Alfa Laval AB (publ) Fourth quarter and full year 2022

Rhea-AI Summary

Alfa Laval AB reported robust financial results for Q4 and full year 2022. Order intake surged to SEK 15.8 billion, marking a 16% organic growth, with a net sales increase of SEK 16.5 billion or 14% organic growth. Adjusted EBITA reached SEK 2,520 million, reflecting a 27% growth and a margin of 15.3%. Full year net sales climbed to SEK 52.1 billion, while net income slightly decreased to SEK 4.57 billion. The board suggested a dividend of SEK 6.00 per share. Looking ahead, demand is expected to remain stable in Q1 2023.

Positive

• Order intake of SEK 15.8 billion, 16% organic growth.
• Net sales reached SEK 16.5 billion, 14% organic growth.
• Adjusted EBITA increased to SEK 2,520 million, 27% growth.
• Increased CAPEX investments estimated at SEK 2.5-3.0 billion annually.

Negative

• EBITA margin declined to 15.3% from 17.0%.
• Net income decreased to SEK 4.57 billion from SEK 4.80 billion.
• Earnings per share fell to SEK 3.00 from SEK 3.51.
• Cash flow from operations declined to SEK 3.29 billion from SEK 5.26 billion.

LUND, Sweden, Feb. 2, 2023 /PRNewswire/ -- 

Highlights

• Order intake of SEK 15.8 billion, corresponding to 16 percent organic growth. Demand remained positive in all three divisions.
• Net sales of 16.5 billion, corresponding to 14 percent organic growth. Record high sales was supported by improving supply chains.
• Adjusted EBITA of SEK 2,520 million, corresponding to 27 percent growth and a margin of 15.3 percent.
• Increased CAPEX investments to support future growth, estimated at SEK 2.5-3.0 billion per year.

Summary

Fourth quarter 

Order intake increased by 23 percent* at SEK 15,767 (11,651) million.
Net sales increased by 30 percent* to SEK 16,484 (11,692) million.  
Adjusted EBITA**: SEK 2,520 (1,992) million.
Adjusted EBITA margin**: 15.3 (17.0) percent.
Result after financial items: SEK 1,762 (1,861) million. 
Net income: SEK 1,260 (1,478) million.                                        
Earnings per share: SEK 3.00 (3.51).
Cash flow from operating activities: SEK 1,662 (1,411) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 150 (50) million.
Impact on result after financial items of comparison distortion items: SEK -440 (-) million.

Full year

Order intake increased by 18 percent* to SEK 58,645 (45,718) million.
Net sales increased by 18 percent* to SEK 52,135 (40,911) million.  
Adjusted EBITA**: SEK 8,229 (7,114) million.
Adjusted EBITA margin**: 15.8 (17.4) percent.
Result after financial items: SEK 6,179 (6,142) million. 
Net income: SEK 4,569 (4,801) million.                                        
Earnings per share: SEK 10.89 (11.38).
Cash flow from operating activities: SEK 3,291 (5,264) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 400 (-50) million.
Impact on result after financial items of comparison distortion items: SEK -767 (-192) million.
Return on capital employed (%)**: 17.3 (20.0).
Net debt to EBITDA, times**: 1.47 (0.87).

* Excluding currency effects. ** Alternative performance measures.
 
Outlook for the first quarter
 
"We expect demand in the first quarter to be about the same as in the fourth quarter."
Earlier published outlook (October 25, 2022): "We expect demand in the fourth quarter to be about the same as in the third  quarter."  

The Board of Directors will propose a dividend of SEK 6.00 (6.00) per share to the Annual General Meeting. 

The Q4 2022 report has been reviewed by the company's auditors, see page 27 for the review report.

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at CET 7.30 on February 2, 2023.

For more information, please contact:
Johan Lundin, Head of Investor Relations
Phone: +46 46 36 65 10, 
Mobile: +46 730 46 30 90,
E-mail: johan.lundin@alfalaval.com

Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden
Corporate registration number: 556587-8054
Visiting address: 
Rudeboksvägen 1
Phone: + 46 46 36 65 00
Website: www.alfalaval.com

The following files are available for download:

https://mb.cision.com/Main/905/3707562/1821552.pdf

Alfa Laval bokslutskommunike 2022_eng_230202

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SOURCE Alfa Laval

FAQ

What were Alfa Laval's Q4 2022 financial results for ALFVY?

Alfa Laval reported Q4 2022 net sales of SEK 16.5 billion, a 30% increase, and an adjusted EBITA of SEK 2,520 million.

How much did Alfa Laval's order intake grow in 2022?

Alfa Laval's order intake grew by 18% in 2022, reaching SEK 58.6 billion.

What is the dividend proposed by Alfa Laval for 2022?

Alfa Laval proposed a dividend of SEK 6.00 per share for 2022.

How did Alfa Laval's earnings per share change in 2022?

Earnings per share for Alfa Laval decreased to SEK 10.89 in 2022 from SEK 11.38 in 2021.

What is Alfa Laval's outlook for Q1 2023?

Alfa Laval expects demand in Q1 2023 to remain stable compared to Q4 2022.