Valmet's Financial Statements Review January 1 - December 31, 2021: Orders received increased to EUR 4.7 billion and Comparable EBITA to EUR 429 million in 2021
HELSINKI, Feb. 3, 2022 /PRNewswire/ -- Valmet's Financial Statements Review January 1 – December 31, 2021: Orders received increased to EUR 4.7 billion and Comparable EBITA to EUR 429 million in 2021
Valmet Oyj's stock exchange release on February 3, 2022 at 12:30 p.m. EET
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year.
October–December 2021: Comparable EBITA margin was 12.2 percent
- Orders received increased 16 percent to EUR 1,093 million (EUR 940 million).
- Orders received increased in the Paper, Services and Automation business lines, and decreased in the Pulp and Energy business line.
- Orders received increased in South America and EMEA (Europe, Middle East and Africa), and decreased in China, Asia-Pacific and North America.
- Net sales remained at the previous year's level and amounted to EUR 1,199 million (EUR 1,167 million).
- Net sales increased in the Automation, and Pulp and Energy business lines, and remained at the previous year's level in the Services and Paper business lines.
- Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 147 million (EUR 146 million), and the corresponding Comparable EBITA margin was 12.2 percent (12.5%).
- Earnings per share were EUR 0.67 (EUR 0.67).
- Items affecting comparability amounted to EUR 8 million (EUR 0 million).
- Cash flow provided by operating activities was EUR 96 million (EUR 114 million).
January–December 2021: Orders received increased 30 percent and Comparable EBITA margin reached the target range at 10.9 percent
- Orders received increased 30 percent to EUR 4,740 million (EUR 3,653 million).
- Orders received increased in all business lines.
- Orders received increased in South America, Asia-Pacific, EMEA and North America and decreased in China.
- Net sales increased 5 percent to EUR 3,935 million (EUR 3,740 million).
- Net sales increased in the Paper business line, and remained at the previous year's level in the Pulp and Energy, Services and Automation business lines.
- Comparable earnings before interest, taxes and amortization (Comparable EBITA) increased and were EUR 429 million (EUR 365 million), and the corresponding Comparable EBITA margin was 10.9 percent (9.8%).
- Comparable EBITA increased due to higher gross profit.
- Earnings per share were EUR 1.98 (EUR 1.54).
- Items affecting comparability amounted to EUR 19 million (EUR -10 million).
- Cash flow provided by operating activities was EUR 482 million (EUR 532 million).
Dividend proposal
The Board of Directors proposes for the Annual General Meeting that a dividend of EUR 1.20 per share be paid. The proposed dividend equals 61 percent of the net result.
Guidance for 2022
Valmet estimates that net sales in 2022 will increase in comparison with 2021 (EUR 3,935 million) and Comparable EBITA in 2022 will increase in comparison with 2021 (EUR 429 million).
Short-term market outlook
Valmet estimates that the short-term market outlook for energy has improved to satisfactory (previously weak). Valmet reiterates the good short-term market outlook for services, automation, pulp, and board and paper, and the satisfactory 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 increased to EUR 4.7 billion and Comparable EBITA increased for the eighth consecutive year in 2021
"Valmet's orders received increased to EUR 4.7 billion in 2021. Orders received increased in all business lines. The very active market demand for our board making technologies continued. Furthermore, we made several important pulp technology delivery agreements, for example in Finland, Brazil and China. The market for our services and automation solutions recovered compared to last year and both businesses returned to growth track.
Our net sales amounted to EUR 3.9 billion in 2021. Net sales increased in the capital business and remained at previous year's level in the stable business, meaning the Services and Automation business lines. Comparable EBITA increased 18 percent to EUR 429 million, and was 10.9 percent of net sales.
Valmet and Neles announced in July 2021 the plan to combine the two companies through a merger. The Extraordinary General Meetings of both companies approved the merger in September 2021. The completion of the merger is pending the needed regulatory approvals and is targeted to occur on April 1, 2022. Until the completion of the merger Valmet and Neles will carry out their respective businesses as separate and independent companies."
Merger with Neles
On July 2, 2021, Valmet announced that the Boards of Directors of Valmet Oyj and Neles Corporation have signed a combination agreement and a merger plan to combine the two companies through a merger. Both companies held an Extraordinary General Meeting on September 22, 2021, and both EGMs approved the merger. The completion of the merger was expected to occur on January 1, 2022, subject to all conditions for completion being fulfilled. On November 5, 2021, Valmet announced that due to the regulatory review processes taking longer than previously estimated, the completion of the merger was targeted to occur on or before April 1, 2022. As the completion has not yet taken place, the next possible date under the combination agreement for the completion to take place is April 1, 2022. The planned closing date may be delayed due to the regulatory processes ongoing. Should the closing be delayed from April 1, 2022, Valmet will issue a stock exchange release on the matter and the merger prospectus will be supplemented once there is more clarity on the timetable of the regulatory processes. Until the completion of the merger Valmet and Neles will carry out their respective businesses as separate and independent companies.
