Quarterly Report • Apr 29, 2022
Quarterly Report
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The net sales forecast for the second quarter of 2022 is MSEK 50 - 55 (37.5).
| 2022 | Change from | 2021 | 2021 | Rolling | |
|---|---|---|---|---|---|
| (MSEK) | Jan-Mar | previous year | Jan-Mar | Jan-Dec | 12 months |
| Net sales | 49.2 | 56% | 31.4 | 151.2 | 169.0 |
| Operating profit (EBIT) | $14.0$ 1 | 2068% | 0.6 | 26.8 | 40.2 |
| Profit (loss) this period | 9.6 | 395 % | $-3.2$ | 14.2 | 27.0 |
| Earnings per share (SEK) | 0.76 | 392 % | $-0.26$ | 1.13 | $2.2^{\circ}$ |
| Operating cash flow | 8.6 | 225 % | $-6.9$ | 30.3 | 45.8 |
CTT is the leading supplier of active humidity control systems in aircraft. We solve the aircraft humidity paradox - with far too dry cabin air - and too much moisture in the fuselage - causing dehydration for people onboa and how active humidity control products make air traveling a little more sustainable and far more pleasurable, please visit: w
1) This Interim report / Year-End report is a translation of the original report published in Swedish. In the event of any deviations between the two reports, the Swedish version prevails.
2) Unless otherwise stated, outcome comparisons with a previous period in this Interim report / Year-End report refer to the corresponding period of the preceding year, and the value is given in brackets.
Net sales increased sequentially by 17% to MSEK 49, driven by a higher-than-expected increase in aftermarket sales that surged 42% quarter-to-quarter, mainly due to quick rebound from Covid-19 variant Omicron (Asia and China exempted) and due to increase in inventories at distributors and airlines ahead of strong intercontinental summer bookings. Private jet sales did not grow as expected related to slipping project milestones that pushed revenue recognition into the second quarter. OEM sales increased but remained as expected at record-low level. We have stopped all activities in Russia and paused the shipments scheduled for Russian customers, offsetting net sales in the quarter with approx. 6% and resulting in higher working capital. The order backlog increased to MSEK 76 which is the highest level since second quarter 2020. The total Russian exposure in the order book is MSEK 13 (Pobeda order from December 2021). We have in our plans indefinitely deleted all scheduled deliveries to Russia. The systems and material on inventory for Pobeda can be sold to other Boeing 737 operators.
We forecast net sales in the second quarter to be MSEK 50 - 55, driven by higher Private jet revenues that partly will be offset by a slower aftermarket quarter (in wake of an exceptionally strong first quarter). OEM will be at same level and Retrofit will be null for the second consecutive quarter as we in this quarter not will be able to compensate for the stopped deliveries to Pobeda.
It is increasingly obvious that pent-up demand to re-connect and travel is huge after two years with travel restrictions. This is all good news for airlines but as the pandemic impact fades, new challenges cloud the picture linked to higher costs, increasing rates and supply constraints. The war in Ukraine is also creating some revenue growth headwinds for our Retrofit business as Russia was a defined as target market for the anti-condensation system. While we at CTT work to reaccelerate our revenue growth - mainly through intensified activities in the European anti-condensation market and efforts in the Private jet segment - we will closely assess and monitor how the geopolitical situation and business environment impact our business going forward.
The underlying aftermarket is expected to grow significantly in 2022; although sales can vary from quarter to quarter depending on inventory levels at airlines and distributors. The main driver in 2022 will be gradual normalization in flying activities for our installed base. linked to the expected increase in intercontinental traffic.
We are now entering the next recovery phase in the wake of the pandemic with a better Private jet market and better retrofit outlook. Our OEM market is widebody centric where aircraft build-rates are likely to start a rebound next year.
This report is my first as CEO of CTT. I have only been at the company for less than a month but I am already impressed by CTT's highly committed and competent team. The product offering - that make air travel a little more sustainable and far more pleasurable – is unique with a strategy that is profound and clear. I am humble and thankful for this opportunity to take-over as CEO of CTT. With this said. I am strongly committed to secure that CTT generates value to shareholders.
Henrik Höjer, CEO
√ 17.03.2022: CTT Systems AB signs a development agreement with Airbus Corporate Jets ("ACJ") regarding Inflight Humidification (IFH) system for the ACJ TwoTwenty Xtra large business jet. Under the partnership CTT and ACJ will design the system together and CTT will develop the humidification system consisting of four humidifiers and one anti-condensation unit.
