Nilfisk publishes its results for the third quarter of 2022: Revenue of EUR263.0m, corresponding to organic growth of 5.4% driven by organic growth of 10.8% at Branded Professional
Nilfisk, one of the world’s leading providers of professional cleaning products and services, today released its results for the third quarter of 2022. Commenting on the results, Torsten Türling, CEO of Nilfisk said:
“In the third quarter, Nilfisk managed to continue a positive development compared to the first two quarters of 2022, despite the current global economic slowdown.
Growth was driven by Branded Professional in all regions and performance was particularly strong in the Americas region. This was achieved despite continued manufacturing constraints, particularly at our main plant in the United States. Our third quarter results were also supported by a strong increase in demand in the Asia-Pacific region. In Europe, the increase in Branded Professional sales was largely due to pricing measures.
Global supply chain challenges continued to hamper growth, but to a lesser extent than in the first half of 2022. Challenges were limited to fewer products and production sites. Demand remained strong for our professional business and the backlog was slightly higher at the end of the third quarter than in the second quarter of 2022.”
Q3 2022 results
• Revenue was EUR263m, corresponding to reported growth of 9.9% compared to Q3 2021. Organic revenue growth was 5.4%.
• Growth was driven by Branded Professional in all regions, while Consumer and Private Label slowed significantly in line with their respective markets.
• Gross margin was 39.1% in Q3, compared to 40.7% in Q3 2021. Margin was temporarily challenged by lower capacity utilization and ongoing parts availability issues following the destruction of the American distribution center.
• Increased inflationary pressures from raw materials and continued high freight rates were more than offset by determined pricing measures. Overall, the margin level improved during the quarter, and we expect this to continue in the fourth quarter of 2022.
• EBITDA before exceptional items decreased by EUR5.3m compared to Q3 2021 and stood at EUR29.2m during the quarter, corresponding to an EBITDA margin before exceptional items of 11.1% compared to 14.4% in Q3 2021.
• General expenses reached EUR89.1m in Q3, up EUR11.7m compared to Q3 2021. The increase included foreign exchange effects of EUR3.6m; additional freight costs for outbound shipments in the Americas compared to Q2 2022; and project costs for future material cost savings and modular architecture.
• Total R&D expenses increased by EUR1.5m compared to Q3 2021 and amounted to EUR7.9m, corresponding to 3.0% of sales compared to 2.6% in Q3 2021. in strategic R&D projects continued.
• Special items amounted to EUR3.0m compared to EUR0.5m in Q3 2021. Special items were mainly legal and advisory fees incurred in relation to strategic projects such as the 2026 Business Plan as well as the ongoing liquidation of Nilfisk Russia.
• Cash flow from operating activities for Q3 2022 amounted to a net inflow of EUR24.8m compared to a net inflow of EUR19.1m in Q3 2021. The positive development compared to Q3 2021 can be explained by variations in working capital and the increase in financial income.
|millions of euros||Q3 2022||Q3 2021|
|EBITDA before special items||29.2||34.5|
|EBITDA margin before special items||11.1%||14.4%|
|Free movement of capital||17.7||14.6|
Outlook for 2022
The outlook for the year 2022 was revised on October 26, 2022, with the announcement of company no. 15/2022.
Based on the first nine months of 2022 and given the current visibility, we now expect organic revenue growth of 4.5% to 6.5% (previously 4% to 7%) and a margin of EBITDA before exceptionals of around 13% for the full year 2022 (previously 13.5% to 15.5%).
|9M 2022 results||New outlook for the 2022 financial year||Outlook for the prior year 2022*|
|Organic revenue growth||5.8%||4.5% to 6.5%||4 to 7%|
|EBITDA margin before special items||12.7%||About 13%||13.5 to 15.5%|
*Outlook given with the 2021 annual report
Nilfisk will host a conference call today at 9:00 a.m. CET. Presentation material will be available on the website prior to the conference call.
Please pre-register no later than 8:55 a.m. for the call using the link below:
The video will be available for viewing after the event along with the presentation from the day: https://investor.nilfisk.com/
| Elizabeth Klintholm
Head of Investor Relations
Such. : +45 2555 6337
| Allan Jorgensen
Media Relations Manager
Such. : +45 2849 4465
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.