QUARTER 2
INTERIM REPORT JANUARY - JUNE 2021
QUARTER 2, 2021
- Net sales amounted to 269.6 MSEK (196.6) which is a growth of 37.2 % (-10.5).
- Operating profit before amortization of goodwill (EBITA) reached 41.4 MSEK (-41.9) with a margin of 15.3 % (-21.3)
- Operating profit after amortization of goodwill (EBIT) amounted to 16.8 MSEK (-62.1 ) with a margin of 6.2 % ( -31.6). Amortizations of goodwill had an impact on EBIT with -24.6 MSEK (-20.3).
- Earnings per share amounted to 0.6 SEK (-6.0)
- Cash flow from operating activities amounted to 28.8 MSEK (36.3)
FIRST SIX MONTHS, 2021
- Net sales amounted to 502.7 MSEK (475.7) which is an increase of 5.7 % (10.9).
- Operating profit before amortization of goodwill (EBITA) reached 67.8 MSEK (-8.9) with a margin of 13.5 % (-1.9).
- Operating profit after amortization of goodwill (EBIT) reached 19.5 MSEK (-49.3) with a margin of 3.9 % (-10.4). Amortizations of goodwill had an impact on EBIT with 48.3 MSEK (-40.3).
- Earnings per share amounted to 0.24 SEK (-5.7).
- Cash flow from operating activities after change in working capital amounted to 48.4 MSEK (21.4).
KEY RATIOS
apr-jun | apr-jun | jan-jun | jan-jun | jan-dec | |
2021 | 2020 | 2021 | 2020 | 2020 | |
Net sales (TSEK) | 269 643 | 196 590 | 502 723 | 475 701 | 895 860 |
Sales growth (%) | 37.2 | -10.5 | 5.7 | 10.9 | -13.7 |
EBITDA (TSEK) | 44 565 | -33 658 | 74 329 | 3 143 | 73 455 |
EBITA (TSEK) | 41 385 | -41 856 | 67 783 | -8 931 | 49 543 |
EBITA (%) | 15.3 | -21.3 | 13.5 | -1.9 | 5.5 |
Amortization of goodwill (TSEK) | -24 556 | -20 259 | -48 275 | -40 334 | -80 728 |
Operating profit EBIT (TSEK) | 16 829 | -62 115 | 19 507 | -49 265 | -31 184 |
Operating margin EBIT (%) | 6.2 | -31.6 | 3.9 | -10.4 | -3.5 |
Cash flow from operating | |||||
activities (TSEK) | 28 769 | 36 316 | 48 414 | 21 435 | 54 447 |
Debt/equity ratio (%) | 28.5 | 29.0 | 28.5 | 29.0 | 30.5 |
Net debt (TSEK) | 191 915 | 169 035 | 191 915 | 169 035 | 129 903 |
Earnings per share (SEK) | 0.6 | -6.0 | 0.24 | -5.7 | -4.9 |
Equity per share (SEK) | 30.3 | 30.8 | 30.3 | 30.8 | 30.4 |
Number of shares, end of period | 11 320 968 | 11 320 968 | 11 320 968 | 11 320 968 | 11 320 968 |
2 | ABSOLENT AIR CARE GROUP 2021 |
COMMENTS BY THE CEO AXEL BERNTSSON
The second quarter has shown the same trend as we have seen since last autumn where order intake continues to exceed sales. We have increased production capacity compared to the first quarter and have been able to deliver sales of 270 MSEK (197), which corresponds to a growth rate of 37% compared to the corresponding period last year and 16% compared to the first quarter.
Operating profit after depreciation (EBITA) continues to increase and amounted to 41.4 MSEK (-41.8) in the second quarter corresponding to an operating margin after depreciation of 15.3% (-21.3%). The corresponding margin for the first quarter was 11.3%. Our cost reduction program proceeds according to plan and delivers the expected margin improvement.
In order to meet the growing demand, we continued to increase production capacity in several factories during the quarter. However, during the quarter we have seen delivery constraints at our suppliers, which in the short term reduces our total delivery capacity. In some material categories, such as sheet metal and electronics, prices have continued to rise. The increases are expected, as announced after the last quarter, to be absorbed by price adjustments to customers with some delayed effect.
The second quarter has been particularly strong in the industrial segment, while commercial kitchens has been neutral in development. Order intake has continued to be good in all regions as well as the inflow of new business opportunities and we look with confidence at how the business will develop.
Axel Berntsson, MD and CEO
Gothenburg, August 2021
3 | ABSOLENT AIR CARE GROUP 2021 |
GROUP JANUARY TO JUNE 2021
NET SALES
The net sales for the Group amounted to 502.7 MSEK (475.7), which corresponds to a change of 5.7 % (-13.7).