$\checkmark$ No significant events have occurred after the end of the reporting period.
Net sales increased by 56% in the first quarter to MSEK 49.2 (31.4), driven by the gradual improvement in the aftermarket and stronger USD rate. Adjusted for currency effects sales increased by 42%. The average USD currency rate in the first quarter was 9.25 (8.22). Aftermarket sales in the first quarter were 95% compared to the average quarter 2019, OEM revenues increased with MSEK 2, from record-low level, to MSEK 7.2 (4.8), due to increased OEM deliveries to A350. Deliveries to Boeing remain low, partly because decreased aircraft production rate in the Boeing 787program due to production issues. The Private jet revenues were flat and lower than expected, due to some project deliveries that slipped into the second quarter. Retrofit revenues were negatively affected by the current sanctions on Russia.
stopping the deliveries to Russian Pobeda, which affected net sales by -6%.
CTT has reported four consecutive quarters with net sales growth, from pandemic low point in the first quarter of 2021, mainly driven by the recovery in the aftermarket.
The graph above shows quarterly net sales and rolling four quarters average.
| NET SALES (MSEK) | Q220 | Q320 | Q420 | Q121 | Q221 | Q 321 | Q421 | Q122 |
|---|---|---|---|---|---|---|---|---|
| System Sales | ||||||||
| 0EM | 21.7 | 15.1 | 12.4 | 48 | 8.0 | 6.3 | 5.5 | 7.2 |
| Retrofit | 1.3 | 0.6 | 0.0 | $\sqrt{3}$ | 0.0 | 1.7 | 4.5 | 0.0 |
| Private jet | 9.0 | 9.8 | 6.2 | 3.2 | 2.5 | 1.4 | 2.6 | 2.5 |
| Total | 32.0 | 25.5 | 18.6 | 9.3 | 10.5 | 9.5 | 12.6 | 9.7 |
| Aftermarket | 16.1 | 11.1 | 14.0 | 20.5 | 24.3 | 27.8 | 25.9 | 36.7 |
| Sales in addition to the core business activities | 2.2 | 1.7 | 23 | 1.7 | 2.6 | 2.9 | 3.5 | 2.8 |
| TOTAL | 50.4 | 38.3 | 34.9 | 31.4 | 37.5 | 40.2 | 42.1 | 49.2 |
| Of which projects where there is recognition of | 9.9 | 9.9 | 6.5 | 3.2 | 0.3 | 1.5 | 2.6 | 2.5 |
profits that is reported as revenue over time.
(Other income is recognised at a defined point in time, i.e. upon delivery.)
The breakdown of net sales for the quarters is presented above.
The Company's operating profit (EBIT) for the first quarter was MSEK 14.0 (0.6), corresponding to an operating margin of 29% (2). Net profit was MSEK 9.6 (-3.2). The EBIT increase compared to the first quarter last year is mainly explained by increased aftermarket sales and currency effects from a stronger USD. The cost saving program, that were initiated in the beginning of the pandemic to mitigate the loss of revenues, had full effect in the quarter. Higher EBIT leads to increased cost for variable remuneration to the employees with MSEK 1.6 (0.0).
The earnings trend since Q4 2020 is presented below, where the green line shows the EBIT margin adjusted for currency effects directly linked to accounts receivable and accounts payable.
Average USD / SEK exchange rate according to Riksbanken
The net sales forecast for the second quarter of 2022 is MSEK 50 - 55 (37.5).
In the fourth quarter report (2021), CTT made the following forecast for the first quarter of 2022: "The net sales forecast for the first quarter of 2022 is MSEK 42 - 47 (31.4)."
The actual net sales amounted to MSEK 49.2.
During the first quarter, the Company's order intake amounted to MSEK 63 (38). The stronger order intake compared to previous year is driven by a gradual recovery in product population flight hours that increases the demand for the Company's aftermarket products. as well as an improved order intake in OEM for A350 and stronger USD. As of 31 March 2022, the order book totaled MSEK 76 (40), based on USD exchange rate of 9.38 (8.72), where of MSEK 13 at risk from Russian Pobeda.
