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2021-10-26

Lassila & Tikanoja plc: Interim Report 1 January–30 September 2021

Lassila & Tikanoja plc
Stock exchange release
26 October 2021 at 8:00 a.m.

Lassila & Tikanoja plc: Interim Report 1 January–30 September 2021

STRONG GROWTH IN ALL DIVISIONS

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

  • Net sales for the third quarter amounted to EUR 198.4 million (184.8). Net sales increased by 7.4 per cent, of which 3.8 percentage points was organic growth. Adjusted operating profit was EUR 18.5 million (17.5) and operating profit was EUR 18.0 million (17.6). Earnings per share were EUR 0.37 (0.37).
  • Net sales in January–September totalled EUR 589.0 million (552.3). Adjusted operating profit was EUR 32.3 million (29.7), operating profit was EUR 32.3 million (18.3) and earnings per share were EUR 0.64 (0.30).
  • Earnings per share were positively influenced by a reduction in net financial expenses to EUR -2.5 million (-4.1). Exchange differences amounted to EUR 0.1 million (-1.3).

Outlook for the year 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:

Lassila & Tikanoja’s services saw continued strong demand in the third quarter. In July–September, net sales increased by 7.4 per cent year-on-year, with organic growth amounting to 3.8 per cent. Adjusted operating profit improved year-on-year and totalled EUR 18.5 million (17.5).

The negative impacts of the COVID-19 pandemic on customer demand and the prices of secondary raw materials continued to dissipate in the third quarter. At the same time, the costs of service production were increased by the substantial increase in diesel prices as well as worsening labour shortages.

In spite of the cost pressures, the Environmental Services and Industrial Services divisions achieved a strong result. Performance remained weak in the property maintenance and technical services business lines in Facility Services Finland. Measures to simplify the organisational structure and improve cost efficiency were initiated in these business lines in August and will be completed during the fourth quarter. The aim is to achieve cost savings of approximately EUR 3 million annually starting from 2022.

In the third quarter, the EU Commission published its new climate targets along with proposals on key actions for achieving the targets. The proposals strengthen the role of the circular economy as a driver of the green transition, thereby supporting L&T’s business. Increasingly ambitious climate targets will also guide L&T’s operations in the coming years. We already acquired 50 electric vans during the reporting period.

GROUP NET SALES AND FINANCIAL PERFORMANCE

July–September
Lassila & Tikanoja’s net sales for the third quarter amounted to EUR 198.4 million (184.8), up 7.4% year-on-year. The rate of organic growth was 3.8%. Adjusted operating profit was EUR 18.5 million (17.5), representing 9.3% (9.5%) of net sales. Operating profit was EUR 18.0 million (17.6), representing 9.1% (9.5%) of net sales. Earnings per share were EUR 0.37 (0.37).

Net sales increased in Environmental Services, Facility Services Finland and Facility Services Sweden. Net sales decreased slightly in Industrial Services. Comparable operating profit improved in Environmental Services and remained on a par with the comparison period in Facility Services Sweden. Operating profit declined in Industrial Services and Facility Services Finland.

January–September
Net sales for January–September increased by 6.6% year-on-year and amounted to EUR 589.0 million (552.3). The rate of organic growth was 5.9%. Adjusted operating profit was EUR 32.3 million (29.7), representing 5.5% (5.4%) of net sales. Operating profit was EUR 32.3 million (18.3), representing 5.5% (3.3%) of net sales. Earnings per share were EUR 0.64 (0.30).

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

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. The result for the period was positively influenced by a reduction in net financial expenses to EUR -2.5 million (-4.1). Exchange differences had an impact of EUR +0.1 million (-1.3) on financial expenses.  

Financial summary

 7–9/20217–9/2020Change %1–9/20211–9/2020Change %2020
        
Net sales, EUR million198.4184.87.4589.0552.36.6751.9
Adjusted operating profit, EUR million18.517.55.632.329.78.539.7
Adjusted operating margin, %9.39.5 5.55.4 5.3
Operating profit, EUR million18.017.62.032.318.376.328.2
Operating margin, %9.19.5 5.53.3 3.8
EBITDA, EUR million31.430.43.471.961.716.785.2
EBITDA, %15.816.4
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