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Nilfisk, a leading provider of professional cleaning products and services, today announced its financial results for the first quarter of 2021.
Highlights of the first quarter of 2021
- The good performance of the quarter was driven by a positive and earlier than expected development of the recovery in demand in the professional branded sector and strong peak season sales in the consumer sector.
- Total activity revenue amounted to EUR 237.3m, corresponding to organic growth of 11.9% compared to -10.3% in Q1 2020
- Reported revenue growth for the entire company was 8.3%
- The Professional Branding business recorded organic growth of 8.3%, with a recovery on track in all regions and strong performance in the United States and southern Europe. Europe posted organic growth of 5.5%. In the Americas, organic growth was 11.2%. In APAC, organic growth was 15.5%
- The Consumer Business continued its solid performance in 2020 with a better than expected peak season showing organic growth of 34.0%. Private Label posts 28.7% organic growth due to higher demand from key customers
- The gross margin was 41.6%, which is lower than the 42.8% reported in the first quarter of 2020, with the positive effect of the increase in capacity utilization being offset by exceptionally high freight rates, higher raw material costs and negative mix effects from higher incomes in consumption and the private sector. Label
- Due to the increase in turnover, disciplined cost control measures and the restructuring program executed in Q2 and Q3 2020, EBITDA before exceptional items increased by EUR 12.4m compared to Q1 2020 and amounted to EUR36.4m. This corresponds to an EBITDA margin before exceptional items of 15.3% compared to 11.0% in Q1 2020
- Free cash flow amounted to EUR 9.2m compared to EUR 2.2m in Q1 2020, mainly due to the combination of an increase in operating income partially offset by higher working capital investments in due to increased commercial activity, low level of special items and low level of CAPEX
Outlook for 2021
As part of the 2020 annual report of March 3, 2021, Nilfisk announced its financial outlook for the whole of 2021 as follows:
- Organic growth in total activity expected of around 5% to 10%
- EBITDA margin before special items of around 12.5% to 14.5%
Due to the current good trading conditions in our key markets and improved visibility for the second quarter, including a strong order book, which, especially in the industrial segment, may be the result of demand repressed, we are adjusting the outlook for the year 2021, disclosed in our announcement 14/2021, as follows:
- Organic growth in total activity expected between 8% and 12%
- EBITDA margin before special items of around 13% to 15%
The range provided reflects the better-than-expected performance of the company, but also persistent uncertainty related to the development of the COVID-19 pandemic and supply chain constraints, including pressure on freight and material prices. raw.
Commenting on the results, Jens Due Olsen, President, said:
“We are pleased to see a continued increase in market activity throughout the quarter and to see demand recovering from the pandemic faster than expected. We are particularly pleased to see that our key markets in the US and southern Europe performed well in the first quarter of 2021. Of course, all the numbers have to be seen in the context of a very unusual and difficult. , but as we see that most markets have now adjusted to the economy and pandemic conditions, we are confident that we are on the right track. ”
“Finally, the high season for consumer activity has exceeded all expectations, helped by the new consumption trends induced by the pandemic, freeing up more time for housekeeping, but above all thanks to a great team effort. with a stronger focus on sales execution and new product launches.
|Q1 2021||Q1 2020|
|EBITDA before special items (mEUR)||36.4||24.0|
|EBITDA margin before special items||15.3%||11.0%|
|EBIT before special items (mEUR)||21.4||7.3|
|EBIT margin before special items||9.0%||3.3%|
Nilfisk will host a conference call today at 10:00 am CET. Please visit investor.nilfisk.com to access the call. Presentation material will be available on the website prior to the conference call.
To log in, please use the following numbers:
- DK: +45 78150107
- UK: +44 3333009034
- United States: +1 8332498405
Link to webcast: https://streams.eventcdn.net/nilfisk/2021q1/
Head of Investor Relations
T: +45 2220 1218
Sara Westphal Emborg
Global media relations
T: +45 2222 8577
- 16 Announcement_28052021_Nilfisk publishes its results for the first quarter of 2021
- Nilfisk Q1 interim report 2021