Interim report and Year-End report 2021

2022-02-02
1 January - 31 December 2021


Fourth quarter 2021

  • Order intake increased by 23% to SEK 6,293 million (5,104). For comparable units, it was an increase of 15%.
  • Net sales increased by 14% to SEK 5,726 million (5,028). For comparable units, it was an increase of 6%.
  • EBITA increased by 17% to SEK 836 million (712), corresponding to an EBITA margin of 14.6% (14.2%).
  • Profit for the quarter rose 16% to SEK 524 million (453), and earnings per share were SEK 1.44 (1.24).
  • Cash flow from operating activities amounted to SEK 901 million (792).

1 January – 31 December 2021

  • Order intake increased by 20% to SEK 23,474 million (19,595). For comparable units, it was an increase of 15%.
  • Net sales increased by 13% to SEK 21,715 million (19,217). For comparable units, it was an increase of 8%.
  • EBITA increased by 22% to SEK 3,202 million (2,615), corresponding to an EBITA margin of 14.7% (13.6%).
  • Profit for the year increased by 26% to SEK 2,097 million (1,669) and earnings per share amounted to SEK 5.76 (4.60).
  • Cash flow from operating activities amounted to SEK 2,853 million (2,780).
  • The Board of Directors proposes a dividend of SEK 2.30 (1.80) per share, corresponding to 40% (39%) of earnings per share.

CEO's message 

After a strong fourth quarter, Indutrade can once again summarise the year as yet another success. Thanks to the impressive efforts of our companies and employees, sales for the full year increased to SEK 21.7 billion and the EBITA margin strengthened to a record-high 14.7%.

Fourth quarter

Demand during the fourth quarter remained strong. Order intake rose by 23%, of which 15% was organic and amounted to SEK 6.3 billion. For all of the major customer segments and most of the Group’s companies there was positive development. Organic order growth was good for all business areas, with the strongest performance in the Measurement & Sensor Technology and Flow Technology business areas. Order intake was 10% higher than sales.

Sales increased by 14% and amounted to SEK 5.7 billion. Organically, it was an increase of 6%, with growth in seven of the eight business areas. The DACH and Fluids & Mechanical Solutions business areas reported the strongest performance, with improvements in most of the companies. Sales for the Flow Technology business area remained at a high level. Organically however, sales were unchanged due to the strong comparison figures of the corresponding period last year.

Profitability remained good during the fourth quarter and EBITA increased by 17% to SEK 836 million. The EBITA margin improved to 14.6% (14.2%), which is record-high for a fourth quarter. The improvement was primarily driven by good organic growth, a robust increase in gross margin and good profitability in newly acquired companies. The margins increased in six of the eight business areas, with the strongest growth in the DACH and Fluids & Mechanical Solutions business areas.

Many companies were affected by disruptions in supply chains, such as long delivery times, component shortage and price increases, all of which somewhat dampened sales performance. However, thanks to our structure, with many small and medium-sized entrepreneurial-led companies in a decentralised environment, it was possible to make quick decisions that dampened the overall impact quite substantially.

Cash flow improved during the quarter and amounted to SEK 901 (792) million, which is the highest level ever. The improvement is primarily attributable to a higher operating profit. Operating working capital was slightly higher than the corresponding period last year, but working capital efficiency continued to improve. The Group's financial position remains strong.

Acquisitions

During the fourth quarter, seven acquisitions were completed. The Danish company, Alflow, offers a wide range of flow components to the pharmaceutical, food and industrial markets. In the Czech Republic, SILROC was acquired. It is a manufacturing company that designs and manufactures customised parts and components from liquid silicone rubber for many different customer segments, ranging from medical technology and pharmaceutical production to industrial markets.

Italprotec, our first acquisition in Italy, offers industrial products for handling critical fluids within the pharma, chemical, food and other industries. The Finnish company Dewaco develops and manufactures equipment and solutions for sludge thickening, sludge removal, and dewatering to wastewater treatment applications. In the Netherlands, Klay Instruments was acquired. It develops and manufactures customised instruments for measuring primarily pressure and level, but also flow and temperature. Svenssons i Tenhult is a Swedish technical trading company that offers lock systems, door automation and fittings to OEM customers on the Swedish market. In the UK, NW Metal Sections was acquired, a leading manufacturer of steel reinforcing sections for the uPVC window and door market in the UK.

For the full year 2021, a total of 17 companies were acquired, with combined annual sales of SEK 1.6 billion. All of the acquired companies hold leading positions in their respective niches and they have good long-term growth potential. Our acquisition strategy has developed over time, is solid and historically successful. Despite rising spread of infection and tighter restrictions in many countries, we are able to keep up a good pace in our acquisition processes and we assess our future acquisition opportunities as good.

Outlook

The strong demand continued during the fourth quarter and order backlog continued to grow. The order backlog is at an historically high level, which is a good basis for a positive development in the year ahead. Our assessment is that favourable market conditions will persist during the next quarter but disruptions in supply chains will be having a negative impact on deliveries and invoicing still for some time to come.

Indutrade’s business model and strategy remain strong after yet another successful year. We are well-positioned for continued sustainable profitable growth and I look forward with confidence to the year ahead!

Bo Annvik, President and CEO

Note
The information in this report is such that Indutrade AB is obligated to make public in accordance with the EU Market Abuse Act. The information was submitted for publication by the agency of the following contact persons on 2 February 2022 at 7.30 CET.

Further information
For further information, please contact:
Bo Annvik, President and CEO, tel.: +46 8 703 03 00,
Patrik Johnson, CFO, tel.: +46 70 397 50 30

This report will be commented upon as follows:
A webcast of the report will be presented on 2 February at 9.30 CET via the following link:

https://tv.streamfabriken.com/indutrade-q4-2021

To participate in the conference call and  to ask questions, please call:
SE: +46 8 566 427 06
UK: +44 3333 00 90 32
US: +1 6 467 224 956

About Indutrade

Indutrade is an international technology and industrial business group that today consists of more than 200 companies in some 30 countries, mainly in Europe. In a decentralised way, we aim to provide sustainable profitable growth by developing and acquiring successful companies managed by passionate entrepreneurs. Our companies develop, manufacture, and sell components, systems and services with significant technical content in selected niches. Our value-based culture, where people make the difference, has been the foundation of our success since the start in 1978. Indutrade's net sales totalled SEK 21.7 billion in 2021, and the share is listed on Nasdaq Stockholm in Sweden.

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