OPERATING PROFIT
Operating profit (EBIT) amounted to 19.5 MSEK (-49.3), which corresponds to an operating margin (EBIT) of 3.9 % (-10.4). The parent company and the Group do not apply IFRS/IAS 36. Thereby, impairment test of the goodwill is not performed. The Group amortize the goodwill linear over the estimated useful life, which is five to ten years. The amortizations of the goodwill do not affect the taxable profit. EBITA amounted to 67.8 MSEK (-8.9).The currency rates impacted the operating profit (EBIT) positively with 0.3 MSEK(2.1) for the period. The financial items were positively impacted with 1.2 MSEK (-2.4) by the currency rates. The impact is related to the credit facility in foreign currency. After taxes and financial items of -16.8 MSEK (-15.4) the result for the period was 2.7 MSEK (-64.7). Earnings per share amounted to 0.24 SEK (-5.7)
INVESTMENTS
The Group invested 8.1 MSEK (10.1) for the period January to June mainly in software, machinery, and inventory in current operations. Additional earn out for Interzon of 35.5 MSEK (0) has been paid, in the period. In January 2021, the Group acquired the commercial kitchen ventilation company Tessu Systems B.V. in the Netherlands for 5.3 MEUR on a cash and debt-free basis with an opportunity for an additional earn out conditional on Tessu's performance in 2021 and 2022. In January 2021 Absolent Group divested Gallito Limited in the UK.
CASH FLOW
Cash flow from the operating activities before changes in working capital amounted to 48.8 MSEK (37.7). Cash flow after changes in working capital amounted to 48.4 MSEK (21.4).
FINANCIAL POSITION
Interest bearing liabilities amounted to 583.2 MSEK at the end of the period. At the beginning of the period the liabilities amounted to 580 MSEK. Net debt of the Group was 191.9 MSEK by the end of June compared to 129.9 MSEK in the beginning of the period. The debt/equity ratio was at the end of the period 28.5% (30.5). The parent company's credit facility amounts 600 MSEK and expires during 2024.
4
NET SALES PER REGION, JAN TO JUN
EUROPE45%
UK & I 20%
APAC 12%
AMERICAS
23%
NET SALES
MSEK | ||||||||
300 | 1 | |||||||
250 | 0,8 | |||||||
200 | 0,6 | |||||||
150 | ||||||||
100 | 0,4 | |||||||
50 | 0,2 | |||||||
0 | 0 | |||||||
Q2 | Q3 | Q4 | Q1 | Q2 | ||||
2020 | 2020 | 2020 | 2021 | 2021 | ||||
EBITA AND EBITA MARGIN
MSEK | ||||||
60 | 30% | |||||
40 | 20% | |||||
20 | 10% | |||||
0 | 0% | |||||
Q2 | Q3 | Q4 | Q1 | Q2 | ||
-20 | -10% | |||||
-40 | 2020 | 2020 | 2020 | 2021 | 2021 | -20% |
-60 | -30% |
CASH. FLOW FROM OPERATING ACTIVITES
MSEK | ||||||
40 | 100% | |||||
35 | 80% | |||||
30 | ||||||
25 | 60% | |||||
20 | ||||||
15 | 40% | |||||
10 | 20% | |||||
5 | ||||||
0 | 0% | |||||
Q2 | Q3 | Q4 | Q1 | Q2 | ||
2020 | 2020 | 2020 | 2021 | 2021 |
ABSOLENT AIR CARE GROUP 2021
OTHER INFORMATION
RISKS AND UNCERTAINTIES
The Group and the parent company are exposed to different risks in their daily operations such as business risk, competitor risk, distributor risk, supplier risk and acquisition risk. These risks are described in detail in the Annual Report of Absolent Air Care Group for 2020 (available on www.absolentgroup.com). The risk profile remains since the Annual Report of 2020 was published. However, the spread of Covid-19 has created uncertainties in the market that are difficult to predict.
FINANCIAL IMPACT OF COVID 19
The Group has received governmental grants of approximately 2.4 MSEK for the period January to June 2021. The impact of Covid-19 remains, and the Group management follows the development closely and evaluates both the operational and financial impact and takes proactive measures to limit the effects.
ACCOUNTING PRINCIPLES
The Group and the parent company applies the Swedish Annual Accounts Act (1995:1554) and General recommendation BFNAR 2012:1 Annual Accounts and Consolidated Financial Statements (K3) of the Swedish Accounting Standard Board. The accounting principles applied are the same as those described in the disclosures of the annual report for 2020 (available on www.absolentgroup.com). The group have changed the presentation of deferred tax assets and liabilities, and the comparison figures have been adjusted accordingly. Government grant is reported as other operating income.
No new accounting principles for 2021 has been applied by the Group.
CONTACT INFORMATION
Axel Berntsson, Managing Director and CEO Absolent Air Care Group AB (publ)
Västra Hamngatan 10 SE 411 17 Göteborg Company ID: 556591-2986
Phone: +46 (0) 510 48 40 00
Fax: +46 (0) 510 48 40 29
E-mail:ir@absolentgroup.se
Website:www.absolentgroup.com
CERTIFIED ADVISER
Erik Penser Bank AB is the Company's Certified Adviser.
FINANCIAL CALENDER
Third quarter 2021, November 12, 2021
This interim report has not been reviewed by the company auditors.
This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.
The interim report is available on the Group website (www.absolentgroup.com).
Göteborg August 18, 2021
Axel Berntsson
MD and CEO
This information is information Absolent Air Care Group AB (publ.) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 1:00 p.m. CEST Aug 18, 2021
5 | ABSOLENT AIR CARE GROUP 2021 |
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Absolent Group AB published this content on 18 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2021 11:23:10 UTC.