Summary of a new record year

• Orders received amounted to SEK 1,467m (1,396), equivalent to currency neutral growth of 4.8 percent compared with the same period last year.
• Net sales amounted to SEK 1,501m (1,515), equivalent to a currency neutral decline of 0.8 percent compared with the same period last year.
• Adjusted EBITA was SEK 171.6m (161.1), giving an adjusted EBITA margin of 11.4 percent (10.6).
• Operating profit amounted to SEK 149.2m (136.8), corresponding to an operating margin of 9.9 percent (9.0).
• Net profit was SEK 77.3m (90.9).
• Earnings per share were SEK 2.20 (2.59).
• Cash flow from operating activities amounted to SEK 212.3m (87.8).

• Orders received amounted to SEK 6,005m (5,425), equivalent to currency neutral growth of 6.8 percent compared with the same period last year.
• Net sales amounted to SEK 6,188m (5,179), equivalent to currency neutral growth of 14.9 percent compared with the same period last year.
• Adjusted EBITA was SEK 714.9m (566.6), giving an adjusted EBITA margin of 11.6 percent (10.9).
• Operating profit amounted to SEK 592.8m (480.2), corresponding to an operating margin of 9.6 percent (9.3).
• Net profit was SEK 340.9m (328.7).
• Earnings per share were SEK 9.71 (9.37).
• Cash flow from operating activities amounted to SEK 576.3m (345.7).
• The Board of Directors proposes a dividend of SEK 3,95 (3.75) per share.

CEO's comments

"Strong end to 2023 provides good starting position

Nederman ended 2023 with healthy order growth, high sales, strong cash flow and improved profitability. We can look back on a year when, despite a macro environment that remained challenging, we advanced our positions in the global market for industrial air filtration with the launch of new products, we strengthened our presence in expanding industries and we invested in improved efficiency and digitalisation.

We can look back on another successful year. During the fourth quarter, sales amounted to SEK 1,501m (1,515), and almost SEK 6.2 billion for full-year 2023, equivalent to currency neutral growth of 14.9 percent. Orders received increased currency neutrally by 4.8 percent during the quarter, giving an order backlog that was in line with the end of last year and offering good support for sales at the beginning of 2024. The adjusted EBITA margin amounted to 11.4 percent (10.6) in the quarter, which includes a non-recurring cost of SEK 17m for filter upgrades at customer facilities, and to 11.6 percent (10.9) for the full-year. In absolute terms, adjusted EBITA for the full-year amounted to SEK 715m (567), which is a new record. Step by step, we are moving closer to our goal of an adjusted EBITA margin of at least 14 percent. This is also underpinned by improvements to the gross margin in the quarter to 37.5 percent (36.2), which shows that our efforts in relation to production efficiency, pricing and to expand the service business are yielding results. However, rising interest expenses and a higher tax rate, linked to among other things the restructuring in China and increased profitability in Germany, led to a decrease in earnings per share compared with the corresponding quarter of 2022. Nevertheless, earnings per share rose somewhat for the full year. Overall, I can summarise a year in which we carried out strong product launches, continued to invest in our digital solutions, production and logistics, and advanced our positions in new segments and markets. We also took steps to increase profitability in underperforming markets. In China, we are in the final stage of our restructuring and have relocated two of our divisions' operations.

The work to strengthen our position in industries with good long-term growth prospects is a top priority for us. In these industries, we are investing in new technology and customers often have very high demands with respect to equipment and systems to handle hazardous substances and particles which, taken together, favours a global leader in industrial air filtration such as Nederman. In the fourth quarter, all divisions secured orders in one or more of the prioritised growth segments, such as battery manufacturing, renewable energy, food, recycling and the defence industry. Moreover, we continued to make progress with previous strong product launches. Interest in Nederman SAVE is steadily increasing as a growing number of customers understand the energy savings enabled by the technology, and several orders were secured in Europe during the quarter. Gasmet's portable emissions analyser for the measurement of emissions in challenging environments and Luwa's energy-efficient fans for the textile industry are examples of two other strong launches that have helped us to gain market share despite intense competition. We have also noted continued growing interest in our digital solutions that help customers future-proof their production.

GOOD QUARTER FOR OUR DIVISIONS

Our divisions strengthened their positions during the quarter. Nederman Extraction & Filtration Technology increased orders received, spearheaded by EMEA, though inflationary pressure and a nonrecurring cost for filter upgrades suppressed profitability. Nederman Process Technology can look back on a record year for sales and earnings and secured new, major orders from customers in metal recycling during the year. Although Nederman Duct & Filter Technology reported lower sales, more efficient production and logistics, and initiatives in new segments, continued to drive profitability. Nederman Monitoring & Control Technology continued to deliver profitably on a large order backlog and is increasing investments in production to meet future higher demand for digital monitoring and control of production processes.

POSITIVE WITH LARGE ORDER BACKLOG

Even if the performance of our divisions remains positive, the risk remains that challenges in our supply chain, inflationary pressure and a weaker economic outlook will impact customers' investment decisions. Moreover, the geopolitical uncertainty is growing with a risk of increased protectionism in the long term. Nederman, however, stands strong in this macro environment. In terms of our large order backlog and our ability to increase our share of sales in industries with good structural growth, we take a cautiously positive view for the first half of the year.

Sven Kristensson, VD"

For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: sven.kristensson@nederman.com
 

Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: matthew.cusick@nederman.com
 

This information is information that Nederman Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on February 15, 2024.

About Nederman
Nederman is an environmental technology company and a global leader in industrial air filtration dedicated to capturing, measuring, controlling and cleaning air to make industrial production more efficient, safe and sustainable. Based on industry leading products, solutions and services in combination with an innovative IoT platform we deliver knowledge and facts needed to optimise performance and guarantee emissions compliance to protect people, planet and production.

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2 500 employees and presence in more than 50 countries. Learn more at nedermangroup.com

Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden
Corporate registration number: 556576-4205