Alfa Laval AB (publ) Interim report April 1 - June 30, 2021

Rhea-AI Summary

Alfa Laval reported a strong market recovery in its Q2 2021 results. Order intake rose by 33% to SEK 12,183 million, while net sales slightly decreased by 2% to SEK 9,975 million. The adjusted EBITA reached SEK 1,738 million, with a margin improvement to 17.4%. Notable performance was seen in the Food & Water Division, bolstered by rising orders. However, the company anticipates lower demand in Q3 compared to Q2.

Positive

• Order intake increased by 33% to SEK 12,183 million in Q2.
• Record-high order intake in the Food & Water Division.
• Adjusted EBITA margin improved to 17.4% due to productivity improvements.

Negative

• Net sales decreased by 2% to SEK 9,975 million in Q2.
• Cash flow from operating activities dropped to SEK 1,421 million from 2,844 million in Q2.
• Net debt to EBITDA increased to 1.14 from 0.58.

LUND, Sweden, July 20, 2021 /PRNewswire/ -- Continued strong market recovery     

• Strong order growth across all divisions and regions.
• Record-high order intake in the Food & Water Division. 
• Sustainability offering in Marine strengthened by acquisition of StormGeo. 
• The adjusted EBITA-margin improved due to productivity improvements and restructuring program.

Summary

Second quarter

Order intake increased by 33 percent* to SEK 12,183 (9,749) million.
Net sales increased by 2 percent* to SEK 9,975 (10,455) million. 
Adjusted EBITA**: SEK 1,738 (1,802) million.
Adjusted EBITA margin**: 17.4 (17.2) percent.
Result after financial items***: SEK 1,231 (1,414) million.
Net income***: SEK 985 (1,055) million.                                        
Earnings per share***: SEK 2.32 (2.49).
Cash flow from operating activities: SEK 1,421 (2,844) million.
Impact on adjusted EBITA of foreign exchange effects: SEK -30 (60) million.
Impact on result after financial items of comparison distortion items: SEK -204 (-) million.

First six months

Order intake increased by 12 percent* to SEK 22,387 (21,626) million.
Net sales decreased by 3 percent* to SEK 18,944 (21,045) million. 
Adjusted EBITA**: SEK 3,268 (3,552) million.
Adjusted EBITA margin**: 17.3 (16.9) percent.
Result after financial items***: SEK 2,714 (2,671) million.
Net income***: SEK 2,097 (1,978) million.                                        
Earnings per share***: SEK 4.96 (4.68).
Cash flow from operating activities: SEK 2,384 (3,803) million.
Impact on adjusted EBITA of foreign exchange effects: SEK -100 (150) million.
Impact on result after financial items of comparison distortion items: SEK -192 (-) million.
Return on capital employed (%) **: 18.0 (22.5).
Net debt to EBITDA, times **: 1.14 (0.58).

* Excluding currency effects. ** Alternative performance measures. *** The comparison period 2020 has been changed as communicated in the Q3 report 2020.

Outlook for the third quarter
"We expect demand in the third quarter to be somewhat lower than in the second quarter."
Earlier published outlook (April 27, 2021): "We expect demand in the second quarter to be about the same as in the first quarter."  

The Q2 2021 report has not been subject to review by the company's auditors.

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and 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 July 20, 2021.

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

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Alfa Laval June 2021_eng_210720

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SOURCE Alfa Laval

FAQ

What was Alfa Laval's order intake for Q2 2021?

Alfa Laval's order intake for Q2 2021 increased by 33% to SEK 12,183 million.

How did Alfa Laval's net sales perform in Q2 2021?

Net sales for Q2 2021 decreased by 2% to SEK 9,975 million.

What is the adjusted EBITA margin reported by Alfa Laval for Q2 2021?

The adjusted EBITA margin for Q2 2021 improved to 17.4%.

What are the expectations for demand in Q3 2021 for Alfa Laval?

Alfa Laval expects demand in Q3 2021 to be somewhat lower than in Q2 2021.

How did Alfa Laval's earnings per share change in Q2 2021?

Earnings per share for Q2 2021 were SEK 2.32, down from SEK 2.49 in the previous year.