Quarterly Report • Nov 7, 2023
Quarterly Report
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January–September 2023
The business climate was characterized by careful consumer behaviour and cost inflation. During these challenging market conditions, profit performance was strong with 57.7% increase in adjusted EBITA compared to the third quarter in the comparison period.
In the third quarter, Orthex's constant currency net sales increased by 2.9%. Including currency effects, Orthex's net sales decreased by 0.9% to 21.9 million euros (22.1). Rest of Europe delivered invoiced sales growth of 6.5% and sales were 4.2 million euros (4.0). The somewhat slower growth pace in the Rest of Europe during the third quarter is mostly due to timing of campaigns. During January–September, invoiced sales growth in the Rest of Europe was 18.6%.
International distribution build-up is progressing according to plan, delivering a growing base of customers and point of sales throughout Europe. During the period, it was decided that the time is right to strengthen our local presence also in the Benelux area, hence a local Benelux country manager will join our international sales team before the year end.
The third quarter sales in the Nordics were affected by careful consumer behaviour and weak currencies. The impact resulted in a flat overall Nordic invoiced sales development of +0.2%. Whereas the weak Swedish and Norwegian currencies affect the consolidated euro sales negatively, there is an adverse effect on EBITA from having a substantial amount of local costs in Swedish Krona in the Swedish production units.
The Storage category continued to grow at a pace of 6.7% compared to the third quarter last year. To keep strengthening the product offering under the SmartStoreTM brand, Orthex will extend it with stylish food storage products by changing the branding of all food storage items to SmartStoreTM. The rebranding allows more efficient investments in brand building.
Kitchen and Plant Care categories, traditionally strong in the Nordics, declined because of the careful Nordic customer and consumer behaviour. Invoiced sales in the Kitchen category declined 13.5% and in the Plant Care category 19.8%. There was a 4.2% increase in the Home and Yard category, driven by sales of new outdoor bin products gaining in distribution.
The strong improvement in Orthex's profitability continued in the third quarter. The adjusted EBITA margin was 16.1% (10.1) and the adjusted EBITA was 3.5 million euros (2.2). The more favourable rawmaterial prices and efficiently adapting the operations to changing volumes affected the result
positively. Third quarter cash flows improved to 5.3 million euros (4.4). The inventory level continued to decrease according to plan. The net debt to adjusted EBITDA ratio (leverage) was down to 1.4 at the end of the period.
Active sustainability work is an important part of implementing the corporate strategy. During the third quarter, Orthex continued extending the usage of ISCC PLUS certified renewable raw materials applying a mass balance approach on new products. The applying of the mass balance approach means that products have on average at least 20% of renewable content allocation.
We keep increasing our investment in commercial activity and have strengthened the commercial team and put additional focus on improving in-store execution. All of this is to support product sell-out of the stores during a period of weaker consumer demand. We are currently accelerating our pipeline of interesting new products to be launched in the coming 1–3 years. There is continued uncertainty in consumer demand, raw material price development and cost inflation development. I am happy to see that the business is progressing well thanks to consistent deployment of the strategy regardless of the prevailing conditions.
Novelties: SmartStore Vision round dry food storage
| EUR million | 7–9/2023 | 7–9/2022 | Change | 1–9/2023 | 1–9/2022 | Change 1–12/2022 | |
|---|---|---|---|---|---|---|---|
| Invoiced sales | 22.2 | 22.2 | 0.3% | 64.0 | 65.2 | -1.7% | 85.8 |
| Net sales | 21.9 | 22.1 | -0.9% | 62.5 | 63.7 | -1.8% | 84.0 |
| Gross margin | 6.9 | 5.0 | 39.8% | 17.5 | 13.0 | 35.1% | 17.9 |
| Gross margin, % | 31.6% | 22.4% | 28.0% | 20.3% | 21.3% | ||
| EBITDA | 4.5 | 3.1 | 43.8% | 11.0 | 6.5 | 67.8% | 9.2 |
| EBITDA margin, % | 20.6% | 14.2% | 17.6% | 10.3% | 10.9% | ||
| Adjusted EBITDA | 4.5 | 3.2 | 42.1% | 11.0 | 6.7 | 64.4% | 9.3 |
| Adjusted EBITDA margin, % | 20.6% | 14.4% | 17.6% | 10.5% | 11.1% | ||
| EBITA | 3.5 | 2.2 | 60.3% | 8.0 | 3.7 | 114.8% | 5.3 |
| EBITA margin, % | 16.1% | 10.0% | 12.7% | 5.8% | 6.3% | ||
| Adjusted EBITA | 3.5 | 2.2 | 57.7% | 8.0 | 3.9 | 106.9% | 5.5 |
| Adjusted EBITA margin, % | 16.1% | 10.1% | 12.8% | 6.1% | 6.5% | ||
| Operating profit | 3.5 | 2.2 | 61.5% | 7.9 | 3.6 | 118.0% | 5.2 |
| Operating profit margin, % | 16.0% | 9.8% | 12.6% | 5.7% | 6.2% | ||
| Net cash flows from operating activities | 5.3 | 4.4 | 19.5% | 9.8 | 5.9 | 66.4% | 6.2 |
| Net debt / Adjusted EBITDA | 1.4x | 2.5x | 1.4x | 2.5x | 2.8x | ||
| Adjusted return on capital employed | |||||||
| (ROCE), % | 11.5% | 7.0% | 25.2% | 11.9% | 15.9% | ||
| Equity ratio, % | 37.9% | 33.3% | 37.9% | 33.3% | 36.3% | ||
| Earnings per share, basic (EUR) | 0.13 | 0.07 | 87.4% | 0.27 | 0.10 | 168.3% | 0.12 |
| FTEs | 280 | 298 | -6.1% | 281 | 298 | -5.5% | 295 |
As long-term financial targets the company has adopted to an average annual organic Net sales growth to exceed 5 per cent at the Group level and to exceed 10 per cent outside the Nordics (growth in local currencies), adjusted EBITA margin (adjusted for items affecting comparability) to exceed 18 per cent over time and net debt to adjusted EBITDA ratio to stay below 2.5x. Leverage may temporarily exceed the target range (for example, in conjunction with acquisitions).
The company aims to distribute a stable and over time increasing dividend with a pay-out of at least 50 per cent of net profit, in total, on a biannual basis.
Orthex does not publish a short-term outlook.
Orthex operates in the home storage, kitchenware, plant care and other household products market, which has historically been stable and resilient throughout different economic cycles. The market for household products in Europe is fragmented. According to Orthex's estimate, there are more than 30 significant competitors in Europe, 15 of which are roughly as big as Orthex in terms of net sales. Although the market is competitive, fragmentation lowers the threshold to increase market share and find attractive niches.
