Valmet’s Financial Statements Review January 1 – December 31, 2023: Orders received amounted close to EUR 5.0 billion and Comparable EBITA increased to EUR 619 million in 2023

ESPOO, Finland, Feb. 7, 2024 /PRNewswire/ —

Figures in brackets, unless otherwise stated, refer to the comparison period, i.e., the same period of the previous year.

October–December 2023: Net sales remained at the previous year’s level, Comparable EBITA decreased

Orders received decreased 17 percent to EUR 1,155 million (EUR 1,385 million).
–  Orders received remained at the previous year’s level in the Automation and Services segments and decreased in the Process Technologies segment.
–  Orders received increased in South America, remained at the previous year’s level in EMEA (Europe, Middle East and Africa), and decreased in China, North America and Asia-Pacific.Net sales remained at the previous year’s level and amounted to EUR 1,499 million (EUR 1,540 million).
–  Net sales remained at the previous year’s level in the Automation and Services segments and decreased in the Process Technologies segment.Comparable earnings before interest, taxes and amortization (Comparable EBITA) decreased 7 percent to EUR 183 million (EUR 196 million).
–  Comparable EBITA remained at the previous year’s level in the Automation and Services segments and decreased in the Process Technologies segment.Comparable EBITA margin was 12.2 percent (12.7%).Earnings per share (EPS) were EUR 0.56 (EUR 0.66). Adjusted EPS was EUR 0.65 (EUR 0.80).Items affecting comparability amounted to EUR -10 million (EUR -6 million).Cash flow provided by operating activities totaled EUR 123 million (EUR -13 million).

January–December 2023: Net sales, Comparable EBITA and Comparable EBITA margin increased

Orders received remained at the previous year’s level and amounted to EUR 4,955 million (EUR 5,194 million).
–  Orders received increased in the Automation segment, remained at the previous year’s level in the Services segment, and decreased in the Process Technologies segment.
–  Orders received increased in South America, remained at the previous year’s level in North America and decreased in EMEA, China and Asia-Pacific.Net sales increased 9 percent to EUR 5,532 million (EUR 5,074 million).
–  Net sales increased in the Automation and Services segments and remained at the previous year’s level in the Process Technologies segment.Comparable earnings before interest, taxes and amortization (Comparable EBITA) increased 16 percent to EUR 619 million (EUR 533 million).
–  Comparable EBITA increased in the Services and Automation segments and decreased in the Process Technologies segment.Comparable EBITA margin was 11.2 percent (10.5%).EPS was EUR 1.94 (EUR 1.92). Adjusted EPS was EUR 2.28 (EUR 2.37).Items affecting comparability amounted to EUR -14 million (EUR 17 million).Cash flow provided by operating activities totaled EUR 352 million (EUR 36 million).

Dividend proposal

The Board of Directors proposes to the Annual General Meeting, which is planned to be held on March 21, 2024, a dividend of EUR 1.35 per share for 2023. The proposed dividend equals 70 percent of the net result and it would be paid in two installments.
 

Guidance for 2024
Valmet estimates that net sales in 2024 will remain at the previous year’s level in comparison with 2023 (EUR 5,532 million) and Comparable EBITA in 2024 will remain at the previous year’s level or increase in comparison with 2023 (EUR 619 million).

Short-term market outlook

Valmet reiterates the good/satisfactory short-term market outlook for services (capacity utilization good, customer activity satisfactory), the good short-term market outlook for flow control, automation systems and energy, and the satisfactory short-term market outlook for pulp, board and paper, and tissue.

The short-term market outlook is given for the next six months from the end of the reported period. It is based on customer activity (50%) and Valmet’s capacity utilization (50%), and the scale is ‘weak–satisfactory–good’.

President and CEO Pasi Laine: Net sales and Comparable EBITA increased in 2023

“Valmet’s orders received amounted close to EUR 5.0 billion in 2023. Orders received increased in the Automation segment, remained at the previous year’s level in the Services segment, and decreased in the Process Technologies segment. Orders received in Valmet’s stable business totaled EUR 3.1 billion during 2023. During this period, stable business represented 63% of Valmet’s orders received. This is a clear change in the company compared to 2014, when stable business represented 34% of orders received. Valmet’s order backlog amounted close to EUR 4.0 billion at the end of 2023.

In 2023, Valmet’s net sales increased to EUR 5.5 billion. Comparable EBITA increased to EUR 619 million, meaning that we have been able to increase Valmet’s Comparable EBITA ten years in a row as an independent company. Valmet’s Comparable EBITA margin increased to 11.2 percent in 2023. Over the past ten years, we have continuously raised the bar for our performance and focused on growing the company organically with improved profitability. At the same time, we have also moved systematically forward with mergers and acquisitions that have complemented our unique offering and significantly increased the amount of recurring, profitable and stable business in Valmet’s business portfolio. In 2023, Comparable EBITA increased in the Services and Automation segments and decreased in the Process Technologies segment.

The execution of Valmet’s acquisition strategy took important steps forward in 2023. The acquisition of Tissue Converting business from Körber was completed during the fourth quarter, strengthening our Process Technologies and Services segments. During the third quarter we entered into an agreement to acquire the Process Gas Chromatography business of Siemens AG to strengthen our Automation segment. These acquisitions strengthen all of Valmet’s three segments, complement Valmet’s offering and enable us to serve our customers even better in the future. We are happy and proud to warmly welcome all the new colleagues to Valmet. Furthermore, the integration of Flow Control has now been completed and the targeted annual run rate synergies of EUR 25 million have been achieved, one year ahead of the originally communicated schedule.

In 2023, Valmet continued its systematic sustainability work based on its Sustainability360° Agenda. We placed significant emphasis on our Climate Program, which progressed well over the year. Valmet achieved one of the program’s four targets well ahead of schedule and can now enable carbon neutral production for its pulp, paper and energy industry customers. In 2023, Valmet was included in the DJSI World and Europe indices for the tenth consecutive year. Furthermore, we received the best ranking in the MSCI ESG Ratings, and a gold medal in the EcoVadis sustainability assessment.”

Update on the integration of Flow Control into Valmet

The merger of Neles into Valmet was completed on April 1, 2022. The integration of Flow Control (former Neles) is completed and the targeted annual run rate synergies of EUR 25 million have been achieved.

Key figures1

1  The calculation of key figures is presented on page 60.

2  At end of period.

3  Net debt to EBITDA ratio is a new alternative performance measure. It enables users of the financial information to prepare more meaningful analysis on Valmet’s performance and is presented with comparatives from Q1/2023 onwards.

Segment key figures

News conference and webcast for analysts, investors and media

Valmet will arrange a news conference in English as a live webcast at https://valmet.videosync.fi/q4-2023 on Wednesday, February 7, 2024, at 2:00 p.m. Finnish time (EET). President and CEO Pasi Laine and CFO Katri Hokkanen will be presenting the results.

Recording of the webcast will be available shortly after the event at the same address.

It is possible to take part in the news conference through a conference call by registering through the link below:

https://palvelu.flik.fi/teleconference/?id=50048299

After the registration you will be provided phone numbers and a conference ID to access the conference. If you wish to ask a question during the conference, please dial *5 to enter the question queue.

All questions should be presented in English.

The event can also be followed on social media platform X at www.x.com/valmetir.

Further information, please contact:

Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020

VALMET

Katri Hokkanen
CFO

Pekka Rouhiainen
VP, Investor Relations

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.valmet.com

Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions we serve an even wider base of process industries. Our more than 19,000 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day.

The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. Valmet’s net sales in 2023 were approximately EUR 5.5 billion.

Valmet’s shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.    

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