Cision is the leading global provider of media research, distribution, monitoring and evaluation services. With over 40 locations throughout the world, Cision provides the insight, expertise and intelligence that improve performance and build reputations.
Q2 2022: Progress in customer price discussions
Financial highlights Q2 2022
2.9% net sales increase
8.0% organic sales increase*
6.0% operating margin
6.0% adjusted operating margin*
Full year 2022 indications
Around 13%-16% organic sales growth
Around 5% negative FX effect on net sales
Around 6.0%-7.0% adjusted operating margin
Around
Key business developments in the second quarter of 2022
* Sales increased organically* by 8%, which was around 7pp better than global LVP which increased by around 1% (
* Stronger than expected performance in June driven by price increases, LVP recovery and a patent litigation settlement led to a better-than-expected operating profit for the quarter. However, profitability declined due to higher raw material costs, currency movements, low and volatile LVP and lockdowns in
* Negative Q2 operating cash flow, expected to recover in the second half. Operating cash flow was negative
*For non-
Comments from
We managed good execution in a challenging environment in the second quarter, leading to better-than-expected results. A strong performance in June, with some LVP recovery and progress in the customer price discussions, including some retroactive compensations, means we are reporting a second quarter adjusted operating margin that is better than in the first quarter. Supply chains remained distressed in the quarter, aggravated by lockdowns in
In a quarter where we saw continued low and volatile LVP,
It is encouraging that we are making progress in compensation from our customers in the form of sustainable price increases. Discussions continue where we aim for prices that reflect changes in the cost environment and a contract structure that is flexible and allows for broader and faster adjustments to future changes in the business environment.
Recent developments in supply chains, customer production plans, raw material prices and our cost recovery discussions are encouraging, and we believe we are well prepared for an improved market development. However, we are also making sure we are agile and prepared for a more adverse market development should that be necessary. Therefore, we continue to step up our cost control measures. Cost reductions and footprint initiatives are on plan and include capacity alignments and footprint optimizations.
We are adjusting our full year 2022 indication to a narrower range, reflecting our actions and the shorter time span remaining of the year. Although leverage ratio currently is above our target range, we remain committed to our share repurchase ambitions over time. We remain confident in our medium-term adjusted operating margin target of 12%, based on the framework we outlined at our CMD in 2021.
Inquiries: Investors and Analysts
Vice President Investor Relations
Tel +46 (0)8 5872 0671
Director Investor Relations
Tel +46 (0)8 5872 0614
Inquiries: Media
Senior Vice President Communications
Tel +46 (0)70 612 6424
Tags:
.
(C) 2022 M2 COMMUNICATIONS, source