August 18th, 2021
The positive business momentum remained in the second quarter of 2021 and the post pandemic recovery continued in the building and construction markets. Consolis order book grew 13 percent and amounted to € 803 million at the end of the second quarter. All segments were at the end of Q2 above their pre-Covid order book.
Net sales in the second quarter amounted to € 280 million (260), up 7.9 percent versus last year. Adjusted EBITDA amounted to € 23.6 million (22.8) and the adjusted EBITDA-margin was 8.4 percent (8.8). The last year comparative figures in Q2 and Q3 2020 had the largest negative impact of Covid-19. Free cash flow in the quarter amounted to € 15.9 million (33.5).
The issue in Sweden with a supplier of cement being prohibited from limestone mining as per November 1st has been temporary resolved, by a temporary change in the Environmental Code, that will prolong the permit for limestone mining 8 months from November 1st, 2021. Consolis is actively working to secure our supply on both short and long term, and we have dialogues with this supplier as well as other potential suppliers, to put in place mitigating actions.
In June, Consolis signed the SPA to divest the CWF business, a transaction which we expect to complete in the second half of 2021. These transactions are important milestones in Consolis strategy to focus on its core building business with a market leading position in Europe. Encouraged by the strong development of our order book in the first half of 2021, we continue to see significant market opportunities within both residential and non-residential building solutions across all our markets, although rising commodity prices are likely to have an increasing impact in the next quarters to come.
Highlights of the second quarter 2021:
- Net sales from continued operations amounted to € 280 million (260), corresponding to a sales growth of 7.9 percent. Currency effects had a positive impact of 1.4 percent.
- Operating profit (EBIT) came in at € 12.7 million (6.9).
- Adjusted EBITDA came in at € 23.6 million (22.8), corresponding to a margin of 8.4 percent (8.8). Exchange rates had a positive impact of 0.7 percent.
- Order book increased 13 percent to € 803 million, compared to 711 at the beginning of the quarter.
- Order intake in the quarter totaled € 374 million, and the book-to-bill ratio corresponded to 1.34.
- Free cash flow from continuing operations in the quarter amounted to € 15.9 million (33.5).
- LTM cash conversion was 78 percent.
Significant events in and after the second quarter:
- On April 14, 2021, Consolis received a binding offer for the Civil Works France business (Drainage and Tunnel activities) and the SPA was signed on June 10th. Consolis expect to complete the divestment in H2 2021.
- On May 7, 2021, Consolis issued € 300 million senior secured notes due 2026. The Notes will accrue interest at an annual rate of 5.75% and will mature on May 1, 2026. As part of the refinancing, Consolis also entered into a revolving credit facility, which provides for € 75 million of available drawings.