The major megatrends supporting Orthex's business include urbanisation and the related increase in the number of households and decrease in living space per household. As the area allocated for housing is sparser and more expensive in growth centres benefiting from urbanisation, consumers often choose location over space, resulting in increasing supply of smaller homes. Small spaces, in turn, drive demand for functional storage solutions and household products that allow efficient use of the living space. More people live in single-person households and family sizes are decreasing. According to Eurostat, the number of single-person households in the EU increased by 30.7% between 2009 and 2022. Despite households being inhabited by fewer people, the need for necessities, such as home storage, food storage and kitchen utensils, remains nearly the same per household.
Consumption patterns supporting Orthex's business are mainly related to how people spend their time at home. One of these is the interest in cooking at home, which is becoming more common as a healthy, and less expensive way of eating. In addition, consumers are increasingly concerned about climate change and biodiversity and want to do their part in the fight against them by buying sustainable products and sorting and recycling their waste. Tightening legislation also supports this development. However, only a few households have enough pre-installed waste recycling and sorting solutions, which creates a demand for these and for recycling and sorting solutions that can also function as interior design elements.
A third consumption pattern supporting Orthex's business is the demand for houseplants. Houseplants bring fresh air, colour, and cosiness into homes. Their use as design elements is becoming commonplace, particularly in dense urban areas that have limited green spaces. In addition, there is increasing popularity for gardening herbs and vegetables at home and indoors. These trends are driving demand for flowerpots and related products.
The uncertainties related to the general development of the global economy, such as the risk of an economic recession, general cost inflation, increasing interest rates and energy crisis as well as geopolitical tensions influence consumer confidence, purchasing power and behaviour and, as a result, can have an impact on Orthex's business in the Nordic core markets, especially in Sweden. As a result of the prevailing consumption uncertainty, many retailers are carefully monitoring their inventory levels and limiting buying to ensure efficiency. Orthex product price points are relatively low, and the products are bought to solve real needs, therefore Orthex believes that its product categories will be less affected by careful consumer purchasing behaviour than other, more expensive consumer goods categories.
| EUR million | 7–9/2023 7–9/2022 | Change | 1–9/2023 | 1–9/2022 | Change | 1–12/2022 | |
|---|---|---|---|---|---|---|---|
| Nordics | 17.8 | 17.8 | 0.2% | 50.3 | 53.1 | -5.1% | 68.5 |
| Rest of Europe | 4.2 | 4.0 | 6.5% | 13.0 | 11.0 | 18.6% | 15.9 |
| Rest of the world | 0.2 | 0.4 | -58.7% | 0.7 | 1.1 | -40.5% | 1.5 |
| Total | 22.2 | 22.2 | 0.3% | 64.0 | 65.2 | -1.7% | 85.8 |
| EUR million | 7–9/2023 7–9/2022 | Change | 1–9/2023 | 1–9/2022 | Change | 1–12/2022 | |
|---|---|---|---|---|---|---|---|
| Storage | 15.4 | 14.4 | 6.7% | 42.3 | 40.0 | 5.8% | 55.1 |
| Kitchen | 4.8 | 5.6 | -13.5% | 13.7 | 15.8 | -13.2% | 19.8 |
| Plant Care | 0.7 | 0.9 | -19.8% | 4.1 | 5.0 | -18.6% | 5.5 |
| Home & Yard | 1.3 | 1.2 | 4.2% | 4.0 | 4.4 | -9.8% | 5.3 |
| Total | 22.2 | 22.2 | 0.3% | 64.0 | 65.2 | -1.7% | 85.8 |
In the third quarter, the Group's Net sales decreased by 0.9% to EUR 21.9 million (22.1). Invoiced sales amounted to EUR 22.2 million (22.2). The increase in constant currency Net sales was 2.9% compared to July–September 2022.
In January–September, the Group's Net sales decreased by 1.8% to EUR 62.5 million (63.7). Invoiced sales amounted to EUR 64.0 million (65.2). The increase of constant currency Net sales was 1.8% compared to January–September 2022.
The review period was affected by careful consumer behaviour and customer uncertainty especially in the Nordics.
Orthex's core market area by geography is the Nordics, where the Group's invoiced sales in July– September amounted to EUR 17.8 million (17.8). Invoiced sales in the Rest of Europe increased to EUR 4.2 million (4.0). In the Rest of the world, invoiced sales decreased to EUR 0.2 million (0.4).
The third quarter sales in the Nordics were affected by careful consumer behaviour and weak currencies. The impact resulted in a flat overall Nordic invoiced sales development. The somewhat slower growth pace in the Rest of Europe during the third quarter was mostly due to timing of campaigns.
In the Nordics, the Group's invoiced sales in January–September amounted to EUR 50.3 million (53.1). Invoiced sales in the Rest of Europe increased to EUR 13.0 million (11.0). In the Rest of the world, invoiced sales amounted to EUR 0.7 million (1.1).
Invoiced sales decreased overall in the Nordic core market due to weakened consumer demand. In the strategically important European markets, sales development was positive during the review period.
Orthex's products are sold in more than 40 countries, and export to non-Nordic countries accounted for 21.4% (18.6) of the Group's invoiced sales during the period.
Orthex's largest category is Storage with invoiced sales totalling EUR 15.4 million (14.4) during July– September. Products in the Storage category play a key role in Orthex's expansion in Europe and the growth is driven mainly by the Rest of Europe.
The Group's invoiced sales in the Kitchen category decreased in July–September to EUR 4.8 million (5.6).
Invoiced sales in the Plant Care category decreased to EUR 0.7 million (0.9).
Invoiced sales in the Home & Yard category increased to EUR 1.3 million (1.2).
Kitchen and Plant Care categories declined because of the careful Nordic customer and consumer behaviour. There was a slight increase in the Home and Yard category, driven by sales of new outdoor bin products gaining in distribution.
Invoiced sales in the Storage category totalled EUR 42.3 million (40.0) during January–September. The Storage category represents most of the business outside of the Nordic countries and the positive sales development in the Rest of Europe took the overall Storage category growth to 5.8% compared to the same period last year.
The Group's invoiced sales in the Kitchen category decreased to EUR 13.7 million (15.8). Sales of Kitchen products declined driven by the careful Nordic customer and consumer behaviour.
Invoiced sales in the Plant Care category decreased to EUR 4.1 million (5.0).
Invoiced sales in the Home & Yard category decreased to EUR 4.0 million (4.4).
