• news.cision.com/
  • Valmet Oyj/
  • Valmet’s Interim Review January 1 – March 31, 2023: Orders received increased to EUR 1.55 billion and Comparable EBITA to EUR 133 million in the first quarter

Valmet’s Interim Review January 1 – March 31, 2023: Orders received increased to EUR 1.55 billion and Comparable EBITA to EUR 133 million in the first quarter

Report this content

Valmet’s Interim Review January 1 – March 31, 2023: Orders received increased to EUR 1.55 billion and Comparable EBITA to EUR 133 million in the first quarter

Valmet Oyj’s stock exchange release on April 26, 2023 at 1:00 p.m. EEST

Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.

Net debt to EBITDA ratio, Comparable gross profit, and Comparable selling, general and administrative expenses (Comparable SG&A expenses) are new alternative performance measures. They enable users of the financial information to prepare more meaningful analysis on Valmet's performance and are presented with comparatives from Q1/2023 onwards.

January–March 2023: Orders received, Net sales, Comparable EBITA and Comparable EBITA margin increased

         Orders received increased 17 percent to EUR 1,552 million (EUR 1,324 million).

        Orders received increased in the Automation and Services segments and decreased in the Process Technologies segment.

        Orders received increased in South America, North America and EMEA (Europe, Middle East and Africa), remained at the previous year's level in Asia-Pacific, and decreased in China.

         Net sales increased 38 percent to EUR 1,321 million (EUR 960 million).

        Net sales increased in all three segments.

         Comparable earnings before interest, taxes and amortization (Comparable EBITA) increased 68 percent to EUR 133 million (EUR 79 million).

        Comparable EBITA increased in the Automation and Services segments and decreased in the Process Technologies segment.

         Comparable EBITA margin was 10.1 percent (8.3%).

         Earnings per share were EUR 0.38 (EUR 0.30). Adjusted earnings per share were EUR 0.51 (EUR 0.33).

         Items affecting comparability amounted to EUR -2 million (EUR -5 million).

         Cash flow provided by operating activities was EUR 208 million (EUR 19 million).

Guidance for 2023

Valmet estimates that net sales in 2023 will increase in comparison with 2022 (EUR 5,074 million) and Comparable EBITA in 2023 will increase in comparison with 2022 (EUR 533 million).

Short-term market outlook

Valmet reiterates the good short-term market outlook for services, flow control, automation systems, energy, and board and paper, the good/satisfactory short-term market outlook for pulp, and the satisfactory short-term market outlook for tissue.

The short-term market outlook is given for the next six months from the end of the reported period. It is based on customer activity (50%) and Valmet’s capacity utilization (50%), and the scale is ‘weak–satisfactory–good’.

President and CEO Pasi Laine: Strong quarter in order intake and profitability

“Valmet’s orders received increased to EUR 1.55 billion in the first quarter of 2023. This is a record-high quarterly order intake for us. Orders received increased in the Services and Automation segments and decreased in the Process Technologies segment. Orders received in Valmet’s stable business totaled EUR 3.2 billion during the last four quarters. Valmet has a strong order backlog amounting to EUR 4.6 billion at the end of the quarter.

The first quarter was good also in terms of net sales and Comparable EBITA, which both increased. Net sales increased in all segments. Comparable EBITA margin was 16.1% in Services, 16.3% in Automation and 4.7% in Process Technologies. Valmet’s Comparable EBITA increased to EUR 133 million and margin to 10.1%.”

Update on the integration of Flow Control into Valmet

The merger of Neles into Valmet was completed on April 1, 2022. The integration of Flow Control (former Neles) into Valmet is proceeding according to the plan. Most of the cost synergy actions regarding function costs, common locations and supply chain were implemented already during 2022. Sales synergies have developed well. Valmet expects to generate annual run rate synergies of approximately EUR 25 million, of which approximately 60 percent are expected to be achieved by the end of 2023 and approximately 90 percent by the end of 2024.

Russia's invasion of Ukraine and sanctions on Russia

Valmet's withdrawal from Russia is proceeding according to plan, and the liquidation of the two legal entities is expected to be completed by the end of the third quarter 2023. At the end of March 2023, Valmet’s number of personnel in Russia was 7 (approximately 30 at the end of 2022).

