ESPOO, Finland, July 24, 2024 /PRNewswire/ --
Valmet's Half Year Financial Review January 1 - June 30, 2024: Orders received remained at the previous year's level and amounted close to EUR 1.3 billion and Comparable EBITA decreased to EUR 141 million in the second quarter
Valmet Oyj's stock exchange release on July 24, 2024 at 2:00 p.m. EEST
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.
April-June 2024: Orders received remained at the previous year's level
-- Orders received remained at the previous year's level and amounted to
EUR 1,283 million (EUR 1,268 million).
-- Orders received increased in the Services segment, remained at the
previous year's level in the Automation segment, and decreased in
the Process Technologies segment.
-- Orders received increased in EMEA (Europe, Middle East and Africa),
North America and China, and decreased in Asia-Pacific and South
America.
-- Net sales decreased 7 percent to EUR 1,324 million (EUR 1,417 million).
-- Net sales remained at the previous year's level in the Automation
and Services segments and decreased in the Process Technologies
segment.
-- Comparable earnings before interest, taxes and amortization (Comparable
EBITA) decreased 8 percent to EUR 141 million (EUR 153 million).
-- Comparable EBITA remained at the previous year's level in the
Services and Automation segments and decreased in the Process
Technologies segment.
-- Comparable EBITA margin was 10.6 percent (10.8%).
-- Earnings per share (EPS) were EUR 0.31 (EUR 0.54). EPS decreased mainly
due to lower operating profit and higher net financial expenses.
Adjusted EPS was EUR 0.43 (EUR 0.60). Adjusted EPS decreased mainly due
to lower EBITA and higher net financial expenses.
-- Items affecting comparability amounted to EUR -9 million (EUR 2
million).
-- Cash flow provided by operating activities totaled EUR 128 million (EUR
-37 million).
January-June 2024: Orders received amounted to EUR 2,333 million
-- Orders received decreased 17 percent to EUR 2,333 million (EUR 2,821
million).
-- Orders received remained at the previous year's level in the
Services segment and decreased in the Process Technologies and
Automation segments.
-- Orders received remained at the previous year's level in EMEA and
decreased in China, South America, Asia-Pacific and North America.
-- Net sales decreased 7 percent to EUR 2,536 million (EUR 2,738 million).
-- Net sales remained at the previous year's level in the Services and
Automation segments and decreased in the Process Technologies
segment.
-- Comparable EBITA decreased 9 percent to EUR 262 million (EUR 286
million).
-- Comparable EBITA remained at the previous year's level in the
Automation and Services segments and decreased in the Process
Technologies segment.
-- Comparable EBITA margin was 10.3 percent (10.5%).
-- EPS was EUR 0.62 (EUR 0.92). Adjusted EPS was EUR 0.84 (EUR 1.11).
-- Items affecting comparability amounted to EUR -16 million (EUR 0
million).
-- Cash flow provided by operating activities totaled EUR 267 million (EUR
172 million).
Guidance for 2024
Valmet reiterates its guidance issued on June 13, 2024, in which Valmet estimates that net sales in 2024 will remain at the previous year's level in comparison with 2023 (EUR 5,532 million) and Comparable EBITA in 2024 will increase in comparison with 2023 (EUR 619 million).
Short-term market outlook
Valmet estimates that the short-term market outlook for pulp has increased to satisfactory (previously weak) and that the short-term market outlook for board and paper has increased to satisfactory (previously weak/satisfactory, in which weak referred to customer activity and satisfactory to Valmet's capacity utilization). Furthermore, Valmet estimates that the short-term market outlook for energy has decreased to satisfactory (previously good). Valmet reiterates the good short-term market outlook for services, flow control and automation systems, and the satisfactory short-term 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 remained at the previous year's level and amounted close to EUR 1.3 billion in the second quarter
"Valmet's orders received remained at the previous year's level and amounted close to EUR 1.3 billion in the second quarter. Orders received increased in Services, remained at the previous year's level in Automation and decreased in Process Technologies. Orders received in Valmet's stable business totaled close to EUR 3.1 billion during the last four quarters, representing 69% of Valmet's orders received. This is a clear change in the company compared to 2014, when stable business represented 34% of orders received. Valmet's order backlog amounted to EUR 3.8 billion at the end of the quarter.
