10 February 2022, 08:00
Sdiptech AB (publ) publishes Year-End Report 2021
The report is available on the company's website: www.sdiptech.se
STRONG ORGANIC GROWTH AND GOOD OUTLOOK
FOURTH QUARTER 2021
EVENTS AFTER REPORTING DATE
JANUARY - DECEMBER 2021
COMMENTS BY THE CEO
We can summarize another record year for Sdiptech. High organic growth, strong profitability, a greater acquisition rate and key investments for the future. The Group has once again met all its financial targets, despite challenges in society and the economy.
THE YEAR – High demand and key investments
The pandemic continued to affect the society during 2021. Despite this, we have delivered very well in several of the measured metrics:
The background, first and foremost, is that demand from our customers is stable and growing. Our products meet critical needs in the infrastructure segment, which gives a priority among both customers and suppliers when challenges arise with material shortages or supply
of goods. This provides us a security in the continued work.
In 2021, we carried out a number of key investments for the future: strategic divestments in the PTS business area, we raised the bar for our sustainability work, advanced to Nasdaq Stockholm Large Cap, as well as the establishment of Italy and the Netherlands as new acquisition markets.
When we sum up the year, it is justified to note the effect that the divestments have had on the Group’s earnings per share (EPS). The divestments are a result of the multi-year and now completed refinement towards becoming an infrastructure group. In 2021, EPS was charged with non-recurring costs equivalent to SEK -1.04 per share. During 2020, conversely, the Group reported a capital gain from a previous divestment of SEK +0.84 per share. Adjusted for these non-recurring effects, EPS for the year amounted to SEK 7.63 (5.34), corresponding to a 43% increase.
FOURTH QUARTER – Very strong end of the year
The final three-month period of the year showed continued high demand and we were able to catch up most of the deliveries that’s been postponed during the year. This has contributed to sales growth of 24.0%, of which 13.3 was organic.
EBITA* rose by 52.0%, of which a total of 34.9% was organic. The high organic profit growth mainly originated to the fact that we were able to catch up with postponed projects in several of our comparable units. Thanks to our scalable business models, the temporary sales increase has a clear impact on profit.
Profitability during the quarter was very good and the EBITA* margin amounted to 20.5%. Meanwhile, our customers in container ports needed to defer a few bigger deliveries, as they are still focusing on meeting strong increases in volume. This has resulted in a margin of 18.7% for the full year, just below the guidance of 19–20% we gave for the full year.
ACQUISITIONS – Breaking new ground in the Netherlands and Italy
In the middle of October, our first business unit in the Netherlands, Certus Automation was acquired. The company is a global supplier of automation solutions for port and terminal logistics. The products consist of proprietary software for image processing, for automated identification, registration and positioning of containers and vehicles. The company thereby improves safety by limiting the need for hazardous human intervention, and reduces emissions by optimising truck- and ship flows, thus contributing to the UN’s Sustainable Development Goals 8.8 and 9.4.
In late January 2022, after the end of the period, Agrosistemi was also acquired, which is our first business unit in Italy. Agrosistemi has over 20 years of experience in treatment and recovery of biological sludge originating from municipal wastewater. Through a proprietary treatment process used to clear sludge from harmful substances and turning it into high quality organic fertilizer products, Agrosistemi contributes to the Sustainable Development Goals 2.4, 9.4, 11.6 and 15.3.
OUTLOOK – Strength and clear ambitions going forward
The organic profit development during the past three years has amounted to 8, 11 and 8%. A strong result and a confirmation of Sdiptech’s resilience to external events. This resilience is supported by several pillars:
Our growth journey is clear, as well as our future ambitions. In addition to increased growth targets and key investments, we have also broadened our search area within infrastructure. We are now ready to expand the Water & Energy business area, to Resource Efficiency, which in addition to water and energy, also includes bioeconomy, the circularity, waste management and recycling.
Looking ahead, we estimate that the profit improvement should establish at a level of around 20% in EBITA* margin for the Group.
Our order intake is still strong. However, the high spread of Omicron early in the year has resulted in increased absence due to illness, both within the Group and among our customers and suppliers. This can lead to delays in deliveries. At the same time, we already see an easing of restrictions in several of the countries that were affected by Omicron early on. We therefore feel positive about the future.
To sum up, it has been a very good and important year for Sdiptech, and several important milestones were achieved. With clear goals and ambitions, we are well-prepared for the new year.
President and CEO
Sdiptech AB (publ) is required to disclose this information pursuant to EU Market Use Regulation 596/2014. The information was provided by the above contact persons for publication on 10 February 2022 at 08.00 CEST.
Sdiptech’s common shares of series B are traded on Nasdaq Stockholm under the short name SDIP B with ISIN code SE0003756758. Sdiptech’s preferred shares are traded under the short name SDIP PREF with ISIN code SE0006758348. Further information is available on the company's website: www.sdiptech.com
Sdiptech is a technology group that acquires and develops market-leading niche operations that contribute to creating more sustainable, efficient and safe societies. Sdiptech has approximately SEK 3,000 million in sales and is based in Stockholm.