Cash flow before changes in working capital increased to MSEK 13.3 (0.3) in the first quarter. The cash flow from operating activities increased to MSEK 8.6 (-6.9). The improved cash flow is mainly driven by the higher earnings and from changes in working capital. mainly higher account payables. Cash flow from change in working capital was MSEK-4.7 (-7.1), where the inventory temporally increased by MSEK 5.0, partly due to the stopped deliveries to Russian Pobeda.
Long-term interest-bearing loan liabilities amounted to MSEK 39.9 (69.3). The decline from previous year is mainly related to an amortization of a USD credit facility, made possible by stronger cash flow recent quarters.
Overall, CTT has a strong financial position, with its equity ratio at 31 March 2022 amounting to 71% (66). Cash and cash equivalents amounted to MSEK 23.6 (41.6), and in addition available credit facilities of MSEK 52. Net debt as of 31 March 2022 amounted to MSEK 17 (29), and equity to MSEK 222 $(217).$
See Cash flow analysis on page 12
Investments in the first quarter amounted to MSEK 1.8 (2.7), related to ongoing development projects, many in the final stage which explains the decrease compared to last year.
The average number of employees during the first quarter were 76 (85). The decrease compared previous year is due to the cost savings programs that was implemented during the pandemic.
The risks in the Company's business operations can generally be divided into operational risks related to its business operations and financial risks related to its financial activities. As a result of the ongoing war in Ukraine. CTT continuously follow up on risks and mitigating activities to reduce the impacts for the company. CTT is currently assessing the conditions that apply to our Russian business, and closely monitoring and evaluating the direct and indirect financial effects of the war. There were no material financial effects on the balance sheet nor income statement in the first quarter. Other than this, no significant changes in material risks or uncertainties have arisen during the period. A detailed account of CTT's risks, uncertainties and their management can be found on pages 54 - 58 of the Company's Annual Report for 2021.
$\mathbf{r}$ $\sim$
| Number | |||
|---|---|---|---|
| CTT's three largest shareholders as at 31/03/2022 | of shares | Capital | Votes |
| Tomas Torlöf | 1 678 336 | 13.4% | 13.4% |
| SEB Funds | 1 176 405 | 9.4% | 9.4% |
| Collins Aerospace | 1 133 154 | 9.0% | 9.0% |
For information about the Company's 20 largest shareholders, please refer to the company's website www.ctt.se.
There have been no significant transactions with related parties during the quarter.
To the extent that transactions and agreements for services with related parties are entered into, these are always entered into and performed under market conditions.
This report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act, taking into account the exceptions and additions to IFRS as set out in the Swedish Financial Reporting Board's Recommendation RFR 2 -Accounting for Legal Entities. Unless stated otherwise below, the accounting policies applied correspond with the accounting policies applied in the preparation of the most recent annual financial statements.
No new or updated standards issued by the IASB and interpretative statements by the IFRIC have had any material effect on the Company's financial position, profits or disclosures.
Annual General Meeting Interim Report Q2 2022 Interim Report Q3 2022 Year-End Report 2022
04/05/2022 at 17:00 (CEST) 22/07/2022 at 08:00 (CEST) 28/10/2022 at 08:00 (CEST) 07/02/2023 at 08:00 (CET)
The Board of Directors and the Chief Executive Officer represent and warrant that this interim report provides a true and fair view of the Company's business operations, position and performance and describes the material risks and uncertainties facing the Company. This information is such as CTT Systems AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading (Market Abuse Penalties) Act. The information was submitted for publication at 8:00 (CET) on 29 April 2022.
Nyköping, 28 April 2022
CTT Systems AB (publ.)
Tomas Torlöf Chairman of the Board
Steven Buesing Board Member
Annika Dalsvall Board Member
Per Fyrenius Board Member
Biörn Lenander Board Member
Henrik Höier CEO
This report has not been audited by the Company's auditors.
For additional information, please contact:
Henrik Höjer, CEO CTT Systems AB Box 1042 SE-611 29 NYKÖPING Tel: 46 (0)155-20 59 01 E-mail [email protected]
Markus Berg, CFO CTT Systems AB Box 1042 SE-611 29 NYKÖPING Tel: 46 (0)155-20 59 05 E-mail: [email protected]
Company reg. no.: 556430-7741 Website: www.ctt.se
CTT is a market-leading manufacturer of equipment for active control of humidity in aircraft. CTT's dehumidifier and humidifier products minimize fuselage condensation issues and increase cabin air humidity. CTT is a supplier to Boeing and Airbus and has many of the world's largest airlines as its customers.
