Interim report January-September 2022
Another strong quarter
Quarter 3, 2022
- Incoming orders amounted to SEK 1,294m (1,178), equivalent to currency neutral growth of 2.4 percent compared with the same period last year.
- Net sales amounted to SEK 1,398m (1,046), equivalent to currency neutral growth of 22.7 percent compared with the same period last year.
- Adjusted EBITA was SEK 165.3m (136.4), giving an adjusted EBITA-margin of 11.8 percent (13.0).
- Net profit was SEK 92.6m (81.0).
- Earnings per share were SEK 2.64 (2.31).
- Cash flow from operating activities amounted to SEK 118.2m (106.7).
January – September, 2022
- Incoming orders amounted to SEK 4,029m (3,271), equivalent to currency neutral growth of 15.6 percent compared with the same period last year.
- Net sales amounted to SEK 3,664m (2,890), equivalent to currency neutral growth of 17.8 percent compared with the same period last year.
- Adjusted EBITA was SEK 405.5m (350.7), giving an adjusted EBITA-margin of 11.1 percent (12.1).
- Net profit was SEK 237.8m (194.6*).
- Earnings per share were SEK 6.78 (5.55*).
- Cash flow from operating activities amounted to SEK 257.9m (360.8).
* The comparative figure shown exclude other operating income of SEK 26.3m, net after tax, which was recognised in the second quarter of 2021 and pertained to a Norwegian defined-benefit pension plan that was of a non-recurring nature. Including other operating income, net profit amounted to SEK 220.9m and earnings per share to SEK 6.29 for the period January to September 2021.
CEO’s comments
” Despite increased uncertainty in the market, Nederman performed strongly during the quarter. Sales reached a new record level, with all divisions contributing high growth figures. Orders received increased currency neutrally. Nederman’s position in the US in industrial air filtration was strengthened significantly through the acquisition of US company RoboVent.
The high level of orders received in the past year contributed to sales reaching a new record level in the third quarter of SEK 1,398m (1,046). Even when adjusted for currency and acquisitions, the trend was strong, with an increase of 15 percent. The challenges related component supply and high material costs continued to dampen profitability, primarily in the Nederman Monitoring & Control Technology Division. The Group’s adjusted EBITA margin amounted to 11.8 percent (13.0), giving an adjusted EBITA of SEK 165.3m (136.4) the highest ever for a single quarter. We continued to generate healthy cash flow, which creates a stable financial position. An order backlog that is significantly higher than at the same point last year indicates a continued positive sales trend in the coming quarters. At the same time, we are seeing heightened caution in our customers’ willingness to invest due to growing uncertainty in relation to a number of different external factors, which can be seen in a certain dampening in order intake.
Nederman is a world-leading environmental technology company in advanced air filtration. We offer digital solutions that support lower energy costs in production, providing enormous potential in a macro environment with high energy prices over an extended period. The need for energy-efficient solutions is extensive in all industries and in the third quarter, several orders were secured that directly address this need, including to the process industry. We also secured new orders for battery manufacturing and within the energy sector, two segments in which the rate of investment remains high.
During the quarter, we completed an important and significant acquisition that considerably strengthens our position in the US. With RoboVent, Nederman becomes the foremost supplier of industrial air filtration and air conditioning in the US welding market, entirely in line with our strategy of being the market leader in the markets in which we operate. We were already number one in Europe. RoboVent is being integrated into the Extraction & Filtration Technology Division and we foresee healthy growth opportunities on the customer and product side going forward.
HIGH SALES GROWTH IN ALL DIVISIONS
The trend in our divisions remained positive in the third quarter. Nederman Extraction & Filtration Technology demonstrated a solid improvement in sales, while orders received remained at a high level. The project to integrate the acquired business RoboVent was initiated and has already generated results. Nederman Process Technology increased sales significantly, driven by a record-level order backlog, at the same time as profitability reached one of the highest levels ever in the division’s history. Nederman Duct & Filter Technology reported continued strong order and sales growth, again driven by the main market of the US. Nederman Monitoring & Control Technology’s sales increased, but continued problems with component supplies and project deliveries, a result of such factors as the continued covid-19- related lockdowns in China, dampened profitability. At the same time, the order backlog is strong.
CAUTIOUS OPTIMISM BUT HIGHER UNCERTAINTY
Although the development in our divisions remains positive, we see that the challenges in our supply chain and the high prices of energy, materials and logistics are impacting our customers’ investment decisions and the possibility of conducting business, as well as our own production and delivery capacity. In addition, the geopolitical uncertainty has increased. Nonetheless, we remain cautiously optimistic about future quarters in view of our strong order backlog, among other factors.”
Sven Kristensson, CEO
For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: [email protected]
Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: [email protected]
This information is information that Nederman Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on October 24, 2022.
About Nederman
Nederman is a global leader in industrial air filtration dedicated to capturing, measuring, controlling and cleaning air to make industrial production more efficient, safe and sustainable. Based on industry leading products, solutions and services in combination with an innovative IoT platform we deliver knowledge and facts needed to optimise performance and guarantee emissions compliance.
The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2200 employees and presence in more than 50 countries. Learn more at nedermangroup.com
Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden.
Corporate registration number: 556576-4205
