Glaston’s Financial Statements Bulletin 1 January – 31 December 2021: A strong fourth quarter with new orders up by 13%
GLASTON CORPORATION FINANCIAL STATEMENTS BULLETIN 14 FEBRUARY 2022 AT 13.00
This release is a summary of Glaston Corporation's financial statements bulletin for 2021. The complete report is attached to this release as a pdf-file. The stock exchange release is also available on the company's website at the address www.glaston.net.
OCTOBER–DECEMBER 2021 IN BRIEF
- Orders received totaled EUR 59.1 (52.1) million
- Net sales totaled EUR 52.6 (38.3) million
- Comparable EBITA was EUR 3.5 (2.1) million, i.e. 6.6 (5.4)% of net sales
- The operating result (EBIT) was EUR 1.2 (-0.7) million
- The comparable operating result (EBIT) was EUR 2.3 (0.9) million, i.e. 4.4 (2.4)% of net sales
- Items affecting comparability totaled EUR -1.2 (-1.6) million
- Comparable earnings per share were EUR 0.023 (0.001)
- Cash flow from operating activities was EUR 5.5 (3.5) million
JANUARY–DECEMBER 2021 IN BRIEF
- Orders received totaled EUR 216.2 (153.5) million
- Net sales totaled EUR 182.7 (170.1) million
- Comparable EBITA was EUR 11.1 (7.7) million, i.e. 6.1 (4.6)% of net sales
- The operating result (EBIT) was EUR 5.1 (-0.5) million
- The comparable operating result (EBIT) was EUR 6.6 (3.2) million, i.e. 3.6 (1.9)% of net sales
- Items affecting comparability totaled EUR -1.5 (-3.8) million
- Comparable earnings per share were EUR 0.060 (0.013)
- Cash flow from operating activities was EUR 19.3 (0.7) million
- The Board of Directors proposes a capital repayment of EUR 0.03 per share
GLASTON’S OUTLOOK FOR 2022
In 2021, Glaston’s markets saw a continued recovery and strong growth. We expect positive development to continue in 2022 with good progress for both machines and services business. At the start of 2022, our order backlog was 48% higher than the previous year providing a strong starting point for 2022 and supporting Glaston’s net sales and profitability development. In 2022, Glaston will focus on the execution of its strategy which will incur costs and capital expenditure ahead of the effect on revenue growth. As the COVID-19 pandemic continues and supply chain disturbances have become a longer-term challenge, a higher than normal uncertainty is related to the development of economic activity and customers’ investments.
Glaston Corporation estimates that its net sales and comparable EBITA will improve in 2022 from the levels reported for 2021. In 2021, Group net sales totaled EUR 182.7 million and comparable EBITA was EUR 11.1 million.
PRESIDENT & CEO ANDERS DAHLBLOM:
“For Glaston, 2021 ended on a positive note. The markets continued to grow strongly in the fourth quarter with high demand in all segments. Orders received increased by 13% to EUR 59.1 million compared to the corresponding period in the previous year. The comparison period in 2020 already had a pre-covid level of order intake after the pandemic impacted quarters. Thus, the 13% growth in orders shows the strength of the market and Glaston’s capabilities. For the full year, orders received saw excellent progress: 41% above the level of the previous year, totaling EUR 216.2 million, with all segments contributing to the outcome.
Fourth quarter net sales, as well as full year net sales, increased. Net sales in the fourth quarter grew by 37% and totaled EUR 52.6 (38.3) million. For the full year, EUR 182.7 (170.1) million was recorded, with all product areas exceeding the previous year’s levels. For Services, growth of 15% was recorded. Despite the additional challenges caused by supply chain disruptions with related price increases and the still ongoing pandemic, we can be satisfied with the improvement in profitability. Comparable EBITA for the fourth quarter was EUR 3.5 million or 6.6% of net sales, up 68% compared to the fourth quarter of 2020.
Our good performance in order intake can be attributed to the great work by Glaston’s employees, our attractive product portfolio and to the clarification of our strategy, which was a substantial initiative during 2021. Currently, the implementation of several strategic initiatives is well underway and we are already noting good progress. Our plan is also to take sustainability initiatives to the next level during the strategy period and our strategy includes new non-financial strategic targets. One of the sustainability focus areas – safety – was high on our agenda throughout the year. We have set a group-wide safety target measured as zero lost-time accidents (LTA) by 2025. I’m happy to say that we have already made excellent progress in the first year as only five lost-time accidents occurred, compared to 14 in the previous year. The lost time injury frequency rate (LTIFR) dropped to 3.3 from 10.8 in 2020. We are also committed to reducing our direct and indirect greenhouse gas emissions (Scope 1 + 2) in relation to net sales by 50% by 2025 from the level in 2020. In 2021, greenhouse gas emissions decreased to 2,608(2,777) tonnes of CO2 with net sales of EUR 182.7 (170.1) million. We have already taken measures to substantially reduce our emissions in 2022 as our production facilities in Finland and Germany started using renewable electricity in January 2022.
I am very proud of the Glaston team and what we accomplished together in 2021. Our good performance was achieved by working as one team, fulfilling our promise to deliver to our customers. I want to thank our customers for their continued trust in us and everyone at Glaston for their contribution throughout the year.