CTT has been traded on Nasdag Stockholm since March 1999, currently on the Mid Cap list and has its registered offices in Nyköping.
| CTT SYSTEMS AB | 2022 | 2021 | 2021 |
|---|---|---|---|
| INCOME STATEMENT in brief (MSEK) | Jan-Mar | Jan-Mar | Jan-Dec |
| Operating income | |||
| Net sales | 49.2 | 31.4 | 151.2 |
| Change in stocks of work in progress and stocks of finished goods | 14 | 0.4 | 19 |
| Own work capitalised | 0.9 | 1.0 | 3.0 |
| Other operating income | 3.1 | 43 | $20.1^{11}$ |
| Total operating income | 54.6 | 37.1 | 176.2 |
| Operating expenses | |||
| Raw materials and consumables | $-11.4$ | $-8.7$ | $-37.7$ |
| Other external costs | $-8.5$ | $-8.6$ | $-35.6$ |
| Employee benefit expense | $-16.8$ | $-15.9$ | $-61.5$ |
| Depreciation and amortisation of property, plant and equipment and | |||
| intangible assets | $-2.0$ | $-1.9$ | $-113^{11}$ |
| Other operating expenses | $-1.9$ | $-1.5$ | $-3.3$ |
| Total operating expenses | $-40.5$ | $-36.5$ | $-149.4$ |
| Operating profit (EBIT) | 14.0 | 0.6 | 26.8 |
| Net gain/loss on financial items | $-2.0$ | $-4.7$ | $-8.9$ |
| Profit before tax | 12.0 | $-4.1$ | 17.9 |
| Tax | $-2.5$ | 0.8 | $-37$ |
| Profit (loss) this period | 9.6 | $-3.2$ | 14.2 |
| Other comprehensive income | |||
| Comprehensive income for the period | 9.6 | $-3.2$ | 14.2 |
| Earnings per share, SEK | 0.76 | $-0.26$ | 11 5 |
$^{\text{D}}$ One-off items from OEM segment have effected other operating income positively with MSEK 9.1 and amortisation negatively with MSEK 4.3. Net EBIT effect amounted to MSEK +4.8.
| CTT SYSTEMS AB | 2022 | 2021 | 2021 |
|---|---|---|---|
| BALANCE SHEET in brief (MSEK) | 31 Mar | 31 Mar | 31 Dec |
| Assets | |||
| Intangible assets | 76.9 | 75.4 | 75.9 |
| Property, plant and equipment | 46.8 | 52.0 | 48.1 |
| Financial assets | 1.9 | 1.9 | 1.9 |
| Other current assets | 163.3 | 160.7 | 153.4 |
| Cash at bank and in hand | 23.6 | 41.6 | 49.3 |
| Total assets | 312.5 | 331.6 | 328.5 |
| Equity and liabilities | |||
| Equity | 222.4 | 217.3 | 212.9 |
| Provisions, guarantee commitments | 4.1 | 5.8 | 3.8 |
| Non-current liabilities, interest-bearing | 39.9 | 69.3 | 70.8 |
| Current liabilities, interest-bearing | 1.4 | 1.3 | 1.4 |
| Current liabilities, non-interest-bearing | 44.7 | 37.9 | 39.7 |
| Total equity and liabilities | 312.5 | 331.6 | 328.5 |
| CTT SYSTEMS AB | 2022 | 2021 | 2021 |
| CHANGE IN EQUITY in brief (MSEK) | Jan-Mar | Jan-Mar | Jan-Dec |
| Opening equity | 212.9 | 220.5 | 220.5 |
| Share dividend | $-21.8$ | ||
| Profit (loss) this period | 9.6 | $-3.2$ | 14.2 |
| Closing equity | 222.4 | 217.3 | 212.9 |
| CTT SYSTEMS AB CASH FLOW ANALYSIS (MSEK) |
2022 Jan-Mar |
2021 Jan-Mar |
2021 Jan-Dec |
|---|---|---|---|
| Operating activities | |||
| Operating profit (EBIT) | 14.0 | 0.6 | 26.8 0 |
| Adjustment for items not included in cash flow | |||
| Depreciation and amortisation | 2.0 | 1.9 | 11.3 0 |
| Other | 0.1 | $-0.3$ | $-2.4$ |
| Financial receipts | 0.2 | ||
| Financial payments | $-0.4$ | $-0.3$ | $-1.2$ |
| Income tax paid | $-2.8$ | $-1.6$ | $-6.8$ |
| Cash flow from operating activities | |||
| before changes in working capital | 13.3 | 0.3 | 27.7 |
| Cash flow from changes in working capital | |||
| Change in inventories | $-5.0$ | $-3.7$ | 0.9 |
| Change in operating receivables | $-4.7$ | 2.9 | 6.2 |
| Change in operating liabilities | 4.9 | $-6.3$ | $-4.4$ |
| Cash flow from changes in working capital | $-4.7$ | $-7.1$ | 2.6 |
| Operating cash flow | 8.6 | $-6.9$ | 30.3 |