Key figures1

EUR million

Q1/2023

Q1/2022

Change

2022

Orders received

 1,552

1,324

 17 %

 5,194

Order backlog2

 4,595

4,459

 3 %

 4,403

Net sales

 1,321

960

 38 %

 5,074

Comparable EBITA

 133

79

 68 %

 533

% of net sales

 10.1 %

 8.3 %

 

 10.5%

EBITA

 131

74

 76 %

 550

% of net sales

 9.9 %

 7.7 %

 

 10.8%

Operating profit (EBIT)

 97

63

 54 %

 436

% of net sales

 7.3 %

 6.5 %

 

 8.6%

Profit before taxes

 91

62

 47 %

 431

Profit for the period

 71

45

 57 %

 338

Earnings per share, EUR

 0.38

0.30

 25 %

 1.92

Adjusted earnings per share, EUR

 0.51

0.33

 56 %

 2.37

Equity per share, EUR2

 12.50

8.32

 50 %

 13.54

Cash flow provided by operating activities

 208

19

>100%

 36

Cash flow after investments

 175

-6

 

 56

Comparable return on capital employed (Comparable ROCE) before taxes (LTM)

 19 %

 24 %

 

 17%

Return on capital employed (ROCE) before taxes (LTM)

 20 %

 24 %

 

 18%

Return on equity (ROE) (LTM)

 20 %

 24 %

 

 18%

Net debt to EBITDA ratio3

 0.49

 0.01

 

 0.78

Gearing2

 15 %

 0 %

 

 20%

Equity to assets ratio2

 45 %

 40 %

 

 49%

1   The calculation of key figures is presented on page 48.

2   At end of period.

3   Net debt to EBITDA ratio is a new alternative performance measure. It enables users of the financial information to prepare more meaningful analysis on Valmet's performance and is presented with comparatives from Q1/2023 onwards.

LTM = Last twelve months

 

 

Segment key figures

Orders received, EUR million

Q1/2023

Q1/2022

Change

2022

Services

 577

 451

 28%

 1,756 

Automation

 391

 147

>100%

 1,081 

Flow Control

 217

 

 

 576 

Automation Systems

 175

 147

 19%

 505 

Process Technologies

 584

 727

 -20%

 2,356 

Pulp and Energy

 212

 327

 -35%

 1,072 

Paper

 372

 400

 -7%

 1,285 

Total

 1,552

 1,324

 17%

 5,194 

 

Net sales, EUR million

Q1/2023

Q1/2022

Change

2022

Services

 389

 317

 23%

 1,606 

Automation

 304

 88

>100%

 1,040 

Flow Control

 188

 

 

 551 

Automation Systems

 116

 88

 32%

 489 

Process Technologies

 628

 555

 13%

 2,428 

Pulp and Energy

 286

 276

 4%

 1,081 

Paper

 342

 279

 22%

 1,347 

Total

 1,321

 960

 38%

 5,074 

 

Comparable EBITA, EUR million

Q1/2023

Q1/2022

Change

2022

Services

 63

 30

>100%

 237

Automation

 50

 11

>100%

 190

Process Technologies

 30

 41

 -27%

 145

Other

 -9

 -3

>100%

 -39

Total

 133

 79

 68%

 533

 

Comparable EBITA, % of net sales

Q1/2023

Q1/2022

 

2022

Services

 16.1 %

 9.6 %

 

 14.8 %

Automation

 16.3 %

 12.1 %

 

 18.3 %

Process Technologies

 4.7 %

 7.3 %

 

 6.0 %

Total

 10.1 %

 8.3 %

 

 10.5 %

 

EBITA, EUR million

Q1/2023

Q1/2022

Change

2022

Services

 62

 30

>100%

 228

Automation

 44

 10

>100%

 170

Process Technologies

 33

 38

 -14%

 134

Other

 -9

 -4

>100%

 18

Total

 131

 74

 76%

 550

News conference and webcast for analysts, investors and media

Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/q1-2023 on Wednesday, April 26, 2023, at 2:00 p.m. Finnish time (EEST). President and CEO Pasi Laine and CFO Katri Hokkanen will be presenting the results.

Recording of the webcast will be available shortly after the event at the same address.

It is possible to take part in the news conference through a conference call by registering through the link below:

http://palvelu.flik.fi/teleconference/?id=1009888

After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask a question during the conference, please dial *5 on your telephone keypad to enter the question queue. All questions should be presented in English. The event can also be followed on Twitter at www.twitter.com/valmetir.

 

Further information, please contact:

Pekka Rouhiainen, Vice President, Investor Relations, Valmet, tel. +358 10 672 0020

 

VALMET

 

Katri Hokkanen

CFO

 

Pekka Rouhiainen

Vice President, Investor Relations

 

 

DISTRIBUTION:

Nasdaq Helsinki

Major media

www.valmet.com

 

Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions, we serve an even wider base of process industries. Our 17,500 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day.

 

The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. In 2022, a major milestone was achieved when the flow control company Neles was merged into Valmet. Valmet’s net sales in 2022 were approximately EUR 5.1 billion.
 

Valmet’s shares are listed on the Nasdaq Helsinki, and the head office is in Espoo, Finland.

 

Follow us on valmet.com | Twitter | Twitter (IR) | LinkedIn | Facebook | YouTube | Instagram |

 

Processing of personal data

 

Subscribe