as of March 31, 2021.
- 6The company repurchased approximately $328 million of its ordinary shares during the three-month period and $490 million during the six-month period ended October 1, 2021.
- 7Continued focus on supply chain management amidst global component shortages and logistical constraints, with increased inventory levels and working capital pressure.