2024-07-24 13:00:00 CEST
2024-07-24 13:00:13 CEST
REGULATED INFORMATION
Valmet Corporation - Half Year financial report
Valmet's Half Year Financial Review 2024: Orders received remained at the previous year's level and amounted close to EUR 1.3 billion and Comparable EBITA decreased to EUR 141 million in Q2
Valmet's Half Year Financial Review January 1 - June 30, 2024: Orders received
remained at the previous year's level and amounted close to EUR 1.3 billion and
Comparable EBITA decreased to EUR 141 million in the second quarter
Valmet Oyj's stock exchange release onJuly24, 2024 at 2:00 p.m. EEST
Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e., the same period of the previous year.
April-June 2024: Orders received remained at the previous year's level
• Orders received remained at the previous year's level and amounted to
EUR 1,283 million (EUR 1,268 million).
- Orders received increased in the Services segment, remained at the
previous year's level in the Automation segment, and decreased in the Process
Technologies segment.
- Orders received increased in EMEA (Europe, Middle East and Africa),
North America and China, and decreased in Asia-Pacific and South America.
• Net sales decreased 7 percent to EUR 1,324 million (EUR 1,417
million).
- Net sales remained at the previous year's level in the Automation and
Services segments and decreased in the Process Technologies segment.
• Comparable earnings before interest, taxes and amortization
(Comparable EBITA) decreased 8 percent to EUR141 million (EUR 153 million).
- Comparable EBITA remained at the previous year's level in the Services
and Automation segments and decreased in the Process Technologies segment.
• Comparable EBITA margin was 10.6 percent (10.8%).
• Earnings per share (EPS) were EUR 0.31 (EUR 0.54). EPS decreased
mainly due to lower operating profit and higher net financial expenses. Adjusted
EPS was EUR 0.43 (EUR 0.60). Adjusted EPS decreased mainly due to lower EBITA
and higher net financial expenses.
• Items affecting comparability amounted to EUR -9 million (EUR 2
million).
• Cash flow provided by operating activities totaled EUR 128 million
(EUR -37 million).
January-June 2024: Orders received amounted to EUR 2,333 million
• Orders received decreased 17 percent to EUR 2,333 million (EUR 2,821
million).
- Orders received remained at the previous year's level in the Services
segment and decreased in the Process Technologies and Automation segments.
- Orders received remained at the previous year's level in EMEA and
decreased in China, South America, Asia-Pacific and North America.
• Net sales decreased 7 percent to EUR 2,536 million (EUR 2,738
million).
- Net sales remained at the previous year's level in the Services and
Automation segments and decreased in the Process Technologies segment.
• Comparable EBITA decreased 9 percent to EUR262 million (EUR 286
million).
- Comparable EBITA remained at the previous year's level in the
Automation and Services segments and decreased in the Process Technologies
segment.
• Comparable EBITA margin was 10.3 percent (10.5%).
• EPS was EUR 0.62 (EUR 0.92). Adjusted EPS was EUR 0.84 (EUR 1.11).
• Items affecting comparability amounted to EUR -16 million (EUR 0
million).
• Cash flow provided by operating activities totaled EUR 267 million
(EUR 172 million).
Guidance for 2024
Valmet reiterates its guidance issued on June 13, 2024, in which Valmet
estimates that net sales in 2024 will remain at the previous year's level in
comparison with 2023 (EUR 5,532 million) and Comparable EBITA in 2024 will
increase in comparison with 2023 (EUR 619 million).
Short-term market outlook
Valmet estimates that the short-term market outlook for pulp has increased to
satisfactory (previously weak) and that the short-term market outlook for board
and paper has increased to satisfactory (previously weak/satisfactory, in which
weak referred to customer activity and satisfactory to Valmet's capacity
utilization). Furthermore, Valmet estimates that the short-term market outlook
for energy has decreased to satisfactory (previously good). Valmet reiterates
the good short-term market outlook for services, flow control and automation
systems, and the satisfactory short-term market outlook for tissue.
The short-term market outlook is given for the next six months from the end of
the reported period. It is based on customer activity (50%) and Valmet's
capacity utilization (50%), and the scale is ‘weak-satisfactory-good'.
