April-
- Net sales improved by 16 per cent to
EUR 245.0 million (212.1). Organic growth1) was 10 per cent. - Adjusted EBITDA improved by 4 per cent to
EUR 27.8 million (26.8), corresponding to an adjusted EBITDA margin of 11.4 percent (12.6) . - EBIT was
EUR 15.9 million (17.7), which includedEUR -3.6 million (-1.0) of comparability adjustments. - Cash flow from operating activities was
EUR 32.0 million (12.6)
January-
- Net sales improved by 20 per cent to
EUR 481.2 million (402.5). Organic growth1) was 15 per cent. - Adjusted EBITDA improved by 2 per cent to
EUR 57.0 million (55.9), corresponding to an adjusted EBITDA margin of 11.9 percent (13.9) . - EBIT was
EUR 30.0 million (36.4), which includedEUR -11.1 million (-3.9) of comparability adjustments. - Cash flow from operating activities was
EUR -6.9 million (5.6) - The acquisition of Thermotech was completed on
1 March 2022
Financial guidance for 2022
Key figures and financial performance
EUR million | 4-6/2022 | 4-6/2021 | Change, % | 1-6/2022 | 1-6/2021 | Change, % | 2021 |
Net sales | 245.0 | 212.1 | 16% | 481.2 | 402.5 | 20% | 843.6 |
Adjusted EBITDA | 27.8 | 26.8 | 4% | 57.0 | 55.9 | 2% | 103.9 |
Adjusted EBITDA margin | 11.4% | 12.6% | 11.9% | 13.9% | 12.3% | ||
Adjusted EBITA | 20.6 | 19.5 | 6% | 43.0 | 41.8 | 3% | 76.6 |
Adjusted EBITA margin | 8.4% | 9.2% | 8.9% | 10.4% | 9.1% | ||
EBIT | 15.9 | 17.7 | -10% | 30.0 | 36.4 | -17% | 3.5 |
EBIT margin | 6.5% | 8.4% | 6.2% | 9.0% | 0.4% | ||
Profit for the period | 8.4 | 12.3 | -32% | 14.9 | 24.2 | -39% | -18.8 |
Adjusted profit for the period | 12.0 | 13.3 | -10% | 25.9 | 28.2 | -8% | 51.4 |
Earnings per share, basic, | 0.20 | 0.43 | -53% | 0.36 | 0.84 | -57% | -0.65 |
Adjusted earnings per share, basic, | 0.29 | 0.46 | -37% | 0.63 | 0.98 | -36% | 1.77 |
Cash flow from operating activities | 32.0 | 12.6 | 154% | -6.9 | 5.6 | -224% | 35.4 |
Adjusted operating cash flow, last 12 months3) | 38.8 | 94.1 | -59% | 53.1 | |||
Cash conversion4) | 37.0% | 89.5% | 51.1% | ||||
Operating capital employed5) | 307.3 | 271.5 | 13% | 271.8 | |||
Return on operating capital employed6) | -0.9% | 22.3% | 1.3% | ||||
Net debt | 279.3 | 102.7 | 172% | 239.5 | |||
Net debt / Adjusted EBITDA7) | 2.7 | 1.0 | 172% | 2.3 |
1)Adjusted for currency effects and impacts from acquisitions and divestments.
2)The number of shares in the comparison period are those of
3) Adjusted EBITDA on a rolling 12-month basis less by the change in net working capital and capex on a rolling 12-month basis.
4)Adjusted operating cash flow divided by Adjusted EBITDA, both on a rolling 12-month basis.
5)Net working capital, other intangible assets, property, plant and equipment, and right-of-use-assets.
6)EBIT based on a rolling 12-month calculation divided by operating capital employed. Return on operating capital employed without non-recurring items was 24% (28%).
7)Adjusted EBITDA based on a rolling 12-month basis.
Unless otherwise stated, the comparison figures in parentheses refer to the corresponding period in 2021. The full year 2021 non-adjusted key figures are affected by a one-time, non-cash IFRS 2 merger impact of
CEO’s review
During the second quarter of 2022, net sales improved by 16 per cent to
The European construction market started to show signs of softening in both the new-build and renovation markets. A notable exception was
Demand for electrical emitters and low-temperature convectors increased and the transition to solar power, heat pumps and underfloor heating continued. These trends were further supported by government incentives encouraging de-carbonisation through improved energy efficiency of buildings and are good examples that show how sustainability affects our industry. Rising energy prices accelerate the green transition, which supports our strategic direction.
Compared to 2019,
Continued strength in the ICS division
The ICS division’s net sales increased by 28 per cent. Demand continued to be on a good level in core markets and the Thermotech acquisition supported growth. The adjusted EBITDA margin was 12.4 per cent, at the same level as last year. ICS had an improved sales mix driven by increased system sales in
The Radiators division’s net sales increased by 6 per cent. Sales price increases were implemented to mitigate significant cost inflation. These more than offset lower sales volumes. The adjusted EBITDA margin was 12.1 per cent, slightly below last year’s level. The margin was impacted by reduced operational efficiencies caused by lower production volumes.
On 4 July,
Solid progress in strategy execution
We made tangible progress in developing our solutions business. The newly acquired Thermotech was fully onboarded during the second quarter. Both
In smart products, we launched a new version of our ULOW emitter, which offers fast reaction time and low energy consumption. We also launched Unisenza, our own electronic control system for underfloor heating and cooling, which provides ease of installation for installers and an intuitive digital platform for comfort control to end-users.
We continued to improve operational efficiency. The completed plant closure in
We are actively assessing various M&A opportunities to support the realisation of our strategic objectives. Our process for exiting
Financial guidance for 2022 remains unchanged
The softening construction market and increased uncertainty in the macroeconomic outlook is offset by potential upside from successfully mitigating raw material price inflation. On balance, this gives us confidence to keep the guidance unchanged.
We are passionate about sustainable indoor climate comfort solutions. We want to thank our people, partners and customers for continuing to develop our business in a positive and exciting direction.
News conference and webcast for analysts, investors and media
Purmo Group’s half-year report January–June 2022 has been published today and is available in English and Finnish on Purmo Group’s website at https://investors.purmogroup.com/ir-material/
CEO
The webcast can also be attended via teleconference. To participate in the teleconference, participants are asked to dial in at least 5 minutes before the start of the event using one of the following telephone numbers and teleconference pin:
Finland Toll: +358 (0)9 7479 0572
Sweden Toll: +46 (0)8 5664 2754
United Kingdom Toll: +44 (0)330 165 3641
United States Toll: +1 646-828-8082
Teleconference PIN: 996752#
A recording of the event will be available on https://investors.purmogroup.com/ir-material/ shortly after the event has ended.
Further information:
Josefina Tallqvist, Investor Relations (interim), tel. +358 40 745 5276
Distribution:
Principal media
investors.purmogroup.com
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