Valmet’s Interim Review January 1 – March 31, 2021: Orders received increased to EUR 1.3 billion and Comparable EBITA to EUR 80 million in the first quarter
Valmet’s Interim Review January 1 – March 31, 2021: Orders received increased to EUR 1.3 billion and Comparable EBITA to EUR 80 million in the first quarter
Valmet Oyj’s stock exchange release on April 22, 2021 at 1:00 p.m. EEST
Figures in brackets, unless otherwise stated, refer to the comparison period, i.e. the same period of the previous year.
January–March 2021: Orders received and Comparable EBITA increased
- Orders received increased 11 percent to EUR 1,312 million (EUR 1,187 million).
- Orders received increased in the Pulp and Energy, Paper, and Automation business lines, and remained at the previous year's level in the Services business line.
- Orders received increased in EMEA (Europe, Middle East and Africa), North America and China, and decreased in South America and Asia-Pacific.
- Net sales remained at the previous year’s level and amounted to EUR 858 million (EUR 821 million).
- Net sales increased in the Paper business line, remained at the previous year's level in the Services, and Pulp and Energy business lines, and decreased in the Automation business line.
- Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 80 million (EUR 52 million), and the corresponding Comparable EBITA margin was 9.4 percent (6.3%).
- Comparable EBITA increased due to higher net sales and lower operating expenses.
- Earnings per share were EUR 0.38 (EUR 0.20).
- Items affecting comparability amounted to EUR 8 million (EUR -1 million).
- Cash flow provided by operating activities was EUR 148 million (EUR 173 million).
Guidance for 2021
On April 16, 2021, Valmet revised upwards its net sales and Comparable EBITA guidance for 2021.
Revised guidance (on April 16, 2021):
Valmet estimates that net sales in 2021 will increase in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will increase in comparison with 2020 (EUR 365 million).
Previous guidance (on February 4, 2021):
Valmet estimates that net sales in 2021 will remain at the previous year's level in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will remain at the previous year's level in comparison with 2020 (EUR 365 million).
Short-term market outlook
Valmet estimates that the short-term market outlook for services has improved to satisfactory (previously satisfactory/weak). Valmet reiterates the good short-term market outlook for automation, pulp, board and paper, and tissue and the weak short-term market outlook for energy.
President and CEO Pasi Laine: Orders received increased to a new record
"Valmet’s orders received increased to EUR 1,312 million in the first quarter of 2021. This is a record-high quarterly order intake for us. Orders received increased in the Pulp and Energy, Paper, and Automation business lines and remained at the previous year’s level in the Services business line. Our order backlog increased to a record high of EUR 3,709 million, which is EUR 452 million higher than at the end of 2020. Net sales remained at the previous year’s level and Comparable EBITA increased.
One of the highlights of the first quarter was the introduction of Valmet’s climate program – Forward to a carbon neutral future. The program includes ambitious CO₂ emission reduction targets and concrete actions for the whole value chain, including Valmet’s own operations, the supply chain, and the use of Valmet’s technologies by its customers. The program is aligned with the Paris Climate Agreement’s 1.5-degree pathway and the United Nations Sustainable Development Goals."
Key figures1
| EUR million | Q1/2021 | Q1/2020 | Change | 2020 | ||||
| Orders received | 1,312 | 1,187 | 11 | % | 3,653 | |||
| Order backlog2 | 3,709 | 3,557 | 4 | % | 3,257 | |||
| Net sales | 858 | 821 | 5 | % | 3,740 | |||
| Comparable earnings before interest, taxes and amortization (Comparable EBITA) | 80 | 52 | 55 | % | 365 | |||
| % of net sales | 9.4 | % | 6.3 | % | 9.8 | % | ||
| Earnings before interest, taxes and amortization (EBITA) | 89 | 51 | 75 | % | 355 | |||
| % of net sales | 10.3 | % | 6.2 | % | 9.5 | % | ||
| Operating profit (EBIT) | 76 | 42 | 81 | % | 319 | |||
| % of net sales | 8.9 | % | 5.1 | % | 8.5 | % | ||
| Profit before taxes | 75 | 40 | 88 | % | 307 | |||
| Profit for the period | 57 | 30 | 93 | % | 231 | |||
| Earnings per share, EUR | 0.38 | 0.20 | 92 | % | 1.54 | |||
| Earnings per share, diluted, EUR | 0.38 | 0.20 | 92 | % | 1.54 | |||
| Equity per share, EUR2 | 7.18 | 6.72 | 7 | % | 7.60 | |||
| Cash flow provided by operating activities | 148 | 173 | -14 | % | 532 | |||
| Cash flow after investments | 125 | 156 | -20 | % | -60 | |||
| Return on equity (ROE) (annualized) | 21 | % | 12 | % | 21 | % | ||
| Return on capital employed (ROCE) before taxes (annualized) | 20 | % | 13 | % | 22 | % | ||
| Equity to assets ratio2 | 37 | % | 41 | % | 39 | % | ||
| Gearing2 | 3 | % | -22 | % |
|
% | ||
1The calculation of key figures is presented on page 40.
2 At end of period.
| Orders received, EUR million | Q1/2021 | Q1/2020 | Change | 2020 | ||||
| Services | 385 | 398 | -3 | % | 1,356 | |||
| Automation | 103 | 92 | 12 | % | 334 | |||
| Pulp and Energy | 461 | 376 | 23 | % | 934 | |||
| Paper | 363 | 321 | 13 | % | 1,029 | |||
| Total | 1,312 | 1,187 | 11 | % | 3,653 | |||
|
Order backlog, EUR million |
As at Mar 31, 2021 |
As at Mar 31, 2020 |
Change | As at Dec 31, 2020 |
||||
| Total | 3,709 | 3,557 | 4 | % | 3,257 | |||
| Net sales, EUR million | Q1/2021 | Q1/2020 | Change | 2020 | ||||
| Services | 290 | 295 | -2 | % | 1,327 | |||
| Automation | 49 | 69 | -28 | % | 335 | |||
| Pulp and Energy | 230 | 240 | -4 | % | 1,003 | |||
| Paper | 289 | 217 | 33 | % | 1,076 | |||
| Total | 858 | 821 | 5 | % | 3,740 | |||
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/2021-q1/ on Thursday, April 22, 2021 at 2:00 p.m. Finnish time (EEST). President and CEO Pasi Laine and CFO Kari Saarinen will be presenting the results.
Recording of the webcast will be available shortly after the event at the same address.
It is possible to take part in the news conference through a conference call. Conference call participants are requested to dial in at least five minutes prior to the start of the conference at
United Kingdom +44 3333000804
France +33 170750711
Germany +49 6913803430
Norway +47 23500243
Sweden +46 856642651
United States +1 6319131422
The participants will be asked to provide the following conference PIN: 47033363#. All questions should be presented in English.
The event can also be followed on Twitter at www.twitter.com/valmetir.
Due to COVID-19 pandemic, the news conference cannot be attended in person.
Further information, please contact:
Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, CFO, Valmet, tel. +358 50 317 1830
VALMET
Kari Saarinen
CFO
Pekka Rouhiainen
Director, Investor Relations
Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.
Valmet’s strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers’ processes and enhance the effective utilization of raw materials and energy.
Valmet’s net sales in 2020 were approximately EUR 3.7 billion. Our 14,000 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day. Valmet’s head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.
Read more www.valmet.com, www.twitter.com/valmetglobal
Follow Valmet IR on Twitter www.twitter.com/valmetir
