Good sales performance in Q3 impacted by an exceptional surge in energy prices

Rockwool A/S

Review of the first nine months of 2022
for ROCKWOOL A/S
Liberation no. 13 – 2022
at Nasdaq Copenhagen

November 23, 2022

Good sales performance in Q3 impacted by an exceptional surge in energy prices

Strong points

  • Sales in the first nine months of 2022 reached 2,952 million euros, an increase of 27% in local currencies and 31% in reported figures compared to last year.

  • Sales in the third quarter of 2022 amounted to €1,010 million, an increase of 21% in local currencies compared to the third quarter of 2021.

  • EBITDA for the first nine months of 2022 reached €473 million, up 4%, with an EBITDA margin of 16.0%.

  • EBITDA in the third quarter of 2022 reached EUR131m, a decrease of 17%, due to a spike in energy prices, in particular in July and August, which had not been fully integrated. The EBITDA margin at 13.0% was down 6.7 percentage points compared to last year.

  • EBIT for the first nine months of 2022 ended at EUR301m, with an EBIT margin of 10.2%, down 3.4 percentage points compared to the same period in 2021.

  • EBIT in Q3 2022 ended at EUR68m with an EBIT margin of 6.8%, down 6.4 percentage points compared to Q3 2021.

  • With an easing of energy prices and further increases in selling prices, the EBIT margin recovered in September and October.

  • The confluence of global climate change and energy independence concerns creates a favorable policy environment for energy efficiency and building retrofit.

  • Shareholders can from November 23, 2022 to December 7, 2022 request the conversion of A shares into B shares. For more information, please consult https://www.rockwool.com/group/about-us/investors/conversion-shares/.

Outlook 2022

  • Net sales growth of 20-25% in local currencies.

  • EBIT margin between 10 and 12%.

  • Level of investment of around 330 MEUR excluding acquisitions, compared to around 375 MEUR previously.

CEO Commentary
Commenting on the Group’s performance, CEO Jens Birgersson said:

We are pleased with the performance of our sales in the third quarter, which increased by more than 20% in a market that continues to deteriorate. Profits declined due to an unprecedented rise in energy costs of nearly 200 million euros compared to the same quarter last year, which we were unable to offset with a such short notice. July and August were particularly difficult for gas and electricity prices, although margins are now recovering. We are seeing continued and broad-based inflationary pressures, with some geographies being hit harder than others. We therefore plan further away price increases on average from 7 to 10% in the first quarter of 2023 to offset Additional pressure on input costs.

In the longer term, the policy environment for energy efficiency and building renovation is increasingly positive, although it will still take time for this to trickle down to the market”.

Further information :
Kim Junge Andersen, Chief Financial Officer
ROCKWOOL A/S
+45 46 56 03 00

Earnings call:
ROCKWOOL Group will host an earnings conference call on November 24, 2022 at 11:00 a.m. CET. The call will be streamed live at www.rockwool.com/group/

Attachment

Comments are closed.