Quarterly Report • Aug 18, 2022
Quarterly Report
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| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | ∆,% | 2022 | 2021 | ∆,% | R 12 | 2021 | ∆,% | |
| Sales volume, tonnes | 5,371 | 6,100 | -12 | 10,312 | 12,281 | -16 | 20,677 | 22,646 | -9 |
| Net sales, SEK million | 267.1 | 246.3 | 8 | 493.8 | 465.2 | 6 | 956.1 | 927.5 | 3 |
| Gross margin, % | 14.3 | 20.5 | -30 | 14.7 | 21.8 | -33 | 15.9 | 19.5 | -18 |
| EBITDA, SEK million | 23.4 | 33.3 | -30 | 45.0 | 69.7 | -35 | 99.7 | 124.4 | -20 |
| Adjusted EBITDA, SEK million | 23.4 | 36.0 | -35 | 45.0 | 75.7 | -41 | 99.8 | 130.5 | -24 |
| Operating profit, SEK million | 13.5 | 23.7 | -43 | 24.9 | 51.3 | -51 | 59.8 | 86.2 | -31 |
| Adjusted operating profit, SEK million |
13.5 | 26.4 | -49 | 24.9 | 57.3 | -56 | 59.9 | 92.3 | -35 |
| Operating margin, % | 5,0 | 9.6 | -48 | 5.0 | 11.0 | -55 | 6.3 | 9.3 | -32 |
| Adjusted operating margin, % | 5,0 | 10.7 | -53 | 5.0 | 12.3 | -59 | 6.3 | 10.0 | -37 |
| Profit for the period, SEK million | 9.4 | 18.6 | -49 | 18.2 | 40.5 | -55 | 45.8 | 68.1 | -33 |
| Earnings per share before dilution, SEK |
0.7 | 0.93 | -49 | 0.91 | 2.02 | -55 | 2.29 | 3.41 | -33 |
| Earnings per share after dilution, SEK |
0.45 | 0.88 | -49 | 0.87 | 1.93 | -55 | 2.18 | 3.25 | -33 |
| Net debt/EBITDA, multiple | 1.1 | 0.1 | N/A | 1.1 | 0.1 | N/A | 1.1 | 0.4 | 175 |
| Net debt, SEK million | 107.1 | 16.0 | N/A | 107.1 | 16.0 | N/A | 107.1 | 44.5 | 141 |
| Cash flow from operating activities, SEK million |
-18.1 | 42.6 | -143 | -17.1 | 44.4 | -139 | -13.8 | 47.7 | -129 |
| Return on capital employed, % | 10.9 | 22.4 | -51 | 10.9 | 22.4 | -51 | 10.9 | 18.8 | -42 |
| Equity/assets ratio, % | 64.4 | 66.8 | -4 | 64.4 | 66.8 | -4 | 64.4 | 72.6 | -11 |
* For definitions and alternative performance measures, see page 20.
When we put the first half of 2022 behind us, we see a market climate that is radically different from the one we had a year ago. The aftermath of the pandemic, with inflationary pressures, supply chain disruptions and rising interest rates, worsened by the war in Europe, has affected the world economy. For us, this means that we see a general restraint in demand from most of the application areas where our products are used. The high price picture and the general economy have a strong impact and create uncertainty in the market. In the short term, higher freight rates and higher costs for energy have had a negative impact on our cost structure. We have a long-term view of our business and a strong financial position and focus on our overall strategy.
After the end of the quarter, we acquired Alphaplex GmbH in Germany. With this acquisition, we strengthen our presence in the important German market. The acquisition also supports our ambition to increase our presence in Austria and Switzerland and advances our position in the value chain.
Our view is that volumes continue to fall for the entire industry in Europe but that we maintain our market position. The decline in volume is largely due to the fact that demand for pandemic-related barrier products has slowed down while application areas such as the travel and automotive industries have not fully recovered. Throughout 2021, we had a turbulent commodity situation with sharply rising prices that almost doubled during the year. The trend has continued in the first half of 2022 and is affected by the war in Ukraine, where sharply rising gas prices and uncertainty in the world economy have a major impact on the cost situation. Raw material prices have continued to rise, albeit at a slower pace than in the first quarter. In the situation of rising raw material prices and falling demand, price competition has continued.
Arla Plast's volumes declined by 12 percent and net sales increased by 8 percent in the second quarter. The high raw material prices, currencies and product mix had a positive impact on net sales. The gross margin declined to 14.3 percent (20.5) and the adjusted operating margin to 5.0 percent (10.7). Price competition due to a fall in demand, combined with historically high raw material prices, has led to weaker gross margins. Higher energy prices and higher freight costs had a negative impact on margins.
The uncertainty is high, and we are in a challenging period. However, our financial position is strong and our ambition is to continue develop our organization and customer offering. We have continued our work to strengthen our marketing and sales organization where the acquisition of Alphaplex means an increased local presence in Germany, enables added value and strengthens our sustainability ambitions. We are proud of our sustainability work and will now intensify this work. Among other things, we will strengthen our ambition to achieve increased circularity in the value chain and thereby help us and our customers on the journey towards a lower climate footprint.
I have great confidence in our ability to be flexible and handle challenges and opportunities in the best of ways, as we have shown many times before. Together with dedicated employees, we work strategically and long-term towards our objectives, both the financial and sustainability goals.
Christian Krichau President and CEO
Profit and loss items and cash flow are compared with the corresponding period of the previous year. Balance sheet items refer to the position at the end of the period and are compared with the corresponding date of the previous year.
Breakdown of total net sales by product area* in the second quarter and six months period:
*For definitions of product areas, see page 24.
Arla Plast's sales volume in the second quarter of 2022 declined by 12 per cent to 5,371 tonnes (6,100 tonnes) compared with the corresponding quarter last year. The decline in volume is largely due to the fact that demand for pandemic-related barrier products has slowed down while application areas such as the travel and automotive industries have not fully recovered. Net sales increased by 8 percent to SEK 267.1 million (SEK 246.3 million), organically the increase was 5 percent. Price adjustments to meet higher prices for input materials had a positive impact on net sales. Price competition continued during the quarter and we could not fully compensate for the high raw material prices, with the gross margin declining to 14.3 percent (20.5 percent).
Operating profit for the second quarter amounted to SEK 13.5 million (SEK 23.7 million), a decrease of 43 percent. The operating margin decreased to 5.0 percent (9.6 percent). The operating margin decreased mainly due to lower gross margin. Adjusted operating profit amounted to SEK 13.5 million (SEK 26.4 million) and the adjusted operating margin was 5.0 percent (10.7 percent).
Arla Plast's sales volume during the six months period 2022 decreased by 16 per cent to 10,312 tonnes (12,281 tonnes) compared with the corresponding period last year. The decrease is related to lower sales of pandemic-related barrier products. Net sales amounted to SEK 493.8 million (SEK 465.2 million), an increase of 6 percent. Organically, the increase was 3 percent. The decrease in volume and currency effects were offset by higher sales prices. Net sales increased in both segment Sweden and in segment Czech Republic.
Arla Plast AB, Västanåvägen 2, SE-591 75 Borensberg Tel +46 141 20 38 00, [email protected] 4 (24) www.arlaplastgroup.com Reg. no 556131–2611
Operating profit for the six months period amounted to SEK 24.9 million (SEK 51.3 million), a decline of 51 percent. The operating margin amounted to 5.0 percent (11.0 percent). The adjusted operating profit amounted to SEK 24.9 million (SEK 57.3 million) and the adjusted operating margin was 5.0 percent (12.3 percent).
During the second quarter of 2022, profit before tax amounted to SEK 11.2 million (SEK 23.3 million). Net financial income and expenses totaled SEK -2.3 million (SEK -0.4 million), including interest expenses of SEK -1.0 million (SEK -0.2 million). Taxes in the second quarter amounted to SEK -1.8 million (SEK -4.8 million), corresponding to an effective tax rate of 15.7 percent (20.4 percent). Net profit for the period was SEK 9.4 (18.6) million during the second quarter 2022, and earnings per share before dilution was SEK 0.47 (0.93), and after dilution, SEK 0.45 (0.88).
