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ELANDERS | QUARTERLY REPORT JANUARY - MARCH 2022
Delivering sustainable solutions
FROM END TO END AND BEYOND
Elanders is a global logistics company with a broad range of services of integrated solutions in supply chain management.
The business is mainly run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. Sustainability aspects permeate Elanders' work on all levels. Essentially, Elanders' operations are all about optimizing the customers' flow of goods in the best possible way while minimizing costs and climate impact.
The Group has approximately 7,000 employees and operates in some 20 countries on four continents. The most important markets are China, Germany, Singapore, Sweden, the United Kingdom and the USA. Major customers are active in the areas Automotive, Electronics, Fashion & Lifestyle, Health Care & Life Science and Industrial.
Contents
3 Bulletpoints
4 Comments by the CEO
5 Group
9 Parent Company
9 Other Information
11 Consolidated Financial Statements
19 Quarterly Data
20 Five Year Overview
22 Reconciliation Alternative Performance Measures
25 Parent Company's Financial Statements
27 Financial Definitions
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.
Further information can be found on Elanders' websitewww.elanders.comor requested via e-mailinfo@elanders.com. Questions concerning this report can be addressed to:
Magnus Nilsson President and CEOAndréas Wikner Chief Financial OfficerPhone: +46 31 750 07 50 Phone: +46 31 750 07 50
Elanders AB (publ)
(Company ID 556008-1621) Flöjelbergsgatan 1 C, 431 35 Mölndal, Sweden Phone: +46 31 750 00 00
This information is information that Elanders AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CET on 21 April 2022.
BULLETPOINTS
First quarter 2022
Net sales increased to MSEK 3,371 (2,734), which corresponded to organic growth of two percent, excluding acquisitions and using unchanged exchange rates. Strong organic growth in the USA resulted in high double digit growth figures in the newly acquired Bergen Logistics.
EBITA increased to MSEK 187 (142), which corresponded to an EBITA margin of 5.5 (5.2) percent and an improvement in the result by 32 percent.
The war in Ukraine and component shortages led to disturbances in production for several of the Group's major customers. High levels of sick leave in the beginning of the quarter and high material prices also put pressure on the margin.
The result before tax increased to MSEK 129 (104), which was an improvement of 24 percent.
The net result increased to MSEK 88 (69), corresponding to SEK 2.42 (1.91) per share.
Operating cash flow was MSEK 300 (107), of which acquisitions were MSEK 0 (-45).
The ratio for net debt/EBITDA on a rolling twelve-month basis is 3.5. Excluding IFRS 16 effects and acquisitions, and adjusting the ratio for pro forma results of acquisitions, the ratio is 2.7.
FINANCIAL OVERVIEW
Net sales, MSEK EBITDA, MSEK EBITA, MSEK EBITA-margin, %
Result before tax, MSEK Result after tax, MSEK Earnings per share, SEK Operating cash flow, MSEK Net debt, MSEK
Net debt/EBITDA ratio, times
Net debt/EBITDA ratio excl. IFRS 16, times
2022 | 2021 months 2021 | |
Net sales, MSEK | 3,371 | 2,734 12,370 11,733 |
EBITDA, MSEK | 430 | 341 1,557 1,468 |
EBITA, MSEK 1) | 187 | 142 686 641 |
EBITA-margin, % 1) | 5.5 | 5.2 5.5 5.5 |
Result before tax, MSEK | 129 | 104 507 482 |
Result after tax, MSEK | 88 | 69 351 331 |
Earnings per share, SEK | 2.42 | 1.91 9.62 9.12 |
Operating cash flow, MSEK | 300 | 107 88 -105 |
Net debt, MSEK | 5,377 | 3,099 5,377 5,249 |
Net debt/EBITDA ratio, times 2) | 3.1 | 2.3 3.5 3.6 |
Net debt/EBITDA ratio excl. IFRS 16, times 2) | 2.9 | 1.8 3.1 3.3 |
First quarter
Last 12
Full year
1) EBITA refers to Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.
2) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12-month period).
COMMENTS BY THE CEO
The first quarter of the year has been challenging for our business with high levels of sick leave in January and February followed by the war in Ukraine, which is a humanitarian catastrophe. The fact that we can deliver a better result than last year, despite all this, is a testament to how well our strategy of diversifying our range of services, broadening our customer base and achieving a better geographic spread is working.
