Epiroc interim report Q1 2023
- Orders received increased 10% to MSEK 15 148 (13 818). Organic order growth, excluding Russia, was 1%.
- Several large orders won, including Epiroc’s largest automation order ever of MSEK 500 from Roy Hill.
- Revenues increased 25% to MSEK 13 868 (11 088), organic increase of 8%.
- Operating profit increased 20% to MSEK 3 161 (2 631), including items affecting
comparability of MSEK -26 (43).* - Operating margin was 22.8% (23.7), and the adjusted operating margin was 23.0% (23.3).
- Basic earnings per share were SEK 1.90 (1.66).
- Operating cash flow was MSEK 338 (867).
- Two acquisitions completed in the quarter that strengthen Epiroc’s position within aftermarket and safety.**
CEO comments
Strong start to 2023
The customer activity remained high in the quarter, and we achieved record-high order intake of MSEK 15 148. In total, the orders increased by 10%, with a strong contribution from acquisitions.
We won several large equipment orders, indicating a continued high investment willingness among customers. For example, we won our largest-ever automation order, MSEK 500, to convert Roy Hill’s mixed fleet of almost a hundred mine trucks to driverless operation in Australia. This will make Roy Hill the world’s largest autonomous mine. The project attracts significant attention from customers, and we are happy to showcase our market-leading solutions within automation – for loading, haulage and drilling – both on surface and underground.
The service business also continued to perform well, supported by mid-life upgrades of customers’ equipment. Our broad and attractive offering in combination with the work by our 7 300 committed service technicians contributed to the strong development.
In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.
Profitable growth
Our revenues increased 25% to MSEK 13 868, with strong contribution from both organic and acquired growth. The operating profit, EBIT, increased by 20% to MSEK 3 161. Our adjusted operating margin was 23.0% (23.3), supported by organic growth and the currency, while acquisitions diluted.
The operating cash flow amounted to MSEK 338 (867), impacted by a period of strong growth and higher equipment volumes. Supply-chain challenges remains a constraint. We expect that inventory ratios will improve throughout the year.
Around the world and to the Moon
Other highlights in the quarter included that our autonomous surface drills reached a milestone; they have now successfully drilled the equivalent length of more than one lap around the world.
Also, we are going to the Moon! We have signed a long-term collaboration agreement with the global lunar resource development company, ispace, to provide technology for its future Moon missions.
At the CONEXPO 2023 fair in Las Vegas, we showcased a full range of our latest innovations to make the construction industry more sustainable, efficient, and environmentally-friendly.
We widened our battery-electric offering further and launched the Scooptram ST18 SG (Smart and Green) loader. By not using diesel, the loader eliminates 365 tonnes of CO2e emissions annually, which corresponds to approximately the emissions from 100 diesel cars.
Acquisitions expanding our offering
Acquisitions are an important contribution to our growth. Year-to-date, we have closed three acquisitions with combined revenues of MSEK 2 400. With the acquisition of CR, Epiroc expands its offering of essential consumables and related digital solutions. Mernok Elektronik strengthens our position as a world-leading provider of automation and safety solutions for mining operations, and AARD Mining Equipment adds an offering of low-profile underground machines for mines with low mining heights.
Dare to think new
We are committed to provide the best solutions to accelerate the transformation toward a more productive and sustainable industry. Innovation is key to this. To foster innovation and creativity, we encourage our employees to take on responsibility, be open-minded, inclusive, and last but not least, dare to think new. One example of us leading the way is our new global parental leave policy, which guarantees all Epiroc employees a minimum of 12 weeks of paid parental leave. With this gender-less policy, we dare to think new.
Helena Hedblom
President and CEO
Please find the full report in the attached pdf. Additional financial documents are found on Epiroc’s Financial publications page.
For more information please contact:
Karin Larsson, Vice President Investor Relations
+46 10 755 0106
ir@epiroc.com
Alexander Apell, IR Controller
+46 72 083 9519
ir@epiroc.com
Ola Kinnander, Media Relations Manager
+46 70 347 2455
media@epiroc.com
This information is information that Epiroc 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 persons above, at 11:30 CEST on April 28, 2023.
Epiroc is a global productivity partner for mining and infrastructure customers, and accelerates the transformation toward a sustainable society. With ground-breaking technology, Epiroc develops and provides innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. The company also offers world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification. Epiroc is based in Stockholm, Sweden, had revenues of SEK 50 billion in 2022, and has around 18 000 passionate employees supporting and collaborating with customers in around 150 countries. Learn more at www.epirocgroup.com.