Our progress in 2021, ending with a good fourth quarter, gives us confidence as we enter 2022. We expect the positive market development and improved customer activity to continue.”
GLASTON GROUP’S KEY FIGURES
| MEUR | 10−12/2021 | 10−12/2020 | 1−12/2021 | 1−12/2020 |
| Orders received *) | 59.1 | 52.1 | 216.2 | 153.5 |
| of which service operations | 17.4 | 17.4 | 68.0 | 57.1 |
| of which service operations, % | 29.5% | 33.4% | 31.4% | 37.2% |
| Order book at end of period | 94.8 | 63.9 | 94.8 | 63.9 |
| Net sales | 52.6 | 38.3 | 182.7 | 170.1 |
| of which service operations | 17.6 | 17.1 | 66.8 | 58.1 |
| of which service operations, % | 33.4% | 44.8% | 36.5% | 34.1% |
| EBITDA | 3.2 | 1.3 | 13.0 | 7.6 |
| Items affecting comparability | -1.2 | -1.6 | -1.5 | -3.8 |
| Comparable EBITDA | 4.4 | 2.9 | 14.5 | 11.3 |
| Comparable EBITDA, % | 8.3% | 7.6% | 7.9% | 6.7% |
| Comparable EBITA | 3.5 | 2.1 | 11.1 | 7.7 |
| Comparable EBITA, % | 6.6% | 5.4% | 6.1% | 4.6% |
| Operating result (EBIT) | 1.2 | -0.7 | 5.1 | -0.5 |
| Comparable operating result (EBIT) | 2.3 | 0.9 | 6.6 | 3.2 |
| Comparable operating result (EBIT), % | 4.4% | 2.4% | 3.6% | 1.9% |
| Profit/loss before taxes | -1.0 | -1.4 | 1.2 | -3.3 |
| Profit/loss for the period | 0.1 | -2.2 | 1.1 | -5.5 |
| Comparable earnings per share, EUR | 0.023 | 0.001 | 0.060 | 0.013 |
| Number of registered shares at end of period (1 000) |
84 290 | 84 290 | 84 290 | 84 290 |
| Cash flow from operating activities | 5.5 | 3.5 | 19.3 | 0.7 |
| Net interest-bearing debt at end of period | 18.3 | 33.6 | ||
| Return on investment (ROI), %, (annualized) | 2.8% | -0.4% | ||
| Comparable return on capital employed (ROCE), %, (annualized) | 6.1% | 4.7% | ||
| Equity ratio, % | 42.3% | 41.2% | ||
| Net gearing, % | 26.9% | 48.8% | ||
| Number of employees at end of period | 750 | 723 |
*) 6–9/2021 order intake for the Automotive and Display Technologies has been corrected downwards by EUR 1.4 million, also impacting segment and Group order intake and respective cumulative figures for the Jan–Jun 2021 and Jan–Sep 2021 periods
SHORT-TERM RISKS AND BUSINESS UNCERTAINTIES
The supply chain disruptions constitute the main short-term risk for Glaston’s business operations. These disruptions are expected to continue into 2022 and Glaston is actively mitigating the higher than normal risks related to raw materials, component prices and availability, as well as logistics cost increases and freight availability. Major supply chain disruptions may impact the company’s performance.
Even though the impact of the COVID-19 pandemic has decreased, there is still significant uncertainty related to the pandemic in terms of its duration and new virus variants, which might be significantly more transmissible, such as the current Omicron variant, coupled with the potentially slow rollout of vaccinations and vaccines not working effectively against new and rapidly spreading variants of the virus, further complicating the situation. New lockdowns and more stringent travel restrictions are particularly affecting service work and the spare parts business, as well as machine installations. Under the prevailing circumstances, there is also a higher than normal uncertainty related to customers’ investment behavior.
Labor shortages and rising employee turnover are a growing concern, especially in the USA. Glaston’s ability to maintain a high level of job satisfaction among its employees, as well as attracting new employees, is further emphasized.
Glaston’s long-term strategic and operational risks and uncertainties are described in detail in the Report of the Board of Directors.
ANALYST AND PRESS MEETING
Glaston’s President and CEO Anders Dahlblom and CFO Päivi Lindqvist will present the financial result to analysts, investors and media representatives on the publication day at 15.00 in a live webcast that can be joined through this link: https://glaston.videosync.fi/q4-2021-tulos/
A recording of the meeting including the presentation will be available on the company’s internet pages www.glaston.net after the meeting.
For further information, please contact:
President & CEO Anders Dahlblom, tel. +358 10 500 500
Chief Financial Officer Päivi Lindqvist, tel. +358 10 500 500
Glaston Corporation
Pia Posio
VP, Communications, Marketing and IR
Tel. +358 10 500 500
Glaston in brief
Glaston is the glass processing industry’s innovative technology leader supplying equipment, services and solutions to the architectural, automotive, solar and appliance industries. The company also supports the development of new technologies integrating intelligence to glass.
Glaston is committed to providing its clients with both the best know-how and the latest technologies in glass processing, with the purpose of building a better tomorrow through safer, smarter, and more energy efficient glass solutions. Glaston operates globally with manufacturing, services, and sales offices in 10 countries and its shares (GLA1V) are listed on Nasdaq Helsinki Ltd.
Distribution: Nasdaq Helsinki Ltd, key media, www.glaston.net.