Continued positive trend
Quarter 2, 2023
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Orders received amounted to SEK 1,546m (1,390), equivalent to currency neutral growth of 5.6 percent compared with the same period last year.
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Net sales amounted to SEK 1,631m (1,172), equivalent to currency neutral growth of 31.7 percent compared with the same period last year.
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Adjusted EBITA was SEK 195.2m (124.5), giving an adjusted EBITA margin of 12.0 percent (10.6).
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Operating profit amounted to SEK 168.5m (107.2), corresponding to an operating margin of 10.3 percent (9.1).
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Net profit was SEK 100.4m (74.7).
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Earnings per share were SEK 2.86 (2.13).
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Cash flow from operating activities amounted to SEK 97.9m (147.6).
January – June 2023
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Orders received amounted to SEK 3,051m (2,734), equivalent to currency neutral growth of 5.8 percent compared with the same period last year.
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Net sales amounted to SEK 3,113m (2,266), equivalent to currency neutral growth of 29.7 percent compared with the same period last year.
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Adjusted EBITA was SEK 367.9m (240.2), giving an adjusted EBITA margin of 11.8 percent (10.6).
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Operating profit amounted to SEK 295.6m (205.4), corresponding to an operating margin of 9.5 percent (9.1). Operating profit included a restructuring cost of SEK 20m.
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Net profit was SEK 178.2m (145.2).
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Earnings per share were SEK 5.08 (4.14).
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Cash flow from operating activities amounted to SEK 226.6m (139.7).
CEO’s comments
“Nederman continues to advance its positions. During the second quarter, a new record was noted in absolute terms for sales, orders received and profitability. We see a high level of activity in our four divisions, with the roll-out of new products, establishment in new segments and a growing ability to capitalise on being part of a global Group that is the technology leader.
Once again, I can summarise a successful quarter for the environmental technology company Nederman. During the second quarter, all four divisions played a part in the Group’s new sales record of SEK 1,631m (1,172), equivalent to currency neutral growth of 31.7 percent. The pleasing aspect is that orders received also developed well and were only slightly lower than the record sales during the quarter. This provides a solid foundation for sales in the coming quarters. Our efforts to increase operational efficiency continued, and together with higher sales volumes, helped us to further strengthen profitability during the quarter. The adjusted EBITA margin amounted to 12.0 percent (10.6), meaning that, step by step, we are moving towards our target of a margin of 14.0 percent. In absolute terms, adjusted EBITA increased by 57 percent. A high pace of product development, increased sales in growing segments, a higher share of service, investments in production and logistics, as well as measures to increase profitability in underperforming markets, such as China, are some factors that will support further improvements to our margin. At the same time, we are aware of a growing concern about and risk of a weaker economy going forward. As the global market leader in industrial air filtration and with strong finances, we have the possibility to advance our positions regardless of the macro-economic situation.
Investments in clean air are becoming increasingly important for industries the world over, and Nederman has and will have the best offering to facilitate this. We become even more aware of the expectations placed on us as a technology leader when we participate at various trade shows around the world, as we did at the world’s largest textile fair, ITMA, which was held in Milan in June. For example, there is major interest in our digital initiatives, with a long-term goal of offering a fully digitally controlled air flow and being able to future-proof customers’ production. We have a high pace of product development in the Group and see that the products that we continuously launch meet key needs in the market. In the second quarter, we launched products including new extraction systems for hazardous welding fumes, new highly efficient fans for textile production and simplified versions of Nederman SAVE, which meets the need for energy-efficient air filtration in various industries. We move solutions and technology around within our divisions to strengthen positions in a particular market, such as in Nederman Process Technology, where we are advancing in metal recycling in the US with our solutions for the same segment in Europe, and in Nederman Monitoring & Control Technology, where we successfully launched Neo Monitors’ solutions for laser-based measurement of gases in new markets. By being constantly relevant, we can increase our share of sales in growing sectors where investments are being made in new technology, such as renewable energy, food, metal recycling and battery manufacturing. Our orders received are strong in these segments.
STABLE AND POSITIVE IN OUR DIVISIONS
All of our divisions supported the Group’s positive financial performance during the quarter, but to varying degrees. A strong base business, a well-filled order backlog and previous acquisitions gave Nederman Extraction & Filtration Technology a new boost in sales and income. Nederman Process Technology continued to deliver on its large order backlog and added further orders, mainly in recycling, and was able to report record-strong profitability. Nederman Duct & Filter Technology improved its sales and profitability, and secured new orders beyond its traditional industries. Nederman Monitoring & Control Technology continued its trend of higher orders received, sales and profitability. Joakim Ryrstedt, formerly Group CIO at Nederman, has been appointed as new head of the division, while Ketil Gorm Paulsen has become responsible for strategy and IP matters within the Nederman Group.
CONTINUED OPTIMISM IN AN UNCERTAIN BUSINESS ENVIRONMENT
Even if the performance of our divisions remains positive, the risk remains that challenges in our supply chain, high inflation and a weaker economic outlook will impact customers’ investment decisions and possibility of conducting business. In addition, the geopolitical uncertainty remains. However, Nederman stands strong in this macro environment. In terms of our large order backlog and our ability to grow our share of sales in industries with good structural growth, we take a positive view for the next quarter, but are somewhat more uncertain regarding development in the medium term.”
Sven Kristensson, VD
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 July 14, 2023.
About Nederman
Nederman is an environmental technology company and 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 to protect people, planet and production.
The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2 500 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
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