In addition to careful consumer and customer behaviour, Plant Care and Home & Yard product sales suffered from the late spring and bad weather in the Nordics.
In July–September, EBITA was 3.5 million (2.2), which was the same as adjusted EBITA of EUR 3.5 million (2.2). The adjusted EBITA margin increased to 16.1% (10.1). Operating profit was EUR 3.5 million (2.2). The operating profit did not include items affecting comparability.
EBITA was 8.0 million (3.7) during the review period. Adjusted EBITA increased to EUR 8.0 million (3.9) and the adjusted EBITA margin grew to 12.8% (6.1). Operating profit was EUR 7.9 million (3.6). Items affecting comparability negatively totalled EUR 0.1 million (0.2).
Orthex's financial income and expenses during the review period consisted of EUR 1.7 million net expenses (1.4).
Profit before taxes was EUR 6.2 million (2.2) and profit for the period was EUR 4.8 million (1.8).
During the review period, the most significant factor affecting profitability was the decrease in raw material prices. The electricity support from the Swedish State during Q2 had a positive effect on profitability. The net effect of the weakening values of the Swedish and Norwegian krona on profitability was negative.
At the end of September, the balance sheet totalled EUR 83.2 million (86.3), of which equity accounted for EUR 31.5 million (28.7).
The Group's net debt was EUR 19.5 million (23.7) at the end of the review period. Non-current interestbearing liabilities were EUR 29.7 million (33.4) and Orthex's total interest-bearing liabilities were EUR 33.9 million (37.6). Interest-bearing liabilities include loans from credit institutions, pension liabilities and lease liabilities.
During the period January−September 2023, the Group's net cash flows from operating activities were EUR 9.8 million (5.9) and cash conversion was 83.5% (74.3). Interest paid during the period totalled EUR 1.1 million (0.7). Cash and cash equivalents amounted to EUR 14.4 million (13.8) at the end of the review period.
Net debt/adjusted EBITDA was 1.4x (2.5). Orthex's long-term target is to keep Net debt/adj. EBITDA below 2.5x.
At the end of the review period, the Group's Equity ratio was 37.9% (33.3). Adjusted return on capital employed (ROCE) was 25.2% (11.9) and return on equity (ROE) 15.6% (5.9).
Orthex's investments during January–September 2023 amounted to EUR 1.8 million (1.7) and were mainly related to moulds for new products.
In 2022, Orthex launched a research project for the development of recycled plastics and the project will continue throughout the year 2023. The goals of the project are to build an ecosystem aimed at increasing the use of recycled plastic and to generate new information about the use of recycled plastic in different applications, especially in products suitable for food contact. In addition, Orthex is participating in a large seven-year cooperation research project to find new potential renewable plastic raw materials. These investments in research support Orthex's 2030 carbon neutrality target and the target to increase the use of sustainable raw materials. Research and product development expenses have not been capitalized.
Orthex's shares are listed on Nasdaq Helsinki.
The company's registered share capital is EUR 80,000.00 and at the end of the review period, the company held 17,758,854 fully paid shares. Orthex has one series of shares, and each share entitles to one vote in the company's general meeting. There are no voting restrictions associated with the shares. Trading volume during the period was EUR 4.8 million and 977,725 shares. The highest price of the share was EUR 5.76 and the lowest was EUR 4.41. The closing price of the share at the end of September was EUR 4.62. At the end of the review period, the market value of the share capital stood at EUR 82.0 million. The company did not have any treasury shares at the end of the period.
The number of registered shareholders at the end of the review period was 15,968, including nominee registers. At the end of the period, the ten largest registered shareholders possessed a total of 49.7% of Orthex's shares and votes.
The stock exchange releases on notifications of changes in holdings (flaggings) are available on the corporate website at Media - Orthex Group. Orthex did not receive any flagging notifications during the review period.
The Board of Directors is authorised to issue or convey a total maximum of 1,600,000 new shares and special rights entitling to shares in one or several issues. The Board of Directors is also authorised to decide on the acquisition of a maximum of 175,000 company shares. The Board of Directors has not
exercised these authorisations during the review period. The authorisations will be valid until 30 June 2024.
There were no changes in the Group structure during the review period.
Orthex Corporation's Annual General Meeting was held on 18 April 2023 in Espoo, Finland. The general meeting adopted the financial statements and discharged the members of the Board of Directors and the CEO from liability for the financial year 2022. The general meeting also approved the remuneration report 2022 and the amended remuneration policy for governing bodies.
The general meeting resolved that for the financial year 2022, shareholders will be paid a dividend of EUR 0.11 per share totalling approximately EUR 2.0 million in two instalments. The first instalment of the dividend amounting to EUR 0.06 per share was paid on 27 April 2023 and the second instalment amounting to EUR 0.05 per share on 10 October 2023.
The general meeting resolved that Sanna Suvanto-Harsaae, Markus Hellström, Jyrki Mäki-Kala and Jens-Peter Poulsen be re-elected to the Board and that Anette Rosengren be elected as new member to the Board. Sanna Suvanto-Harsaae continues to chair the Board. The general meeting resolved that the remuneration of the members of the Board of Directors remain the same and that the Chair of the Board of Directors be paid a monthly fee of EUR 4,000 and other members of the Board of Directors a monthly fee of EUR 2,000.
Ernst & Young Oy, a firm of Authorised Public Accountants, was re-elected the company's auditor with APA Mikko Rytilahti as the signing audit partner.
In addition, the general meeting resolved to make technical amendments to Articles 5 and 8, and to supplement the Article 10 of the Articles of Association so that the general meeting of shareholders may also be held completely without a physical meeting venue as a virtual meeting.
The general meeting also authorised the Board of Directors to issue or convey a total maximum of 1,600,000 new shares and special rights entitling to shares in one or several issues and to acquire a maximum of 175,000 shares in the company. The authorisations will be valid until 30 June 2024.
The Extraordinary General Meeting on 5 March 2021 decided to establish a Shareholders' Nomination Board for the company and the Nomination Board's charter was approved. The Nomination Board consists of the four largest registered shareholders of the company as of 31 August. According to the
shareholders' register, the company's four largest shareholders on 31 August 2023 were Conficap Oy, Alexander Rosenlew, Ilmarinen Mutual Pension Insurance Company, and Thomasset Oy.
On 12 September 2023, the company announced that these shareholders have appointed their representatives to the Shareholders' Nomination Board, the composition of which is as follows:
The Nomination Board has elected Maarit Toivanen as its chair. The Chair of Orthex's Board of Directors, Sanna Suvanto-Harsaae, acts as an expert member of the Nomination Board.
