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2022-08-11 07:15:00 CEST 2022-08-11 07:15:07 CEST REGULATED INFORMATION Purmo Group Oyj - Half Year financial reportPurmo Group's Half-year Report 1 January-30 June 2022: Solid earnings and strategy execution on trackPurmo Group Plc, stock exchange release, 11 August 2022 at 08:15EEST April-June 2022
January-June 2022
Financial guidance for 2022 Key figures and financial performance
1)Adjusted for currency effects and impacts from acquisitions and divestments. Unless otherwise stated, the comparison figures in parentheses refer to the corresponding period in 2021. The full year 2021 non-adjusted key figures are affected by a one-time, non-cash IFRS 2 merger impact of EUR 52.3 million as a result of the merger of Virala Acquisition Company Plc and Purmo Group Ltd on 31 December 2021, as well as EUR 17.9 million other items affecting comparability. CEO’s review The European construction market started to show signs of softening in both the new-build and renovation markets. A notable exception was Italy, an important market for Purmo Group, where we benefited from a strong trend to improve energy efficiency of buildings. Energy efficiency of buildings is at the heart of what we do and a key growth driver for Purmo Group. Demand for electrical emitters and low-temperature convectors increased and the transition to solar power, heat pumps and underfloor heating continued. These trends were further supported by government incentives encouraging de-carbonisation through improved energy efficiency of buildings and are good examples that show how sustainability affects our industry. Rising energy prices accelerate the green transition, which supports our strategic direction. Purmo Group showed resilience in an exceptional market environment and was able to deliver solid earnings in the second quarter. Compared to 2019, Purmo Group's adjusted EBITDA has increased by over 60 per cent thanks to revenue growth, structural cost improvements, and a more attractive sales mix. Our strategic transition to a solutions business, our continued cost improvements, and our active focus on M&A provide a great foundation for realising continued adjusted EBITDA growth and to meet our mid- to long term financial targets. Continued strength in the ICS division The Radiators division’s net sales increased by 6 per cent. Sales price increases were implemented to mitigate significant cost inflation. These more than offset lower sales volumes. The adjusted EBITDA margin was 12.1 per cent, slightly below last year’s level. The margin was impacted by reduced operational efficiencies caused by lower production volumes. On 4 July, Barry Lynch was appointed new Senior Vice President of the Radiators division and member of the Management Team. We welcome Barry and thank Tomasz Tarabura for his strong contribution and integral role in developing Purmo Group and the Radiators division. Solid progress in strategy execution In smart products, we launched a new version of our ULOW emitter, which offers fast reaction time and low energy consumption. We also launched Unisenza, our own electronic control system for underfloor heating and cooling, which provides ease of installation for installers and an intuitive digital platform for comfort control to end-users. We continued to improve operational efficiency. The completed plant closure in Ireland will bring consolidation synergies when relocating operations to our existing sites in Italy and Sweden. The implementation of Purmo Group Operating System (PGOS), based on LEAN manufacturing principles, have delivered further benefits through our pilot-implementations in Hungary, Poland and Germany. We are actively assessing various M&A opportunities to support the realisation of our strategic objectives. Our process for exiting Russia is also proceeding according to plan. Financial guidance for 2022 remains unchanged The softening construction market and increased uncertainty in the macroeconomic outlook is offset by potential upside from successfully mitigating raw material price inflation. On balance, this gives us confidence to keep the guidance unchanged. We are passionate about sustainable indoor climate comfort solutions. We want to thank our people, partners and customers for continuing to develop our business in a positive and exciting direction. News conference and webcast for analysts, investors and media CEO John Peter Leesi and CFO Erik Hedin will present the results to analysts, investors and media representatives in a live webcast at https://purmogroup.videosync.fi/half-year-report-2022/ on Thursday 11 August 2022 at 10:00 Finnish time (EEST). The event, including the Q&A session, will be held in English. The webcast can also be attended via teleconference. To participate in the teleconference, participants are asked to dial in at least 5 minutes before the start of the event using one of the following telephone numbers and teleconference pin: Finland Toll: +358 (0)9 7479 0572 Sweden Toll: +46 (0)8 5664 2754 United Kingdom Toll: +44 (0)330 165 3641 United States Toll: +1 646-828-8082 Teleconference PIN: 996752# A recording of the event will be available on https://investors.purmogroup.com/ir-material/ shortly after the event has ended. Purmo Group Plc Further information: Distribution: Purmo Group Plc is a leader in sustainable indoor climate comfort solutions in Europe. We provide complete heating and cooling solutions to residential and non-residential buildings, including radiators, towel warmers, underfloor heating, convectors, valves and controls. Our mission is to be the global leader in sustainable indoor climate comfort solutions. Our approximately 3,500 employees operate through 46 locations in 21 countries, manufacturing and distributing top quality products and solutions to customers in more than 100 countries globally. Purmo Group Plc’s shares are listed on Nasdaq Helsinki (symbol: PURMO). www.purmogroup.com |
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