Welcome to the Q1 information from Nolato. This is Christer Wahlquist. Per-Ola Holmström is here by my side, and we're going to present our Q1 report, of course. The Q1 ended up with the sales of SEK 1.656 million, compared to a little bit more than SEK 2 billion last year. If we adjust that for currency and group structure, it was a decrease of sales by 23%. We had a strong performance by Medical Solutions, but Integrated Solutions had lower volumes as previously announced, that's due to stock reduction with one of the major customers. The profit dropped to SEK 175 million, which should be compared to SEK 244 million last Q1. That corresponds to a margin on EBITA of 10.6%. Of course, there was the volume impact, but also some weak margins within Industrial Solutions.
Cash flow after investment amounted to SEK 25 million in this quarter, and we have a continued very solid financial position. Now turning page two to page three. This is just to summarize the three different business segments or business areas that we have, the Medical, the Industrial, and the Integrated Solution. Now turning to page four, where we start with Medical Solutions, the sales in the quarter ended up at SEK 611 million, the EBITA at SEK 78 million, corresponding to a margin of 12.8%. Now turning to page five. This quarter corresponds to a 15% increase of sales, but if we adjust that for currency, it was a strong 9%. We saw increasing volumes in both the medical device part of the business area, but also in the Pharma Packaging. We see project activities within the auto-injectors, insulin products, and incontinence products on a strong level.
The production capacity increase is completed according to plan.
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An EBITA of SEK 57 million gives a margin of 11.1% in the quarter. Turning to page eight. This corresponds to a 45% decrease in sales. If we adjust for the currency effect, we got 51%. As announced, inventory adjustments in the VHP segment had a negative impact, of course, but we see indications that the inventory situation has normalized, and we assess the second quarter to be better than previously announced. We expect sales to exceed the fourth quarter 2018. We have received orders for the new VHP models, and we retain a strong position with the customer. During the quarter, we're still weak mobile phone volumes but good growth for the EMC part of the business area. Turning to page nine, showing the two segments that we are working within Integrated Solutions.
We have the consumer electronics to the left, which contains the VHP, the mobile phones, and other connected devices. We have the EMC thermal working with the shielding solution and thermal solutions for telecom and other industries. On page 10, we will find Industrial Solutions Q1. We have the sales during the quarter of SEK 533 million and an EBITA of SEK 44 million, giving a margin of 8.3%. That corresponds to a 6% decrease in sales, and that is the same if we adjust for the currency and the group structure. We had, during the quarter, an inventory adjustment for a customer in the hygiene sector. We also had restructuring of production equipment at the customer site within the automotive segment, giving effect on the volumes. The margin, 8.3%, is impacted by unsatisfactory efficiency during the production facility. We have measures implemented and we see gradually giving effect.
Of course, the margin was also affected by the lower volumes and the reduction of stock levels. Turning to page 12, we show the two segments of the business area. The automotive and the general industry are the two segments of the Industrial Solutions business area.
Okay. We're turning to page 13. Some group financial highlights. Net sales increased to SEK 1,656,000,000, a drop from just a little bit more than SEK 2 billion last previous Q1 2018. Adjusted for currency and group structure, that was a decrease by 23%, mainly affected by Integrated Solutions. The margin has been affected by lower volumes. It dropped to 10.6% compared to 12.9%. We get an EBITA result of SEK 175 million compared to SEK 264 million, including SEK 20 million of non-recurring. The net investment in this quarter was SEK 105 million paid. That was approximately the same level as last year. It is in line with what we have communicated is assessed to be the SEK 400 million level during the full year 2019. Earnings per share, SEK 4.98 compared to SEK 7.83 last year. We have a net financial asset of SEK 373 million end of this quarter.
That is excluding pension liabilities of SEK 185 million, and it's also excluding the new way of showing lease liabilities of SEK 353 million end of this quarter. Of course, we will pay, if decided by the annual general meeting, which will be later this afternoon. If so, it will be a payout in May of SEK 368 million in dividends in May.
Okay. Turning to page 14 and some current situation by business area. Let me start with the Medical Solutions. We see a maintained growth strategy, a lot of focus on innovation, and we see high activity in market and good project activity. On the Integrated Solutions side, we have established a position in the new product areas. We see a continued strong position within EMC -Thermal, and of course, in the base, we have a flexible production structure. Industrial Solutions, we have advanced our market positions. Efficiency measures have been taken, and we see gradually having an effect. We also see some indication of slowdown in the economy, but stable volumes. Now we are open for questions.
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Okay. Hi. I have a few questions, they are related to Integrated, first of all. Can you talk about the development and discuss the development in the quarter for that segment, and elaborate on why you expect higher sales now than you previously expected, the reason behind that?
I can start to give some background to the assessment we have made for the second quarter. We do see signs of the inventory situation leveling out, because of course, recent discussions with the customer plans, forecasts going forward, summarizing that to the data we see. That is giving us the opportunity to increase our assessment of the second quarter. Hence, we again compare with the fourth quarter 2018 and say that we assess that level to be exceeded during the second quarter of this year.
Okay, great. Can I also ask, the other product categories within Integrated, how did they perform in the quarter? Was it stable sequentially or any major changes there?
We did see a somewhat weaker mobile phone situation, but we had continued growth for the EMC business. That is the situation for the other parts which I think you were asking about.
Y eah. It was roughly unchanged sequentially from Q4?
A bit weaker for the rest part, let's say the old telecom part than during the last quarters, and that is then in the mobile phone part.
Okay, got it. Can you also comment and talk about the outlook for the second half, maybe. You talked about that in the previous reports that you have received orders for the new product releases within the tobacco heating side. Can you say something about what could happen there, the impact, and if you have any impact already in Q2?
We have commented on that we have got the other projects within this category, and that we already said in the Q4 report. The situation is the same right now. We don't see any differences in that. Exact timing of those products will be based on releases by the customer and some technical things going on. We don't have the exact time schedule for that. Positive from our side is that we are part of those. Actually, from our side, we don't really see , well, it's okay either of the new ones or the old ones from our side.
Okay. The value added from your side is more or less unchanged in the new categories compared with the ones that you are manufacturing today?
Well, the most important from our side is that the customer is selling those kinds of products, and that is positive for us. Of course, different variants have different kinds of value added for us and slightly changing, but no major differences expected.
Okay. One final question, if I may. The Industrial side was approximately as expected, but can you elaborate on the initiatives that you have taken in the automotive side and what happened within the hygiene area, the implications, are they affecting Q2 or Q1 from that, and when we can expect the segment to be back on 9%-10% margins? Thanks.
Okay. Yeah. The activity we are taking in the efficiency side is, of course, we are in the process of replacing some people in management. We are also working very actively in improving efficiency and ramp production, working with the yields and the scrap, and a lot of those kinds of effects. Of course, this takes some time, but we gradually see better improvements coming. The second question was related to the hygiene sector, we believe that the effect we saw in Q1, it will continue for, we think, Q2 to the stock normalization, so to say, at the customer side.
Okay, thanks.
Thank you.
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Okay. Thank you very much for listening to the presentation of Nolato's Q1. Thank you.