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
- Adjusted EBITDA growth of 22% at
- 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 Plcand Purmo Group SAwas completed on December 31, 2021and on January 3, 2022the actions of Purmo Plc Groupstarted trading on the Nasdaq Helsinki. The listing supports the company’s growth plans and mergers and acquisitions program.
- Net sales improved by 20% to reach
- Adjusted EBITDA decreased by 6% to reach
- Adjusted EBITDA margin was 10.1% (12.9%)
- EBIT decreased to
-€41.9 million(9.0), affected by a €52.3 millionone-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)
- Net sales improved by 26% to reach
- Adjusted EBITDA increased by 22% to reach
- Adjusted EBITDA margin was 12.3% (12.7%)
- EBIT decreased to
3.5 million euros(42.0), affected by a €52.3 millionone-time and non-monetary impact of the IFRS 2 merger
- Adjusted operating cash flow was
- Earnings per share decreased to -0.65 (0.86)
- Adjusted earnings per share increased to 1.77 (1.32)
- Capital repayment proposal
€0.36per class C share and EUR 0.07per 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
Financial guidelines 2022
In its first outlook for 2022,
With the recent escalation of the geopolitical situation in
Capital repayment proposal
The board of directors proposes to the annual general meeting that a capital repayment of
Key figures and financial performance
|millions of euros||10-12/2021||10-12/2020||Change, %||2021||2020||Change, %|
|Adjusted EBITDA margin, %||10.1%||12.9%||12.3%||12.7%|
|Adjusted EBITA margin, %||6.8%||8.3%||8.4%||7.8%|
|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%|
|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 / 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
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
In 2021, sales of the ICS (Indoor Climate Systems) division increased by 23% and margins increased significantly.
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
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
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 https://investors.purmogroup.com/ir-material/ in English and Finnish.
A recording and transcript of the webcast will be available at https://investors.purmogroup.com/ir-material shortly after the end of the event.
Further information :
Josefina Tallqvist, Investor Relations (acting),