During the six months period, profit before tax amounted to SEK 22.0 million (SEK 50.8 million). Net financial income and expenses totaled SEK -2.9 million (SEK -0.5 million), including interest expenses of SEK -1.3 million (SEK -0.4 million). Taxes in the six months period amounted to SEK -3.8 million (SEK -10.3 million), corresponding to an effective tax rate of 17.3 percent (20.3 percent). Net profit for the period was SEK 18.2 (40.5) million during the first half year 2022 and earnings per share before dilution was SEK 0.91 (SEK 2.02), and after dilution, SEK 0.87 (SEK 1.93).
Cash flow from operating activities decreased during the third quarter to SEK -18.1 (42.6) million. Cash flow was negatively impacted by lower operating profit and increased working capital compared to the comparison quarter. The increase in working capital is explained by high raw material prices affecting the value of inventories and accounts receivable.
Cash flow from investing activities was SEK -5.8 (-8.9) million during the quarter and refers mainly to replacement investments in our three production facilities.
Cash flow from financing activities amounted to SEK 13.2 million (SEK -10.5 million) and includes a dividend of SEK -30.0 million in accordance with the decision of Arla Plast's Annual General Meeting 2022, new loans raised of SEK 50.1 million and amortization of loans of SEK -15.5 million.
For the first half year 2022, cash flow from operating activities amounted to SEK -17.1 million (SEK 44.4 million). The decrease is mainly explained by lower operating profit and an increased inventory value. The high raw material prices have affected the increase in the value of inventories.
Cash flow from investing activities during the six months period amounted to SEK -9.9 (- 21.4) million and refers mainly to replacement investments in our three production facilities.
Cash flow from financing activities totaled SEK 28.3 (6.5) million during the first nine months and includes a dividend of SEK -30.0 million, new loans raised of SEK 50.1 million and amortization of loans of SEK -15.5 million.
Arla Plast continously invests in production equipment and in its production units. The Group's investments in property plant and equipment in the second quarter amounted to SEK 5.8 (8.9) million and refers primarily to replacement investments in our three production facilities. Total depreciations for the second quarter amounted to SEK -9.9 (-9.6) million.
During the first half year, the Group's investments in property, plant and equipment amounted to SEK 9.9 (21.4) million. Total depreciation for the first six months amounted to SEK -20.1 (-18.4) million.
Arla Plast's total assets amounted to SEK 726.2 million as of 30 June 2022 (SEK 652.5 million).
The Group's net debt amounted to SEK 107.1 million as of June 30, 2022 (SEK 16.0 million), corresponding to 1.1 times EBITDA (0.1 times). Net debt has increased as a result of reduced cash and new raised loans of SEK 50.1 million.
The Group's equity ratio, equity at the end of the period as a percentage of total assets was 64.4 percent (66.8 percent).
Arla Plast AB is the parent company of the Arla Plast Group. The parent company's activities include the Swedish operating activities, as well as Group-wide functions such as management, finance, IT, purchasing and communications. In the second quarter of 2022, net sales amounted to SEK 175.8 (163.5) million, and operating profit, to SEK 8.2 (20.7 million).
For the six months period, net sales amounted to SEK 323.7 (318.9) million, and operating profit to, SEK 15.9 (43.2) million.
Cash and cash equivalents as of June 30, 2022, amounted to SEK 15.4 million compared to SEK 53.3 million as of June 30, 2021.
The Group´s activities are monitored through the two operating segments, Sweden and the Czech Republic. Group-wide functions can be found in both Sweden and the Czech Republic and are internally invoiced to ensure that a fair result can be monitored in each segment. The costs affecting comparability are charged to Group-wide costs and have not been allocated.
| 2022 | 2021 | 2022 | 2021 | 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Key performance indicator | Apr-Jun | Apr-Jun | ∆,% | Jan-Jun | Jan-Jun | ∆,% | R 12 | Jan-Dec | ∆, % |
| Sales volume, tonnes | 3,546 | 3,891 | -9 | 6,878 | 8,150 | -16 | 13,599 | 14,871 | -9 |
| Net sales, SEK million | 175.7 | 163.6 | 7 | 323.7 | 318.9 | 2 | 623.3 | 618.5 | 1 |
| Operating profit, SEK million | 8.2 | 23.5 | -65 | 15.9 | 49.2 | -68 | 37.2 | 70.5 | -47 |
| Operating margin, % | 4.7 | 14.3 | -67 | 4.9 | 15.4 | -68 | 6.0 | 11.4 | -47 |
In the second quarter, sales volumes decreased by 9 percent. The decline in volume is largely due to the fact that demand for pandemic-related barrier products has slowed down while application areas such as to the automotive industry have not fully recovered. Net sales increased by 7 percent to SEK 175.7 (163.6) million. Price competition continued during the quarter and we could not fully compensate for the high raw material prices. Operating profit decreased to SEK 8.2 million (SEK 23.5 million), mainly as a result of the lower gross profit. The operating margin decreased to 4.7 percent (14.3 percent).
In the six months period 2022, sales volume decreased by 16 per cent. The volume decline is related to that demand for pandemic-related barrier products has slowed down while application areas such as the automotive industry have not fully recovered. Net sales increased by 2 percent to SEK 323.7 (318.9) million. Operating profit decreased to SEK 15.9 million (SEK 49.2 million) mainly as a result of the lower gross profit. The operating margin decreased to 4.9 percent (15.4 percent).
| 2022 | 2021 | 2022 | 2021 | 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Key performance indicator | Apr-Jun | Apr-Jun | ∆,% | Jan-Jun | Jan-Jun | ∆,% | R 12 | Jan-Dec | ∆, % |
| Sales volume, tonnes | 2,098 | 2,500 | -16 | 3,838 | 4,703 | -18 | 8,064 | 8,929 | -10 |
| Net sales, SEK million | 100.7 | 92.2 | 9 | 182.7 | 162.8 | 12 | 363.5 | 343.6 | 6 |
| Operating profit, SEK million | 5.0 | 2.7 | 85 | 8.4 | 7.5 | 12 | 21.5 | 20.6 | 4 |
| Operating margin, % | 4.9 | 2.9 | 69 | 4.6 | 4.6 | - | 5.9 | 6.0 | -2 |
In the second quarter 2022, sales volume decreased by 16 percent. Net sales increased by 9 percent to SEK 100.7 (92.2) million. Organic growth was 1 percent. In this segment, prices have to a greater extent than in Sweden been compensated for increased raw material prices. Operating profit increased to SEK 5.0 (2.7) million. The operating margin increased to 4.9 percent (2.9 percent).
During the six months period, sales volumes decreased by 18 per cent. Net sales increased by 12 percent to SEK 182.7 million (SEK 162.8 million), the organic increase was 4 percent. Net sales increased mainly as a result of higher prices for raw materials being partially offset by price increases to customers. Operating profit amounted to SEK 8.4 million (SEK 7.5 million) and the operating margin was unchanged 4.6 percent (4.6 percent).
Annual organic sales growth over a business cycle should be 5 percent.
Operating margin over a business cycle should be at least 10 percent.
Net debt Net debt in relation to EBITDA shall not exceed 2.5x times.
The dividend policy is to pay shareholders about 30-50 percent of the profit for the year. Decisions on dividends will reflect the Company´s financial position, cash flow and investment needs.
As a Group with international operations, Arla Plast is exposed to various risks and uncertainties. For Arla Plast, the risk management process involves identifying, valuing and reducing risks related to the Group's business and operations.
Strategic risks include general economic conditions and trends, particularly in Europe, where the majority of the Group´s products are sold. An economic downturn in the market may have a negative impact on the Group´s sales and earnings. Arla Plast faces competition from both small and relatively large companies and continously streamlines its production, distribution and organization in order to maintain its competitiveness. The COVID-19 situation had a significant and positive impact on the
Group's operations in terms of demand and results, but the risk of contagion could have led to difficulties in staffing the production facilities. The ongoing war in Ukraine has led to the identification of a number of new risks, such as increased costs for input materials and transport, as well as currency fluctuations.
The supply and price of key raw materials is one of the most substantial operational risks. The main and most important raw material component in the production is PC, ABS and PETG granulate, where volatility in supply and price can lead to the risk of material shortages, as well as a negative impact on profitability.
Regarding compliance risks, Arla Plast's operations are met by a number of laws and regulations at national and international level. Non-compliance with these could involve exposure to material risk if not actively addressed. For this reason, significant resources and costs are used to ensure compliance with applicable rules but also to monitor future regulations.
