Interim report 1 January – 30 June 2022

SECOND QUARTER 2022

  • Revenue increased by 6% to SEK 1,691m (1,590)
  • Operating profit increased by 2% to SEK 147m (144)
  • Operating margin decreased to 8.7% (9.0)
  • The result for the period decreased by 63% to SEK 32m (86)
  • Basic earnings per share amounted to SEK 2.20 (5.94)
  • Cash flows from operating activities amounted to SEK 39m (120)

JANUARY - JUNE 2022

  • Revenue increased by 20% to SEK 3,436m (2,856)
  • Operating profit increased by 14% to SEK 255m (224)
  • Operating margin decreased to 7.4% (7.8)
  • The result for the period decreased by 34% to SEK 95m (142)
  • Basic earnings per share amounted to SEK 6.50 (9.79)
  • Cash flows from operating activities amounted to SEK 23m (211)
SEK m (or as stated)
2022 Q2
2021 Q2
%
2022 6M
2021 6M
%
FY2021
Revenue
2022 Q2 1,691
2021 Q2 1,590
% 6%
2022 6M 3,436
2021 6M 2,856
% 20%
FY2021 6,212
Gross profit
2022 Q2 356
2021 Q2 286
% 24%
2022 6M 656
2021 6M 501
% 31%
FY2021 1,111
Operating profit
2022 Q2 147
2021 Q2 144
% 2%
2022 6M 255
2021 6M 224
% 14%
FY2021 483
Result for the period
2022 Q2 32
2021 Q2 86
% -63%
2022 6M 95
2021 6M 142
% -34%
FY2021 339
Earnings per ordinary share, SEK*
2022 Q2 2.20
2021 Q2 5.94
% -63%
2022 6M 6.50
2021 6M 9.79
% -34%
FY2021 23.33
Cash flow from operations
2022 Q2 39
2021 Q2 120
%  
2022 6M 23
2021 6M 211
%  
FY2021 457
Net debt (cash)
2022 Q2 712
2021 Q2 143
%  
2022 6M 712
2021 6M 143
%  
FY2021 198
Gross margin, %
2022 Q2 21.0%
2021 Q2 18.0%
% 3.1pp
2022 6M 19.1%
2021 6M 17.5%
% 1.6pp
FY2021 17.9%
Operating margin, %
2022 Q2 8.7%
2021 Q2 9.0%
% -0.4pp
2022 6M 7.4%
2021 6M 7.8%
% -0.4pp
FY2021 7.8%
Working capital/LTM Revenue, %
2022 Q2 14%
2021 Q2 3%
% 10.8pp
2022 6M 14%
2021 6M 3%
% 10.8pp
FY2021 2%
Equity/total assets, %
2022 Q2 37%
2021 Q2 25%
% 10.9pp
2022 6M 37%
2021 6M 25%
% 10.9pp
FY2021 28%
Return on capital employed, %
2022 Q2 23%
2021 Q2 23%
% -0.4pp
2022 6M 23%
2021 6M 23%
% -0.4pp
FY2021 29%
Return on equity, %
2022 Q2 22%
2021 Q2 30%
% -8.0pp
2022 6M 22%
2021 6M 30%
% -8.0pp
FY2021 36%
Lars Corneliusson
Lars Corneliusson, CEO Ferronordic

Second quarter 2022


"The conditions for our business in Russia have continued to deteriorate. Further sanctions have been introduced and Volvo and certain other key partners have still suspended sales to Russia. We take all measures to ensure that our operations in Russia comply with applicable laws. Where permitted, we have so far continued to serve our customers. We are now evaluating strategic options for the Russian business, including divesting all or part of it, or downsizing it and continuing on a limited scale. During the quarter we have worked to isolate the Russian business from other parts of the Group, ensuring that potential negative effects from the Russian business will not spill over on our businesses elsewhere.

In Russia, new and used machine sales in units decreased by 64% and 48%, respectively. We expect sales to continue to decline as our sellable inventories decline and as new restrictions take effect. Total revenue in Russia/CIS was down 20% in rubles but grew by 5% in Swedish krona to SEK 1,315m. The operating margin declined. The operating result was flat at SEK 157m.

Our businesses in Kazakhstan and Germany are developing well and we continue to strengthen our positions in these markets. In Germany we are now launching electric trucks from both Volvo and Renault Trucks and are about to launch a rental business for electric trucks. We are also getting closer to turning the business into profits. We continue to look for opportunities to grow the business, both when it comes to new services and products as well as to new markets.

The German market for heavy trucks declined by 6% in the second quarter 2022. Our new trucks sales declined by 4% in units and we gained further market shares. Our used trucks business continued to contribute to the top line. Aftermarket sales grew by 28%. We now expect to reach positive operating profit sometime in the second half of 2022. Total revenue in Germany grew by 12% to SEK 375m. The operating result improved by 23% to SEK -10m.

These are turbulent times. In a longer perspective, we however believe that the underlying conditions and business opportunities in the Kazakh and German markets remain strong."