More information on the Nomination Board is available on the corporate website at Nomination Board - Orthex Group.
Sustainability is a core element in implementing Orthex's growth strategy and key objectives as we strive to be the number one brand in storage products in Europe, and to strengthen our position as a leading houseware company in the Nordics. Sustainability is a key factor in all decision making at Orthex and a significant driver of our development and investment agenda. Orthex aims to be the industry forerunner in sustainability by offering timelessly designed, high-quality, safe, and longlasting products, reducing the carbon footprint of its operations and products, and sourcing more and more of its raw materials from renewable and recycled materials. Orthex's main sustainability target is to aim towards carbon neutrality in production by 2030.
Orthex has identified priority sustainability topics in environmental, social and governance (ESG) areas. For each topic, the company has defined key performance indicators and targets. Further information is available on the corporate website at Sustainability - Orthex Group.
During the first quarter of 2023, Orthex's Lohja factory was audited and ISCC PLUS certificate was renewed. Usage of ISCC PLUS certified renewable raw materials applying the mass balance approach support Orthex's long-term carbon neutrality target, and the target to increase the share of sustainable raw materials in production.
During the second quarter of the year, Orthex participated in Ecovadis ESG assessment for the first time and was awarded with a silver medal for its sustainability performance. The assessment results places Orthex globally among the top 18 percent of companies assessed by EcoVadis, the world's largest and most trusted provider of business sustainability ratings. In May, Orthex's Gnosjö factory was granted an ISCC PLUS certificate, that will enable the company to extend the usage of ISCC PLUS certified renewable
raw materials applying the mass balance approach in the production. In June, Orthex was awarded the Nasdaq ESG Transparency Partner badge for 2022 ESG reporting.
During Q3, Orthex extended its usage of ISCC PLUS certified renewable raw materials applying mass balance approach in the production into new products: SmartStore Vision dry food keepers and SmartStore Snack lunch boxes as well as GastroMax measuring cups. Each product has on average at least 20% of renewable content allocated to it, according to the mass balance approach. In September, Orthex started preparations for the entry into force of the Corporate Sustainability Reporting Directive (CSRD), which applies to the company from the beginning of 2025.
Plastic polymers are the largest group of raw materials, and the prices are typically negotiated annually. Fluctuations in raw material prices and supply disruptions may have a negative effect on profitability. The Group is not hedged against fluctuations in raw material prices but can better manage risks by tying prices to the plastic polymer supply chain. There is less volatility in the prices of renewable and recycled materials and merchandise. However, there has been shortage on the market because of higher demand and this can lead to higher prices also in renewable and recycled materials.
Cost inflation, increased interest rates, Russia's war against Ukraine, conflict in the Middle East, and political tensions impact the global economic trend as well as the development of consumers' purchasing behaviour and, as a result, can have an impact on Orthex's business. Russia's war against Ukraine or Hamas attacks in Israel do not directly affect Orthex's business as Orthex's products are not manufactured or sold in Russia, Belarus, Ukraine, or Israel and the company does not source raw materials from these countries. However, geopolitical tensions cause disturbances in global supply chains and contributes to the general economic situation and consumers' purchasing power and behaviour. These factors may affect the company's sales and profitability as well as operational reliability and efficiency. The Group has hedged part of its interest-bearing liabilities against rising interest rates with interest derivatives. In addition, some of the electricity contracts have been purchased at fixed prices due to the strong volatility of market electricity.
Thanks to its own production, the Group can control the quality of its products and the health and environmental aspects of production and products. Significant disruptions or interruptions in production and operations would materially impair the Group's ability to deliver its products and adversely affect its business and operating profit.
Orthex has operations in several countries, so the company is exposed to transaction and translation risk. The Group is typically not hedged against currency risk, except for certain large purchases under the Kökskungen brand. Fluctuations in exchange rates and interest rates can have a material adverse effect on the Group.
Further information on the company's risk management principles and on the main strategic, operative, and financial risks is included in the Board of Directors' report for the year 2022. The main principles of Orthex's financial risk management are described in the notes to the consolidated financial statements.
The company's Annual and Sustainability Report, which includes the Board of Directors' report and the consolidated financial statements with notes for the year 2022, is available on the corporate website.
After the review period, there have been no events materially affecting the interim report.
Orthex will publish its financial statements release for 2023 and financial reports in 2024 as follows:
5 March 2024: Financial statements release for 2023 15 May 2024: Interim report January–March 2024 21 August 2024: Half-year financial report January–June 2024 15 November 2024: Interim report January–September 2024
ORTHEX CORPORATION Board of Directors
Alexander Rosenlew, CEO, +358 (0)40 500 3826 Saara Mäkelä, CFO, +358 (0)40 083 8782
Analysts and investors: Saara Mäkelä, CFO, +358 (0)40 083 8782 Media: Hanna Kukkonen, CMSO, +358 (0)40 053 8886
Access meeting online here.
Questions to the management can be sent through the meeting chat.
The presentation material will be shared in the online meeting, and it can be downloaded on Orthex's website at https:/investors.orthexgroup.com/. A recording of the event will be available later at the same address.
