Review of Purmo Group financial statements from January 1 to December 31, 2021: strong growth in net sales and record adjusted EBITDA

Main achievements in 2021:

  • Annual net sales growth of 26 percent at €843.6 million (671.2)
  • Adjusted EBITDA growth of 22% at €103.9 million (85.1)
  • The Radiators division recorded a 28% growth in net sales at €506.3 million (396.9) and 5% increase in adjusted EBITDA to €66.0 million (62.9)
  • The ICS division recorded a 23% growth in net sales at €337.2 million (274.3) and 62% increase in adjusted EBITDA to €43.7 million (27.0)
  • Good operational performance responding to increased demand in a challenging supply environment
  • Ability to widely pass on rising raw material prices to customers
  • PGUp revenue improvement and cost savings program successfully implemented
  • Merger between VAC Plc and Purmo Group SA was completed on December 31, 2021 and on January 3, 2022 the actions of Purmo Plc Group started trading on the Nasdaq Helsinki. The listing supports the company’s growth plans and mergers and acquisitions program.

October-December 2021 strong points:

  • Net sales improved by 20% to reach €222.6 million (186.1)
  • Adjusted EBITDA decreased by 6% to reach €22.6 million (23.9)
  • Adjusted EBITDA margin was 10.1% (12.9%)
  • EBIT decreased to -€41.9 million (9.0), affected by a €52.3 million one-time and non-monetary impact of the IFRS 2 merger
  • Earnings per share decreased to -1.58 (0.25)
  • Adjusted earnings per share decreased to 0.39 (0.50)

January-December 2021 strong points:

  • Net sales improved by 26% to reach €843.6 million (671.2)
  • Adjusted EBITDA increased by 22% to reach €103.9 million (85.1)
  • Adjusted EBITDA margin was 12.3% (12.7%)
  • EBIT decreased to 3.5 million euros (42.0), affected by a €52.3 million one-time and non-monetary impact of the IFRS 2 merger
  • Adjusted operating cash flow was €53.1 million (94.2)
  • Earnings per share decreased to -0.65 (0.86)
  • Adjusted earnings per share increased to 1.77 (1.32)
  • Capital repayment proposal €0.36 per class C share and EUR 0.07 per Class F share.

Unless otherwise stated, comparative figures in parentheses refer to the corresponding period in 2020. Unadjusted key figures are affected by a one-time, non-cash IFRS 2 merger impact of €52.3 million following the merger of VAC Plc and Purmo Group SAas well as €17.9 million other items affecting comparability.

Financial guidelines 2022

In its first outlook for 2022, Purmo Group expects net revenue and adjusted EBITDA, both excluding the impact of acquisitions, to increase from 2021 (€843.6 million and €103.9 million, respectively). Net sales and adjusted EBITDA in January and February were in line with this outlook for the full year.

With the recent escalation of the geopolitical situation in Ukraine, visibility decreased. Direct exposure to the Russian and Ukrainian markets is not significant. Purmo Group’s net sales at Ukraine represents less than 1% and Russia for less than 5% of total net sales, and total assets in these countries represent less than 3% of Purmo Group assets. Indirect impacts on other markets that Purmo Group are difficult to assess at this stage.

Capital repayment proposal

The board of directors proposes to the annual general meeting that a capital repayment of €0.36 per share be paid for the class C share and EUR 0.07 per share for class F shares. It is proposed to pay the return of capital in two instalments, in May and October 2022.

Key figures and financial performance

millions of euros 10-12/2021 10-12/2020 Change, % 2021 2020 Change, %
Net sales 222.6 186.1 20% 843.6 671.2 26%
Adjusted EBITDA 22.6 23.9 -6% 103.9 85.1 22%
Adjusted EBITDA margin, % 10.1% 12.9% 12.3% 12.7%
Adjusted EBITA 15.1 15.4 -2% 70.8 50.3 35%
Adjusted EBITA margin, % 6.8% 8.3% 8.4% 7.8%
EBIT -41.9 9.0 -567% 3.5 42.0 -92%
EBIT margin, % -18.8% 4.8% 0.4% 6.3%
Profit for the period -46.7 7.4 -735% -18.8 25.3 -174%
Adjusted profit for the period 11.0 14.5 -24% 51.4 38.5 34%
Earnings per share, basic, EUR -1.58 0.25 -731% -0.65 0.86 -175%
Adjusted earnings per share, basic, EUR 0.39 0.50 -22% 1.77 1.32 33%
Cash flow from operating activities 32.2 38.4 -16% 35.4 68.9 -48%
Adjusted operating cash flow, last 12 months1 53.1 94.2 -44% 53.1 94.2 -44%
Cash conversion2 51.1% 110.7% 51.1% 110.7%
Operational capital employed3 271.8 235.6 15% 271.8 235.6 15%
Return on working capital employed, %4 1.3% 17.8% 1.3% 17.8%
Net debt 239.5 75.1 219% 239.5 75.1 219%
Net debt / adjusted EBITDA 2.3 0.9 161% 2.3 0.9 161%