President and CEO Pasi Laine: Orders received remained at the previous year's
level and amounted close to EUR 1.3 billion in the second quarter
"Valmet's orders received remained at the previous year's level and amounted
close to EUR 1.3 billion in the second quarter. Orders received increased in
Services, remained at the previous year's level in Automation and decreased in
Process Technologies. Orders received in Valmet's stable business totaled close
to EUR 3.1 billion during the last four quarters, representing 69% of Valmet's
orders received. This is a clear change in the company compared to 2014, when
stable business represented 34% of orders received. Valmet's order backlog
amounted to EUR 3.8 billion at the end of the quarter.
Valmet's net sales amounted to EUR 1.3 billion. Net sales remained at the
previous year's level in Services and Automation, and decreased in Process
Technologies. Comparable EBITA margin was 16.9% in Services, 16.5% in Automation
and 3.0% in Process Technologies. Comparable EBITA totaled to EUR 141 million
and amounted to EUR 80 million in Services, EUR 58 million in Automation and EUR
15 million in Process Technologies.
Valmet's short-term market outlook remains good for Services and Automation
segments. Today, we have increased Process Technologies' short-term market
outlook for pulp, and for board and paper to satisfactory. The short-term market
outlook for energy was decreased to satisfactory. The market activity overall
has improved compared to the end of Q1/2024 and we have a good starting point in
terms of market activity going into the second half of the year. During the
quarter, Valmet revised upwards its Comparable EBITA guidance for 2024. In the
new guidance, Valmet estimates that net sales in 2024 will remain at the
previous year's level in comparison with 2023 and Comparable EBITA in 2024 will
increase in comparison with 2023.
I have been working in different positions at Valmet and its predecessors for
several decades and as Valmet's President and CEO since Valmet became an
independent company in 2013. Since 2013, Valmet has created approximately EUR 5
billion in total shareholder value, taking the full dividend for 2023 into
account. I am extremely proud of this and many other important milestones that
we have achieved together as Valmeteers during these years.
As I prepare to step down from my role, I am confident that the foundation we
have built positions Valmet well for continued success in the future. I wish to
extend my deepest thanks to our customers and partners for the good cooperation
we have enjoyed over the years, to our shareholders for your trust, and to all
my colleagues at Valmet for your hard work, dedication and passion."
Chair of the Board Mikael Mäkinen
"This interim review is the last one under Pasi Laine's leadership as the
President and CEO of Valmet. The Board of Directors gratefully thank Pasi for
his contribution in developing Valmet into a strong and unique company. Valmet
has a solid foundation to continue its excellent performance path also in the
future", says Mikael Mäkinen, Chair of the Board, Valmet.
Thomas Hinnerskov to start as the President and CEO of Valmet as of August 12,
2024
On February 19, 2024, Valmet's Board of Directors appointed Thomas Hinnerskov as
the President and CEO of Valmet. He will start in the position on August 12,
2024. Thomas Hinnerskov succeeds Pasi Laine, who will continue as the President
and CEO of Valmet until August 11, 2024.