| Investment activities | |||
| Acquisition of intangible assets | $-1.6$ | $-2.7$ | $-8.4$ |
| Acquisition of property, plant and equipment | $-0.2$ | 0.1 | $-0.2$ |
| Sale of property, plant and equipment | 0.2 | 0.1 | |
| Cash flow from investment activities | $-1.6$ | $-2.7$ | $-8.6$ |
| Financing activities | |||
| Change in line of credit facility (short-term loans) | |||
| Proceeds from borrowings | 29.7 | 29.7 | |
| Repayments of borrowings | $-32.5$ | $-0.3$ | $-1.3$ |
| Dividends paid | $-21.8$ | ||
| Cash flow from financing activities | $-32.5$ | 29.4 | 6.6 |
| Cash flow for the period | $-25.5$ | 19.9 | 28.4 |
| Cash and cash equivalents at the beginning of the period | 49.3 | 21.6 | 21.6 |
| Exchange gains/losses on cash and cash equivalents | $-0.1$ | 0.1 | $-0.7$ |
| Cash and cash equivalents at the end of the period | 23.6 | 41.6 | 49.3 |
$^{\rm D}$ One-off items from OEM segment have effected other operating income and cash flow positively with MSEK 9.1 and amortisation negatively with MSEK 4.3. Net EBIT effect amounted to MSEK +4.8.
| CTT SYSTEMS AB | 2022 | 2021 | 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| KEY FIGURES - INDIVIDUAL QUARTERS | Q1 | Q4 | Q3 | Q 2 | Q1 | Q4 | Q3 | Q 2 | Q1 |
| Sales & Financial result Net sales, MSEK Operating profit (EBIT), MSEK Operating margin, % Profit margin, % Profit (loss) this period, MSEK Return on capital employed, % Return on equity, % Return on total capital, % |
49.2 14.0 29 24 9.6 5 4 4 |
42.1 8.0 19 13 4.3 3 $\sqrt{2}$ $\overline{2}$ |
40.2 11.5 29 22 7.0 4 3 $\overline{3}$ |
37.5 6.6 18 21 6.1 $\overline{2}$ 3 $\overline{3}$ |
31.4 0.6 2 $-13$ $-3.2$ 0 $-1$ $-1$ |
34.9 $-0.6$ $-2$ 7 1.9 0 1 |
38.3 6.4 17 17 5.0 3 $\overline{2}$ $\overline{2}$ |
50.4 5.9 12 15 6.0 $\mathbf{2}$ 3 $\overline{2}$ |
77.2 26.7 35 30 18.2 9 $\overline{1}$ $6\phantom{.}6$ |
| Share data Earnings per share, SEK Equity per share, SEK Operating cash flow per share, SEK Dividend per share, SEK Number of shares, end of reporting period, thousands Average number of shares in the period, thousands Market price at the close of the reporting period, SEK |
0.76 17.75 0.68 12 5 29 12 5 29 191.60 |
0.34 16.99 1.63 0.79 12 5 29 12 5 29 216.50 |
0.56 16.65 0.77 12 5 29 12 5 29 210.00 |
0.49 16.09 0.58 $\overline{a}$ 12 5 29 12 5 29 216.50 |
$-0.26$ 17.34 $-0.55$ 12 5 29 12 5 29 153.60 |
0.15 17.60 $-0.09$ 1,74 12 5 29 12 5 29 152.20 |
0.40 17.45 $-0.38$ 12 5 29 12 5 29 123.20 |
0.48 17.05 $-0.78$ 12 5 29 12 5 29 155.80 |
1.45 20.62 0.38 12 5 29 12 5 29 155.80 |
| Cash flow & Financial position Operating cash flow, MSEK Quick ratio, % Interest Coverage ratio, times Debt-equity ratio, times Equity ratio, % |
8.6 228 26 0.2 71 |
20.4 305 21 0.3 65 |
9.6 321 32 0.3 65 |
7.2 320 27 0.3 66 |
$-6.9$ 304 $-7$ 0.3 66 |
$-1.1$ 218 12 0.2 72 |
$-4.7$ 195 32 0.2 68 |
$-9.8$ 192 22 0.2 66 |
4.8 276 64 0.1 68 |
| Personnel & Investments Number of employees, (average for the period) 1) Income (valued at full year) per employee, MSEK Investments, MSEK |
76 2.9 1.8 |
76 2.5 2.3 |
76 2.3 1.2 |
78 2.5 2.4 |
85 1.8 2.7 |
88 1.6 7.1 |
95 1.9 13.4 |
104 2.5 8.3 |
107 3.3 4.9 |
| FINANCIAL HIGHLIGHTS - ACCUMULATED | $Q1-Q1$ | $Q1-Q1$ | $Q1-Q1$ | ||||||
| Sales & Financial result Net sales, MSEK Operating profit (EBIT), MSEK Operating margin, % Profit margin, % Profit (loss) this period, MSEK Return on capital employed, % Return on equity, % Return on total capital, % |
49.2 14.0 29 24 9.6 5 4 4 |
