Interim report January - March 2024

Positive start to 2024
 
Quarter 1, 2024

• Orders received amounted to SEK 1,519m (1,505), equivalent to currency neutral growth of 0.8 percent compared with the same period last year.
• Net sales amounted to SEK 1,397m (1,482), equivalent to a currency neutral decline of 5.7 percent compared with the same period last year.
• Adjusted EBITA was SEK 174.0m (172.7), giving an adjusted EBITA margin of 12.5 percent (11.7).
• Operating profit amounted to SEK 146.6m (127.1), corresponding to an operating margin of 10.5 percent (8.6).
• Net profit was SEK 90.2m (77.8).
• Earnings per share were SEK 2.57 (2.22).
• Cash flow from operating activities amounted to SEK 95.1m (128.7).
• Committed to the Science Based Targets initiative (SBTi).

CEO’s comments

“Stable performance in an increasingly uncertain market

The new year began with healthy orders received, higher margins and a strong cash flow. In a more uncertain macro environment, we have continued to advance our position through the launch of new products, a stronger presence in growing industries and markets, and investments in increased capacity and efficiency.

Nederman began the new year with high order activity – for example in structurally growing industries such as battery manufacturing, food and recycling – and continued positive geographic development, particularly in the US, Nederman’s single largest market. In the first quarter, orders received increased currency neutrally by 0.8 percent to SEK 1,519m (1,505), and the current order backlog of just over SEK 2 billion continues to offer good short-term support to sales. The decrease in currency neutral sales during the quarter of 5.7 percent to SEK 1,397m (1,482) was mainly due to fewer project deliveries in Process Technology. The adjusted EBITA margin increased to 12.5 percent (11.7). It was particularly pleasing that the gross margin strengthened to 39.1 percent (36.5). A better sales mix, including a larger service business, contributed to the higher margins. We can also see that our investments in production and logistics are making an increasingly clear contribution to profitability.

Demand for industrial air filtration is strong worldwide. As a leading player, we drive development with new innovative products and solutions, but also through more efficient deliveries. The official launch took place in early April of Nordfab Now, Duct & Filter Technology’s concept in the US for product delivery within 24 hours from the expanded production and warehouse facility in Thomasville. During the spring, our largest division – Extraction & Filtration Technology – is transferring the previously acquired US RoboVent’s operations to a completely new plant, and at the end of the year the ultra-modern plant in Helsingborg will be inaugurated, offering a new warehouse management system, among other benefits. In parallel, we are continuing to invest in expanded capacity, for example in NEO Monitors, and are pursuing efficiency improvements in markets displaying weaker development, such as China, where we have now finished restructuring our operations.

We are The Clean Air Company, and the products and solutions we continuously develop help to create better conditions for clean air in a large number of industries, and thereby for society as a whole. Today, value creation is largely pursued through digitalisation and servicification. During the quarter, we rolled out another project in our digital concept Clean Air as a Service, and began work to develop the next generation of digital products within the framework of our Nederman Insight platform. There is still significant interest in our service package for energy-efficient filter systems, Nederman SAVE. We secured our first orders in Americas during the quarter. We are addressing the growing need for clean air and reduced energy consumption in the textile sector with our efficient CFB fan system, and accelerating developments in critical areas such as carbon capture and waste management. As a world-leading company in environmental technology, we, quite simply, are well placed to drive positive change. In our own operations, we have reduced greenhouse gas emissions proportional to sales by 80 percent over the past ten years. We have now committed to the Science Based Targets initiative with the objective to be climate-neutral by 2050.

STABILITY IN OUR DIVISIONS

Extraction & Filtration Technology reported high activity with double-digit growth for service, which contributed to improved profitability. Process Technology secured new, major orders linked to a strong sustainability trend in various customer industries, and profitability remained healthy. Duct & Filter Technology’s production and logistics initiatives in the US have provided strengthened competitiveness and, not least, sustained high profitability. Monitoring & Control Technology noted a new order record for a single quarter although the sales mix and Finnish port strike dampened profitability.

CAUTIOUSLY POSITIVE

Even if the performance of our divisions remains positive, the risk remains that high inflationary pressure and a weaker economic outlook will impact customers’ investment decisions. Moreover, we believe that there is a risk that the growing geopolitical uncertainty could eventually lead to increased protectionism. However, Nederman continues to stand strong in this macro environment. In view of our large order backlog and our ability to increase our share of sales in industries with good structural growth, we take a cautiously positive view of opportunities during the year.

Sven Kristensson, VD”

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. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on April 25, 2024.

About Nederman
Nederman is an environmental technology company and 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 to protect people, planet and production.

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2 500 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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