Nokia CEO Pekka Lundmark (pictured) hailed improvements across the business during Q1, as the company implemented a restructure designed to revive its fortunes and eventually propel it to lead the market in 5G technologies.

The executive noted strong sales in its Network Infrastructure division, progress in improving the competitiveness of its Mobile Networks product portfolio, growth in 5G revenue, and increases in enterprise contracts and North American business.

Nokia also booked operating margins Lundmark highlighted as a “big improvement” on Q1 2020.

Lundmark added Nokia was “on track” with its three-phase plan to achieve its strategy outlined at recent investor events, which are designed to turnaround the business after it fell behind rivals in 5G.

In Q1, Nokia reported a net profit of €263 million compared with a loss of €115 million in the same period of 2020. Net sales were €5.1 billion, up 3 per cent. Results were also impacted by foreign exchange headwinds, it added.

The company noted it was maintaining its financial outlook for 2021 and expected quarterly seasonality to be “less pronounced this year”.

However, Nokia stated it was continuing to “monitor overall market developments including visibility for semiconductor availability,” in light of well-publicised issues with chip procurement across the electronics industry.