Side 1
Sanistål publishes Q1 2022 notifica Aalborg, 24 May 2022 The Board of Directors approved the Q1 2022 notification with the following principal points: > Revenue rose by 11.7% to DKK 943.1 million. The growth is due to a higher level of activity in Denmark and Eastern Europe and to rising selling prices. > Operating profit (EBITDA) before one-off effects rose to DKK 72.3 million compared to DKK 45.7 million in the same period last year. The rise is due to rising sales, better margins and retention of the cost base. The EBITDA margin rose by 2.3 percentage points to 7.7%. > The forecast for 2022 was adjusted upwards on 9 May 2022 and is maintained. Operating profit (EBITDA) before one-off effects are expected to be DKK 225-255 million, with revenue at around DKK 3.6 billion. > Continued focus on optimizing the working capital by reduction of extraordinarily high inventory levels and optimization of payment terms with our customers and suppliers. Group operations, Q1 2022 The EBITDA before one-off effects amounted to DKK 72.3 million for Q1, compared to DKK 45.7 million in the same period last year. The increase is due to a higher level of activity, price increases, better margins and unchanged costs. As a result, the EBITDA before one-off effects rose from 5.5% to 7.7%. The reported EBITDA totaled DKK 56.7 million in Q1, compared to DKK 39.8 million in the same period last year. The former subsidiary Serman & Tipsmark A/S, was divested as of 29 April 2022, and the profit will be reported as ‘discontinued operations’ for 2022. Q1 revenue amounted to DKK 943.1 million, compared to DKK 844.2 million in the same period last year. The growth of the Danish business corresponds to market demand and grew by 11.5% as a result of rising sales in all customer categories. Revenue in the east European business grew 13.7%, due to growth in the project department in particular. The growth in both markets is affected by higher selling prices to offset the rising purchase prices for a number of raw materials and manufactured goods, including steel. The gross profit margin for the Danish business segment rose by 0.3 percentage point to 24.9%. The improvement is due to the optimized distribution and purchases, growth in digital sales and implementation of market-conform prices and charges for certain products and services. The gross profit ratio for the east European business segment rose 1.7 percentage points to 22.5%. The trend is affected by a higher market share in the area of quality steel, where the margins are better than
Side 2
1 Sanistål Quarterly Report Q1 2022 ation for ordinary steel. The increase was due to customers who turned to national or west European suppliers to replace Russian suppliers. Reliability of supply remained slightly below the preferred level but was still satisfactory and not alarming, in the light of the general high level of market activity and strained supply chains. The current level is expected to continue in the months ahead. Cash flows from operating activities amounted to DKK 46.9 million, compared to DKK -2.8 million in Q1 2021, whereas free cash flows amounted to DKK 41.2 million compared to a negative flow of DKK -14.5 million in the period of comparison. The difference is due to trends for working capital and rising earnings, compared to Q1 2021. The working capital rose by DKK 44.6 million, compared to Q1 2021 caused by price increases and extraordinary higher inventory to keep up a satisfactory security of delivery. Optimizing of payment terms and reduction of the temporarily high level of inventory remains important areas of focus for rest of 2022. Sanistål sold its domicile property in Aalborg, effective from 26 April 2022. The divestment generated an accounting profit of around DKK 34 million, which will be booked as one-off effect in Q2. The property was sold as part of a sale and leaseback agreement, and Sanistål will continue as the lessee of the head office property. DKK million GROUP Q1 2022 Q1 2021 DENMARK EASTERN EUROPE 2021 Q1 2022 Q1 2021 2021 Q1 2022 Q1 2021 2021 Net revenue 943.1 844.2 3,434.9 841.6 754.9 2,999.3 101.5 89.3 435.6 EBITDA 56.7 39.8 164.9 49.9 35.1 133.6 6.8 4.7 31.3 One-off effects 15.6 5.9 29.1 15.6 5.9 33.8 - EBITDA before one-off effects 72.3 45.7 194.0 65.5 41.0 167.4 6.8 - -4.7 4.7 26.6 EBITDA-margin before one-off effects % 7.7% 5.4% 5.6% 7.8% 5.4% 5.6% 6.7% 5.2% 6.1%
