Interim report January - September 2023

Good order intake

Quarter 3, 2023

• Orders received amounted to SEK 1,488m (1,294), equivalent to currency neutral growth of 11.0 percent compared with the same period last year.
• Net sales amounted to SEK 1,574m (1,398), equivalent to currency neutral growth of 7.7 percent compared with the same period last year.
• Adjusted EBITA was SEK 175.4m (165.3), giving an adjusted EBITA margin of 11.1 percent (11.8).
• Operating profit amounted to SEK 148.0m (138.0), corresponding to an operating margin of 9.4 percent (9.9).
• Net profit was SEK 85.4m (92.6).
• Earnings per share were SEK 2.43 (2.64).
• Cash flow from operating activities amounted to SEK 137.4m (118.2).

January – September 2023

• Orders received amounted to SEK 4,538m (4,029), equivalent to currency neutral growth of 7.4 percent compared with the same period last year.
• Net sales amounted to SEK 4,687m (3,664), equivalent to currency neutral growth of 21.3 percent compared with the same period last year.
• Adjusted EBITA was SEK 543.3m (405.5), giving an adjusted EBITA margin of 11.6 percent (11.1).
• Operating profit amounted to SEK 443.6m (343.4), corresponding to an operating margin of 9.5 percent (9.4).
• Net profit was SEK 263.6m (237.8).
• Earnings per share were SEK 7.51 (6.78).
• Cash flow from operating activities amounted to SEK 364.0m (257.9).

CEO’s comments

“Stable performance and advancing positions

During the year’s third quarter, we again reported strong growth in sales and orders received, together with continued stable profitability and strong cash flow. In an environment showing signs of weaker demand in certain markets and segments, all of our divisions are advancing their positions by rolling out new products, strong presence in expanding industries and investments in improved efficiency and digitalisation.

Successes continue for environmental technology company Nederman. During the third quarter of 2023, we noted the second highest sales ever for a single quarter, SEK 1,574m (1,398), while currency neutral order intake increased by a full 11.0 percent, which will support sales in the quarters ahead. The adjusted EBITA margin amounted to 11.1 percent (11.8) and in absolute terms adjusted EBITA rose by 6 percent. We are continuing to invest in our digital solutions and in our production and logistics, while we are also implementing measures to increase profitability in underperforming markets, such as China. Taken together, this strengthens our competitiveness in a market with a fragmented competitive situation. As the global market leader, with strong finances, the current environment offers us good opportunities to continue to advance our positions.

Developments in 2023, and not least the third quarter of the year, show that our long-term and ambitious initiatives are producing results. A focus on profitability, in every individual segment and market, is a prerequisite for sustainable growth in a global industry. It is in this context that the extensive investments of recent years aimed at upgrading our production and logistics should be seen, as well as our digital initiatives that enable our customers to future-proof their production regardless of industry or region. During the quarter, we were again made acutely aware that our range addresses important needs when we took part in leading trade fairs in various parts of the world. We are rolling out new products with the common overall aim of contributing to cleaner air and reduced emissions in industries around the world – a need that was again highlighted by international media and various institutes in the past quarter. In line with our long-term strategy, we have increased our presence through the aquisition during the quarter of Danish Aagaard, which means the Extraction & Filtration Technology division strengthened its position in Europe in the woodworking segment. We also continued to increase our share of sales in growing segments where investments are being made in new technology, such as renewable energy, food, metal recycling and battery manufacturing. In the third quarter, we secured several orders in these segments, which applied to all regions and also meant several new and exciting customers.

OUR DIVISIONS ARE STRENGTHENING THEIR POSITIONS

Despite various market challenges, I am pleased to note that our four divisions strengthened their positions during the quarter. Nederman Extraction & Filtration Technology continues to capitalise on the acquisition of RoboVent just over a year ago and increased its exposure to growing segments, but also met rising price competition in certain markets. The performance of Nederman Process Technology remained strong with successful ventures in new segments and geographic markets, which resulted in increased profitability and returns. Although Nederman Duct & Filter Technology reported lower growth, investments in production and logistics, and initiatives in new segments, continue to drive profitability. The positive development in 2023 for Nederman Monitoring & Control Technology continued during the quarter, with a growing order backlog and higher profitability.

CAUTIOUS OPTIMISM IN AN INCREASINGLY UNCERTAIN WORLD

Even if the performance of our divisions remains positive, the risk remains that challenges in our supply chain, inflation and a weaker economic outlook will impact customers’ investment decisions. Moreover, geopolitical uncertainty is growing with a risk of increased protectionism in the long term. Nederman, however, stands strong in this macro environment. In terms of our large order backlog and our ability to increase our share of sales in industries with good structural growth, we take a positive view for the next quarter, but are somewhat more uncertain regarding development in the medium term.

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 October 23, 2023.

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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