January–March 2024
- Net sales decreased by 11 per cent to
EUR 187.9 million (211.7). The organic1 decline in net sales was 12 per cent. - Net sales for the Climate Product & Systems division decreased by 9 per cent to
EUR 153.3 million (169.3) and net sales for the Climate Solutions division decreased by 18 per cent toEUR 34.7 million (42.5). - Adjusted EBITDA increased by 1 per cent to
EUR 26.6 million (26.4). - Adjusted EBITDA margin improved materially to 14.2 per
cent (12.5) supported by the Accelerate PG programme, including strong margin management and cost savings. - EBIT increased to
EUR 17.9 million (15.1), which includedEUR -1.4 million (-3.4) of comparability adjustments. - Cash flow from operating activities increased to
EUR 1.0 million (-1.2), mainly due to a decrease in financial items and income taxes paid. - Accelerate PG programme’s adjusted EBITDA run-rate improvements amounted to
EUR 34.1 million (EUR 30.1 million at the end of Q4 2023), of which periodic impact for the first quarter wasEUR 7.8 million (EUR 1.4 million in Q1 2023).
¹ Excluding currency effects and impacts from acquisitions and divestments.
Financial guidance 2024
Adjusted EBITDA in 2024 is expected to be on a similar or higher level than in 2023 (EUR 92.3 million).
Wholesalers’ stock levels have stabilised, and the lower interest rates support the expectations of a gradual market activity improvement. Strong margin management actions provide confidence in the guidance for the Group. However, increased geopolitical risks and high overall uncertainties can have an impact on Purmo Group’s core markets.
The strategy acceleration programme, Accelerate PG, is performing ahead of plan and further underpins Purmo Group’s outlook for 2024. The cumulative targeted adjusted EBITDA run-rate improvements of the programme will be
Key figures
EUR million | 1-3/2024 | 1-3/2023 | Change,% | 2023 |
Net sales | 187.9 | 211.7 | -11% | 743.2 |
Adjusted EBITDA¹ | 26.6 | 26.4 | 1% | 92.3 |
Adjusted EBITDA margin, %¹ | 14.2% | 12.5% | 12.4% | |
Adjusted EBITA¹ | 20.3 | 19.4 | 4% | 66.3 |
Adjusted EBITA margin, %¹ | 10.8% | 9.2% | 8.9% | |
EBIT | 17.9 | 15.1 | 19% | 9.7 |
EBIT margin, % | 9.5% | 7.1% | 1.3% | |
Profit for the period | 9.4 | 6.7 | 40% | -9.3 |
Adjusted profit for the period¹ ³ | 10.5 | 9.3 | 13% | 32.2 |
Earnings per share, basic, EUR | 0.22 | 0.16 | 36% | -0.32 |
Adjusted earnings per share, basic, EUR¹ ³ | 0.26 | 0.25 | 2% | 0.68 |
Cash flow from operating activities | 1.0 | -1.2 | 40.4 | |
Adjusted operating cash flow, last 12 months¹ ² | 87.0 | 88.4 | -2% | 75.1 |
Cash conversion¹ ² | 94.1% | 98.2% | 81.4% | |
Operating capital employed¹ | 303.1 | 326.4 | -7% | 294.7 |
Return on operating capital employed, %¹ | 3.7% | 12.6% | 2.9% | |
Net debt¹ | 230.2 | 226.9 | 1% | 219.6 |
Net debt / Adjusted EBITDA¹ | 2.49 | 2.52 | -1% | 2.38 |
¹
² Change in net working capital includes assets held for sale. M&A and comparability adjustments totalled
³ Comparative figures for Q1 2023 have been restated due to change in calculation of the key figure, see page 41 in the January-
CEO’s review
Increase in the adjusted EBITDA in the Climate Products & Systems division, coupled with a clear margin improvement in the Climate Solution division
In the Climate Products & Systems division, we saw a pickup in radiator sales in a few regions, but experienced some weakness in other areas and product groups, leading to a decline of 9 per cent in net sales during the quarter. Demand remained generally subdued, although we noticed increasing optimism in a few markets such as
In the Climate Solutions division, we sell pre-fabricated and time-saving solution packages to our installer customers. In the first quarter, we saw continuing normalisation of the Italian market, with mixed development in other regions. As a consequence, net sales declined by 18 per cent. Even though the Nordic markets struggle in the general construction downturn, we completed an important agreement with
Shift to growth in the successful Accelerate PG programme
Our Accelerate PG programme continued to deliver increasing run-rate benefits in the first quarter. The programme delivered
A road to carbon-neutrality: carbon offset radiator production started in the
As we wait for the green steel production in the H2 Green Steel plant in
Guidance for 2024 unchanged, growth phase to start
In the first quarter of 2024, we started to gradually shift our focus to growth initiatives in the Accelerate PG programme. Due to the absence of broad-based, notable demand recovery, coupled with the APG programme and strong margin management, we keep our guidance unchanged. Adjusted EBITDA in 2024 is expected to be on a similar or higher level than in 2023 (EUR 92.3 million).
News conference and webcast for analysts, investors and media
The publication will be followed at
- Webcast: https://purmogroup.videosync.fi/2024-q1-results
- Teleconference lines: http://palvelu.flik.fi/teleconference/?id=10012030
Participants should register through the above link to ask questions through the conference call lines. After registering they will receive a teleconference number and a code to join the call. Participants will be asked to press number 5 to join the queue for questions.
A recording of the event will be available at https://investors.purmogroup.com/ir-material/ shortly after the event has ended.
Further information:
Distribution:
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