Financial risks include market risk, liquidity risk, credit risk and refinancing risk. Currency risk is the most significant market risk as the Group is exposed to both transaction risk and translation risk. The Group is exposed to transaction risk mainly through EUR transactions within the Group. Furthermore, the Group is exposed to translation risk when converting the foreign subsidiary in the Czech Republic's revenues, costs, assets and liabilities in CZK into the Group's reporting currency, which is SEK.
For further information on risks and uncertainties, see the 2021 Annual Report.
It is important for Arla Plast to conduct its business in a sustainable and responsible manner, to strengthen our long-term competitiveness and to create value, both financially and operationally. Sustainable business value is achieved by working according to our sustainability framework and goals. Our approach to sustainability is that these types of issues should be addressed in an integrated way, as part of our day-to-day operations as well as part of our strategic processes.
Key areas of the Group´s sustainability work include environmental footprint, social sustainability and business ethics. This entails that Arla Plast shall conduct its operations in accordance with the legal requirements imposed on the business with regard to environmental impact and actively work to minimize the environmental footprint of the Group´s operations and products. Furthermore, Arla Plast´s social responsibility shall primarily include employees and society, where a good and safe workplace is in focus together with an active effort to contribute to a positive social development. Arla Plast shall also conduct its business in an ethical and responsible manner and be a trustworthy partner in all relationships and wherever the company operates.
Arla Plast has certifications for quality, environment and work environment accoring to the ISO standards ISO 9001, ISO 14001 and ISO 45001. Arla Plast has identified a number of KPI's related to sustainability which we follow up on. CO2 and sickness leave are two important KPI's. During the second quarter 2022, our carbon footprint related to the production of raw materials consumed was in average 3.3 kg CO2e per kg of finished product produced (3.4 kg CO2e) and sick leave was 5.6 percent (6.2 percent).
During the quarter, we received certification according to the standard for ISCC (International Sustainability Carbon Certification) in the Swedish production unit and have the ambition to be approved during the fourth quarter of 2022 in the Czech production units. The certification is a quality stamp for us and also an important step for us to increase the circular value chain and help our customers towards a lower climate footprint.
During the quarter, we have raised our ambitions in order to develop a sustainable product portfolio, increase supplier responsibility, raise the level of responsible operations, develop a sustainable workforce and directly address climate change.
For further information regarding our sustainability work please find our Sustainability report for 2021 on www.arlaplastgroup.com.
Arla Plast has a large number of customers in a wide range of industries. Demand for Arla Plast´s products does not generally have any major seasonal variations except for MWPC, which normally has a weaker winter season and a stronger summer season. However, the Group´s results are affected by the number of working days, with the number of public holidays and the holiday and Christmas period having a negative impact.
The average number of full-time employees in the second quarter of 2022 was 254 (264). During the second quarter, women accounted for 26 percent (25 percent) of the employees. For the six months period, the average number of full-time employees was 261 (264) whereof women accounted for 25 percent (25 percent).
Arla Plast AB held its Annual General Meeting on Thursday 19 May 2022.
The Annual General Meeting re-elected Kenneth Synnersten, Sten Jakobsson, Ola Salmén, Leif Nilsson, Jan Synnersten, Ulf Hedlundh and Annelie Arnbäck as Board members. Kenneth Synnersten was re-elected as Chairman of the Board.
The Annual General Meeting resolved, in accordance with the Board's proposal, on a dividend of SEK 1.50 per share, a total of SEK 30.0 million, corresponding to 44 percent of the result for the financial year 2021. The dividend was paid on May 27, 2022.
The Annual General Meeting further resolved, in accordance with the Board's proposal, to authorize the Board of Directors to, on one or more occasions before the next annual general meeting, to issue new shares up to 10 percent of the total number of outstanding shares at the time of the resolution on the authorization. It shall be possible to issue shares with or without deviation from the shareholders' preferential rights.
More information about the resolutions at the meeting and the content of these can be found on the company's website, www.arlaplastgroup.com.
On July 26, Arla Plast acquired all shares in Alphaplex GmbH in Germany with net sales of EUR 10.1 million in 2021, corresponding to approximately SEK 102.2 million, and an operating margin of approximately 8.2 percent. Alphaplex is a service partner within the plastics industry based close to Hannover. In addition to a well consolidated sales organization Alphaplex also has processing and warehousing. Sales are primarily within Germany. Alphaplex GmbH is already a strong partner to Arla Plast and the additional sales for the Arla Plast Group are estimated to SEK 60 million. The preliminary purchase price amounts to approximately EUR 4.1 million, corresponding to approximately SEK 43.2 million on a cash and debt free basis, IFRS effects excluded. In addition to this, a conditional earn-out payment of a maximum of EUR 1.3 million based on the next three years EBIT will be paid after the end of the three-year period.
The acquisition is financed through Arla Plast's credit facilities. Acquisition costs are estimated to amount to approximately SEK 1.5 million and will be charged in the third quarter of 2022. Alphaplex GmbH will be consolidated into the Arla Plast Group as of the closing date 1 August 2022 and reported in the new operating segment Germany.
No other significant events after the reporting period.
As of 30 June 2022, Synnersten Invest AB owns 48 percent, Svolder AB 13 percent, Nortal Investments AB 10 percent, Nordea Investment Funds 8 percent and Roosgruppen AB 5 percent. Arla Plast AB has a total of approximately 1,800 shareholders. An incentive program 2020/23 corresponding to a total of 980,000 warrants has been issued to key employees.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||
|---|---|---|---|---|---|---|---|
| Amounts in SEK thousand | Note | 2022 | 2021 | 2022 | 2021 | R 12 | 2021 |
| Net sales | 2,3 | 267,106 | 246,347 | 493,764 | 465,159 | 956,099 | 927,494 |
| Cost of goods sold | -228,901 | -195,904 | -421,095 | -363,806 | -804,276 | -746,987 | |
| Gross margin | 38,205 | 50,443 | 72,669 | 101,353 | 151,823 | 180,507 | |
| Selling expenses | -14,631 | -14,159 | -29,369 | -28,302 | -58,696 | -57,629 | |
| Administrative expenses | 9 | -13,567 | -12,555 | -23,922 | -24,982 | -44,141 | -45,201 |
| Other operating income | 4 | 3,308 | 276 | 5,609 | 3,675 | 10,789 | 8,855 |
| Other operating expenses | 152 | -293 | -90 | -414 | 7 | -317 | |
| Operating profit | 13,467 | 23,712 | 24,897 | 51,330 | 59,782 | 86,215 | |
| Financial income | 326 | - | 326 | - | 639 | 313 | |
| Financial expense | -2,622 | -394 | -3,242 | -544 | -3,714 | -1,016 | |
| Profit before tax | 11,171 | 23,318 | 21,981 | 50,786 | 56,707 | 85,512 | |
| Tax expense | -1,750 | -4,767 | -3,809 | -10,287 | -10,922 | -17,400 | |
| Profit for the period | 9,421 | 18,551 | 18,172 | 40,499 | 45,785 | 68,112 | |
| Other comprehensive income: | |||||||
| Items that may be reclassified subsequently to profit or loss |
|||||||
| Exchange differences on translation of foreign operations |
4,252 | 2,566 | 9,963 | 6,110 | 16,082 | 12,229 | |
| Other comprehensive income for the period |
4,252 | 2,566 | 9,963 | 6,110 | 16,082 | 12,229 | |
| Total comprehensive income for the period |
13,673 | 21,117 | 28,135 | 46,609 | 61,867 | 80,341 | |
| Amounts in SEK | |||||||
| Earnings per share, basic | 10 | 0.47 | 0.93 | 0.91 | 2.02 | 2.29 | 3.41 |
| Earnings per share, diluted | 10 | 0.45 | 0.88 | 0.87 | 1.93 | 2.18 | 3.25 |
The profit and the total comprehensive income for the period are attributable in their entirety to the shareholders of the parent company.
