Interim report 1 January – 30 September 2022

THIRD QUARTER 2022

  • Revenue decreased by -11% to SEK 1,479m (1,661)
  • Operating profit increased by 206% to SEK 451m (147)
  • Adjusted* operating profit decreased by -12% to SEK 130m (147)
  • Adjusted* operating margin decreased to 8.8% (8.9)
  • The result for the period increased by 237% to SEK 366m (109)
  • Basic earnings per share amounted to SEK 25.20 (7.48)
  • Cash flows from operating activities amounted to SEK 240m (327)

JANUARY - SEPTEMBER 2022

  • Revenue increased by 9% to SEK 4,915m (4,517)
  • Operating profit increased by 91% to SEK 706m (371)
  • Adjusted* operating profit increased by 4% to SEK 385m (371)
  • Adjusted* operating margin decreased to 7.8% (8.2)
  • The result for the period increased by 84% to SEK 461m (251)
  • Basic earnings per share amounted to SEK 31.70 (17.27)
  • Cash flows from operating activities amounted to SEK 263m (538)
SEK m (or as stated)
2022 Q3
2021 Q3
%
2022 9M
2021 9M
%
FY2021
Revenue
2022 Q3 1,479
2021 Q3 1,661
% -11%
2022 9M 4,915
2021 9M 4,517
% 9%
FY2021 6,212
Gross profit
2022 Q3 365
2021 Q3 324
% 13%
2022 9M 1,021
2021 9M 825
% 24%
FY2021 1,111
Operating profit
2022 Q3 451
2021 Q3 147
% 206%
2022 9M 706
2021 9M 371
% 91%
FY2021 483
Operating profit adjusted*
2022 Q3 130
2021 Q3 147
% -12%
2022 9M 385
2021 9M 371
% 4%
FY2021 483
Result for the period
2022 Q3 366
2021 Q3 109
% 237%
2022 9M 461
2021 9M 251
% 84%
FY2021 339
Earnings per ordinary share, SEK*
2022 Q3 25.20
2021 Q3 7.48
% 237%
2022 9M 31.70
2021 9M 17.27
% 84%
FY2021 23.33
Cash flow from operations
2022 Q3 240
2021 Q3 327
%  
2022 9M 263
2021 9M 538
%  
FY2021 457
Net debt (cash)
2022 Q3 579
2021 Q3 -75
%  
2022 9M 579
2021 9M -75
%  
FY2021 198
Gross margin, %
2022 Q3 24.7%
2021 Q3 19.5%
% 5.1pp
2022 9M 20.8%
2021 9M 18.3%
% 2.5pp
FY2021 17.9%
Operating margin, %
2022 Q3 30.5%
2021 Q3 8.9%
% 21.6pp
2022 9M 14.4%
2021 9M 8.2%
% 6.2pp
FY2021 7.8%
Operating margin adjusted, %
2022 Q3 8.8%
2021 Q3 8.9%
% -0.1pp
2022 9M 7.8%
2021 9M 8.2%
% -0.4pp
FY2021  
Working capital/LTM Revenue, %
2022 Q3 18%
2021 Q3 0%
% 18.4pp
2022 9M 18%
2021 9M 0%
% 18.4pp
FY2021 2%
Equity/total assets, %
2022 Q3 42%
2021 Q3 27%
% 15.0pp
2022 9M 42%
2021 9M 27%
% 15.0pp
FY2021 28%
Return on capital employed, %
2022 Q3 31%
2021 Q3 27%
% 3.6pp
2022 9M 31%
2021 9M 27%
% 3.6pp
FY2021 29%
Return on equity, %
2022 Q3 35%
2021 Q3 31%
% 3.5pp
2022 9M 35%
2021 9M 31%
% 3.6pp
FY2021 36%
Lars Corneliusson
Lars Corneliusson, CEO Ferronordic

Third quarter 2022


“Conditions for our business in Russia continue to deteriorate. We take all measures to ensure that our operations in Russia comply with applicable laws. Our business is limited in scope, but where possible, we continue to serve our customers. Facing an uncertain future, we are actively trying to divest our business in Russia. During the quarter, we agreed with Volvo CE and Sandvik to terminate our dealership agreements for Russia. From Volvo CE, a compensation of SEK 321m was paid for incurred and potential costs and losses related to the termination.

Meanwhile, we continue to develop our businesses in Kazakhstan and Germany. In the quarter, we became distributor for Sandvik mobile crushers and screens in Germany and Kazakhstan. In Germany, we are increasing our efforts to promote electric trucks from Volvo and Renault, both through our dealer business and as a rental product. In line with this effort, we received our first state subsidies for electric trucks in the quarter. In Kazakhstan, we are looking for opportunities to develop our contracting services business. We also look for opportunities to expand our operations, both in terms of new products and services and new markets.

In Germany, our new trucks sales declined by 5% in units, mainly as a result of supply constraints. By contrast, our aftermarket business grew by 42%. As a result of this shift in product mix, our gross margin increased by 3 percentage points. We need to continue to expand our service coverage and increase market shares in both trucks and service sales. In the third quarter, we started a new workshop in Aschaffenburg and signed a lease for a used trucks centre in Coswig. Total revenue in Germany grew by 10% to SEK 359m. The operating result improved by 78% to SEK -7m. We believe that we are on our way to reach a breakeven operating profit run rate in Germany by year-end.

In Germany, we continue to see strong demand for service and trucks, with supply constraints so far limiting market growth. However, the macroeconomic uncertainty will likely affect the German economy. In a longer perspective, we nonetheless believe that the underlying conditions and business opportunities in the Kazakh and German markets remain strong."