Distribution: Nasdaq Helsinki Ltd Main media https:/investors.orthexgroup.com/
| EUR thousand | 7–9/2023 | 7–9/2022 | 1–9/2023 | 1–9/2022 1–12/2022 | |
|---|---|---|---|---|---|
| Net Sales | 21,909 | 22,104 | 62,530 | 63,692 | 84,048 |
| Cost of sales | -14,984 | -17,151 | -45,036 | -50,741 | -66,129 |
| Gross Margin | 6,925 | 4,952 | 17,494 | 12,951 | 17,919 |
| Other operating income | 5 | 39 | 795 | 193 | 206 |
| Selling and marketing expenses | -2,115 | -1,748 | -6,655 | -5,734 | -7,846 |
| Administrative expenses | -1,310 | -1,074 | -3,763 | -3,799 | -5,089 |
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Financial income and expenses | -323 | -665 | -1,669 | -1,445 | -2,182 |
| Profit before taxes | 3,181 | 1,505 | 6,202 | 2,166 | 3,009 |
| Income taxes | -798 | -233 | -1,434 | -389 | -888 |
| Profit for the period | 2,383 | 1,272 | 4,768 | 1,777 | 2,121 |
| Profit for the period attributable to: | |||||
| Equity holders of the parent | 2,383 | 1,272 | 4,768 | 1,777 | 2,121 |
| Earnings per share, basic (and diluted), EUR | 0.13 | 0.07 | 0.27 | 0.10 | 0.12 |
| Other comprehensive income, net of tax | |||||
| Items that may be reclassified subsequently to profit or loss: | |||||
| Translation differences | 612 | -441 | -997 | -1,689 | -2,053 |
| Items that will not be reclassified to profit or loss: | |||||
| Remeasurement gains/(losses) on defined benefit plans | - | - | - | - | 1,042 |
| Other comprehensive income for the period, net of tax | 612 | -441 | -997 | -1,689 | -1,011 |
| Total comprehensive income for the period | 2,996 | 831 | 3,772 | 89 | 1,110 |
| Total comprehensive income attributable to: | |||||
| Equity holders of the parent | 2,996 | 831 | 3,772 | 89 | 1,110 |
| EUR thousand | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 21,692 | 22,752 | 22,377 |
| Property, plant, and equipment | 13,331 | 13,093 | 13,547 |
| Right-of-use assets | 6,102 | 6,939 | 7,011 |
| Other non-current assets | 110 | 498 | 95 |
| Deferred tax assets | 885 | 1,100 | 760 |
| Total non-current assets | 42,119 | 44,381 | 43,790 |
| Current assets | |||
| Inventories | 11,425 | 13,492 | 14,283 |
| Trade and other receivables | 15,025 | 14,517 | 13,387 |
| Derivative financial instruments | 200 | 46 | 93 |
| Cash and cash equivalents | 14,401 | 13,831 | 10,284 |
| Total current assets | 41,051 | 41,887 | 38,047 |
| Total assets | 83,170 | 86,268 | 81,837 |
| Equity and liabilities Equity attributable to the equity holders of the parent company |
|||
| Share capital | 80 | 80 | 80 |
| Invested unrestricted equity fund | 7,851 | 7,851 | 7,851 |
| Retained earnings | 25,116 | 20,916 | 22,301 |
| Translation differences | -1,518 | -157 | -521 |
| Total equity | 31,529 | 28,690 | 29,711 |
| Non-current liabilities Loans from credit institutions |
20,884 | 22,273 | 22,363 |
| Lease liabilities | 5,785 | 6,558 | 6,480 |
| Pension liabilities | 3,062 | 4,616 | 3,179 |
| Deferred tax liabilities | 831 | 921 | 769 |
| Total non-current liabilities | 30,562 | 34,368 | 32,791 |
| Current liabilities Loans from credit institutions |
3,000 | 3,000 | 3,000 |
| Lease liabilities | 1,141 | 1,134 | 1,290 |
| Trade and other payables | 15,907 | 17,801 | 14,000 |
| Derivative financial instruments | 1 | - | 8 |
| Income tax liabilities | 1,030 | 1,276 | 1,037 |
| Total current liabilities | 21,079 | 23,211 | 19,335 |
| Total liabilities | 51,641 | 57,578 | 52,126 |
| Total equity and liabilities | 83,170 | 86,268 | 81,837 |
| Equity attributable to the equity holders of the parent company | |||||
|---|---|---|---|---|---|
| EUR thousand | Share capital |
Invested unrestricted equity fund |
Retained earnings |
Translation differences |
Total equity |
| As at 1 Jan 2023 | 80 | 7,851 | 22,301 | -521 | 29,711 |
| Profit for the period | 4,768 | 4,768 | |||
| Translation differences | -997 | -997 | |||
| Total comprehensive income | 4,768 | -997 | 3,772 | ||
| Dividends | -1,953 | -1,953 | |||
| At 30 Sep 2023 | 80 | 7,851 | 25,116 | -1,518 | 31,529 |
| As at 1 Jan 2022 | 80 | 11,047 | 19,138 | 1,532 | 31,798 |
| Profit for the period | 1,777 | 1,777 | |||
| Translation differences | -1,689 | -1,689 | |||
| Total comprehensive income | 1,777 | -1,689 | 89 | ||
| Capital returns | -3,197 | -3,197 | |||
| At 30 Sep 2022 | 80 | 7,851 | 20,916 | -157 | 28,690 |
| As at 1 Jan 2022 | 80 | 11,047 | 19,138 | 1,532 | 31,798 |
| Profit for the period | 2,121 | 2,121 | |||
| Translation differences | -2,053 | -2,053 | |||
| Remeasurement gains/(losses) on | |||||
| defined benefit plan | 1,042 | 1,042 | |||
| Total comprehensive income | 3,163 | -2,053 | 1,110 | ||
| Capital returns | -3,197 | -3,197 | |||
| At 31 Dec 2022 | 80 | 7,851 | 22,301 | -521 | 29,711 |
| Cash flows from operating activities Profit before taxes 6,202 2,166 3,009 Adjustments: Depreciation, amortisation and impairment 3,105 2,932 3,964 Financial income and expenses 1,669 1,445 2,182 Other adjustments -230 785 204 Cash flows before changes in working capital 10,747 7,329 9,358 Changes in working capital Decrease (+) / increase (–) in trade and other receivables -1,759 -53 1,324 Decrease (+) / increase (–) in inventories 2,858 -1,353 -2,358 Decrease (–) / increase (+) in trade and other payables 690 2,386 1,155 Cash flows from operating activities before financial items and taxes 12,535 8,309 9,479 Interests paid -1,073 -688 -1,135 Income taxes paid -1,645 -1,722 -2,167 Net cash flows from operating activities 9,817 5,899 6,177 Cash flows from investing activities Investments in tangible and intangible assets -1,821 -1,723 -3,553 Sale of tangible and intangible assets - 14 28 Net cash flows from investing activities -1,821 -1,709 -3,525 Cash flows from financing activities Dividends -1,066 - - Capital returns paid - -1,598 -3,197 Repayment of lease liabilities -1,024 -965 -1,312 Proceeds from long-term borrowings - - 25,500 Repayment of long-term borrowings - - -25,500 Repayment of short-term borrowings -1,500 -1,500 -1,500 Net cash flows from financing activities -3,590 -4,063 -6,008 Net change in cash and cash equivalents 4,406 128 -3,356 Net foreign exchange differences -289 -630 -694 Cash and cash equivalents at the beginning of the period 10,284 14,334 14,334 |
EUR thousand | 1–9/2023 | 1–9/2022 | 1-12/2022 |
|---|---|---|---|---|
| Cash and cash equivalents at the end of the period 14,401 13,831 10,284 |
Orthex's interim report has been prepared in compliance with the IAS 34 Interim Financial Reporting standard. The same accounting principles have been applied to the interim report as to the latest consolidated financial statements.
