07.05.2022

Steady result for Alimak

Mast climber, façade access and host company Alimak has reported solid first quarter growth.

Total revenues were SK936 (€89.4 million), up 11 percent on the same quarter last year. The construction division improved 15.5 percent to SK270 million (€25.8 million), while the industrial business increased 12 percent to SK238 million (€22.7 million). The Façade division jumped 28 percent to SK291 million (€27.8 million) and the Wind operation, which is being partially wound down. and may well be up for divestment, saw sales drop 20 percent to SK137 million (€13.1 million). Pre-tax profit came in at SK91 million (€8.7 million) a 10 percent increase on last year. Net debt was reduced from SK603 million a year ago to SK354 million (€33.8 million) at the end of March.

Chief executive Ole Kristian Jødahl said: “We are deeply concerned about the tragic developments in Ukraine and our deepest empathy and concerns are with the millions of people who are impacted. Our immediate response has been to stop new orders and equipment deliveries to Russia and Belarus. On April 26, after period end, we decided to initiate a structured process to exit Russia.”

“During the quarter we have continued to drive our initiatives for profitable growth in line with the New Heights Programme. Reported Group order intake was down 2% and 9% lower organically, where we faced high comparison figures in our rental business as well as effects of our exit from tower internals in Wind. As our business is highly contract driven, we also naturally see significant fluctuations in order intake between months. Service orders for the Group continued to show solid growth in the quarter in line with our strategy. Revenue for the Group increased by 11%, and by 3% organically in the quarter, with solid revenue growth in Façade Access, Construction and Industrial. Group earnings continued to improve.”

“The war has brought on additional global supply chain uncertainty and cost inflation which we as a team continue to manage and mitigate. I am proud of the high level of commitment shown by the organisation. Our focus is on serving our customers, developing our portfolio, driving operational excellence, and accelerating our M&A activities.”

Vertikal Comment

This is a decent result from Alimak in terms of both sales, order intake and profits, especially given some of the current challenges. One aspect that will be appreciated is that revenues from services, which usually carry better margins and are less cyclical have grown faster than sales of equipment.

All in all, a positive set of numbers.