1) Adjusted EBITDA over 12 rolling months deducted from the change in net working capital requirement and investments over 12 rolling months.
2) Adjusted Operating Cash Flow divided by Adjusted EBITDA, both rolling 12 months.
3) Net working capital, other intangible assets, property, plant and equipment and rights of use.
4) EBIT based on a rolling 12-month calculation divided by working capital employed. Return on working capital employed excluding non-recurring items was 27.1% (23.4%).

CEO Review: Big Progress in an Unusual Year

The year 2021 has been a great success for Purmo Group and we are proud of what the whole company has achieved, including listing on Nasdaq Helsinki.

Strong performance improvement

Sales, with strong organic sales growth, returned to pre-pandemic levels and the value of our PGUp profit and cost improvement program shined through in our bottom line. 2021 was a record year for adjusted EBITDA.
The seasonal pattern for 2021 was markedly different from normal years, as the year started with a strong recovery from the pandemic and pre-purchases by customers ahead of expected price increases, while being able to meet higher demand. high. Demand normalized towards the end of 2021.

The world has stepped up its response to climate change, which we hope will benefit our markets. The EU’s Energy Performance of Buildings Directive (EPBD) recognized the huge effect its 260 million buildings have on CO2 emissions and set out the heating and cooling measures needed to achieve carbon neutrality. The relevance of indoor climates that do not cost the climate of the planet has become a dominant issue.

Highlights of our divisions

In the Radiators Division, volumes increased by 14%, the price of steel more than doubled and supply chains stretched. Nevertheless, we were able to supply and the need to pass on the increased cost of steel was largely met. In China we exceeded our sales targets. Part of the volume growth was supported by the majority acquisition of Russian Evrorad in April 2021.

In 2021, sales of the ICS (Indoor Climate Systems) division increased by 23% and margins increased significantly. Italy was our strongest market, supported by the Italian government’s green incentive program. Several other markets also performed well, thanks to a combination of post-pandemic recovery, increases in selling prices as well as underlying growth in the indoor air conditioning market.

Strategy and operations

We capped off the year by listing on Nasdaq Helsinki. We are excited to begin the next phase as a publicly traded company with a clear ambition to become the global market leader in indoor climate comfort solutions. This allows us to pursue our growth strategy, including notable mergers and acquisitions.

Our strategy of smart products, global solutions and growing markets meets the demand for lower temperature systems, reduced energy consumption, as well as the performance and aesthetic needs of renovation.

In 2021 we launched Tinos H, a smart and less visible decorative panel radiator that offers flexibility in color, configuration and heat output. The Figuresse range of bathroom radiators offers new, more sophisticated styles. We have developed underfloor heating in Romania and the Balkan states; launched initiatives in France and Germany for water distribution systems; has released radiant heating and cooling panels for ceilings in Sweden; and enlarged thermostatic valves in Eastern Europe. In the UK we have focused on installers of bespoke underfloor heating systems.

During the year, we developed a four-pronged sustainability strategy called “Complete Care”. We also launched our first PGOS (Purmo Group Operations System) initiative in Hungary to drive continuous improvement.

We saw record participation in our employee engagement survey, revealing an increase in engagement and very clear indications of what management can do to make the Group a better place to work.

So let’s end by thanking everyone for the good performance in 2021.

Press conference and webcast for analysts, investors and media

Purmo Group’s review of 2021 financial statements has been published today and is available on Purmo Group’s website at in English and Finnish.

CEO John Peter Leesi and financial director Erik Hedin will present the results in a live webcast today Thursday March 3, 2022 at 10:00 EET at The event, including the Q&A session, will be conducted in English.

A recording and transcript of the webcast will be available at shortly after the end of the event.


Further information :Erik HedinCFO, Purmo Group, Phone. +44 7979 363473
Josefina Tallqvist, Investor Relations (acting), Purmo Group, Phone. +358 40 745 5276

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Purmo Plc Group is a leader in sustainable solutions for indoor climate comfort in Europe. We provide complete heating and cooling solutions for residential and non-residential buildings, including radiators, heated towel rails, underfloor heating, convectors, valves and controls. Our mission is to be the world leader in sustainable indoor climate comfort solutions. Our approximately 3,500 employees operate at 46 locations in 21 countries, manufacturing and distributing top quality products and solutions to customers in more than 100 countries around the world. The shares of Purmo Group Plc are listed on Nasdaq Helsinki (symbol: PURMO).

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