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2021-10-28

Interim report January-September 2021: Net sales growth of 6.8% in Q3 - further price increases in place to mitigate raw material and supply chain headwinds

Uponor Corporation     Stock exchange release    28 October 2021    08:00 EET

Interim report January-September 2021: Net sales growth of 6.8% in Q3 - further price increases in place to mitigate raw material and supply chain headwinds


July-September 2021

  • Net sales were €321.4 (301.0) million, a growth of 6.8%. Organic growth was 8.1% in constant currency terms.
  • Comparable operating profit was €38.1 (49.7) million, a decline of 23.3%.
  • Operating profit was €37.3 (49.6) million, a decline of 24.7%.
  • Earnings per share were €0.35 (0.43). 

January-September 2021

  • Net sales were €983.9 (855.5) million, a growth of 15.0%. Organic growth was 16.4% in constant currency terms.
  • Comparable operating profit was €133.8 (115.3) million, a growth of 16.0%.
  • Operating profit was €131.3 (108.5) million, a growth of 21.1%.
  • Earnings per share were €1.10 (0.94).
  • Cash flow from business operations was €115.3 (129.2) million.
  • Return on investment was 28.5% (23.2) and gearing -5.6% (18.6).

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.)

Michael Rauterkus, President and CEO, comments:

“The strong demand witnessed in the construction industry in both Europe and North America throughout the year continued to support our sales volume growth and increase our net sales in the third quarter. Over the last months, we have seen price levels of raw materials continuing to increase or stay at a high level. Furthermore, we faced supply shortages of raw materials and components, resulting in lower service levels for our customers at times. These factors burdened our operating profit and profitability in the third quarter despite the good demand. It should also be kept in mind that we had a strong comparison period due to the recovery of demand after Q2 and a favourable cost level related to COVID-19.

Building Solutions – Europe performed well in the third quarter. Net sales grew in most of the key markets and improvements in operations increased operating profit. To support our future growth initiatives, we announced in August the acquisition of Capricorn S.A., a Polish manufacturer of components for heating and sanitary installations. We expect to close the transaction during the last quarter of the year.

The Building Solutions – North America division’s net sales increased, while operating profit decreased. The impacts of supply chain shortages were most visible in North America. This created challenges for our production and logistics optimisation, which together with increased input and freight costs decreased profitability.

Strong market demand supported the growth of Uponor Infra’s net sales. Due to the higher input costs, operating profit decreased but the impact was partly offset by increased sales volumes and good operational performance.

During the last quarter of the year, we will focus on stabilising our supply chain and operational performance to secure good customer experience and service. We will continue to mitigate the impacts of the rise in input costs and supply shortages, but expect that these issues delay the margin recovery. After my first months at Uponor, I am very impressed by our excellent teams in all around Uponor operations. Our product, service and solution portfolio is capable of responding to the global megatrends and challenges of the next decades: sustainability and resource scarcity. Combined with our strong financial position, we are well prepared for the next step in our journey of profitable growth.”

Key figures

M€ 7-9/

2021
7-9/

2020
Change1-9/

2021
1-9/

2020
Change1-12/

2020
Net sales321.4301.06.8%983.9855.515.0%1,136.0
Building Solutions – Europe141.6125.313.0%430.4372.715.5%499.5
Building Solutions – North America108.3105.52.7%340.0288.617.8%389.1
Uponor Infra72.471.11.8%217.7197.810.0%252.0
Operating expenses272.2238.913.9%816.9708.515.3%952.0
Depreciation and impairments12.112.7
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