| Amounts in SEK thousand | Note | 2022-06-30 | 2021-06-30 | 2021-12-31 |
|---|---|---|---|---|
| ASSETS | ||||
| Total non-current assets | ||||
| Intangible non-current assets | 361 | 671 | 509 | |
| Property, plant and equipment | 277,554 | 284,851 | 280,836 | |
| Right-of-use assets | 5 | 21,251 | 7,314 | 21,941 |
| Other non-current receivables | 6 | 10 | 5 | 7 |
| Total non-current assets | 299,176 | 292,841 | 303,293 | |
| Current assets | ||||
| Inventories | 7 | 232,962 | 156,285 | 184,306 |
| Accounts receivable | 6 | 166,044 | 141,759 | 126,229 |
| Other current receivables | 6 | 4,847 | 6,431 | 11,136 |
| Prepaid expenses and accrued income | 3,688 | 1,717 | 3,110 | |
| Cash and cash equivalents | 6 | 19,527 | 53,446 | 18,565 |
| Total current assets | 427,068 | 359,638 | 343,346 | |
| TOTAL ASSETS | 726,244 | 652,479 | 646,639 | |
| EQUITY Share capital |
2,400 | 2,400 | 2,400 | |
| Other capital contributions | 1,666 | 1,666 | 1,666 | |
| Translation reserve | 43,226 | 27,144 | 33,263 | |
| Retained earnings (including profit for the period) | 420,631 | 404,846 | 432,459 | |
| Total equity attributable to owners of the parent | 467,923 | 436,056 | 469,788 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Non-current portion of lease liability | 5 | 16,615 | 2,764 | 17,310 |
| Deferred tax liabilities | 40,377 | 39,127 | 40,549 | |
| Total non-current liabilities | 56,992 | 41,891 | 57,859 | |
| Current liabilities | ||||
| Liabilities to credit institutions | 6 | 105,331 | 62,137 | 41,106 |
| Current portion of lease liability | 5 | 4,686 | 4,572 | 4,661 |
| Accounts payable | 6 | 20,219 | 37,173 | 14,078 |
| Current tax liabilities | - | 340 | 4,771 | |
| Derivative instruments | 6 | 719 | - | - |
| Other liabilities | 6 | 28,803 | 25,468 | 28,273 |
| Accrued expenses and deferred income | 41,571 | 44,842 | 26,103 | |
| Total current liabilities | 201,329 | 174,532 | 118,992 | |
| Total liabilities | 258,321 | 216,423 | 176,851 | |
| TOTAL EQUITY AND LIABILITIES | 726,244 | 652,479 | 646,639 |
| Amounts in SEK thousand | 2022-06-30 | 2021-06-30 | 2021-12-31 |
|---|---|---|---|
| Opening balance | 469,788 | 389,447 | 389,447 |
| Profit for the period | 18,172 | 40,499 | 68,112 |
| Other comprehensive income | 9,963 | 6,110 | 12,229 |
| Total comprehensive income | 28,135 | 46,609 | 80,341 |
| Dividend | -30,000 | - | - |
| Cash for warrants | - | - | - |
| Total transactions with shareholders | -30,000 | - | - |
| Closing balance | 467,923 | 436,056 | 469,788 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | ||
|---|---|---|---|---|---|---|
| Amounts in SEK thousand | 2022 | 2021 | 2022 | 2021 | R 12 | 2021 |
| Cash flow from operating activities | ||||||
| Operating profit | 13,467 | 23,712 | 24,897 | 51,330 | 59,782 | 86,215 |
| Adjustment for items not included in cash flow | 10,159 | 9,717 | 21,109 | 18,671 | 44,198 | 41,760 |
| Interest received | 326 | - | 326 | - | 326 | - |
| Interest paid | -909 | -168 | -1,030 | -325 | -1,470 | -765 |
| Income tax paid | -3,879 | -5,426 | -12,092 | -8,991 | -19,833 | -16,732 |
| Cash flow from operating activities before changes in working capital |
19,164 | 27,835 | 33,210 | 60,685 | 83,003 | 110,478 |
| Cash flow from changes in working capital | ||||||
| Increase/decrease in inventories | -9,078 | 8,624 | -44,014 | 6,836 | -69,301 | -18,451 |
| Increase/decrease in operating receivables | -22,012 | -10,347 | -30,066 | -38,720 | -19,569 | -28,223 |
| Increase/decrease in operating liabilities | -6,160 | 16,485 | 23,816 | 15,647 | -7,941 | -16,110 |
| Total change in working capital | -37,250 | 14,762 | -50,264 | -16,237 | -96,811 | -62,784 |
| Cash flow from operating activities | -18,086 | 42,597 | -17,054 | 44,448 | -13,808 | 47,694 |
| Cash flow from investing activities | ||||||
| Investments in intangible fixed assets | - | -28 | - | -28 | -1 | -29 |
| Investments in property, plant and equipment | -5,788 | -8,870 | -9,923 | -21,362 | -23,123 | -34,562 |
| Cash flow from investing activities | -5,788 | -8,898 | -9,923 | -21,390 | -23,124 | -34,591 |
| Cash flow from financing activities | ||||||
| Dividend | -30,000 | - | -30,000 | - | -30,000 | - |
| Increased use of overdraft facility | 9,925 | - | 26,478 | 9,112 | 23,910 | 6,544 |
| Reduced use of overdraft facility | - | -9,189 | - | - | - | - |
| Borrowing from credit institutions | 50,103 | - | 50,103 | - | 50,103 | - |
| Amortization related to lease liability | -1,388 | -1,326 | -2,811 | -2,623 | -6,580 | -6,392 |
| Amortization of loans to credit institutions | -15,466 | - | -15,466 | - | -34,770 | -19,304 |
| Cash flow from financing activities | 13,174 | -10,515 | 28,304 | 6,489 | 2,663 | -19,152 |
| Cash flow for the period | -10,700 | 23,184 | 1,327 | 29,547 | -34,269 | -6,049 |
| Cash and cash equivalents at beginning of period | 30,183 | 30,794 | 18,565 | 23,814 | 53,446 | 23,814 |
| Exchange differences in cash and cash equivalents | 44 | -532 | -365 | 85 | 350 | 800 |
| Cash and cash equivalents at close of period | 19,527 | 53,446 | 19,527 | 53,446 | 19,527 | 18,565 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | ||
|---|---|---|---|---|---|---|
| Amounts in SEK thousand | 2022 | 2021 | 2022 | 2021 | R 12 | 2021 |
| Net sales | 175,753 | 163,529 | 323,729 | 318,871 | 623,359 | 618,501 |
| Cost of goods sold | -148,293 | -121,695 | -271,244 | -235,328 | -517,721 | -481,805 |
| Gross profit | 27,460 | 41,834 | 52,485 | 83,543 | 105,638 | 136,696 |
| Selling expenses | -11,792 | -11,895 | -23,306 | -23,153 | -46,855 | -46,702 |
| Administrative expenses | -10,626 | -10,008 | -18,460 | -20,214 | -32,746 | -34,500 |
| Other operating income and operating expenses | 3,135 | 769 | 5,174 | 3,039 | 10,999 | 8,864 |
| Operating profit | 8,177 | 20,700 | 15,893 | 43,215 | 37,036 | 64,358 |
| Financial income and financial expenses | -1,532 | -398 | -2,123 | -379 | -1,951 | -207 |
| Profit before appropriations and tax | 6,645 | 20,302 | 13,770 | 42,836 | 35,085 | 64,151 |
| Appropriations | - | - | - | - | -13,218 | -13,218 |
| Profit before tax | 6,645 | 20,302 | 13,770 | 42,836 | 21,867 | 50,933 |
| Tax expense | -1,368 | -4,183 | -2,836 | -8,825 | -4,836 | -10,825 |
| Profit for the period | 5,277 | 16,119 | 10,934 | 34,011 | 17,031 | 40,108 |
| Profit for the period | 5,277 | 16,119 | 10,934 | 34,011 | 17,031 | 40,108 |
|---|---|---|---|---|---|---|
| Other comprehensive income for the period | - | - | - | - | - | - |
| Total comprehensive income for the period | 5,277 | 16,119 | 10,934 | 34,011 | 17,031 | 40,108 |
| Amounts in SEK thousand | 2022-06-30 | 2021-06-30 | 2021-12-31 |
|---|---|---|---|
| ASSETS | |||
| Total non-current assets | |||
| Intangible non-current assets | 361 | 656 | 509 |
| Property, plant and equipment | 166,550 | 176,719 | 173,124 |
| Financial fixed assets | 28,986 | 28,986 | 28,986 |
| Total non-current assets | 195,897 | 206,361 | 202,619 |
| Current assets | |||
| Inventories | 127,193 | 91,684 | 103,712 |
| Total current assets | 109,929 | 97,189 | 93,187 |
| Cash and bank balances | 15,441 | 53,332 | 18,397 |
| Total current assets | 252,563 | 242,205 | 215,296 |
| TOTAL ASSETS | 448,460 | 448,566 | 417,915 |
| 2022-06-30 | 2021-06-30 | 2021-12-31 | |
|---|---|---|---|
| EQUITY | |||
| Restricted equity | 2,880 | 2,880 | 2,880 |
| Unrestricted equity | 181,991 | 194,960 | 201,058 |
| Total equity | 184,871 | 197,840 | 203,938 |
| Untaxed reserves | 140,682 | 127,464 | 140,682 |
| LIABILITIES | |||
| Liabilities to credit institutions | 27,662 | 45,952 | 21,937 |
| Other current liabilities | 95,245 | 77,310 | 51,358 |
| Total current liabilities | 122,907 | 123,262 | 73,295 |
| TOTAL EQUITY AND LIABILITIES | 448,460 | 448,566 | 417,915 |
This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act. The same accounting policies as those in the last annual report have been applied for the Group and the Parent Company.
