Bli medlem
Bli medlem

Du är här

2021-07-27

Lassila & Tikanoja plc: Half-Year Report 1 January–30 June 2021

Lassila & Tikanoja plc
Stock exchange release
27 July 2021 at 8:00 a.m.

GOOD GROWTH IN NET SALES

Lassila & Tikanoja plc: Half-Year Report 1 January–30 June 2021

Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.

  • Net sales for the second quarter amounted to EUR 198.7 million (183.2). Net sales increased by 8.5 per cent, of which 6.2 per cent was organic growth. Net sales increased in all divisions.
  • Adjusted operating profit was EUR 10.2 million (8.7) and operating profit was EUR 10.6 million (-2.2). Earnings per share were EUR 0.21 (-0.07).
  • Net sales in January–June totalled EUR 390.7 million (367.5). Adjusted operating profit was EUR 13.8 million (12.3), operating profit was EUR 14.3 million (0.7) and earnings per share were EUR 0.27 (-0.07).
  • Earnings per share were positively influenced by a reduction in net financial expenses to EUR -1.6 million (-3.1). Exchange differences amounted to EUR 0.0 million (-1.2).

Outlook for the year 2021, updated 27 July 2021

Net sales in 2021 are estimated to grow and adjusted operating profit is estimated to be at the same level or better compared to the previous year.

PRESIDENT AND CEO EERO HAUTANIEMI:

In the first half of the year, net sales increased by 6.3 per cent from the comparison period.  Organic growth accounted for 5.7 per cent. Operating profit increased across all divisions, and in addition to growth in net sales, we succeeded in enhancing our operational efficiency. All of the divisions boosted their results even though the COVID-19 pandemic had a negative impact on all of our businesses throughout the first half of the year. In the second quarter, material volumes began to recover and the prices of secondary raw materials continued to recover. Demand in the industrial segment was strong. We are now focusing on taking advantage of the opportunities presented by the recovery of the markets.

One of our strategic targets is to continuously improve customer satisfaction. In a customer satisfaction survey conducted in Finland in April, we achieved record results and customer satisfaction improved across all of our divisions. Employee satisfaction also improved.

We carried out three business acquisitions in the second quarter, strengthening our position in Environmental Services and Facility Services Finland’s food hygiene and retail services in accordance with our strategy. The combined net sales of the acquired businesses amounted to approximately EUR 25 million in 2020. The acquisitions support our goal of annually increasing our net sales organically and through acquisitions by more than 5 per cent.

We received international recognition for our sustainability efforts. EcoVadis, a leading ratings platform for assessing sustainability, awarded the highest possible Platinum rating to L&T in its assessment. This means we are in the top 1% of the 75,000 companies analysed by EcoVadis. We also received recognition in a study by the Financial Times and Statista, which listed European companies that achieved the highest reduction in emissions relative to net sales in 2020. Lassila & Tikanoja was one of fourteen Finnish corporations on the list.

The new Waste Act entered into force in Finland on 19 July 2021. The new Waste Act implements the EU’s new and more ambitious recycling requirements for municipal waste and packaging waste in Finnish legislation and also introduces national reforms to the collection systems concerning materials collected from housing properties. The amendments will enter into force in stages by 2025 and do not have an impact on L&T in 2021.

The expansion of the sorting and separate collection obligations to businesses is estimated to increase the market for collecting and processing materials. The impact of the new Waste Act on the retail and industrial waste streams and the competitive landscape in areas will become clear by the end of 2025.

Municipalities will take on a larger role in collecting packaging materials and biowaste from residential properties. L&T’s direct customer agreements with housing properties will be transferred to municipal waste companies by the end of the transition period. The change will not have a direct impact on the collection of mixed waste from housing properties. Housing properties’ contractual waste management services accounted for slightly over 10 per cent of the net sales of Environmental Services in 2020. The amendments will enter into force in stages by the end of 2025.

It is still too early to assess the overall impact of the new Waste Act. The trend of municipalisation of waste management for residential properties has reduced the household segment’s share of the Environmental Services division’s business portfolio significantly over the past 10 years. We have been able to compensate for these losses effectively by focusing on the growing corporate market.

The amendment to the Waste Act will not result in changes in L&T’s strategy. We are continuing to focus on the organic growth in the corporate customer market and business acquisitions, with the acquisition of Sihvari Oy’s business operations in June being a good example of this.

GROUP NET SALES AND FINANCIAL PERFORMANCE

April–June
Lassila & Tikanoja’s net sales for the second quarter amounted to EUR 198.7 million (183.2), up 8.5% year-on-year. Adjusted operating profit was EUR 10.2 million (8.7), representing 5.1% (4.7%) of net sales. Operating profit was EUR 10.6 million (-2.2), representing 5.3% (-1.2%) of net sales.  Earnings per share were EUR 0.21 (-0.07).

Net sales grew across all of the Group’s business segments. Operating profit increased in Industrial Services and Facility Services Sweden. In Environmental Services and Facility Services Finland, operating profit was on a par with the comparison period.

January–June
Net sales for January–June increased by 6.3% from the comparison period to EUR 390.7 million (367.5). Adjusted operating profit was EUR 13.8 million (12.3), representing 3.5% (3.3%) of net sales. Operating profit was EUR 14.3 million (0.7), representing 3.7% (0.2%) of net sales. Earnings per share amounted to EUR 0.27
(-0.07).

Net sales and comparable operating profit increased across all of the Group’s business segments.

The realisation of occupational accident expenses concerning accidents that took place prior to 2018 had a negative effect of EUR 0.8 million on the Group’s operating profit. In the comparison period, non-recurring items had a positive net effect of EUR 0.9 million on the Group’s operating profit. The items in question are not included in the figures of the Group’s businesses. In the comparison period, operating profit was improved by the temporary lowering of pension insurance contributions by 2.6 percentage points from 1 May to 31 December 2020, which had a positive impact of approximately EUR 3.8 million in 2020. Earnings per share were positively influenced by a reduction of EUR -1.6 million (-3.1) in net financial expenses.

Financial summary

 4–6/20214–6/2020Change %1–6/20211–6/2020Change %2020
        
Net sales, EUR million198.7183.28.5390.7367.56.3751.9
Adjusted operating profit,
EUR million
10.28.717.613.812.312.739.7
Adjusted operating margin, %5.14.7 3.53.3 5.3
Operating profit, EUR million
Författare GlobeNewswire