Interim report January - June 2022

Strong momentum

Quarter 2, 2022

• Incoming orders amounted to SEK 1,390m (1,058), equivalent to currency-neutral growth of 23.2 percent compared with the same period last year.
• Net sales amounted to SEK 1,172m (977), equivalent to currency-neutral growth of 11.9 percent compared with the same period last year.
• Adjusted EBITA was SEK 124.5m (113.1), giving an adjusted EBITA margin of 10.6 percent (11.6).
• Net profit was SEK 74.7m (56.4*).
• Earnings per share were SEK 2.13 (1.61*).
• Cash flow from operating activities amounted to SEK 147.6m (180.5).

January – June, 2022

• Incoming orders amounted to SEK 2,734m (2,093), equivalent to currency-neutral growth of 23.0 percent compared with the same period last year.
• Net sales amounted to SEK 2,266m (1,845), equivalent to currency-neutral growth of 15.0 percent compared with the same period last year.
• Adjusted EBITA was SEK 240.2m (214.3), giving an adjusted EBITA margin of 10.6 percent (11.6).
• Net profit was SEK 145.2m (113.6*).
• Earnings per share were SEK 4.14 (3.24*).
• Cash flow from operating activities amounted to SEK 139.7m (254.1).

 * The comparative figure shown exclude other operating income of SEK 26.3m, net after tax, which was recognised in the second quarter of 2021 and pertained to a Norwegian defined-benefit pension plan that was of a non-recurring nature. Including other operating income, net profit amounted to SEK 82.7m and earnings per share to SEK 2.36 for the second quarter of 2021, and for the January to June 2021 period net profit amounted to SEK 139.9m and earnings per share to SEK 3.99.


CEO’s comments
 

” Nederman continues to advance in the global market for industrial air filtration. During the second quarter, the group’s currency-neutral orders received grew by a full 23 percent and sales by 12 percent. Adjusted EBITA increased to SEK 124.5m (113.1), giving an adjusted EBITA margin of 10.6 percent (11.6).

The environmental technology company Nederman’s positive momentum continues. The second quarter of 2022 noted a new strong improvement in orders received, higher sales, a strong cash flow and continued increase in profits. As in the first quarter, logistics problems, component shortages and covid-19-related lockdowns hampered deliveries and thereby dampened sales and profit, problems that particularly affected two of our divisions. Meanwhile, the group’s record-strong order backlog is now just over SEK 800m higher than at the same point last year. This supports positive sales development as we move forward. Nederman is therefore making progress on its journey towards achieving sales of SEK 5 billion. The group’s long-term strong trend also supports our new profitability target, to reach an adjusted EBITA margin of at least 14 percent in the long term. In the second quarter, the adjusted EBITA margin amounted to
10.6 percent (11.6).

Our position as technology leader and the growing interest in clean air solutions in more and more industries throughout the world provide us with a solid platform from which we can continue to further advance our positions. In the second quarter, by among other things booking a significant order in the USA, we have established a position in non-woven, which complements our textiles segment, and we are continuing to grow in important industries of the future, such as renewable energy and recycling. Our advanced digital solutions also contribute to lower energy costs in production, providing us with particularly significant potential in a macro environment with high energy prices over an extended period. There is substantial demand for energy-efficient solutions in all industries.

We are continuing to review our production and presence in order to become even more efficient. In Thomasville, US, we began constructing our expanded factory and warehouse that will enable faster deliveries to customers, and we have decided to invest in a new manufacturing and logistics site in Helsingborg, Sweden. Along with this, we will establish a global innovation centre that will further accelerate our technological development. During the quarter, we also conducted a minor acquisition to create a platform for growth in Australia, a market with great potential for our leading offering within air filtration.

HIGH LEVEL OF ACTIVITY IN OUR DIVISIONS

Activity levels remained high in our divisions during the quarter. Our largest division, Nederman Extraction & Filtration Technology, demonstrated a strong improvement in orders received and continued healthy profitability. Nederman Process Technology continues to win new orders in all of its segments, but various market challenges have dampened sales growth even if growth was still good. The record order backlog grew further. Nederman Duct & Filter Technology reported strong order and sales growth, particularly in the main market of the US. Continued problems with component supplies and covid-19-related lockdowns dampened Nederman Monitoring & Control Technology’s sales and thus also profitability. Nevertheless, the order backlog is strong.

OUR CAUTIOUS OPTIMISM REMAINS

Although the development in our divisions is positive, we are seeing that the problems in our supply chain and the high prices of energy, materials and logistics are impacting customers’ investment decisions and the possibility of conducting business, as well as our own production and ability to deliver. In addition, there is uncertainty due to the geopolitical concerns across the globe. Despite these concerns and uncertainty in the market, we remain cautiously optimistic about future quarters in view of, for example, our strong orders received in the past year.”

Sven Kristensson, CEO

For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: sven.kristensson@nederman.com

Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: matthew.cusick@nederman.com

This information is information that Nederman Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on July 15, 2022.

About Nederman
Nederman is 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.  

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2200 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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