Significant estimates and judgements are set out in Note 4 of the 2021 Annual Report. No changes have been made to that could have a substantial impact on the current interim report.
New standards, amendments and interpretations effective from 1 January 2022 or later have not had a substantial impact on this financial report.
Below is a breakdown of revenue from contracts with customers in Arla Plast's largest markets based on the domicile of the customer and Arla Plast's product areas. No single customer accounts for 10 percent or more of sales, which means that dependence on individual customers is limited for Arla Plast.
| External net sales per | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| geographical market, | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||||
| SEK Thousand | 2022 | % | 2021 | % | 2022 | % | 2021 | % | R 12 | % | 2021 | % |
| Sweden | 32,009 | 12 | 34,818 | 14 | 58,557 | 12 | 61,042 | 13 | 119,319 | 13 | 121,805 | 13 |
| Germany | 42,233 | 16 | 49,498 | 20 | 80,393 | 16 | 101,339 | 22 | 153,826 | 16 | 174,772 | 19 |
| Czech Republic | 55,886 | 21 | 34,624 | 14 | 102,425 | 21 | 69,588 | 15 | 169,362 | 18 | 136,523 | 15 |
| Polen | 33,290 | 12 | 28,495 | 12 | 58,928 | 12 | 49,655 | 11 | 115,796 | 12 | 106,524 | 12 |
| Rest of Europe | 81,983 | 31 | 86,973 | 35 | 160,535 | 32 | 161,532 | 34 | 336,829 | 35 | 337,826 | 36 |
| Rest of World | 21,705 | 8 | 11,940 | 5 | 32,926 | 7 | 22,003 | 5 | 60,967 | 6 | 50,044 | 5 |
| Total | 267,106 | 100 | 246,347 | 100 | 493,764 | 100 | 465,159 | 100 | 956,099 | 100 | 927,494 | 100 |
| External net sales per product category, SEK Thousand |
||||||||||||
| TPC | 118,327 | 44 | 115,788 | 47 | 221,963 | 45 | 230,072 | 49 | 419,249 | 44 | 427,358 | 46 |
| OPC | 38,686 | 15 | 30,569 | 12 | 71,730 | 15 | 53,967 | 12 | 141,911 | 15 | 124,148 | 13 |
| MWPC | 60,641 | 23 | 58,510 | 24 | 110,344 | 22 | 98,396 | 21 | 223,301 | 23 | 211,353 | 23 |
| ABS | 35,300 | 13 | 23,711 | 10 | 62,917 | 13 | 45,163 | 10 | 116,643 | 12 | 98,889 | 11 |
| PETG | 14,152 | 5 | 17,769 | 7 | 26,810 | 5 | 37,561 | 8 | 54,995 | 6 | 65,746 | 7 |
| Summa | 267,106 | 100 | 246,347 | 100 | 493,764 | 100 | 465,159 | 100 | 956,099 | 100 | 927,494 | 100 |
The Group's activities are divided into two operating segments, Sweden and the Czech Republic.
Group-wide functions can be found in both Sweden and the Czech Republic and are internally invoiced to ensure that a fair result can be monitored in each segment. Items affecting comparability are charged to Group-wide costs and have not been allocated. In the consolidated statement of comprehensive income, the items affecting comparability are included in administrative expenses. Intersegment sales take place on market terms. The CEO primarily uses net sales and adjusted operating profit in assessing the Group's performance.
The Sweden segment is the Group's larger segment. This segment represents approximately 65 percent (65 percent) of the Group's total net sales in the second quarter of 2022 and includes all operations conducted and based in Borensberg. The main raw materials in the segment are polycarbonate and ABS. The product areas in which the segment operates are TPC, OPC and ABS. Approximately 52 percent (63 percent) of the net sales of the joint product area OPC are generated in the Sweden segment.
The Czech Republic segment represents approximately 35 percent (35 percent) of the Group's total net sales in the second quarter of 2022. This segment includes all activities conducted and originating in the Czech Republic. Production takes place in Kadaň and Pelhřimov. The main raw materials in the segment are polycarbonate and PETG. The product areas in which the segment operates are MWPC, OPC and PETG. Regarding the joint product area OPC, the Czech Republic segment accounts for approximately 48 percent (37 percent) of net sales.
Intersegment sales take place on market terms. Revenue from external parties reported to the CEO is measured in the same way as in the consolidated statement of comprehensive income.
Net sales and earnings by segment, net sales by geographic market and segment, as well as significant assets and liabilities by segment are shown below:
| Net sales and earnings |
Segment Sweden Q 2 2022 |
Segment Czech Q 2 2022 |
Jointly Q 2 2022 |
Elim. Q 2 2022 |
Group Q 2 2022 |
Segment Sweden Q 2 2021 |
Segment Czech Q 2 2021 |
Jointly Q 2 2021 |
Elim. Q 2 2021 |
Group Q 2 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales volume, tonnes | 3,546 | 2,098 | - | -273 | 5,371 | 3,891 | 2,500 | - | -291 | 6,100 |
| Net sales, external, SEK million |
173.3 | 93.8 | - | - | 267.1 | 161.2 | 85.1 | - | - | 246.3 |
| Net sales, intern, SEK million |
2.4 | 6.9 | - | -9.3 | - | 2.3 | 7.1 | - | -9.4 | - |
| Total net sales, SEK million |
175.7 | 100.7 | - | -9.3 | 267.1 | 163.5 | 92.2 | - | -9.4 | 246.3 |
| Adjusted operating profit, SEK million |
8.2 | 5.0 | - | 0.3 | 13.5 | 23.4 | 2.7 | - | 0.3 | 26.4 |
| Items affecting comparability, SEK million |
- | - | - | - | - | - | - | 2.7 | - | 2.7 |
| Operating profit, SEK million |
8.2 | 5.0 | - | 0.3 | 13.5 | 23.4 | 2.7 | -2.7 | 0.3 | 23.7 |
| Net financial items, SEK million |
-1.5 | -0.8 | - | - | -2.3 | -0.3 | -0.1 | - | - | -0.4 |
| Profti before tax, SEK million |
6.7 | 4.2 | - | 0.3 | 11.2 | 23.1 | 2.6 | -2.7 | 0.3 | 23.3 |
| Operating margin, % | 4.7 | 4.9 | - | - | 5.0 | 14.3 | 2.9 | - | - | 9.6 |
| Adjusted operating margin, % |
4.7 | 4.9 | - | - | 5.0 | 14.3 | 2.9 | - | - | 10.7 |
| Net sales and earnings |
Segment Sweden Jan-Jun 2022 |
Segment Czech Jan-Jun 2022 |
Jointly Jan-Jun 2022 |
Elim. Jan Jun 2022 |
Group Jan-Jun 2022 |
Segment Sweden Jan-Jun 2021 |
Segment Czech Jan-Jun 2021 |
Jointly Jan-Jun 2021 |
Elim. Jan Jun 2021 |
Group Jan-Jun 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales volume, tonnes | 6,878 | 3,838 | - | -404 | 10,312 | 8,150 | 4,703 | - | -572 | 12,281 |
| Net sales, external, SEK million |
