November 19th 2021
The positive business momentum continued in the third quarter of 2021 and Consolis recorded order intake amounting to € 317 million, corresponding to a book to bill ratio of 1.19, which is a strong level, driven by strong demand across markets. Consolis order book sequentially grew 9 percent since the last quarter and amounted to € 878 million at the end of the third quarter. Net sales in the third quarter amounted to € 265 million (253), up 5 percent versus last year. Adjusted EBITDA amounted to € 19.5 million (25.3) and the adjusted EBITDA-margin was 7.3 percent (10.0).
Raw material costs continued to increase in the quarter, and as expected, the impact on our results and margins in Q3 was clearly visible in comparison to previous quarters. The uncertainty regarding raw material prices remains and we are following the development closely. Pricing of new tenders is obviously top priority since that is our main mitigating tool and pass through mechanism for cost increases, although we have some protection from indexations and re-negotiations. West Nordic is the segment where we expect, due to the long order book, that it will take the longest before the price increases will have full impact, whereas we see improvements in East Nordic and Eastern Europe already. We should expect Q4 to continue to be impacted by raw material price increases, to then improve gradually in 2022, as the conversion of order book gradually is including projects where the increased raw material costs have been taken into consideration, and assuming stabilizing raw material prices.
The process of divesting the CWF business is progressing. After completion of this transaction, the remaining Consolis is focusing on its core building business with a market leading position in Europe. We continue to see significant market opportunities within both residential and non-residential building solutions across all our markets, although the rising commodity prices is expected to have impact on our performance also in the coming quarter, to sequentially improve from this level in 2022.
Highlights of the third quarter 2021:
- Net sales amounted to € 265 million (253), corresponding to sales growth of 5 percent. Currency effects had a positive impact of 0.2 percent
- Operating profit (EBIT) amounted to € 6.3 million (13.8)
- Adjusted EBITDA amounted to € 19.5 million (25.3), corresponding to a margin of 7.3 percent (10.0)
- Order book amounted to € 878 million, compared to € 803 million at the beginning of the quarter. Order intake in the quarter totaled € 317 million, corresponding to a book-to-bill ratio of 1.19
- Free cash flow in the quarter amounted to € -20.1 million (6.7). Changes in net working capital had a negative impact on cash flow in the quarter
- LTM cash conversion was 54 percent
Consolis will host a presentation with the possibility to attend through a telephone conference at 10.00 CET today. The presentation will be held in English and will also be available as a recorded webcast on: https://edge.media-server.com/mmc/p/ajyfypir.
To ensure that you are connected to the conference call, please dial in at least five minutes before the conference call starts to register your attendance and enter the participation code: 48533377#.
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The Interim Report and the presentation are available on www.consolis.com.