Half-year financial report January – June 2021: Strong second quarter for the building solutions divisions
Uponor Corporation Stock exchange release 27 July 2021 08:00 EET
Half-year financial report January – June 2021: Strong second quarter for the building solutions divisions
April-June 2021
- Net sales were €353.3 (277.1) million, a growth of 27.5%. Organic growth was 30.4% in constant currency terms.
- Comparable operating profit was €48.2 (36.2) million, a growth of 33.1%.
- Operating profit was €47.0 (30.3) million, a growth of 55.4%.
- Earnings per share were €0.32 (0.21).
January-June 2021
- Net sales were €662.5 (554.5) million, a growth of 19.5%. Organic growth was 22.3% in constant currency terms.
- Comparable operating profit was €95.7 (65.6) million, a growth of 45.8%.
- Operating profit was €94.0 (58.8) million, a growth of 59.7%.
- Earnings per share were €0.75 (0.51).
- Return on investment was 27.6% (19.0) and gearing -1.2% (40.2).
- Cash flow from business operations was €64.0 (28.7) million.
Guidance statement for 2021:
Updated on 11 June 2021: Excluding the impact of currencies, Uponor expects its net sales and comparable operating profit to increase from year 2020.
(Increase indicates a growth of 2.5% or more.)
Jyri Luomakoski, President and CEO, comments:
“When we revised our guidance in June, we commented that the activity in residential construction markets on both sides of the Atlantic remained at a high level during the first half of the year. Activity in the Nordic infrastructure construction markets has been at a good level as well. The strong demand combined with our solid operational performance and the good progress of our operational excellence programme drove the increase of our operating profit and profitability. One should also keep in mind that our comparison period was somewhat weak due to COVID-19 related lockdowns.
Building Solutions – Europe continued its strong performance. Net sales grew in most of the markets. The increased sales volumes together with the operational excellence programme’s initiatives drove the improvements in profitability.
Net sales and operating profit improved in Building Solutions – North America. Demand has been at a high level in both the U.S. and Canadian markets. Demand has also picked up in the commercial segment. Higher sales volumes and strong operational performance improved profitability, even though the input costs increased.
Uponor Infra’s net sales increased, but operating profit decreased. The decrease in operating profit was due to increase in input costs, which was partly offset by higher sales volumes, product mix and designed solutions sales in Norway.
There have been increases in our input costs throughout the markets and we expect this pressure to continue in the second half of the year as well. We estimate, as supported by our track record that we can mitigate the impact essentially with pricing. In addition, we are still facing some delivery bottlenecks with certain raw materials, which have created challenges to the optimisation of our production planning and scheduling. If these disruptions continue, they can impact the effectiveness of our production.
This is my last financial report as the CEO of Uponor. My quarter of a century with the company and nearly 13 years as the CEO have been an exciting and rewarding journey. I want to extend my biggest thanks to all of our business partners for your trust and co-operation during these years. And of course, a warm thank you to all Uponorians, who have made this journey with me and also delivered excellent results during the pandemic and this first half of 2021.”
Key figures
| M€ | 4-6/ 2021 | 4-6/ 2020 | Change | 1-6/ 2021 | 1-6/ 2020 | Change | 1-12/ 2020 |
| Net sales | 353.3 | 277.1 | 27.5% | 662.5 | 554.5 | 19.5% | 1,136.0 |
| Building Solutions – Europe | 149.0 | 118.5 | 25.7% | 288.7 | 247.3 | 16.7% | 499.5 |
| Building Solutions – North America | 118.4 | 90.5 | 30.9% | 231.7 | 183.1 | 26.5% | 389.1 |
| Uponor Infra | 87.8 | 69.5 | 26.3% | 145.3 | 126.7 | 14.7% | 252.0 |
| Operating expenses | 294.5 | 234.1 | 25.8% | 544.6 | 469.6 | 16.0% | 952.0 |
| Depreciation and impairments | 12.2 | 13.1 | -7.3% | 24.5 | 26.6 | -8.0% | 52.7 |
| Other operating income | 0.4 | 0.5 | -24.0% | 0.6 | 0.5 | 9.4% | 1.0 |
| Operating profit | 47.0 | 30.3 | 55.4% | 94.0 | 58.8 | 59.7% | 132.3 |
| Building Solutions – Europe | 20.9 | 7.5 | 179.9% | 43.8 | 19.4 | 125.4% | 45.1 |
| Building Solutions – North America | 23.0 | 15.0 | 53.3% | 46.6 | 31.8 | 46.5% | 74.5 |
| Uponor Infra | 6.8 | 7.3 | -7.1% | 8.8 | 9.1 | -2.4% | 19.0 |
| Comparable operating profit | 48.2 | 36.2 | 33.1% | 95.7 | 65.6 | 45.8% | 142.7 |
| Building Solutions – Europe | 21.9 | 13.2 | 65.5% | 45.3 | 26.0 | 74.0% | 55.1 |
| Building Solutions – North America | 23.0 | 15.1 | 52.7% | 46.7 | 31.9 | 46.4% | 74.6 |
| Uponor Infra | 6.8 | 7.3 | -7.1% | 8.8 | 9.1 | -2.4% | 19.0 |
| Financial income and expenses | -3.0 | -4.9 | -39.2% | -5.8 | -1.8 | 219.0% | -6.3 |
| Profit before taxes | 37.6 | 24.2 | 55.0% | 80.7 | 54.6 | 47.8% | 121.8 |
| Profit for the period | 25.9 | 17.8 | 45.3% | 57.6 | 40.1 | 43.6% | 96.1 |
| Earnings per share | 0.32 | 0.21 | 54.9% | 0.75 | 0.51 | 47.5% | 1.21 |
|
| 30 June | 30 June | Change
| 31 Dec |
| 2021 | 2020 | 2020 | ||
| Net working capital, M€ | 72.0 | 132.6 | -45.7% | 65.9 |
| Net-interest bearing debt, M€ | -5.3 | 147.0 | -103.6% | 15.1 |
| Solvency, % | 43.2 | 40.4 | 6.8% | 48.7 |
| Gearing, % | -1.2 | 40.2 | -103.0% | 3.6 |
| Return on investment, % | 27.6 | 19.0 | 45.2% | 21.8 |
Webcast of the results briefing and the presentation
A webcast in English will be broadcast on 27 July at 13:00 EET. It can be viewed via our website at uponorgroup.com or via the Uponor IR mobile app. The recorded webcast can be viewed via the website or the app shortly after the live presentation. All presentation materials will be available at www.uponorgroup.com > Investors > Reports and presentations.
Uponor Corporation’s financial reporting in 2021
28 Oct 2021 Interim report 1–9/2021
For further information, please contact:
Jyri Luomakoski, President and CEO, tel. +358 20 129 2824
Minna Yrjönmäki, CFO, tel. +358 20 129 2036
Susanna Inkinen, Vice President, Communications and Corporate Responsibility, tel. +358 20 129 2081
DISTRIBUTION:
Nasdaq Helsinki
Media
www.uponorgroup.com
Uponor in brief
Uponor is rethinking water for future generations. Our offering, including safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure, enables a more sustainable living environment. We help our customers in residential and commercial construction, municipalities and utilities, as well as different industries to work faster and smarter. Uponor employs about 3,700 professionals in 26 countries in Europe and North America. In 2020, Uponor’s net sales totalled approximately €1.1 billion. Uponor Corporation is based in Finland and listed on Nasdaq Helsinki. www.uponorgroup.com
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