MUNTERS GROUP AB Munters
Q4 report 2023
Klas Forsström, President and CEO Katharina Fischer, GVP and CFO
Ann-Sofi Jönsson & Line Dovärn, Investor Relations
Strengthened market position and strong results
Stable long-term growth trends
Order intake Announced orders* Order backlog
MSEK | 15 000 | ||||
6 000 | |||||
5,651 | |||||
11,333
10 000
4 000
2 000 | 5 000 | ||||||||||||||||||||||||||
0 | 0 | ||||||||||||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||
2021 | 2022 | 2023 |
Q4 Order intake, +82% (org)
- driven by major orders in DCT
- cont. shift in customer demand towards smaller orders with shorter lead times
Q4: Order backlog, -16%
- mainly large orders in DCT & AT, to be delivered throughout 2025
FY: Order intake, -21%(org)
Strong net sales growth
MSEKNet sales
6 000 | |||
4 000 | 3,659 | ||
2 000
0
Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
2021 | 2022 | 2023 |
Q4: Net sales, +16% (org)
- mainly driven by DCT
- FT all regions contribute to increase
- AT flat
Book-to-bill Q4: 1.5
FY: Net sales, +27% (org)
Book-to-bill FY: 1.4
Robust improvement in profitability
MSEK | Adj. EBITA | Adj. EBITA margin | |||||||
600 | 16% | ||||||||
467 | 14% | ||||||||
400 | 12.8% | 12% | |||||||
10% | |||||||||
200 | 8% | ||||||||
6% | |||||||||
0 | 4% | ||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
2021 | 2022 | 2023 |
Adj. EBITA-margin, Q4 12.8%
- increased net sales in DCT
- efficiency improvements in all business areas
- contributions from net price adjustments
FY: Adj. EBITA-margin, 13.2%
2 AT = business area AirTech, DCT = Data Center Technologies, FT = FoodTech, BA = business areas *Large orders announced through press releases
Americas main driver of growth
Regional share Q4
Order intake | Net sales | Order intake | Net sales | Order intake | Net sales |
18% | 7% | 17% | |||
25% | |||||
74% | 59% |
Americas - order intake | EMEA - order intake | APAC- order intake |
(FY - OI:61%, NS: 57%) | (FY - OI: 23%, NS: 24%) | (FY - OI: 15%, NS: 19%) |
- AirTech- weaker development, order pattern shift as orders placed closer to delivery time. Components good growth
- DCT- active market, combination of large orders and smaller orders received from colocators and hyperscalers
- FoodTech- slight growth in CS, primarily swine & layer. DS stable development excl. large order received last year1
- AirTech- stable market, orders placed closer to delivery time. Service good growth.
- DCT- good development, several small orders from colocators
- FoodTech- recovery in all segments, especially within broiler & controllers
- AirTech- weaker development, cont. consolidation of the battery market in China
- FoodTech- slight recovery
All figures as reported, not currency adjusted.
OI: Order intake, NS: Net sales
3 CS - Climate solutions (equipment incl. controllers), DS - Digital solutions
1 In Q4 2022 a large Software-as-a-Service (SaaS) contract with one of North America's largest poultry producers with a value of app. MSEK 46 was announced
Solid order backlog - large orders supportive into 2025
2022 | 2023 | 2024 | 2025 | |||
MUSD 115
US colocator
SyCool Split solutions
MUSD 65
US car manufacturer
Climate control systems
MUSD 63
US colocator
Standard chilled water (CRAHs)
MUSD 176
US colocator
SyCool Split solutions
MUSD 54
Multinational car manufacturer 2 climate control system orders
MUSD 88
US colocator
Standard chilled water (CRAHs)
MUSD 137
US colocator
SyCool Split solutions
MUSD 65
US colocator
Standard chilled water (CRAHs)
4 | Order received | |
Expected delivery period | ||
AirTech
Stable long-term growth trends
Order Intake decreased -31% org.;
- excl. large order of MSEK 560 received in Q4 2022, decrease -8% org.
