Interim report January-September 2021: Net sales growth of 6.8% in Q3 - further price increases in place to mitigate raw material and supply chain headwinds
Uponor Corporation Stock exchange release 28 October 2021 08:00 EET
Interim report January-September 2021: Net sales growth of 6.8% in Q3 - further price increases in place to mitigate raw material and supply chain headwinds
July-September 2021
- Net sales were €321.4 (301.0) million, a growth of 6.8%. Organic growth was 8.1% in constant currency terms.
- Comparable operating profit was €38.1 (49.7) million, a decline of 23.3%.
- Operating profit was €37.3 (49.6) million, a decline of 24.7%.
- Earnings per share were €0.35 (0.43).
January-September 2021
- Net sales were €983.9 (855.5) million, a growth of 15.0%. Organic growth was 16.4% in constant currency terms.
- Comparable operating profit was €133.8 (115.3) million, a growth of 16.0%.
- Operating profit was €131.3 (108.5) million, a growth of 21.1%.
- Earnings per share were €1.10 (0.94).
- Cash flow from business operations was €115.3 (129.2) million.
- Return on investment was 28.5% (23.2) and gearing -5.6% (18.6).
Guidance statement for 2021:
Updated on 11 June 2021: Excluding the impact of currencies, Uponor expects its net sales and comparable operating profit to increase from year 2020.
(Increase indicates a growth of 2.5% or more.)
Michael Rauterkus, President and CEO, comments:
“The strong demand witnessed in the construction industry in both Europe and North America throughout the year continued to support our sales volume growth and increase our net sales in the third quarter. Over the last months, we have seen price levels of raw materials continuing to increase or stay at a high level. Furthermore, we faced supply shortages of raw materials and components, resulting in lower service levels for our customers at times. These factors burdened our operating profit and profitability in the third quarter despite the good demand. It should also be kept in mind that we had a strong comparison period due to the recovery of demand after Q2 and a favourable cost level related to COVID-19.
Building Solutions – Europe performed well in the third quarter. Net sales grew in most of the key markets and improvements in operations increased operating profit. To support our future growth initiatives, we announced in August the acquisition of Capricorn S.A., a Polish manufacturer of components for heating and sanitary installations. We expect to close the transaction during the last quarter of the year.
The Building Solutions – North America division’s net sales increased, while operating profit decreased. The impacts of supply chain shortages were most visible in North America. This created challenges for our production and logistics optimisation, which together with increased input and freight costs decreased profitability.
Strong market demand supported the growth of Uponor Infra’s net sales. Due to the higher input costs, operating profit decreased but the impact was partly offset by increased sales volumes and good operational performance.
During the last quarter of the year, we will focus on stabilising our supply chain and operational performance to secure good customer experience and service. We will continue to mitigate the impacts of the rise in input costs and supply shortages, but expect that these issues delay the margin recovery. After my first months at Uponor, I am very impressed by our excellent teams in all around Uponor operations. Our product, service and solution portfolio is capable of responding to the global megatrends and challenges of the next decades: sustainability and resource scarcity. Combined with our strong financial position, we are well prepared for the next step in our journey of profitable growth.”