31.4 0.6 $\overline{2}$ $-13$ $-3.2$ 0 -1 $-1$ |
77.2 26.7 35 30 18.2 9 $\overline{7}$ 6 |
||||||
| Share data Earnings per share, SEK Operating cash flow per share, SEK |
0.76 0.68 |
$-0.26$ $-0.55$ |
1.45 0.38 |
||||||
| Cash flow & Financial position Operating cash flow, MSEK Quick ratio, % Interest Coverage ratio, times Debt-equity ratio, times Equity ratio, % |
8.6 228 26 0.2 71 |
$-6.9$ 304 $-7$ 0.3 66 |
4.8 276 64 0.1 68 |
||||||
| Personnel & Investments Number of employees, (average for the period) 1) Income (valued at full year) per employee, MSEK Investments, MSEK |
76 2.9 1.8 |
85 $1.8\,$ 2.7 |
107 3.3 4.9 |
$^{\rm D}$ The average of employees for the period is an approximation where a calculation is made by taking the average of the number of employees at closing balance and opening balance respectively during the period. The exact calculation is only made for the Company's annual report.
| CTT SYSTEMS AB RELEVANT RECONCILIATIONS OF KEY FIGURES (MSEK) |
2022 $Q1-Q1$ |
2021 $Q1-Q1$ |
2020 $Q1-Q1$ |
|---|---|---|---|
| Operating margin | |||
| Operating profit (EBIT) | 14.0 | 0.6 | 26.7 |
| Net sales | 49.2 | 31.4 | 77.2 |
| = Operating margin | 29% | 2% | 35% |
| Profit margin | |||
| Profit before tax | 12.0 | $-4.1$ | 23.2 |
| Net sales | 49.2 | 31.4 | 77.2 |
| $=$ Profit margin | 24% | $-13%$ | 30% |
| Return on capital employed | |||
| (Operating profit, EBIT | 14.0 | 0.6 | 26.7 |
| + Finance income) | 0.2 | 0.0 | 0.0 |
| / Average capital employed Average total capital (total assets) |
320.5 | 319.5 | 370.9 |
| Total capital at the beginning of the period | 328.5 | 307.5 | 362.8 |
| Total capital at the end of the period | 312.5 | 331.6 | 378.9 |
| - Average non-interest-bearing liabilities including deferred taxes | $-42.2$ | $-44.0$ | $-87.8$ |
| Non-interest-bearing liabilities including deferred taxes, beginning of the period | $-39.7$ | -50.1 | $-90.2$ |
| Non-interest-bearing liabilities including deferred taxes, end of the period | $-44.7$ | $-37.9$ | $-85.4$ |
| Total average capital employed | 278.3 | 275.5 | 283.1 |
| $=$ Return on capital employed | 5% | $\overline{0\%}$ | 9% |
| Return on equity | |||
| Profit (loss) this period | 9.6 | $-3.2$ | 18.2 |
| / Average equity | 217.7 | 218.9 | 249.3 |
| Equity at the beginning of the period | 212.9 | 220.5 | 240.2 |
| Equity at the end of the period $=$ Return on equity |
222.4 4% |
217.3 $-1%$ |
258.4 7% |
| Return on total capital | |||
| (Profit before tax | 12.0 $-0.5$ |
$-4.1$ $-0.5$ |
23.2 $-0.4$ |
| Finance costs) Average total capital (for the calculation, see "Return on capital employed") |
320.5 | 319.5 | 370.9 |
| Return on total capital | 4% | $-1%$ | 6% |
| Quick ratio (Current assets, i.e. other current assets plus cash & bank deposits |
187.0 | 202.3 | 274.3 |
| Inventories | 105.4 | 105.0 | 83.1 |
| + Granted unutilised line of credit) | 23.6 | 22.0 | 25.4 |
| Current liabilities | 46.1 | 39.2 | 78.6 |
| = Quick ratio | 228% | 304% | 276% |
| Interest Coverage ratio | |||
| (Profit before tax | 12.0 | $-4.1$ | 23.2 |
| Finance costs) | $-0.5$ | $-0.5$ | $-0.4$ |
| Finance costs | $-0.5$ | $-0.5$ | $-0.4$ |
| $=$ Interest Coverage ratio, times | 26 | $-7$ | 64 |
| Debt-equity ratio | |||
| Interest-bearing liabilities, i.e. total interest-bearing items on balance sheet's debt side | 41.3 | 70.6 | 35.1 |
| Equity | 222.4 | 217.3 | 258.4 |
| = Debt-equity ratio, times | 0.2 | 0.3 | 0.1 |
| Income per employee | |||
| Operating income (calculated to full year) | 218.3 | 148.5 | 353.9 |
