Nilfisk, a number one world supplier {of professional} cleansing services, reported its Q1 2023 outcomes at the moment. Complete income got here to 256.4 mEUR for Q1 2023 and natural progress for the entire enterprise got here to -2.0% in Q1 2023, in comparison with progress of 9.3% in Q1 2022.
The discount in income was 7.8 mEUR and got here from decrease income in Shopper and the Non-public Label a part of Skilled, which in complete declined by 13.4 mEUR. This was partly offset by robust progress in Service and Specialty and average progress within the branded a part of Skilled.
Gross margin reached 40.2% within the quarter, up from 40.0% in Q1 2022. Free money movement improved considerably by 35.8 mEUR from Q1 2022 and got here to 13.1 mEUR within the quarter. Investments into Enterprise Plan 2026 continued in Q1 2023.
Commenting on the outcomes, Torsten Türling, CEO of Nilfisk mentioned:
“For the primary quarter of 2023, Service and Specialty, carried out nicely and delivered robust natural progress, benefiting from our continued strategic focus. The branded a part of our Skilled enterprise additionally grew. However total, the quarter was impacted negatively by the implications of the financial slowdown, notably in Europe, and to a lesser extent in North America, whereas APAC carried out very nicely.”
CEO Torsten Türling, continued:
“We proceed to see a market slowdown in Europe, particularly within the Shopper Enterprise and the Non-public label a part of the Skilled Enterprise. Progress inside the branded a part of Skilled in Americas and EMEA remained muted resulting from provide bottlenecks inside our vegetation in Americas. The demand for our Floorcare and VAC enterprise remained strong throughout areas. Consequently, the order e-book remained elevated and was on the identical stage as in Q1 2022. Diligent pricing actions continued to positively impression profitability. Consequently, the gross margin got here to 40.2%, which is the very best of our final 5 quarters.”
The marginally decrease income together with greater overhead prices led to a rise within the overhead value ratio to 35.1% in Q1 2023 from 31.5% in Q1 2022. Consequently, EBITDA margin earlier than particular gadgets got here to 11.0% Q1 2023 from 14.2% in Q1 2022.
The overhead value ratio is predicted to say no throughout 2023, as Enterprise Plan 2026 value effectivity measures start to take impact. The underlying structural effectivity measures are being initiated. The intention is to allow robust long-term efficiency whereas harvesting substantial overhead prices financial savings.
Consequently, overhead value reductions are focused of round 10 to 12 mEUR for the remaining a part of 2023. The complete yr results of the focused value discount are anticipated to be round 15 to 18 mEUR. Particular gadgets in 2023 are anticipated to be within the vary of 10 to 12 mEUR.
Q1 2023 outcomes
• For the entire enterprise, income in Q1 2023 got here to 256.4 mEUR, akin to destructive natural progress of two.0%.
• Income from Service, Specialty and the branded a part of Skilled grew however couldn’t compensate for the decline in Shopper and the Non-public label a part of Skilled. Exit from Russia and FX headwinds additionally lowered income.
• The gross margin reached 40.2% in Q1 2023, in comparison with 40.0% in Q1 2022. The margin was positively impacted by value will increase, tailor-made to mitigate exterior value inflation on uncooked supplies and labor fee will increase.
• EBITDA earlier than particular gadgets decreased by 9.5 mEUR in Q1 2023 in comparison with Q1 2022 and got here to twenty-eight.1 mEUR, akin to an EBITDA margin earlier than particular gadgets of 11.0%, in comparison with 14.2% in Q1 2022.
• Overhead prices in Q1 2023 grew by 6.8 mEUR in comparison with Q1 2022, coming to 89.9 mEUR. The rise was resulting from inflationary strain together with advantage will increase, freight prices, and investments in keeping with Enterprise Plan 2026.
• Complete R&D spend in Q1 2023 elevated by 0.9 mEUR in comparison with Q1 2022 and got here to 7.9 mEUR, corresponding to three.1% of income in comparison with 2.6% in Q1 2022.
• Particular gadgets amounted to 2.2 mEUR in comparison with 4.8 mEUR in Q1 2022. The particular gadgets have been primarily authorized and advisory prices incurred concerning strategic tasks associated to the continued execution of Enterprise Plan 2026.
• Free money movement was 13.1 mEUR, a rise of 35.8 mEUR in comparison with Q1 2022 pushed by decrease working capital, together with results from factoring, solely to a smaller extent offset by elevated investments and better monetary bills within the quarter.
• Internet interest-bearing debt was lowered by 6.8 mEUR versus year-end 2022 from the lower in working capital and stood at 317.9 mEUR. In comparison with Q1 2022, internet interest-bearing debt declined by 54.5 mEUR.
• The monetary gearing on the finish of Q1 2023 was 2.4 versus 2.6 a yr in the past.
Key figures
| mEUR | Q1 2023 | Q1 2022 |
| Income | 256.4 | 264.2 |
| Natural progress | -2.0% | 9.3% |
| Gross margin | 40.2% | 40.0% |
| Overhead value ratio | 35.1% | 31.5% |
| EBITDA earlier than particular gadgets | 28.1 | 37.6 |
| EBITDA margin earlier than particular gadgets | 11.0% | 14.2% |
| CAPEX ratio | 2.6% | 2.0% |
| Free money movement | 13.1 | -22.7 |
| Monetary gearing | 2.4 | 2.6 |
Outlook for 2023
We verify the full-year outlook as communicated within the Annual Report 2022. We anticipate that the present macroeconomic uncertainty will proceed into 2023, resulting in some quantity decline, notably within the European market.
The vary for natural income progress is predicted to be -2% to 2%. That is supported by full-year results of pricing actions accomplished in 2022 and by a considerable order e-book at end-2022. Adverse natural progress for the complete yr of 2023 would require a worsening of present buying and selling circumstances.
The vary for the EBITDA margin earlier than particular gadgets is predicted to be 12% to 14%.
Convention name
Nilfisk will host a convention name at the moment at 10:00 am CET. Presentation supplies might be accessible on the web site previous to the convention name.
Please pre-register no later than 9:55 for utilizing the hyperlinks beneath.
Webcast: https://getvisualtv.internet/stream/?nilfisk-q1-2023-ws7v6d7
Telephone convention: https://companies.choruscall.it/DiamondPassRegistration/register?confirmationNumber=1608899&linkSecurityString=22f77d3de
The video might be accessible for viewing after the occasion together with the presentation from the day on: https://investor.nilfisk.com/
Contacts
Buyers: Elisabeth Klintholm, Head of Investor Relations T: +45 2555 6337
Media: Nynne Jespersen Lee, Head of Company Communications T: +45 4231 0007
Ahead-looking statements
Statements made concerning the future on this report mirror the Government Administration Board’s present expectations with regard to future occasions and monetary outcomes. Statements concerning the future are by their nature topic to uncertainty, and the outcomes achieved might due to this fact differ from expectations, resulting from financial and monetary market developments, legislative and regulatory modifications in markets that the Nilfisk Group operates in, improvement in product demand, aggressive circumstances, vitality and uncooked materials costs, and different threat elements. Nilfisk Holding A/S disclaims any legal responsibility to replace or modify statements concerning the future or the potential causes for variations between precise and anticipated outcomes besides the place required by laws or different laws.
- 13 Announcement_17052023_Q1 Interim Report 2023
- 2023-Q1 Interim Report