Key figures1
EUR million, or as Q2/202 Q2/202 Change Q1-Q2/ Q1-Q2/ Change
indicated 4 3
2024 2023
Orders received 1,283 1,268 1% 2,333 2,821 -17%
Order backlog2 3,828 4,414 -13% 3,828 4,414 -13%
Net sales 1,324 1,417 -7% 2,536 2,738 -7%
Comparable EBITA 141 153 -8% 262 286 -9%
% of net sales 10.6% 10.8% 10.3% 10.5%
EBITA 132 155 -15% 245 286 -14%
% of net sales 9.9% 11.0% 9.7% 10.5%
Operating profit 103 136 -24% 189 232 -18%
(EBIT)
% of net sales 7.8% 9.6% 7.5% 8.5%
Profit before 84 129 -35% 157 220 -29%
taxes
Profit for the 58 99 -41% 114 170 -33%
period
Earnings per 0.31 0.54 -42% 0.62 0.92 -33%
share, EUR
Adjusted earnings 0.43 0.60 -28% 0.84 1.11 -24%
per share, EUR
Equity per share, 13.21 12.93 2% 13.21 12.93 2%
EUR2
Cash flow provided 128 -37 267 172 55%
by operating
activities
Cash flow after -14 -71 -81% 95 104 -8%
investing
activities
Comparable return 14% 15%
on capital
employed
(Comparable ROCE)
before taxes (LTM)
Return on capital 13% 15%
employed (ROCE)
before taxes (LTM)
Return on equity 13% 15%
(ROE) (LTM)
Net debt to EBITDA 1.63 0.77
ratio3
Gearing2 45% 23%
Equity to assets 40% 45%
ratio2
1 The calculation of key figures is presented on page 60
2 At end of period
3 Last twelve months' EBITDA
LTM = Last twelve months
Segment key figures
Orders received, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change
2024 2023
Services 497 430 15% 1,024 1,007 2%
Automation 352 340 4% 681 732 -7%
Flow Control 195 211 -7% 389 427 -9%
Automation Systems 157 130 21% 291 304 -4%
Process Technologies 434 497 -13% 628 1,082 -42%
Pulp and Energy 187 277 -32% 243 489 -50%
Paper 247 221 12% 385 593 -35%
Total 1,283 1,268 1% 2,333 2,821 -17%
Net sales, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change
2024 2023
Services 473 457 4% 880 846 4%
Automation 351 338 4% 659 642 3%
Flow Control 201 202 0% 389 389 0%
Automation Systems 150 136 10% 271 252 7%
Process Technologies 500 623 -20% 997 1,251 -20%
Pulp and Energy 221 263 -16% 447 549 -19%
Paper 279 360 -23% 550 702 -22%
Total 1,324 1,417 -7% 2,536 2,738 -7%
Comparable EBITA, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change
2024 2023
Services 80 80 0% 140 142 -2%
Automation 58 61 -5% 109 110 -1%
Process Technologies 15 30 -50% 36 59 -40%
Other -12 -17 -26% -23 -26 -11%
Total 141 153 -8% 262 286 -9%
Comparable EBITA, % of net sales Q2/2024 Q2/2023 Q1-Q2/ Q1-Q2/
2024 2023
Services 16.9% 17.5% 15.9% 16.8%
Automation 16.5% 17.9% 16.5% 17.2%
Process Technologies 3.0% 4.8% 3.6% 4.7%
Total 10.6% 10.8% 10.3% 10.5%
EBITA, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change
2024 2023
Services 78 81 -4% 134 143 -7%
Automation 58 63 -8% 107 107 0%
Process Technologies 9 29 -67% 31 61 -50%
Other -13 -16 -20% -27 -25 6%
Total 132 155 -15% 245 286 -14%
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English as a live webcast at
https://valmet.videosync.fi/q2-2024 on Wednesday, July 24, 2024, at 3:00 p.m.
Finnish time (EEST). President and CEO Pasi Laine and CFO Katri Hokkanen will be
presenting the results.
Recording of the webcast will be available shortly after the event at the same
address.
It is possible to take part in the news conference through a conference call by
registering through the link below:
https://palvelu.flik.fi/teleconference/?id=50048301
After the registration you will be provided phone numbers and a conference ID to
access the conference. If you wish to ask a question during the conference,
please dial *5 to enter the question queue.
All questions should be presented in English.
The event can also be followed on social media platform X at www.x.com/valmetir.
Further information, please contact:
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
VALMET
Katri Hokkanen
CFO
Pekka Rouhiainen
VP, Investor Relations
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.valmet.com
Valmet is a leading global developer and supplier of process technologies,
automation and services for the pulp, paper and energy industries. With our
automation systems and flow control solutions we serve an even wider base of
process industries. Our more than 19,000 professionals around the world work
close to our customers and are committed to moving our customers' performance
forward - every day.
The company has over 220 years of industrial history and a strong track record
in continuous improvement and renewal. Valmet's net sales in 2023 were
approximately EUR 5.5 billion.
Valmet's shares are listed on the Nasdaq Helsinki and the head office is in
Espoo, Finland.
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