Interim report January–March 2020

Strong first quarter for all segments

Uponor Corporation     Stock exchange release     29 April 2020     12:30 EET

Interim report January–March 2020: Strong first quarter for all segments

January–March 2020

• Net sales in January–March totalled €277.4 (248.9) million, a growth of 11.5%. Organic growth was 11.2% in constant currency terms.
• Comparable operating profit was €29.5 (14.3) million, a growth of 106.2%.
• Operating profit was €28.6 (14.3) million, a growth of 99.9%.
• Earnings per share were €0.30 (0.10).
• Return on investment was 21.4% (8.0), and gearing 52.2% (72.8).
• Cash flow from business operations was €-11.3 (-31.6) million.

Guidance statement for 2020:

On 19 March 2020, Uponor withdrew its guidance for 2020 due to lack of visibility on the potential impacts of COVID-19 on comparable operating profit. Once visibility improves and the significant uncertainties have cleared, Uponor expects to update its outlook and issue a new guidance.

Jyri Luomakoski, President and CEO, comments:

“All our segments had a very strong performance during the first months of the year, even though the first COVID-19 restrictions started to be visible in the construction markets in the last weeks of March.

The Building Solutions – Europe’s net sales and operating profit improved from a somewhat soft comparison period. We had a good quarter in central Europe, in particular. In addition, continuous improvements at our Swedish manufacturing facility in Virsbo are yielding results and improving our operational performance together with the other manufacturing excellence initiatives we started last year.

Net sales and operating profit improved significantly in the Building Solutions – North America segment. The segment’s result was very strong both in sales volumes and profits, even in light of the weak comparison period. Profitability improvements were supported by operational leverage through volume growth, price increases and cost improvements e.g. in form of lower freight costs.

Uponor Infra also had a good start to the year with improved net sales and operating profit. Profitability improved mainly in Sweden and Poland. Volume growth driving this operational leverage was gained through growth in market share in standard project sales.

We have continued the planning of our operational excellence programme, which is estimated to reduce in total approximately 200 FTEs by the end of 2021. First initiatives related to reduce complexity, harmonise processes in order to create efficiencies and related collective bargaining consultations were started in April.