Valmet's net sales amounted to EUR 1.3 billion. Net sales remained at the previous year's level in Services and Automation, and decreased in Process Technologies. Comparable EBITA margin was 16.9% in Services, 16.5% in Automation and 3.0% in Process Technologies. Comparable EBITA totaled to EUR 141 million and amounted to EUR 80 million in Services, EUR 58 million in Automation and EUR 15 million in Process Technologies.
Valmet's short-term market outlook remains good for Services and Automation segments. Today, we have increased Process Technologies' short-term market outlook for pulp, and for board and paper to satisfactory. The short-term market outlook for energy was decreased to satisfactory. The market activity overall has improved compared to the end of Q1/2024 and we have a good starting point in terms of market activity going into the second half of the year. During the quarter, Valmet revised upwards its Comparable EBITA guidance for 2024. In the new guidance, Valmet estimates that net sales in 2024 will remain at the previous year's level in comparison with 2023 and Comparable EBITA in 2024 will increase in comparison with 2023.
I have been working in different positions at Valmet and its predecessors for several decades and as Valmet's President and CEO since Valmet became an independent company in 2013. Since 2013, Valmet has created approximately EUR 5 billion in total shareholder value, taking the full dividend for 2023 into account. I am extremely proud of this and many other important milestones that we have achieved together as Valmeteers during these years.
As I prepare to step down from my role, I am confident that the foundation we have built positions Valmet well for continued success in the future. I wish to extend my deepest thanks to our customers and partners for the good cooperation we have enjoyed over the years, to our shareholders for your trust, and to all my colleagues at Valmet for your hard work, dedication and passion."
Chair of the Board Mikael Mäkinen
"This interim review is the last one under Pasi Laine's leadership as the President and CEO of Valmet. The Board of Directors gratefully thank Pasi for his contribution in developing Valmet into a strong and unique company. Valmet has a solid foundation to continue its excellent performance path also in the future", says Mikael Mäkinen, Chair of the Board, Valmet.
Thomas Hinnerskov to start as the President and CEO of Valmet as of August 12, 2024
On February 19, 2024, Valmet's Board of Directors appointed Thomas Hinnerskov as the President and CEO of Valmet. He will start in the position on August 12, 2024. Thomas Hinnerskov succeeds Pasi Laine, who will continue as the President and CEO of Valmet until August 11, 2024.
Key figures(1)
EUR million, or as indicated Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change 2024 2023 Orders received 1,283 1,268 1 % 2,333 2,821 -17 % Order backlog(2) 3,828 4,414 -13 % 3,828 4,414 -13 % Net sales 1,324 1,417 -7 % 2,536 2,738 -7 % Comparable EBITA 141 153 -8 % 262 286 -9 % % of net sales 10.6 % 10.8 % 10.3 % 10.5 % EBITA 132 155 -15 % 245 286 -14 % % of net sales 9.9 % 11.0 % 9.7 % 10.5 % Operating profit (EBIT) 103 136 -24 % 189 232 -18 % % of net sales 7.8 % 9.6 % 7.5 % 8.5 % Profit before taxes 84 129 -35 % 157 220 -29 % Profit for the period 58 99 -41 % 114 170 -33 % Earnings per share, EUR 0.31 0.54 -42 % 0.62 0.92 -33 % Adjusted earnings per share, EUR 0.43 0.60 -28 % 0.84 1.11 -24 % Equity per share, EUR2 13.21 12.93 2 % 13.21 12.93 2 % Cash flow provided by operating activities 128 -37 267 172 55 % Cash flow after investing activities -14 -71 -81 % 95 104 -8 % Comparable return on capital employed (Comparable ROCE) before taxes (LTM) 14 % 15 % Return on capital employed (ROCE) before taxes (LTM) 13 % 15 % Return on equity (ROE) (LTM) 13 % 15 % Net debt to EBITDA ratio(3) 1.63 0.77 Gearing(2) 45 % 23 % Equity to assets ratio(2) 40 % 45 %
(1) The calculation of key figures is presented on page 60