Orthex's Board of Directors has approved this interim report in its meeting on 6 November 2023. Figures in the interim report have been rounded and consequently the sum of individual figures may deviate from the presented sum figure. The figures are unaudited.
The preparation of the interim information requires management to make accounting estimates and judgements as well as assumptions that affect the application of the preparation principles and the accounting estimates on assets, liabilities, income, and expenses. Actual results may differ from previously made estimates and judgements. Estimates and judgements are reviewed regularly. Changes in estimates are presented in the period during which the change occurs if the change only affects one period. If it affects both the period under review and following periods, the changes are presented in the period under review and following periods.
The significant management judgements and accounting estimates concerning key uncertainty factors in connection with the preparation of this interim information are identical to those applied to the consolidated financial statements for 2022.
Transactions with related parties are made on an arm's length basis.
Orthex did not have any related party transactions during the reporting period.
| EUR thousand | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Guarantees and mortgages given on own behalf: | |||
| Enterprise mortgages | 49,990 | 53,192 | 50,060 |
| Property mortgages | 10,192 | 10,192 | 10,192 |
| Other guarantees | 49 | 51 | 50 |
| Total | 60,231 | 63,436 | 60,303 |
Orthex Group was subject to a tax audit of Orthex Corporation regarding the financial years 2020 and 2021. Orthex Corporation received early in May 2022 a tax audit report from the Finnish tax authorities. The tax audit report included subsequent taxes and tax increases amounting to a total of EUR 0.3 million relating to the VAT deductibility of IPO related costs. The company disagrees with the interpretation made in the tax audit. The company was requested to pay additional taxes in accordance with the interpretations set out in the tax audit report. The company paid the subsequent taxes and tax increases in June 2022 but has filed a claim for adjustment to its taxation to the Assessment Adjustment Board of the Finnish tax authority. The Group has not recognised the subsequent taxes and tax increases in the consolidated statement of comprehensive income. At the time of releasing this interim report, the company's claim for adjustment was still pending.
| EUR thousand | 7–9/2023 | 7–9/2022 | 1–9/2023 | 1–9/2022 | 1–12/2022 |
|---|---|---|---|---|---|
| Net sales | 21,909 | 22,104 | 62,530 | 63,692 | 84,048 |
| Net sales growth, % | -0.9% | 1.4% | -1.8% | -2.9% | -5.2% |
| Constant currency invoiced sales growth, % | 2.9% | 2.3% | 1.8% | -2.3% | -3.8% |
| Invoiced sales | 22,234 | 22,159 | 64,049 | 65,186 | 85,794 |
| Invoiced sales growth, % | 0.3% | 0.6% | -1.7% | -2.7% | -5.3% |
| Gross Margin | 6,925 | 4,952 | 17,494 | 12,951 | 17,919 |
| Gross Margin, % | 31.6% | 22.4% | 28.0% | 20.3% | 21.3% |
| EBITDA | 4,516 | 3,141 | 10,977 | 6,543 | 9,154 |
| EBITDA margin, % | 20.6% | 14.2% | 17.6% | 10.3% | 10.9% |
| EBITA | 3,530 | 2,202 | 7,959 | 3,706 | 5,317 |
| EBITA margin, % | 16.1% | 10.0% | 12.7% | 5.8% | 6.3% |
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Operating profit margin, % | 16.0% | 9.8% | 12.6% | 5.7% | 6.2% |
| Items affecting comparability | - | 37 | 55 | 168 | 173 |
| Adjusted Gross Margin | 6,925 | 4,952 | 17,494 | 12,951 | 17,919 |
| Adjusted Gross Margin, % | 31.6% | 22.4% | 28.0% | 20.3% | 21.3% |
| Adjusted EBITDA | 4,516 | 3,178 | 11,032 | 6,711 | 9,328 |
| Adjusted EBITDA margin, % | 20.6% | 14.4% | 17.6% | 10.5% | 11.1% |
| Adjusted EBITA | 3,530 | 2,238 | 8,014 | 3,874 | 5,490 |
| Adjusted EBITA margin, % | 16.1% | 10.1% | 12.8% | 6.1% | 6.5% |
| Adjusted operating profit | 3,505 | 2,207 | 7,927 | 3,779 | 5,364 |
| Adjusted operating profit margin, % | 16.0% | 10.0% | 12.7% | 5.9% | 6.4% |
| Earnings per share, basic (and diluted), EUR | 0.13 | 0.07 | 0.27 | 0.10 | 0.12 |
| FTEs | 280 | 298 | 281 | 298 | 295 |
| Personnel expenses | 3,848 | 3,935 | 12,918 | 13,908 | 18,300 |
| Key cash flows indicators | |||||
| Net cash flows from operating activities | 5,283 | 4,422 | 9,817 | 5,899 | 6,177 |
| Operating free cash flows | 3,956 | 2,707 | 9,211 | 4,988 | 5,774 |
| Cash conversion, % | 87.6% | 85.2% | 83.5% | 74.3% | 61.9% |
| Investments in tangible and intangible assets | -560 | -470 | -1,821 | -1,723 | -3,553 |
| Financial position key figures | |||||
| Net debt | 19,470 | 23,749 | 19,470 | 23,749 | 26,028 |
| Net debt / adjusted EBITDA last 12 months | 1.4x | 2.5x | 1.4x | 2.5x | 2.8x |
| Net working capital | 10,543 | 10,209 | 10,543 | 10,209 | 13,670 |
| Capital employed excluding goodwill | 29,344 | 29,573 | 29,344 | 29,573 | 33,487 |
| Return on capital employed (ROCE), % | 11.5% | 6.8% | 25.1% | 11.4% | 15.4% |
| Adjusted return on capital employed (ROCE), % | 11.5% | 7.0% | 25.2% | 11.9% | 15.9% |
| Equity ratio, % | 37.9% | 33.3% | 37.9% | 33.3% | 36.3% |
| Return on equity, % | 7.9% | 4.5% | 15.6% | 5.9% | 6.9% |
| EUR thousand | 7–9/2023 | 7–9/2022 | 1–9/2023 | 1–9/2022 1–12/2022 | |
|---|---|---|---|---|---|
| Net sales growth, % | |||||
| Net sales | 21,909 | 22,104 | 62,530 | 63,692 | 84,048 |
| Net sales growth, % | -0.9% | 1.4% | -1.8% | -2.9% | -5.2% |
| Constant currency Net sales growth, % | |||||
| Net sales | 21,909 | 22,104 | 62,530 | 63,692 | 84,048 |
| FX rate adjustment | - | -806 | - | -2,262 | - |
| Constant currency Net sales | 21,909 | 21,297 | 62,530 | 61,430 | 84,048 |
| Constant currency Net sales growth, % | 2.9% | 2.3% | 1.8% | -2.3 % | -3.8% |
| Invoiced sales | |||||
| Net sales | 21,909 | 22,104 | 62,530 | 63,692 | 84,048 |
| Discounts and bonuses | 981 | 772 | 2,669 | 2,372 | 3,182 |
