Interim report January-September 2021

Continued solid development

Quarter 3, 2021

• Incoming orders amounted to SEK 1,178m (827), equivalent to currency-neutral growth of 45.1 percent compared with the same period last year. Compared with the corresponding quarter 2019, incoming orders increased currency-neutral by 35.8 percent.
• Net sales amounted to SEK 1,046m (826), equivalent to currency-neutral growth of 28.3 percent compared with the same period last year.
• Operating profit was SEK 119.3m (63.3), giving an operating margin of 11.4 percent (7.7).
• Adjusted operating profit was SEK 119.5m (63.5), giving an adjusted operating margin of 11.4 percent (7.7).
• Net profit was SEK 81.0m (31.5).
• Earnings per share were SEK 2.31 (0.90).

January – September, 2021

• Incoming orders amounted to SEK 3,271m (2,562), equivalent to currency-neutral growth of 35.7 percent compared with the same period last year. Compared with the corresponding period 2019, incoming orders increased currency-neutral by 18.0 percent.
• Net sales amounted to SEK 2,890m (2,735), equivalent to currency-neutral growth of 12.3 percent compared with the same period last year.
• Operating profit was SEK 332.8m (125.2), giving an operating margin of 11.5 percent (4.6).
• Adjusted operating profit was SEK 304.3m (201.6), giving an adjusted operating margin of 10.5 percent (7.4).
• Net profit was SEK 220.9m (55.3).
• Earnings per share were SEK 6.29 (1.58).

CEO’s comments
 

”Nederman´s strong performance continues. During the third quarter, the Group’s adjusted operating profit amounted to SEK 119.5m (63.5), corresponding to an adjusted operating margin of 11.4 percent (7.7). All divisions contributed to this improvement. We are entering the year’s final quarter with optimism, but at the same time, we foresee continued risks from the effects of high material prices and disruption to the supply chain.

The strong orders received and sales trends continued in the third quarter of the year. Orders received displayed organic growth of 45.1 percent compared with the corresponding quarter of 2020 and were also significantly higher than the same period of 2019, when our markets were most recently in a “normal state”. In addition, profitability strengthened during the quarter. Higher sales volumes, efficient processes and a continued successful roll-out of our digital offering are some of the factors that underpinned our ability to report the highest adjusted operating margin for a single quarter since 2008, despite headwinds in the form of high raw material and transport prices, and supply chain disruption. I can say that the actions we have taken have turned Nederman into a completely different company today than it was a few years ago. We are world leading in industrial air filtration and are driving developments at a high pace. During the third quarter, for example, we updated our mobile dust and fume extractors using pioneering nanofiber technology and continued to increase the share of Insight subscriptions, which contribute to future-proofing our customers’ production. Good cash flow and a strong balance sheet also provide us with healthy conditions for continued robust investments in growth-promoting activities.

At the same time, I am forced to recognise that the global economy and many of our markets are out of balance. Raw materials prices are at historically high levels, there is an acute shortage of components and logistics problems are leading to disruption in supply chains. We have been successful at managing factors within our control, but are aware that we may be affected to a greater degree in the long term.

STRONG PERFORMANCE IN OUR DIVISIONS
Pent-up investment needs and growing optimism led to a continued high level of activity among our customers. In addition, demand for projects increased, even some slightly larger ones. Nederman Pro-cess Technology displayed a strong improvement in orders received, mainly within the fibre and textile segment, and has begun to deliver on several of the projects secured at the beginning of the year. I am also pleased with the continued strong growth of our largest division, Nederman Extraction & Filtration Technology. Its base of product sales is often a good indicator of the underlying market activity.

Profitability developed strongly in all divisions. Nederman Monitoring & Control Technology again recognised an adjusted EBITA margin of more than 20 percent and was kept company this quarter by Nederman Duct & Filter Technology, with an EBITA margin of 20.2 percent. In addition, Nederman Extraction & Filtration Technology noted an EBITA margin of slightly below 20 percent for the second consecutive quarter. Cost-effective processes and successful pricing, combined with full focus on our leading digital solutions, have enabled these high levels of profitability.

CONTINUED POSITIVE OUTLOOK 
Our cautious optimism remains. Although the development in our divisions remains positive, there is a risk that the problems in our supply chain and the high prices of materials and logistics will impact customers’ investment decisions and the possibility of conducting business, as well as our own production and capacity to deliver. At the same time, the long-term potential in our industry has been strengthened. In a world in which the insight is increasing regarding the damage that poor air does to people the world over, highlighted for example, in a new comprehensive report from the WHO, it is of the utmost importance that Nederman continues to grow with its leading offering within industrial air filtration, and shape the future of clean air. This is quite simply our largest contribution to a more sustainable world. I am looking forward to our Green Awakening conference in Stockholm on 9 November, at which, together with researchers, politicians and business representatives, we will discuss how we can jointly find solutions to safeguard the air that we breathe now and in the future.”

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. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on October 22, 2021.

 
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 2100 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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