08 November 2022
Purmo Group Plc, inside information, 8 November 2022 at 8.00 p.m. EET
Purmo Group’s market environment has weakened during the third quarter and the beginning of the fourth quarter of the year, in particular for the Radiators division. The market outlook remains challenging for the rest of the year due to the ongoing decline in the European construction markets. The war in Ukraine has also impacted the demand in Eastern Europe, in particular Russia. Furthermore, the necessary price increases to offset the increased raw material prices have been announced but realisation has been delayed.
Therefore, Purmo Group updates its full year guidance for 2022 for adjusted EBITDA:
For 2022, Adjusted EBITDA is expected to decline from 2021 (EUR 103.9 million) and to be between EUR 88 million – EUR 96 million. Guidance for net sales remains as announced earlier: For 2022, Purmo Group expects net sales to increase from 2021 (EUR 843.6 million).
Previous guidance which was given on 11 August 2022:
For 2022, Purmo Group expects net sales to increase from 2021 (EUR 843.6 million). Adjusted EBITDA is expected to be comparable to 2021 (EUR 103.9 million). Comparable means a change within +/- 5 per cent from the previous year.
Expanded strategy acceleration programme
Due to the weak market environment, Purmo Group expands its earlier announced strategy acceleration programme. The targeted adjusted EBITDA run-rate improvements are EUR 20 million (upgraded from 15 million) by the end of 2023, and cumulatively EUR 40 million (upgraded from 35 million) by the end of 2024.
The upgraded profitability improvements will include both variable and fixed cost savings, excluding areas where the market growth is expected to continue including Italy, Brazil and China. Additionally, company evaluates accelerating footprint optimisation, covering both manufacturing and supply chain.
The costs for the programme are expected to be approximately EUR 43 million (previously 40 million), of which EUR 33 million (previously 30 million) is expected to incur before the end of 2023 and the remainder in 2024.
Preliminary figures for Q3 2022 (unaudited)
Net sales was stable and reached EUR 216.3 million (218.5), a decrease of 1 per cent. Adjusted EBITDA decreased by 23 per cent to EUR 19.6 million (25.4), corresponding to an adjusted EBITDA margin of 9.1 per cent (11.6).
Million EUR | Q3 2022 | Q3 2021 | 1-9/2022 | 1-9/2021 |
Net sales | 216.3 | 218.5 | 697.5 | 621.0 |
Adjusted EBITDA | 19.6 | 25.4 | 76.6 | 81.3 |
Adjusted EBITDA margin, % | 9.1% | 11.6% | 11.0% | 13.1% |
Purmo Group Plc announces its Q3 2022 results on Thursday, 10 November 2022 approximately at 8.15 a.m. EET.
Purmo Group Plc
Further information:
Erik Hedin, Chief Financial Officer, Purmo Group Plc
Tel: +44 (0)7979 363 473
Distribution:
Nasdaq Helsinki Ltd
Principal media
investors.purmogroup.com
About Purmo Group:
Purmo Group 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, underfloor heating, heat pumps, towel warmers, valves and controls. Our mission is to be the global leader in sustainable indoor climate comfort solutions. Our 3,500 employees operate in 24 countries, manufacturing and distributing top quality products and solutions to our customers in more than 100 countries globally. Purmo Group’s shares are listed on Nasdaq Helsinki with a ticker symbol PURMO. More information: www.purmogroup.com.