Refocusing resources
SEK m (or as 2022 2021 % 2022 2021 % FY2021
stated) Q3 Q3 9M 9M
Revenue 1,479 1,661 -11% 4,915 4,517 9% 6,212
Gross profit 365 324 13% 1,021 825 24% 1,111
Operating profit 451 147 206% 706 371 91% 483
Operating profit 130 147 -12% 385 371 4% 483
adjusted*
Result for the 366 109 237% 461 251 84% 339
period
Earnings per 25.20 7.48 237% 31.70 17.27 84% 23.33
ordinary share,
SEK
Cash flow from 240 327 263 538 457
operations
Net debt (cash) 579 -75 579 -75 198
Gross margin, % 24.7% 19.5% 5.1pp 20.8% 18.3% 2.5pp 17.9%
Operating 30.5% 8.9% 21.6pp 14.4% 8.2% 6.2pp 7.8%
margin, %
Operating margin 8.8% 8.9% -0.1pp 7.8% 8.2% -0.4pp 7.8%
adjusted, %
Working 18% 0% 18.4pp 18% 0% 18.4pp 2%
capital/LTM
Revenue, %
Equity/total 42% 27% 15.0pp 42% 27% 15.0pp 28%
assets, %
Return on 31% 27% 3.6pp 31% 27% 3.6pp 29%
capital
employed, %
Return on 35% 31% 3.5pp 35% 31% 3.5pp 36%
equity, %
* "Adjusted" here and in the report refers amounts and ratios excluding the effect of the compensation payment from Volvo CE of SEK 321m.
Lars Corneliusson, CEO, comments: "Conditions for our business in Russia continue to deteriorate. We take all measures to ensure that our operations in Russia comply with applicable laws. Our business is limited in scope, but where possible, we continue to serve our customers. Facing an uncertain future, we are actively trying to divest our business in Russia. During the quarter, we agreed with Volvo CE and Sandvik to terminate our dealership agreements for Russia. From Volvo CE, a compensation of SEK 321m was paid for incurred and potential costs and losses related to the termination.
Meanwhile, we continue to develop our businesses in Kazakhstan and Germany. In the quarter, we became distributor for Sandvik mobile crushers and screens in Germany and Kazakhstan. In Germany, we are increasing our efforts to promote electric trucks from Volvo and Renault, both through our dealer business and as a rental product. In line with this effort, we received our first state subsidies for electric trucks in the quarter. In Kazakhstan, we are looking for opportunities to develop our contracting services business. We also look for opportunities to expand our operations, both in terms of new products and services and new markets.
In Germany, our new trucks sales declined by 5% in units, mainly as a result of supply constraints. By contrast, our aftermarket business grew by 42%. As a result of this shift in product mix, our gross margin increased by 3 percentage points. We need to continue to expand our service coverage and increase market shares in both trucks and service sales. In the third quarter, we started a new workshop in Aschaffenburg and signed a lease for a used trucks centre in Coswig. Total revenue in Germany grew by 10% to SEK 359m. The operating result improved by 78% to SEK -7m. We believe that we are on our way to reach a breakeven operating profit run rate in Germany by year-end.
In Germany, we continue to see strong demand for service and trucks, with supply constraints so far limiting market growth. However, the macroeconomic uncertainty will likely affect the German economy. In a longer perspective, we nonetheless believe that the underlying conditions and business opportunities in the Kazakh and German markets remain strong."
About Ferronordic
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is dealer of Volvo Trucks, Renault Trucks and Sandvik in Germany and dealer of Volvo Construction Equipment, Mecalac and Sandvik in Kazakhstan. Ferronordic is also operating in Russia where it is dealer of Dressta and Mecalac and offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and approx. 1,800 employees. Ferronordic's vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. http://www.ferronordic.com/
This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 11 November 2022, 07:30 CET.
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