| Other sales and refunds | -656 | -717 | -1,150 | -877 | -1,437 |
| Invoiced sales | 22,234 | 22,159 | 64,049 | 65,186 | 85,794 |
| Invoiced sales growth, % | 0.3% | 0.6% | -1.7% | -2.7 % | -5.3% |
| Gross Margin | |||||
| Net sales | 21,909 | 22,104 | 62,530 | 63,692 | 84,048 |
| Cost of sales | -14,984 | -17,151 | -45,036 | -50,741 | -66,129 |
| Gross Margin | 6,925 | 4,952 | 17,494 | 12,951 | 17,919 |
| Gross Margin, % | 31.6% | 22.4% | 28.0% | 20.3% | 21.3% |
| EBITDA | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Depreciation, amortisation and impairment | 1,011 | 971 | 3,105 | 2,932 | 3,964 |
| EBITDA | 4,516 | 3,141 | 10,977 | 6,543 | 9,154 |
| EBITDA margin, % | 20.6% | 14.2% | 17.6% | 10.3% | 10.9% |
| EBITA | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Amortisation and impairment | 26 | 32 | 88 | 95 | 126 |
| EBITA | 3,530 | 2,202 | 7,959 | 3,706 | 5,317 |
| EBITA margin, % | 16.1% | 10.0% | 12.7% | 5.8% | 6.3% |
| Operating profit | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Operating profit margin, % | 16.0% | 9.8% | 12.6% | 5.7% | 6.2% |
| Items affecting comparability / adjustments (EBITDA) | |||||
| Other items affecting comparability Items affecting comparability / adjustments (EBITDA) |
- - |
37 37 |
55 55 |
168 168 |
173 173 |
| EUR thousand | 7–9/2023 | 7–9/2022 | 1–9/2023 | 1–9/2022 | 1–12/2022 |
|---|---|---|---|---|---|
| Adjusted Gross Margin | |||||
| Gross Margin | 6,925 | 4,952 | 17,494 | 12,951 | 17,919 |
| Adjusted Gross Margin | 6,925 | 4,952 | 17,494 | 12,951 | 17,919 |
| Adjusted Gross Margin, % | 31.6% | 22.4% | 28.0% | 20.3% | 21.3% |
| Adjusted EBITDA | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Depreciation, amortisation and impairment | 1,011 | 971 | 3,105 | 2,932 | 3,964 |
| Adjustments (EBITDA) | - | 37 | 55 | 168 | 173 |
| Adj. EBITDA | 4,516 | 3,178 | 11,032 | 6,711 | 9,328 |
| Adj. EBITDA margin, % | 20.6% | 14.4% | 17.6% | 10.5% | 11.1% |
| Adjusted EBITA | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Amortisation and impairment | 26 | 32 | 88 | 95 | 126 |
| Adjustments (EBITA) | - | 37 | 55 | 168 | 173 |
| Adj. EBITA | 3,530 | 2,238 | 8,014 | 3,874 | 5,490 |
| Adj. EBITA margin, % | 16.1% | 10.1% | 12.8% | 6.1% | 6.5% |
| Adjusted operating profit | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Adjustments | - | 37 | 55 | 168 | 173 |
| Adj. operating profit | 3,505 | 2,207 | 7,927 | 3,779 | 5,364 |
| Adj. operating profit margin, % | 16.0% | 10.0% | 12.7% | 5.9% | 6.4% |
| Earnings per share, basic (and diluted), EUR | |||||
| Profit for the period | 2,383 | 1,272 | 4,768 | 1,777 | 2,121 |
| Average number of shares | 17,759 | 17,759 | 17,759 | 17,759 | 17,759 |
| Earnings per share, basic (and diluted), EUR | 0.13 | 0.07 | 0.27 | 0.10 | 0.12 |
| Operating free cash flows | |||||
| Adj. EBITDA | 4,516 | 3,178 | 11,032 | 6,711 | 9,328 |
| Investments in tangible and intangible assets | -560 | -470 | -1,821 | -1,723 | -3,553 |
| Operating free cash flows | 3,956 | 2,707 | 9,211 | 4,988 | 5,774 |
| Cash conversion, % | |||||
| Operating free cash flows | 3,956 | 2,707 | 9,211 | 4,988 | 5,774 |
| Adj. EBITDA | 4,516 | 3,178 | 11,032 | 6,711 | 9,328 |
| Cash conversion, % | 87.6% | 85.2% | 83.5% | 74.3% | 61.9% |
| Net debt | |||||
| Total interest-bearing liabilities | 33,871 | 37,581 | 33,871 | 37,581 | 36,312 |
| Cash and cash equivalents | -14,401 | -13,831 | -14,401 | -13,831 | -10,284 |
| Net debt | 19,470 | 23,749 | 19,470 | 23,749 | 26,028 |
| Net debt/ Adj. EBITDA | |||||
| Net debt | 19,470 | 23,749 | 19,470 | 23,749 | 26,028 |
| Adj. EBITDA. 12 months | 13,649 | 9,464 | 13,649 | 9,464 | 9,328 |
| Net debt/ Adj. EBITDA | 1.4x | 2.5x | 1.4x | 2.5x | 2.8x |
| EUR thousand | 7–9/2023 | 7–9/2022 | 1–9/2023 | 1–9/2022 1–12/2022 | |
|---|---|---|---|---|---|
| Net working capital | |||||
| Inventories | 11,425 | 13,492 | 11,425 | 13,492 | 14,283 |
| Trade and other receivables | 15,025 | 14,517 | 15,025 | 14,517 | 13,387 |
| Trade and other payables | -15,907 | -17,801 | -15,907 | -17,801 | -14,000 |
| Net working capital | 10,543 | 10,209 | 10,543 | 10,209 | 13,670 |
| Capital employed excluding goodwill | |||||
| Total Equity | 31,529 | 28,690 | 31,529 | 28,690 | 29,711 |
| Net debt | 19,470 | 23,749 | 19,470 | 23,749 | 26,028 |
| Goodwill | -21,655 | -22,866 | -21,655 | -22,866 | -22,252 |
| Capital employed excluding goodwill | 29,344 | 29,573 | 29,344 | 29,573 | 33,487 |
| Return on capital employed (ROCE), % | |||||
| Operating profit | 3,505 | 2,170 | 7,872 | 3,611 | 5,191 |
| Average capital employed excluding goodwill | 30,374 | 31,699 | 31,416 | 31,789 | 33,746 |
| Return on capital employed (ROCE), % | 11.5% | 6.8% | 25.1% | 11.4% | 15.4% |
| Adjusted return on capital employed (ROCE), % | |||||
| Adjusted operating profit | 3,505 | 2,207 | 7,927 | 3,779 | 5,364 |
| Average capital employed excluding goodwill | 30,374 | 31,699 | 31,416 | 31,789 | 33,746 |
| Adjusted return on capital employed (ROCE), % | 11.5% | 7.0% | 25.2% | 11.9% | 15.9% |
| Equity ratio, % | |||||
| Total Equity | 31,529 | 28,690 | 31,529 | 28,690 | 29,711 |
| Total assets | 83,170 | 86,268 | 83,170 | 86,268 | 81,837 |
| Equity ratio, % | 37.9% | 33.3% | 37.9% | 33.3% | 36.3% |
| Return on equity, % | |||||
| Profit for the period | 2,383 | 1,272 | 4,768 | 1,777 | 2,121 |
| Total equity (average for the first and last day of the period) | 30,031 | 28,274 | 30,620 | 30,244 | 30,754 |
| Return on equity, % | 7.9% | 4.5% | 15.6% | 5.9% | 6.9% |
Orthex presents alternative performance measures as additional information to financial measures presented in the consolidated income statement, consolidated balance sheet and consolidated statement of cash flows prepared in accordance with IFRS. In Orthex's view, alternative performance measures provide significant additional information on Orthex's results of operations, financial position and cash flows to management, investors, analysts, and other stakeholders.