(2) At end of period
(3) Last twelve months' EBITDA
LTM = Last twelve months
Segment key figures
Orders received, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change 2024 2023 Services 497 430 15 % 1,024 1,007 2 % Automation 352 340 4 % 681 732 -7 % Flow Control 195 211 -7 % 389 427 -9 % Automation Systems 157 130 21 % 291 304 -4 % Process Technologies 434 497 -13 % 628 1,082 -42 % Pulp and Energy 187 277 -32 % 243 489 -50 % Paper 247 221 12 % 385 593 -35 % Total 1,283 1,268 1 % 2,333 2,821 -17 %
Net sales, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change 2024 2023 Services 473 457 4 % 880 846 4 % Automation 351 338 4 % 659 642 3 % Flow Control 201 202 0 % 389 389 0 % Automation Systems 150 136 10 % 271 252 7 % Process Technologies 500 623 -20 % 997 1,251 -20 % Pulp and Energy 221 263 -16 % 447 549 -19 % Paper 279 360 -23 % 550 702 -22 % Total 1,324 1,417 -7 % 2,536 2,738 -7 %
Comparable EBITA, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change 2024 2023 Services 80 80 0 % 140 142 -2 % Automation 58 61 -5 % 109 110 -1 % Process Technologies 15 30 -50 % 36 59 -40 % Other -12 -17 -26 % -23 -26 -11 % Total 141 153 -8 % 262 286 -9 %
Comparable EBITA, % of net sales Q2/2024 Q2/2023 Q1-Q2/ Q1-Q2/ 2024 2023 Services 16.9 % 17.5 % 15.9 % 16.8 % Automation 16.5 % 17.9 % 16.5 % 17.2 % Process Technologies 3.0 % 4.8 % 3.6 % 4.7 % Total 10.6 % 10.8 % 10.3 % 10.5 %
EBITA, EUR million Q2/2024 Q2/2023 Change Q1-Q2/ Q1-Q2/ Change 2024 2023 Services 78 81 -4 % 134 143 -7 % Automation 58 63 -8 % 107 107 0 % Process Technologies 9 29 -67 % 31 61 -50 % Other -13 -16 -20 % -27 -25 6 % Total 132 155 -15 % 245 286 -14 %
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/q2-2024 [https://c212.net/c/link/?t=0&l=en&o=4218429-1&h=1460037350&u=https%3A%2F%2Fvalmet.videosync.fi%2Fq2-2024&a=https%3A%2F%2Fvalmet.videosync.fi%2Fq2-2024] on Wednesday, July 24, 2024, at 3:00 p.m. Finnish time (EEST). President and CEO Pasi Laine and CFO Katri Hokkanen 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 by registering through the link below:
https://palvelu.flik.fi/teleconference/?id=50048301 [https://c212.net/c/link/?t=0&l=en&o=4218429-1&h=2080954913&u=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D50048301&a=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D50048301]
After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask a question during the conference, please dial *5 to enter the question queue.
All questions should be presented in English.
The event can also be followed on social media platform X at www.x.com/valmetir [https://c212.net/c/link/?t=0&l=en&o=4218429-1&h=2275342805&u=https%3A%2F%2Fwww.x.com%2Fvalmetir&a=www.x.com%2Fvalmetir].
Further information, please contact:
Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020
VALMET
Katri Hokkanen
CFO
Pekka Rouhiainen
VP, Investor Relations
DISTRIBUTION:
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Major media
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Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions we serve an even wider base of process industries. Our more than 19,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.
The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. Valmet's net sales in 2023 were approximately EUR 5.5 billion.
Valmet's shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.
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https://news.cision.com/valmet-oyj/r/valmet-s-half-year-financial-review-2024--orders-received-remained-at-the-previous-year-s-level-and-,c4018155 [https://c212.net/c/link/?t=0&l=en&o=4218429-1&h=397541055&u=https%3A%2F%2Fnews.cision.com%2Fvalmet-oyj%2Fr%2Fvalmet-s-half-year-financial-review-2024--orders-received-remained-at-the-previous-year-s-level-and-%2Cc4018155&a=https%3A%2F%2Fnews.cision.com%2Fvalmet-oyj%2Fr%2Fvalmet-s-half-year-financial-review-2024--orders-received-remained-at-the-previous-year-s-level-and-%2Cc4018155]
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