Key figures1
EUR million
|
Q4/2021
|
Q4/2020
|
Change
|
2021
|
2020
|
Change
|
Orders received
|
1,093
|
940
|
16 %
|
4,740
|
3,653
|
30 %
|
Order backlog2
|
4,096
|
3,257
|
26 %
|
4,096
|
3,257
|
26 %
|
Net sales
|
1,199
|
1,167
|
3 %
|
3,935
|
3,740
|
5 %
|
Comparable earnings before interest, taxes and amortization (Comparable EBITA)
|
147
|
146
|
0 %
|
429
|
365
|
18 %
|
% of net sales
|
12.2 %
|
12.5 %
|
10.9 %
|
9.8 %
|
||
Earnings before interest, taxes and amortization (EBITA)
|
155
|
147
|
6 %
|
448
|
355
|
26 %
|
% of net sales
|
12.9 %
|
12.6 %
|
11.4 %
|
9.5 %
|
||
Operating profit (EBIT)
|
143
|
135
|
6 %
|
399
|
319
|
25 %
|
% of net sales
|
11.9 %
|
11.6%
|
10.1 %
|
8.5 %
|
||
Profit before taxes
|
142
|
133
|
7 %
|
395
|
307
|
29 %
|
Profit for the period
|
100
|
100
|
-1 %
|
296
|
231
|
28 %
|
Earnings per share, EUR
|
0.67
|
0.67
|
-1 %
|
1.98
|
1.54
|
28 %
|
Earnings per share, diluted, EUR
|
0.67
|
0.67
|
-1 %
|
1.98
|
1.54
|
28 %
|
Equity per share, EUR2
|
8.87
|
7.60
|
17 %
|
8.87
|
7.60
|
17 %
|
Cash flow provided by operating activities
|
96
|
114
|
-15 %
|
482
|
532
|
-9 %
|
Cash flow after investments
|
71
|
40
|
77 %
|
382
|
-60
|
|
Return on equity (ROE) (annualized)
|
24 %
|
21 %
|
||||
Return on capital employed (ROCE) before taxes (annualized)
|
24 %
|
22 %
|
||||
Equity to assets ratio2
|
42 %
|
39 %
|
||||
Gearing2
|
-7 %
|
13 %
|
1 The calculation of key figures is presented on page 54.
2 At end of period.
Orders received, EUR million
|
Q4/2021
|
Q4/2020
|
Change
|
2021
|
2020
|
Change
|
Services
|
388
|
342
|
13%
|
1,488
|
1,356
|
10%
|
Automation
|
104
|
96
|
8%
|
381
|
334
|
14%
|
Pulp and Energy
|
240
|
291
|
-17%
|
1,178
|
934
|
26%
|
Paper
|
360
|
211
|
71%
|
1,694
|
1,029
|
65%
|
Total
|
1,093
|
940
|
16%
|
4,740
|
3,653
|
30%
|
Order backlog, EUR million
|
As at Dec 31,
|
As at Dec 31,
|
Change
|
As at Sep 30,2021
|
Total
|
4,096
|
3,257
|
26%
|
4,199
|
Net sales, EUR million
|
Q4/2021
|
Q4/2020
|
Change
|
2021
|
2020
|
Change
|
Services
|
415
|
402
|
3%
|
1,366
|
1,327
|
3%
|
Automation
|
132
|
117
|
14%
|
339
|
335
|
1%
|
Pulp and Energy
|
307
|
286
|
7%
|
1,036
|
1,003
|
3%
|
Paper
|
345
|
362
|
-5%
|
1,195
|
1,076
|
11%
|
Total
|
1,199
|
1,167
|
3%
|
3,935
|
3,740
|
5%
|
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/2021-q4 on Thursday, February 3, 2022, at 2:00 p.m. Finnish time (EET). President and CEO Pasi Laine and CFO Kari Saarinen 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. Conference call participants are requested to dial in at least five minutes prior to the start of the conference at
Finland +358 981710310
United Kingdom +44 3333000804
France +33 170750711
Germany +49 6913803430
Norway +47 23500243
Sweden +46 856642651
United States +1 6319131422
The participants will be asked to provide the conference PIN: 36008682#
All questions should be presented in English.
The event can also be followed on Twitter at www.twitter.com/valmetir.
Important notice
The merger of Valmet and Neles Corporation ("Neles") and the merger consideration securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act"), and may not be offered, sold or delivered within or into the United States, except pursuant to an applicable exemption of, or in a transaction not subject to, the U.S. Securities Act.
The information in this report is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction and it does not constitute an offer of or an invitation by or on behalf of, Valmet, or any other person, to purchase any securities.
Further information, please contact:
Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, CFO, Valmet, tel. +358 50 317 1830
VALMET
Kari Saarinen
CFO
Pekka Rouhiainen
Director, Investor Relations
Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.
Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.
Valmet's net sales in 2021 were approximately EUR 3.9 billion. Our more than 14,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward – every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.
Read more www.valmet.com, www.twitter.com/valmetglobal
Follow Valmet IR on Twitter www.twitter.com/valmetir
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
Valmet's Financial Statements Review 2021 |
Share this article