Alternative performance measures should not be viewed in isolation or as a substitute to the IFRS financial measures. All companies do not calculate alternative performance measures in a uniform way, and therefore Orthex's alternative performance measures may not be comparable with similarly named measures presented by other companies.
| Key Performance Indicators | Formula |
|---|---|
| Constant currency invoiced sales growth, % | Invoiced sales growth calculated by using previous year's revenue translated at average foreign exchange rates for the current year |
| Invoiced sales | Product sales to resale customers excluding off invoice discounts, customer bonuses and cash discounts |
| Invoiced sales growth, % | Increase in invoiced sales |
| Gross margin | Net sales less Cost of sales |
| Gross margin, % | Gross margin / Net sales |
| EBITDA | Operating profit before depreciation, amortisation, and impairment |
| EBITDA margin, % | EBITDA / Net sales |
| EBITA | Operating profit before amortisation and impairment |
| EBITA margin, % | EBITA / Net sales |
| Operating profit | Operating profit |
| Operating profit margin, % | Operating profit / Net sales |
| Items affecting comparability | Material items outside ordinary course of business including restructuring costs, net gains or losses from sale of business operations or other non-current assets, strategic development projects, external advisory costs related to capital reorganisation, impairment charges on non-current assets incurred in connection with restructurings, compensation for damages and transaction costs related to business acquisitions |
| Adjusted gross margin | Gross margin excluding items affecting comparability |
| Adjusted gross margin, % | Adjusted gross margin / Net sales |
| Adjusted EBITDA | EBITDA excluding items affecting comparability |
| Adjusted EBITDA margin, % | Adjusted EBITDA / Net sales |
| Adjusted EBITA | EBITA excluding items affecting comparability |
| Adjusted EBITA margin, % | Adjusted EBITA / Net sales |
| Adjusted operating profit | Operating profit excluding items affecting comparability |
| Adjusted operating profit margin, % | Adjusted operating profit / Net sales |
| Earnings per share, basic (and diluted), EUR | Profit for the period attributable to the owners of the parent divided by weighted average number of shares outstanding |
| FTEs | Full-Time Equivalents |
| Personnel expenses | Total personnel expenses during the period |
| Key cash flows indicators | Formula |
|---|---|
| Net cash flows from operating activities | Net cash from operating activities as presented in the consolidated statement of cash flows |
| Operating free cash flows | Adjusted EBITDA less investments in tangible and intangible assets |
| Cash conversion, % | Operating free cash flows / Adjusted EBITDA |
| Investments in tangible and intangible assets | Investments in tangible and intangible assets as presented in the consolidated statement of cash flows |
| Financial position key figures | Formula |
|---|---|
| Net debt | Current and non-current interest-bearing liabilities less cash and cash equivalents |
| Net debt / adjusted EBITDA last 12 months | Net debt / Adjusted EBITDA |
| Net working capital | Inventories, trade, and other receivables less trade and other payables |
| Capital employed excluding goodwill | Total equity and net debt and less goodwill |
| Return on capital employed (ROCE), % | Operating profit / Average capital employed excluding goodwill |
| Adjusted return on capital employed (ROCE), % | Adjusted operating profit / Average capital employed excluding goodwill |
| Equity ratio, % | Total equity / Total assets |
| Return on equity, % | Result for the period / Total equity (average for the first and last day of the period) |
Orthex is a leading Nordic houseware company. Orthex designs, produces, and sells household products with a mission to make consumers' everyday life easier: Orthex strives to create functional, long lasting, and sustainable high-quality household products. Orthex's products cover multifunctional assortment of storage boxes, kitchen products and products for home and yard. Orthex markets and sells its products under three main consumer brands: SmartStoreTM, GastroMaxTM and OrthexTM. In addition, it sells externally produced kitchen products under the KökskungenTM brand.
Orthex has more than 100 years of experience in the production, design, and marketing of household products, and it has approximately 800 customers in more than 40 countries. Orthex's core geographic markets are the Nordics and the export markets. The export markets are divided into the Rest of Europe and the Rest of the world. Orthex is headquartered in Espoo, Finland, and it currently has seven local sales offices located in the Nordics, Germany, France, and the United Kingdom. Orthex's production facilities are located in Tingsryd and Gnosjö, Sweden, and in Lohja, Finland. In addition, Orthex has centralised warehousing in Sweden and Finland in connection with its Tingsryd and Lohja production facilities, as well as an outsourced warehouse in Überherrn, Germany.
Orthex aims to be the industry forerunner in sustainability by promoting safe and long-lasting products, reducing the carbon footprint of its operations and products, as well as by sourcing an ever-increasing amount of raw materials from renewable and recycled materials. Orthex aims for its production to be carbon neutral by 2030.
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