321.3 | 172.5 | - | - | 493.8 | 315.6 | 149.6 | - | - | 465.2 |
| Net sales, intern, SEK million |
2.4 | 10.2 | - | -12.6 | - | 3.3 | 13.2 | - | -16.5 | - |
| Total net sales, SEK million |
323.7 | 182.7 | - | -12.6 | 493.8 | 318.9 | 162.8 | - | -16.5 | 465.2 |
| Adjusted operating profit, SEK million |
15.9 | 8.4 | - | 0.6 | 24.9 | 49.2 | 7.5 | - | 0.6 | 57.3 |
| Items affecting comparability, SEK million |
- | - | - | - | - | - | - | 6.0 | - | 6.0 |
| Operating profit, SEK million |
15.9 | 8.4 | - | 0.6 | 24.9 | 49.2 | 7.5 | -6.0 | 0.6 | 51.3 |
| Net financial items, SEK million |
-2.1 | -0.8 | - | - | -2.9 | -0.3 | -0.2 | - | - | -0.5 |
| Profit before tax, SEK million |
13.8 | 7.6 | - | 0.6 | 22.0 | 48.9 | 7.3 | -6.0 | 0.6 | 50.8 |
| Operating margin, % | 4.9 | 4.6 | - | - | 5.0 | 15.4 | 4.6 | - | - | 11.0 |
| Adjusted operating margin, % |
4.9 | 4.6 | - | - | 5.0 | 15.4 | 46 | - | - | 12.3 |
| Net sales and earnings |
Segment Sweden R 12 |
Segment Czech R 12 |
Jointly R 12 |
Elim. R 12 |
Group R 12 |
Segment Sweden Jan-Dec 2021 |
Segment Czech Jan-Dec 2021 |
Jointly Jan-Dec 2021 |
Elim. Jan Dec 2021 |
Group Jan-Dec 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales volume, tonnes | 13,599 | 8,064 | - | -986 | 20,677 | 14,871 | 8,929 | - -1,154 | 22,646 | |
| Net sales, external, SEK million |
615.9 | 340.2 | - | - | 956.1 | 610.2 | 317.3 | - | - | 927.5 |
| Net sales, intern, SEK million |
7.4 | 23.3 | - | -30.7 | - | 8.3 | 26.3 | - | -34.6 | - |
| Total net sales, SEK million |
623.3 | 363.5 | - | -30.7 | 956.1 | 618.5 | 343.6 | - | -34.6 | 927.5 |
| Adjusted operating profit, SEK million |
37.2 | 21.5 | - | 1.2 | 59.9 | 70.5 | 20.6 | - | 1.2 | 92.3 |
| Items affecting comparability, SEK million |
- | - | 0.1 | - | 0.1 | - | - | 6.1 | - | 6.1 |
| Operating profit, SEK million |
37.2 | 21.5 | -0.1 | 1.2 | 59.8 | 70.5 | 20.6 | -6.1 | 1.2 | 86.2 |
| Net financial items, SEK million |
-2.0 | -1.1 | - | - | -3.1 | -0.2 | -0.5 | - | - | -0.7 |
| Profti before tax, SEK million |
35.2 | 20.4 | -0.1 | 1.2 | 56.7 | 70.3 | 20.1 | -6.1 | 1.2 | 85.5 |
| Operating margin, % | 6.0 | 5.9 | - | - | 6.3 | 11.4 | 6.0 | - | - | 9.3 |
| Adjusted operating margin, % |
6.0 | 5.9 | - | - | 6.3 | 11.4 | 6.0 | - | - | 10.0 |
| Geographical market, SEK Thousands |
Segment Sweden Q 2 2022 |
Segment Czech Q 2 2022 |
Internal Q 2 2022 |
Group Q 2 2022 |
Segment Sweden Q 1 2021 |
Segment Czech Q 1 2021 |
Internal Q 1 2021 |
Group Q 1 2021 |
|---|---|---|---|---|---|---|---|---|
| Sweden | 30,175 | 8,756 | -6,922 | 32,009 | 31,473 | 10,449 | -7,104 | 34,818 |
| Germany | 31,880 | 10,353 | - | 42,233 | 34,256 | 15,242 | - | 49,498 |
| Czech | 23,453 | 34,810 | -2,377 | 55,886 | 9,531 | 27,380 | -2,288 | 34,623 |
| Polen | 22,303 | 10,987 | - | 33,290 | 18,605 | 9,890 | - | 28,495 |
| Rest Europe | 53,742 | 28,241 | - | 81,983 | 62,647 | 24,326 | - | 86,973 |
| Rest World | 14,200 | 7,505 | - | 21,705 | 7,017 | 4,923 | - | 11,940 |
| Total | 175,753 | 100,652 | -9,299 | 267,106 | 163,529 | 92,210 | -9,392 | 246,347 |
| Geographical market, SEK Thousands |
Segment Sweden Jan-Jun 2022 |
Segment Czech Jan-Jun 2022 |
Internal Jan-Jun 2022 |
Group Jan-Jun 2022 |
Segment Sweden Jan-Jun 2021 |
Segment Czech Jan-Jun 2021 |
Internal Jan-Jun 2021 |
Group Jan-Jun 2021 |
|---|---|---|---|---|---|---|---|---|
| Sweden | 54,624 | 14,163 | -10,230 | 58,557 | 54,167 | 20,080 | -13,204 | 61,043 |
| Germany | 64,667 | 15,726 | - | 80,393 | 69,204 | 32,135 | - | 101,339 |
| Czech | 35,937 | 68,889 | -2,401 | 102,425 | 28,955 | 43,934 | -3,302 | 69,587 |
| Polen | 40,287 | 18,641 | - | 58,928 | 33,996 | 15,659 | - | 49,655 |
| Rest Europe | 108,022 | 52,513 | - | 160,535 | 118,036 | 43,496 | - | 161,532 |
| Rest World | 20,192 | 12,734 | - | 32,926 | 14,513 | 7,490 | - | 22,003 |
| Total | 323,729 | 182,666 | -12,631 | 493,764 | 318,871 | 162,794 | -16,506 | 465,159 |
| Geographical market, SEK Thousands |
Segment Sweden R12 |
Segment Czech R12 |
Internal R 12 |
Group R 12 |
Segment Sweden Jan-Dec 2021 |
Segment Czech Jan-Dec 2021 |
Internal Jan-Dec 2021 |
Group Jan-Dec 2021 |
|---|---|---|---|---|---|---|---|---|
| Sweden | 110,316 | 32,343 | -23,340 | 119,319 | 109,859 | 38,260 | -26,314 | 121,805 |
| Germany | 116,004 | 37,822 | - | 153,826 | 120,541 | 54,231 | - | 174,772 |
| Czech | 56,496 | 120,280 | -7,414 | 169,362 | 49,514 | 95,325 | -8,315 | 136,524 |
| Polen | 77,431 | 38,365 | - | 115,796 | 71,140 | 35,383 | - | 106,523 |
| Rest Europe | 224,573 | 112,256 | - | 336,829 | 234,587 | 103,239 | - | 337,826 |
| Rest World | 38,539 | 22,428 | - | 60,967 | 32,860 | 17,184 | - | 50,044 |
| Total | 623,359 | 363,494 | -30,754 | 956,099 | 618,501 | 343,622 | -34,629 | 927,494 |
| Material assets and liabiliteis per segment, SEK Thousands |
2022-06-30 | 2021-06-30 | 2021-12-31 |
|---|---|---|---|
| Segment Sweden | |||
| Property, plant and equipment | 166,550 | 176,719 | 173,124 |
| Inventories | 127,193 | 91,684 | 103,712 |
| Liabilities | 122,907 | 123,262 | 73,295 |
| Segment Czech | |||
|---|---|---|---|
| Property, plant and equipment | 116,021 | 114,379 | 113,347 |
| Inventories | 105,769 | 64,601 | 80,594 |
| Liabilities | 120,549 | 70,008 | 56,687 |
Other operating income includes consideration for sales other than in the ordinary course of business, such as net gains on the sale of non-current assets, government grants received and exchange gains of an operating nature. Government grants are recognized at fair value when there is reasonable assurance that the grants will be received and the Group will comply with the conditions attached to the grants. Afa Sjukförsäkringsaktiebolag decided to pay out consolidation funds available within the collectively agreed health insurance AGS to certain employers. For Arla Plast, this meant SEK 2.1 million and the payment was made via Fora in October 2021. This item was reported as other operating income and receivables in the third quarter 2021.
