Year-end report 1 January – 31 December 2021
FOURTH QUARTER 2021
- Revenue increased by 43% to SEK 1,694m (1,185)
- Operating profit increased by 71% to SEK 112m (65)
- Operating margin increased to 6.6% (5.5)
- The result for the period increased by 99% to SEK 88m (44)
- Basic earnings per share amounted to SEK 6.06 (3.05)
- Cash flows from operating activities amounted to SEK -81m (179)
JANUARY- DECEMBER 2021
- Revenue increased by 34% to SEK 6,212m (4,635)
- Operating profit increased by 47% to SEK 483m (328)
- Operating margin increased to 7.8% (7.1)
- The result for the period increased by 53% to SEK 339m (222)
- Basic earnings per share amounted to SEK 23.33 (15.25)
- Cash flows from operating activities amounted to SEK 457m (693)
Lars Corneliusson, President and CEO, comments: 2021 was Ferronordic’s best year to date. Despite operational and supply disruptions, our business in Russia/CIS continued to grow both revenue and profitability and achieved a record operating and net result. In Germany, we continued to invest in the organisation and the network to build a stronger platform for the future. In view of our strong performance and balance sheet, the board recommends a dividend of SEK 11.5 per share. In the fourth quarter, total revenue for the Group grew by 43% to SEK 1,694m. A better margin contributed to 71% growth in operating profit and 99% growth in net income. In Russia/CIS, sales of new machines were affected by supply constraints. Machine utilization remained high and our digital service platform and service teams contributed to strong aftermarket sales. In the quarter, we continued to develop our service and sales offering of Sandvik mobile and stationary crushers. We also decided to further increase the capacity of our machine and component rebuild centre.
Total revenue in Russia/CIS grew by 31% in SEK and the operating result grew by 37%. In Germany, our new truck sales in units grew 70% in a market that declined 4.5% and we gained further market shares. Our used trucks business also made a good contribution. Aftermarket sales grew, both as a result of organic growth and our acquisitions. In the quarter, we added two workshops in strategic locations to our network, which brings the number of acquisitions in 2021 to five. Partly as a result of this rapid expansion, we took further acquisition and restructuring costs in the quarter. Total revenue in Germany grew by 91% and the operating result improved by 50% to SEK -12m. We expect to reach a positive operating profit in Germany during 2022. We expect our markets to continue to grow in 2022 and continue to see strong underlying fundamentals and business opportunities in our markets in a longer perspective. The current geo-political tension has not yet affected our business but brings significant uncertainty and we closely monitor the developments.
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment, Sandvik Rock Processing Solutions and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and approx. 1,800 employees. Ferronordic’s vision is to be the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com
For media and journalists:
For investors and analysts:
This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 18 February 2022, 07:30 CET.
Your subscription is now saved and you will receive an e-mail to verify your address and activate your subscription.
Latest press releases
Interim report 1 January – 30 September 2023
Q3 2023: Weak operationally. Key strategically.
Ferronordic expands to the USA – acquires one of the country’s largest Volvo Construction Equipment dealers
Ferronordic has entered into an agreement to purchase Rudd Equipment Company, Inc. (“Rudd”), one of the largest dealers of Volvo CE in the United States with operations in all or parts of nine states. Ferronordic thereby takes its first step to expand into the important US market. The purchase price amounts to USD 95.0m, corresponding to 5.8 x 2022 adjusted earnings before tax. In 2022, Rudd had sales of USD 308.3m with an operating income of USD 16.5m and earnings before tax of USD 16.4m (both adjusted to IFRS). In addition, Ferronordic acquires two real properties for USD 10m, currently rented by Rudd.