company announcement
May 17, 2022
Announcement No. 10/2022
Nilfisk publishes its results for the first quarter of 2022
Nilfisk, one of the world’s leading providers of professional cleaning equipment and services, today released its results for the first quarter of 2022. Commenting on the results, Torsten Türling, CEO of Nilfisk said:
“Nilfisk continues its positive development since 2021, with higher revenues and continued growth momentum in the first quarter of 2022.
In February, we presented our 2026 Business Plan focused on long-term sustainable growth. First quarter results show sustainable growth with our strategically important US market as the main driver. We delivered revenue growth and improved EBITDA despite continued supply chain challenges and rising inflationary cost pressures.
At the end of March, our American distribution center was partially destroyed by a tornado. We resumed operations in a nearby building in record time. We expect the impact on our US sales to be limited to approximately 20 mUSD be delayed from Q2 for the second half of 2022. We continue to expect full year 2022 to be in line with our previous guidance.
Q1 2022 results
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Sales for the whole business amounted to EUR264.2m, corresponding to a reported growth of 11.3% compared to the first quarter of last year. Organic revenue growth was 9.3%.
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Gross margin was 40% versus 41.6% in the prior year, primarily due to the negative impact of higher material costs and continued high freight rates, partially offset by an impact positive from price effects and revenue growth.
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EBITDA before exceptional items increased by 1.2 mEUR compared to Q1 2021 and amounted to 37.6 mEUR. This corresponds to an EBITDA margin before special items (bsi) of 14.2% compared to 15.3% in Q1 2021. The lower gross margin contributed to the lower EBITDA bsi margin.
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In the branded professional business, organic growth was 11.2% with strong demand and strong execution across all regions. The Americas, driven by the strategically important US market, posted the strongest organic growth at 25.3%, while organic growth in Europe was 5.4%.
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The Consumer business is down 5.8% organically compared to Q1 2021.
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Private label and other posted organic growth of 12.7%, driven by continued strong demand from key customers.
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Higher sales in the first quarter of 2022, combined with continued cost control, led to a reduction in the general expense ratio by 1.1 percentage points to 31.5%, compared to 32.6% in the first quarter of 2021. General expenses increased by 5.8 mEUR compared to the first quarter of 2021 due to the increase in commercial activity and are 83.1 million euros.
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Exceptional items amounted to EUR4.2m compared to EUR0.2m in the first quarter of 2021. Exceptional items mainly related to the impairment of assets at Nilfisk Russia and other costs incurred as a direct result of the decision to suspend activities in Russia, as well as the reorganization of the costs generated by the implementation of the 2026 Business Plan.
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Free cash flow was EUR22.7m compared to EUR9.2m in the first quarter of 2021. Cash flow was negatively impacted by increased working capital driven by higher inventory levels to secure supply capacity.
Key figures
|
millions of euros |
Q1 2022 |
Q1 2021 |
|
Revenue |
264.2 |
237.3 |
|
Organic growth |
9.3% |
11.9% |
|
Gross margin |
40.0% |
41.6% |
|
EBITDA before special items |
37.6 |
36.4 |
|
EBITDA margin before special items |
14.2% |
15.3% |
|
Free movement of capital |
-22.7 |
9.2 |
|
Financial gearing |
2.6 |
3.4 |
Outlook for 2022
We maintain the full year outlook communicated in the 2021 Annual Report given the current visibility of market demand, inflationary developments and profitability levels.
For 2022, we expect organic revenue growth of 4% to 7% and an EBITDA margin before special items between 13.5% and 15.5%.
|
Outlook 2022 |
|
|
Revenue increase |
4% to 7% |
|
EBITDA margin before special items |
13.5% to 15.5% |
Conference call
Nilfisk will hold a conference call today at 10:00 CET. Please visit investor.nilfisk.com or use the dial information below to access the call. Presentation material will be available on the website prior to the conference call.
To log in, please use the following numbers:
DK: +45 3544 5577
UK: +44 3333 000804
USA: +1 631 913 1422
The event will be broadcast live via:
https://getvisualtv.net/stream/?nilfisk-q1-2022-vxpz8v9ooq
Participant code: 49032198#
The video will be available for viewing after the event along with the presentation from the day: https://investor.nilfisk.com/
Forward-looking statements
Forward-looking statements made in this report reflect the current expectations of the Board of Directors regarding future events and financial results. Statements regarding the future are by their nature subject to uncertainty, and the results obtained may therefore differ from expectations, due to changes in the economic and financial markets, legislative and regulatory changes in the markets in which the Nilfisk Group operates, changes in product demand, competitive weather conditions, energy and commodity prices and other risk factors. Nilfisk Holding A/S disclaims any responsibility to update or adjust statements regarding the future or possible reasons for differences between actual and forecasted results, except as required by law or other regulations.
contacts
Investor Relations
Elizabeth Klintholm
Head of Investor Relations
Such. : +45 2555 6337
Media
Allan Jorgensen
Media Relations Manager
Such. : +45 2849 4465
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