The Group leases buildings, vehicles and other technical equipment such as a container compactor, inkjet printer, scrubbing machines and a vending machine. These are recognized as right-of-use assets with a corresponding liability. During the third quarter 2021, an agreement was reached on an extension of the lease of a production facility in the Czech Republic by 5 years, which affected the value of right-of-use assets by SEK 16.3 million and with a corresponding leasing debt.
The Group's financial assets and liabilities comprise other long-term receivables, accounts receivable, other receivables, cash and cash equivalents, liabilities to credit institutions, leasing liabilities, liabilities to Group companies, accounts payable, other liabilities and derivative financial instruments.
For those financial instruments carried at amortized cost, the carrying amount is considered to be a reasonable estimate of fair value, as they are all current instruments.
All derivatives are measured at fair value and classified as Level 2, which means that all significant inputs required for measurement are observable.
The table below shows the fair value of outstanding derivatives (forward exchange contracts) included in the balance sheet:
| 2021-06-30 | 2021-12-31 | ||
|---|---|---|---|
| Amounts in SEK Thousands | 2022-06-30 | ||
| Current liabilities | 719 | - | - |
| Amounts in SEK Thousands | 2022-06-30 | 2021-06-30 | 2021-12-31 |
|---|---|---|---|
| Raw materials and merchandise in stock | 117,619 | 81,201 | 97,654 |
| Finished goods produced in-house | 109,073 | 71,058 | 80,100 |
| Products in progress | 6,270 | 4,026 | 6,552 |
| Total inventories | 232,962 | 156,285 | 184,306 |
There have been no changes in the Group's or Parent Company's related-party relationships compared to those described in the 2021 Annual Report. There were no material related-party transactions during the period.
| Amounts in SEK thousand | Apr-Jun 2022 |
Apr-Jun 2021 |
Jan-Jun 2022 |
Jan-Jun 2021 |
R 12 | Jan-Dec 2021 |
|---|---|---|---|---|---|---|
| IPO costs | - | 2 736 | - | 5 967 | 140 | 6 107 |
| Total | - | 2 736 | - | 5 967 | 140 | 6 107 |
In order to prepare Arla Plast for a possible listing on Nasdaq Stockholm, a number of different measures were taken with external assistance. The listing took place in May 2021, and the costs associated with the preparations amount to SEK 0 (2,7) million in the second quarter and SEK 0 million (6,0) for the six months period.
.
.
The share capital of Arla Plast AB amounts to SEK 2,400,000. The Extraordinary General Meeting on July 3, 2020, decided to merge shares and to split shares. Following these decisions, the number of shares in the company amounts to 20,000,000 with a quota value of SEK 0.12. Basic earnings per share for all periods have been based on 20,000,000 shares. Diluted earnings per share are calculated by adjusting the average number of shares to include all potential dilution of shares. The company issued a total of 980,000 warrants at the Annual General Meeting on 13 August 2020.
| Basic and diluted earnings per share | Apr-Jun 2022 |
Apr-Jun 2021 |
Jan-Jun 2022 |
Jan-Jun 2021 |
R 12 | 2021-12-31 |
|---|---|---|---|---|---|---|
| Profit attributable to equity holders of the parent, SEK thousand |
9,421 | 18,551 | 18,172 | 40,499 | 45,785 | 68,112 |
| Weighted number of shares, basic | 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 | 20,000,000 | ||||
| Weighted number of shares, diluted | 20,980,000 20,980,000 20,980,000 20,980,000 20,980,000 | 20,980,000 | ||||
| Earnings per share, basic, SEK | 0.47 | 0.93 | 0.91 | 2.02 | 2.29 | 3.41 |
| Earnings per share, diluted, SEK | 0.45 | 0.88 | 0.87 | 1.93 | 2.18 | 3.25 |
The performance measures in this report take into account the nature of the operations and are deemed to provide relevant information to shareholders and other stakeholders, while also enabling comparability with other companies. In addition to the financial ratios prepared in accordance with IFRS, Arla Plast presents financial ratios that have not been defined in accordance with IFRS, for example EBITDA and adjusted operating margin. These alternative performance measures are considered important earnings and performance indicators for investors and other users of the interim report. The alternative performance measures should be considered a complement to, but not a substitute for, the financial information prepared in accordance with IFRS. The Arla Plast Group's definitions of these measures that are not defined under IFRS are described in this note.
| Definitions | Calculation | Purpose |
|---|---|---|
| Gross margin, % | Gross profit/loss as a percentage of the net sales for the period. |
The gross margin is used to measure profitability after the cost of goods sold. |
| Operating margin, % | Operating profit as a percentage of the net sales for the period. |
The operating margin is used to measure operating profitability. The key ratio is one of the company's financial targets and should amount to at least 10% over a business cycle. |
| EBITDA, SEK thousand | Operating profit before depreciation, amortization and impairment. |
The EBITDA is used to measure the operating profit without the effect of depreciation, amortization and impairment and therefore provides a measure of profit that is comparable over time. |
| Items affecting comparability, SEK thousand |
Significant items not included in the ordinary course of business such as costs of preparing for a listing, restructuring and the impact of acquisitions or disposals. |
Taking items affecting comparability into account increases the comparability and therefore the understanding of the Group's financial performance. |
| Adjusted operating profit, SEK thousand |
Operating profit adjusted for items affecting comparability. |
Adjusting the operating profit makes it more comparable. Used to monitor the Group's operating segment. |
| Adjusted operating margin, % | The adjusted operating profit as a percentage of the net sales for the period. |
The adjusted operating margin excludes the effect of items affecting comparability, which enables a comparison of the underlying operating profitability. |
| Adjusted EBITDA, SEK thousand |
EBITDA adjusted for items affecting comparability. |
EBITDA adjusted increases the comparability of EBITDA. |
| Interest-bearing assets, SEK thousand |
Cash and bank balances. | The interest-bearing assets are used to calculate the net debt. |
| Interest-bearing liabilities, SEK thousand |
Current and non-current liabilities owed to credit institutions, current and non-current lease liabilities, and debt owed to the parent company. |
The interest-bearing liabilities are used to calculate the net debt. |
| Net debt, SEK thousand | Interest-bearing liabilities less interest bearing assets. |
The net debt is used to measure the Company's ability to repay all of its debt using the Company's available cash if the debt matured on the calculation date. |
|---|---|---|
| Net debt/EBITDA, multiple | The net debt at period-end in relation to the EBITDA for the last 12 months. |
The net debt/EBITDA ratio gives an indication of the company's ability to reduce its debt. It represents the number of years that it would take to repay the debt if the net debt and EBITDA stayed constant, without taking into account interest-, tax- and investment-related cash flow. The key ratio is one of the company's financial targets and should not exceed 2.5 times. |
| Organic growth, % | Organic growth is the sales growth excluding growth attributable to acquisitions, disposals and exchange rate fluctuations. |
Organic growth is used to monitor the underlying change in income between different periods with constant exchange rates and excluding the effect of any acquisitions and/or divestments. The key ratio is one of the company's financial targets, and the annual organic sales growth over a business cycle should be 5%. |
| Working capital, SEK thousand |