- Battery - weaker in all regions. APAC - cont. consolidation of battery market in China. EMEA & Americas - customers ordering closer to delivery
- Commercial -increased as a consequence of the Zeco integration
- CT1- declined due to delays in customer investment decisions
- Components - flat, weak battery market in China also affected component replacements. Good growth in Americas
- Service - growth EMEA, offset by Americas & APAC
Order Backlog decreased
> 5 % ~ 1-5 % ± 0 -1% neg
% order intake | Market | ||
Customer segment | Q4 2023 | Outlook * | |
Industrial | 55% | ||
…whereof battery | 10% | ||
…whereof food processing | 7% | ||
…whereof commercial*** | 19% | ||
…whereof other | 19% | ||
Clean Technologies | 5% | ||
MSEK
- 000
-
000
0
3,250 | |||||||||||||||||||||||||||||||
1,922 | |||||||||||||||||||||||||||||||
Q421 | Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 | |||||||||||||||||||||||
Order Intake | Order Backlog | ||||||||||||||||||||||||||||||
Service & components | 40% | ||
…whereof service | 25% | ||
…whereof components** | 15% | ||
5
1 Clean Technologies
- Market outlook and comments are indicative and refer to the coming six months
- Dehumidification rotors and humidification pads sold through OEM channels
- Increase related to the integration of Zeco
AirTech
Changed business mix affecting margin
Net Sales flat org. with growth mainly in Americas;
- Battery - strong growth Americas, weaker APAC & EMEA
- CT- stable APAC & EMEA, weaker Americas
- Components - stable Americas & EMEA, weaker APAC
- Service - weak development, growth mainly APAC & EMEA
Adj. EBITA margin decreased;
- Changed business mix, smaller share components & service
- cont. efficiency improvements, slightly offset by lower production utilization rate in EMEA & APAC
Change (%)
Q4 | Q4 | Org. | Struct* | FX | FY | FY | ||||||
2023 | 2022 | 2023 | 2023 | |||||||||
MSEK | ||||||||||||
Order intake | 1,922 | 2,642 | -31 | 4 | 0 | 6,796 | 8,399 | |||||
Order backlog | 3,250 | 4,698 | 3,250 | 4,698 | ||||||||
Net sales | 2,136 | 2,013 | 0 | 5 | 1 | 8,226 | 6,830 | |||||
Adj. EBITA | 305 | 329 | 1,278 | 1,014 | ||||||||
Adj. EBITA (%) | 14.3 | 16.3 | 15.5 | 14.8 | ||||||||
2 500 | ||||||||||||
2 000 | 16% | |||||||||||
1 500 | 12% | EBITA margin | ||||||||||
MSEK | 1 000 | 8% | ||||||||||
500 | 4% | Adj. | ||||||||||
0 | 0% | |||||||||||
Q421 | Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 |
Net sales | LTM Adj. EBITA-margin | Adj. EBITA-margin | |
* Acquisitions & divestments
6
AirTech
Stable market activity in several segments
MSEK
-
000
2 500
- 000
1 500
- 000
500
0
Order intake per segment
• Variations in large orders
i.e., batteries | |||||||||||||||||
• Other industrial & CT | |||||||||||||||||
• | steady development | ||||||||||||||||
Service & components | |||||||||||||||||
stable and growing | |||||||||||||||||
• Secure future orders & | |||||||||||||||||
ramp up production | |||||||||||||||||
Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | capacity | |||||||||
Service | Components | Food Processing | Commercial | Other Industrial | |||||||||||||
CT | Battery | Announced orders* | Net Sales |
7 | *Large orders announced through press releases |
New innovative dehumidification system in North America
AirTech
Specially developed for low dew point (LPD) applications such as battery producers
- Ability to maintain dry rooms at continuous low dew points
- 40% smaller footprint vs. industry standard
- Available for indoor and outdoor installation
- Gas, steam or electric reactivation as standard
- Combined pre- and post-heating and cooling coils for compact design and minimized footprint
- Standardized cost-effective design
- Optimized purge cycle provides 30-45% energy savings vs. industry standard purge
The outer frame for the door is 72" (1.82m)
8
Significantly increased demand
Order Intake increased significantly;
- two large orders of appr. BSEK 2.2 received in the quarter
- several orders received from colocator & hyperscaler customers
- good development in Europe, i.e. for Munters evaporative air handlers
Data Center Technologies
> 5 % | ~ 1-5 % | ± 0 -1% | neg | |
Customer | order intake | Market | ||
segment | Q4 2023 | Outlook * | ||
Hyperscaler | 22% |
Colocator 77%
Order Backlog increased;
• majority attributable to large orders to be delivered | Telco & | 1% |
throughout 2025 | enterprise |
8 000 | |
MSEK | 6 000 |
4 000 | |
2 000 | |
0 |
Q421 | Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 | |
Order Intake | Order Backlog | ||||||||
9
- Hyperscalers - increased activity both for own facilities & colocation leasing. AI driving significant growth, increased need for server space & higher density cooling requirements
- Colocation - continued strong demand due to increased build outs and investments, driven by increased leasing demand from hyperscalers
- Telco & enterprises - moving away from own facilities, market growing but at a lower pace
- Market outlook and comments are indicative and refer to the coming six months
Data Center Technologies
Good deliveries on large orders
Net Sales strong increase 81% org;
- Good execution on large projects & increased deliveries, proceeding according to plan
- production ramp-up in Europe ongoing, SyCool split planned to be available for sale in 2024
Adj. EBITA margin significant increase;
MSEK
Order intake
Order backlog
Net sales
Adj. EBITA
Adj. EBITA (%)
Q4 | Q4 |
2023 | 2022 |
3,184 | 30 |
7,206 | 5,937 |
925 500
144 36
15.6 7.1
Change (%)
Org. | Struct* | FX |
n.m. | n.m. | n.m. |
81 | - | 4 |
FY | FY |
2023 | 2022 |
4,948 | 6,245 |
7,206 | 5,937 |
3,408 | 1,401 |
519 | 84 |
15.2 6.0
- strong volume growth
- high utilization rate in production
- investments in competence and resources expected to increase to capture growth
1000 | ||||||||||
16% | ||||||||||
750 | margin | |||||||||
12% | ||||||||||
MSEK | 500 | 8% | Adj. EBITA | |||||||
250 | 4% | |||||||||
0 | 0% | |||||||||
Q421 | Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 |
Net sales | LTM Adj. EBITA-margin | Adj. EBITA-margin | |
* Acquisitions & divestments
10
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Disclaimer
Munters Group AB published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 15:43:05 UTC.
