This release is a summary of
January-
- Invoiced sales decreased by 4.2% and totalled
EUR 21.5 million (22.4) -
Net sales decreased by 4.9% to
EUR 20.6 million (21.6) -
Adjusted EBITDA was
EUR 2.8 million (4.3) -
EBITA was
EUR 1.8 million (2.0) -
Adjusted EBITA was
EUR 1.8 million (3.3), representing 8.8% of sales (15.3) -
Operating profit was
EUR 1.8 million (2.0) -
Items affecting comparability totalled
EUR 0.0 million (1.3) -
Net cash flows from operating activities were
EUR 1.9 million (3.2) - Net debt / Adjusted EBITDA was 1.8x (1.5)
-
Earnings per share, basic was
EUR 0.06 (0.08) Orthex's Lohja factory was granted an ISCC+ certificateOrthex published its Sustainability Report for the year 2021 as a part of the Annual Report
Long-Term Financial Targets
As long-term financial targets the company has adopted to an average annual organic Net sales growth to exceed 5 per cent at the Group level and to exceed 10 per cent outside the Nordics (growth in local currencies), adjusted EBITA margin (adjusted for items affecting comparability) to exceed 18 per cent over time and net debt to adjusted EBITDA ratio to stay below 2.5x. Leverage may temporarily exceed the target range (for example, in conjunction with acquisitions).
The company aims to distribute a stable and over time increasing dividend with a pay-out of at least 50 per cent of net profit, in total, on a biannual basis.
Key figures
EUR million | 1-3/2022 | 1-3/2021 | Change | 1-12/2021 |
Invoiced sales | 21.5 | 22.4 | -4.2% | 90.6 |
Net sales | 20.6 | 21.6 | -4.9% | 88.7 |
Gross margin | 4.9 | 6.8 | -27.5% | 23.2 |
Gross margin, % | 23.8% | 31.3% | 26.2% | |
EBITDA | 2.8 | 2.9 | -6.2% | 13.2 |
EBITDA margin, % | 13.4% | 13.6% | 14.9% | |
Adjusted EBITDA | 2.8 | 4.3 | -35.1% | 14.8 |
Adjusted EBITDA margin, % | 13.4% | 19.7% | 16.7% | |
EBITA | 1.8 | 2.0 | -9.3% | 9.4 |
EBITA margin, % | 8.8% | 9.2% | 10.6% | |
Adjusted EBITA | 1.8 | 3.3 | -45.3% | 11.0 |
Adjusted EBITA margin, % | 8.8% | 15.3% | 12.4% | |
Operating profit | 1.8 | 2.0 | -9.5% | 9.3 |
Operating profit margin, % | 8.7% | 9.1% | 10.4% | |
Net cash flows from operating activities | 1.9 | 3.2 | -41.3% | 9.0 |
Net debt / Adjusted EBITDA | 1.8x | 1.5x | 1.7x | |
Adjusted return on capital employed (ROCE), % | 5.3% | 10.4% | 33.0% | |
Equity ratio, % | 36.7% | 31.1% | 35.8% | |
Earnings per share, basic (EUR) | 0.06 | 0.08 | -16.7% | 0.35 |
FTEs | 294 | 314 | -6.5% | 314 |
The first quarter of 2022 was characterised by continued rising cost and balancing between campaign sales, price increases and sales volume, on a weakening market influenced by consumer and customer uncertainty. Raw material prices continued to rise, driven by among other factors, the Russian attack on
In the year 2021, the first quarter invoiced sales increased by 33.5%. In 2022, the conditions have been challenging, and we did not reach the sales of the previous year as invoiced sales declined by 4.2%. As already communicated, we have held back on selling campaigns at reduced prices to offset negative cost impact. This is visible in the export sales, where sales volumes declined, as focus has been on actively defending margins instead of renewing campaigns made in the first quarter of 2021. We have not lost any customers or product distribution. On the contrary, there are interesting new customer opportunities both in the export pipeline and on the Nordic market. In the times of uncertainty, customers have been more careful in their buying behaviour, and in many markets, there seems to be a reluctancy to further fill up the stores or warehouses with goods. Our view, which is based on information and feedback from customers, is that we have not lost market share, but the demand has weakened due to uncertainty in the market.
As COVID-19 came back with a new variant, our most important trade show, the Ambiente show scheduled for February, was cancelled. This has slowed down new customer acquisition opportunities in the export markets. Under current circumstances most customer meetings are centred around price increases and off-setting cost and thus the important topic of building business together and growing consumer sales does not get the undivided attention of our customers.
All the above-mentioned factors had an impact on
The company's Sustainability Report for the year 2021 was published as a part of the company's first Annual Report in
We are committed to implementing our growth strategy with a focus on international growth and sustainability. Raw material prices reached their highest levels so far at the end of
We are putting strong efforts on finding ways to grow sales profitably as demand development is likely to remain uncertain. We believe that the operating environment will eventually stabilise over time which will help to fully focus on actively growing profitable sales on the Nordic market and accelerate business development outside of the Nordics. I want to take the opportunity to thank all our personnel for the strong commitment to navigating wisely by taking active action in the efforts to defend the margins under the current very unusual conditions. We are all prepared and eager to continue improving everyday life with practical and sustainable products.
Press conference on financial results:
Q&A:
Questions to the management can be sent through the meeting chat.
Presentation material:
The presentation material will be shared in the online meeting, and it can be downloaded the same day on
Recording of the event:
After the event a recording will be available on the company's website at https://investors.orthexgroup.com/.
Further enquiries:
Tel. +358 (0)40 500 3826
alexander.rosenlew@orthexgroup.com
Saara Mäkelä, CFO,
Tel. +358 (0)40 083 8782
saara.makela@orthexgroup.com
https://news.cision.com/orthex-oyj/r/orthex-q1-2022--sales-slowed-down--profitability-affected-by-extraordinary-high-raw-material-prices,c3564142
https://mb.cision.com/Main/20238/3564142/1577516.pdf
https://mb.cision.com/Public/20238/3564142/8e7a72ad49e049ec.pdf
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