Inventories and other short-term operating assets less other short-term operating liabilities. |
This measure is used to analyze the company's short term tied-up capital. |
| Working capital/sales, % | Operating receivables less operating liabilities in relation to sales. |
This key ratio is used to monitor the change in working capital in relation to net sales. |
| Capital employed, SEK thousand |
Total assets less non-interest-bearing liabilities (including deferred tax). |
Capital employed measures the ability of the enterprise to meet the needs of the business in addition to cash and cash equivalents. |
| Return on capital employed (ROCE), % |
Adjusted operating profit divided by average capital employed. Average capital employed its calculated by adding the capital employed at period-end to the capital employed at period-end for the same period of the previous year and dividing it by two. |
ROCE is a long-term profitability indicator that measures how effectively the company is using its capital. |
| Sales volume, metric tons | Volume sold stated in metric tons. | The sales volume is a key performance indicator used to assess the company's sales in relation to the total volume sold in the company's end markets. |
| R12, SEK thousand | A summary of outcomes from the last 12 months. |
R12 allows for comparison with the full year 2020. |
| Operating cash flow, SEK thousand |
Cash flow from operating activities and cash flow from investing activities. |
This indicator measures the total cash flow in operating activities. |
| Equity/assets ratio | The equity at period-end as a percentage of total assets. |
The equity ratio indicates the proportion of the company's assets that are financed by equity. This performance measure makes it possible to analyze the company's long-term ability to pay. |
| Apr-Jun 2022 |
Apr-Jun 2021 |
Jan-Jun 2022 |
Jan-Jun 2021 |
R 12 | 2021 | |
|---|---|---|---|---|---|---|
| Gross margin, %: | ||||||
| Gross profit, SEK thousand | 38,205 | 50,443 | 72,669 | 101,353 | 151,823 | 180,507 |
| Net sales, SEK thousand | 267,106 | 246,347 | 493,764 | 465,159 | 956,099 | 927,494 |
| Gross margin, % | 14.3 | 20.5 | 14.7 14.7 |
21.8 | 15.9 | 19.5 |
| Operating margin, %, Sweden: | 14,7 | |||||
| Net sales, SEK thousand | 175,753 | 163,529 | 323,729 | 318,871 | 623,359 | 618,501 |
| Operating profit, SEK thousand | 8,185 | 23,437 | 15,909 | 49,201 | 37,197 | 70,490 |
| Operating margin, %, Sweden | 4.7 | 14.3 | 4.9 | 15.4 | 6.0 | 11.4 |
| Operating margin, %, Czech Republic | ||||||
|---|---|---|---|---|---|---|
| Net sales, SEK thousand | 100,652 | 92,210 | 182,666 | 162,794 | 363,494 | 343,622 |
| Operating profit, SEK thousand | 4,973 | 2,705 | 8,370 | 7,484 | 21,494 | 20,608 |
| Operating margin, %, Czech Republic | 4.9 | 2.9 | 4.6 | 4.6 | 5.9 | 6.0 |
| Adjusted EBITDA, SEK thousand: | ||||||
| Operating profit | 13,467 | 23,712 | 24,897 | 51,330 | 59,782 | 86,215 |
| Less depreciation and amortization of non-current | 9,909 | 9,554 | 20,075 | 18,395 | 39,873 | 38,193 |
| assets Minus depreciation of non-current assets |
- | - | - | - | - | - |
| EBITDA | 23,376 | 33,266 | 44,972 | 69,725 | 99,655 | 124,408 |
| Less items affecting comparability | - | 2,736 | - | 5,967 | 140 | 6,107 |
| Adjusted EBITDA, SEK thousand | 23,376 | 36,002 | 44,972 | 75,692 | 99,795 | 130,515 |
| Organic growth, %: | ||||||
| Net sales, SEK thousand | 267,106 | 246,347 | 493,764 | 465,159 | 956,099 | 927,494 |
| Net sales for the same period of the previous year, SEK | ||||||
| thousand | 246,347 | 260,833 | 465,159 | 465,406 | 884,433 | 884,680 |
| Net sales, change | 20,759 | -14,486 | 28,605 | -247 | 71,666 | 42,814 |
| Less exchange rate fluctuations, SEK thousand | -7,075 | -5,393 | -13,607 | 73 | -10,126 | 3,554 |
| Organic growth, % | 5.4 | -7.5 | 3.1 | - | 6.9 | 5.3 |
| Working capital/sales, %: | ||||||
| Operating receivables, SEK thousand | 404,759 | 306,192 | 404,759 | 306,192 | 404,759 | 324,781 |
| Operating liabilities, SEK thousand | 91,312 | 107,483 | 91,312 | 107,483 | 91,312 | 68,454 |
| Net working capital, SEK thousand | 313,447 | 198,709 | 313,447 | 198,709 | 313,447 | 256,327 |
| Net sales, R12 SEK thousand | 956,099 | 884,433 | 956,099 | 884,433 | 956,099 | 927,494 |
| Working capital/sales, % | 32.8 | 22.5 | 32.8 | 22.5 | 32.8 | 27.6 |
| Return on capital employed (ROCE), %: | ||||||
| Capital employed, SEK thousand | 594,555 | 505,529 | 594,555 | 505,529 | 594,555 | 532,865 |
| Average capital employed, SEK thousand | 550,042 | 509,860 | 550,042 | 509,860 | 550,042 | 491,582 |
| Adjusted operating profit R12, SEK thousand | 59,922 | 114,121 | 59,922 | 114,121 | 59,922 | 92,322 |
| Return on capital employed (ROCE), % | 10.9 | 22.4 | 10.9 | 22.4 | 10.9 | 18.8 |
| Net debt/EBITDA, multiple: | ||||||
| Net debt, SEK thousand | 107,105 | 16,027 | 107,105 | 16,027 | 107,105 | 44,512 |
| EBITDA, R12 SEK thousand | 99,655 | 136,949 | 99,655 | 136,949 | 99,655 | 124,408 |
| Net debt/EBITDA, multiple | 1.07 | 0.12 | 1.07 | 0.12 | 1.07 | 0.36 |
| Equity/assets ratio, %: | ||||||
| Equity, SEK thousand | 467,923 | 436,056 | 467,923 | 436,056 | 467,923 | 469,788 |
| Total capital, SEK thousand | 726,244 | 652,479 | 726,244 | 652,479 | 726,244 | 646,639 |
| Equity/assets ratio, % | 64.4 | 66.8 | 64.4 | 66.8 | 64.4 | 72.6 |
Interim report January - September 2022 - 10 November 2022 Year-end report 2022 - 17 February 2023
The CEO and Board assure that this interim report provides a fair review of the Group´s and Parent Company´s operations, financial position and earnings and describes significant risks and uncertainties faced.
Borensberg 17 August 2022
Arla Plast AB (reg no 556131-2611)
Kenneth Synnersten Chairman of the Board Annelie Arnbäck Board Member
Sten Jakobsson Board Member
Leif Nilsson Board Member
Ola Salmén Board Member Jan Synnersten Board Member
Ulf Hedlundh Board Member Annika Erlandsson Employee representative
Klas Renlund Employee representative Christian Krichau CEO
This interim report has not been reviewed by the company's auditor.
Christian Krichau, Interim CEO, +46 141 20 38 01 Monica Ljung, CFO, +46 141 20 38 02 Boel Sundvall, IR, +46 705 606018
Certain statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the specific mentioned factors, other factors may have material impact on the actual outcome. Such factors include, but are not limited to, the general economic climate, exchange-rate fluctuations and changes in interest rates, political developments, the impact of competing products and the prices of such products, interruptions to the access to raw materials.
This information is such information that Arla Plast AB is obliged to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the abovementioned contact persons on 18 August 2022 at 8:00 am CET.
Arla Plast AB, Västanåvägen 2, SE-591 75 Borensberg Tel +46 141 20 38 00, [email protected] 23 (24) www.arlaplastgroup.com Reg. no 556131–2611
Arla Plast is a producer and supplier of extruded sheets made of technical plastics. The plastic sheets are made of polycarbonate (PC), acrylonitrile butadiene styrene (ABS) and glycol-modified polyethylene terephthalate (PETG) and have a large number of areas of application, such as safety products, machine guards, ice hockey rinks, greenhouses, pool covers, sound walls, protective barriers (for COVID-19), suitcases, vehicle components and various construction-related areas of application. The company is headquartered in Borensberg, Sweden, and has production facilities in Borensberg and two in the Czech Republic. Arla Plast has around 260 employees and a turnover of more than SEK 900 million.
More information about Arla Plast is available at www.arlaplastgroup.com.
| ABS: | Acrylonitrile butadiene styrene. The product group also includes products that are combinations of PC and ABS. |
|---|---|
| OPC: | Opaque polycarbonate. |
| MWPC: | Multiwall of polycarbonate. |
| PETG: | Polyethylene terephthalate glycol. |
| TPC: | Transparent polycarbonate. |
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