The war in Ukraine and the personal tragedy it has entailed for so many people has dominated the first quarter of the year. At Elanders we have tried to support the people affected in close proximity to us in different ways. Our Polish and Hungarian operations have, among other things, participated in arranging transportation and housing for refugees as well as deliver-ing necessities to the Ukrainian border.
and other similar products. Less traveling and general anxiety in Europe about the war in Ukraine along with escalating prices appear to have a negative effect on consumption.
The war has also affected Group business in that several of our major customers with subcontractors in either Russia or Ukraine have not been able to get deliveries. This has led to material and component shortages resulting in production disturbances which have primarily hit our customers in Automotive and Industrial in Europe. The war has also driven up energy and fuel prices which can cause a decline in consumption.
Even though the first quarter has been challenging for our European operations, the Group as a whole has clearly performed better than last year. This is mainly because of the newly acquired operations within Supply Chain Solutions. They demonstrated strong underlying organic growth, above all on the North American market in the customer segment Fashion & Lifestyle. Our customers continue to experience high demand and the growing portion of online sales combined with the recovery of brick-and-mortar stores continues to drive growth in logistics services.
Despite these challenges and so many employees out on sick leave in the beginning of the quarter, business area Supply Chain Solutions performed significantly better than last year. This was largely due to the high demand in Fashion & Lifestyle on the North American market as well as stable results from Asia. The European market was definitely more of a challenge due to the war in Ukraine, which primarily affected Automotive. Even our other customer segments were negatively affected although on a lower scale.
I'm very proud that we, despite the ongoing situation in Ukraine and all the disturbances in the global supply chain, can produce this result and the improvement over last year. It proves that the journey we embarked on many years ago to bolster our operations and business model and reduce our sensitivity to the business cycle is garnering success. We now have several legs to stand on, but the journey continues!
Business area Print & Packaging Solutions continues to deal with limited access to, and high prices for, paper. This, in combination with high energy prices and component shortages, has affected profitability negatively. Just like several other actors on the market we continued to see a decline in demand for photobooks, calendarsMagnus Nilsson
President and Chief Executive Officer
GROUP
Elanders offers a broad range of services and total solutions in supply chain management. The business is run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has approximately 7,000 employees and operates in some 20 countries on four continents. Our most important markets are China, Germany, Singapore, Sweden, the United Kingdom and the USA. Our major customers are active in the areas Automotive, Electronics, Fashion & Lifestyle, Health Care & Life Science and Industrial.
NET SALES AND RESULT
Net sales increased by MSEK 637 to 3,371 (2,734) compared to the same period last year. Cleared of exchange rate fluctuations and acquisitions, net sales increased by two percent. Organic growth was primarily generated by the European division of Supply Chain Solutions. Nonetheless, strong organic growth resulted in high double digit growth figures in the newly acquired Bergen Logistics. Demand from customers continued to be good during the period even if several customers suffered disturbances in production due to the shortage of components and raw material caused by the war in Ukraine.
EBITA, the operating result adjusted for amortization on assets identified in conjunction with acquisitions, increased by MSEK 45 to MSEK 187 (142). Changes in exchange rates compared to the same period last year had a positive effect on EBITA by about MSEK 6. The improvement in the result compared to last year is largely due to acquisitions made in Supply Chain Solutions during the previous year. However, component shortages, high material prices, high level of sick leave and the war in Ukraine had a negative effect on the result and profitability. The war in Ukraine together with the shortage of components has led to irregular capacity utilization in Group units when customers have shut down or added shifts on short notice. The high level of sick leave at the beginning of the quarter meant hiring a lot of temporary staff which generated extra costs. These disturbances primarily affected customer segments Automotive and Industrial.
At the end of the quarter a slight decline in demand was noticed in Europe, particularly in Fashion & Lifestyle and operations that work with sales directly to consumers. High energy and fuel prices as well as general anxiety about the ongoing war is believed to be behind the lower consumption. Demand in North America, how-ever, continues to be strong.
Customer activities and quotation requests remain on a high level. The acquisition of Bergen Logistics and the platform it creates in North America for Elanders provides the Group with a slew of opportunities to grow with its existing customers on the North American market.
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Elanders AB published this content on 19 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2022 08:24:03 UTC.