Key figures
| M€ | 7-9/ 2021 | 7-9/ 2020 | Change | 1-9/ 2021 | 1-9/ 2020 | Change | 1-12/ 2020 |
| Net sales | 321.4 | 301.0 | 6.8% | 983.9 | 855.5 | 15.0% | 1,136.0 |
| Building Solutions – Europe | 141.6 | 125.3 | 13.0% | 430.4 | 372.7 | 15.5% | 499.5 |
| Building Solutions – North America | 108.3 | 105.5 | 2.7% | 340.0 | 288.6 | 17.8% | 389.1 |
| Uponor Infra | 72.4 | 71.1 | 1.8% | 217.7 | 197.8 | 10.0% | 252.0 |
| Operating expenses | 272.2 | 238.9 | 13.9% | 816.9 | 708.5 | 15.3% | 952.0 |
| Depreciation and impairments | 12.1 | 12.7 | -4.7% | 36.5 | 39.3 | -6.9% | 52.7 |
| Other operating income | 0.3 | 0.2 | 50.7% | 0.8 | 0.7 | 19.5% | 1.0 |
| Operating profit | 37.3 | 49.6 | -24.7% | 131.3 | 108.5 | 21.1% | 132.3 |
| Building Solutions – Europe | 17.6 | 17.2 | 2.4% | 61.4 | 36.6 | 67.7% | 45.1 |
| Building Solutions – North America | 17.7 | 27.1 | -34.5% | 64.3 | 58.9 | 9.2% | 74.5 |
| Uponor Infra | 4.9 | 7.9 | -38.5% | 13.7 | 17.0 | -19.2% | 19.0 |
| Comparable operating profit | 38.1 | 49.7 | -23.3% | 133.8 | 115.3 | 16.0% | 142.7 |
| Building Solutions – Europe | 18.1 | 17.2 | 5.3% | 63.4 | 43.2 | 46.7% | 55.1 |
| Building Solutions – North America | 17.7 | 27.1 | -34.6% | 64.4 | 59.0 | 9.2% | 74.6 |
| Uponor Infra | 4.9 | 7.9 | -38.3% | 13.7 | 17.0 | -19.2% | 19.0 |
| Financial income and expenses | -1.1 | -1.0 | 18.2% | -7.0 | -2.8 | 149.3% | -6.3 |
| Profit before taxes | 37.2 | 47.7 | -22.1% | 117.9 | 102.4 | 15.2% | 121.8 |
| Profit for the period | 27.4 | 35.2 | -22.3% | 85.0 | 75.3 | 12.8% | 96.1 |
| Earnings per share | 0.35 | 0.43 | -19.7% | 1.10 | 0.94 | 16.5% | 1.21 |
| | 30 Sep | 30 Sep | Change | 31 Dec |
| 2021 | 2020 | 2020 | ||
| Net working capital, M€ | 82.2 | 103.8 | -20.8% | 65.9 |
| Net-interest bearing debt, M€ | -26.6 | 73.9 | -136.0% | 15.1 |
| Solvency, % | 50.2 | 42.7 | 17.4% | 48.7 |
| Gearing, % | -5.6 | 18.6 | -130.4% | 3.6 |
| Return on investment, % | 28.5 | 23.2 | 22.5% | 21.8 |
Webcast of the results briefing and the presentation
A webcast in English will be broadcast on 28 October at 10:00 EET. It can be viewed via our website at uponorgroup.com or via the Uponor IR mobile app. The recorded webcast can be viewed via the website or the app shortly after the live presentation. All presentation materials will be available at www.uponorgroup.com > Investors > Reports and presentations.
Uponor Corporation’s financial reporting in 2022
10 Feb 2022 Financial statements bulletin for 2021
14 March 2022 Capital Markets Day in Helsinki, Finland
28 April 2022 Interim report 1–3/2022
27 July 2022 Half-year report 1-6/2022
4 Nov 2022 Interim report 1–9/2022
For further information, please contact:
Michael Rauterkus, President and CEO, requests through Päivi Dahlqvist, tel. +358 20 129 2823
Minna Yrjönmäki, CFO, tel. +358 20 129 2036
Susanna Inkinen, Vice President, Communications and Corporate Responsibility, tel. +358 20 129 2081
DISTRIBUTION:
Nasdaq Helsinki
Media
www.uponorgroup.com
Uponor in brief
Uponor is rethinking water for future generations. Our offering, including safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure, enables a more sustainable living environment. We help our customers in residential and commercial construction, municipalities and utilities, as well as different industries to work faster and smarter. Uponor employs about 3,700 professionals in 26 countries in Europe and North America. In 2020, Uponor's net sales totalled approximately €1.1 billion. Uponor Corporation is based in Finland and listed on Nasdaq Helsinki. www.uponorgroup.com
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