| Number of employees, (average for the period) 1) | 76 | 85 | 107 |
| $=$ Income per employee | 2.9 | 1.8 | $\overline{33}$ |
$^{\rm D}$ The average of employees for the period is an approximation where a calculation is made by taking the average of the number of
employees at closing balance and opening balance respectively during the period. The exact calculation is only made for the Company's annual report.
Return on equity is a measurement that the Company considers important for an investor who wants to be able to compare their investment with alternative investments.
Return on total capital is a measurement that the Company considers important for an investor who wants to see how efficiently the use of total capital in the Company is used and what return it produces.
Operating profit (EBIT) plus finance income as % of average capital employed. The capital employed is defined as the total assets less non-interest-bearing liabilities including deferred taxes.
Return on capital employed is a measure that the Company considers important for investors who want to understand earnings generation in relation to capital employed.
The Company regards the key financial figure equity per share as relevant to investors since it describes the amount of capital (equity) belonging to the shareholders of the Company.
Operating income divided by the number of employees (annualised average of full-time equivalents).
The Company regards income per emplovee as a relevant measure for investors who want to understand how effectively the Company is using its human capital.
The Company regards cash flow per share as relevant to investors since it describes the amount of cash flow directly attributable to the shareholders of the Company.
The Company regards the quick ratio (cash liquidity) as important for creditors who want to understand the Company's short-term ability to pay.
Financial measure (key figure) according to IFRS Profit for the period divided by the average number of shares.
The coverage ratio is a key figure that shows how much the result can decrease without risking interest payments. The Company regards the key financial figures as relevant for investors who want to assess the Company's financial resilience.
The Company considers that the key financial figure operating profit (EBIT) is relevant for investors who want to understand the Company's financial results without the influence of how the business operations are financed.
The Company regards the operating margin (operating profit margin) as a relevant key figure for investors who want to understand the extent of the revenue left over to cover interest, tax and profit.
The debt-to-equity ratio shows the relationship between the borrowings (total debt) and equity and thus the leverage effect of the borrowings. The Company regards this key financial figure as relevant for investors' assessment of the financial strength of the Company.
The equity ratio is a measure that the Company considers important for creditors/lenders who want to understand the Company's long-term ability to pay.
The Company regards the profit margin as relevant to investors because it shows the amount of revenue remaining when all costs excluding tax are covered, and thus compares the profit with the scope of the Company's activities.
1) A description of industry/company-specific words can be found on page 90 of the Company's Annual Report for 2021.
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