Uponor Corporation’s Financial Statements Bulletin 1–12/2023

Comparable operating profit margin increase amid turbulent markets

Uponor Corporation, Stock Exchange Release, 16 February 2024 at 09:00 a.m. EET

Uponor Corporation’s Financial Statements Bulletin 1–12/2023: Comparable operating profit margin increase amid turbulent markets

October–December 2023 in brief

Net sales were €277.6 (276.5) million, an increase of 0.4%. Organic growth adjusted for currencies was 7.9%.

Comparable operating profit was €27.6 (11.0) million or 9.9% (4.0) of net sales.

Operating profit was €0.8 (1.4) million or 0.3% (0.5) of net sales. Operating profit was impacted by extraordinary items affecting comparability of €26.8 million mainly in the month of October. These extraordinary items were related to one-time expenses related to the public tender offer.

Earnings per share were €-0.09 (0.02).

Important Note: The financial results for November–December will be fully consolidated into Georg Fischer AG. In line with the expectations, the financial results in these months are seasonally low compared to the rest of the year. Reflecting the improved margin resilience demonstrated throughout the year, November and December 2023 comparable operating profit margin was clearly above the average profitability of recent years for these two months.

January–December 2023 in brief

Net sales were €1,221.0 (1,386.2) million, a decrease of -11.9%. Net sales adjusted for currencies was, €1,250.9 million (-9.8%), in line with the 2023 guidance. Organic growth adjusted for currencies was -5.8%. The impact of District Energy business and Middelfart factory closure decreased net sales by €-44.3 million.

Comparable operating profit was €150.5 (153.7) million or 12.3% (11.1) of net sales.

Operating profit was €118.5 (135.5) million or 9.7% (9.8) of net sales.

Earnings per share were €0.92 (1.21).

Guidance statement for 2024

Due to the ongoing minority share redemption process by Georg Fischer and the subsequent delisting of Uponor shares, Uponor will not issue a guidance for 2024.

A short-term market outlook will be published on 19 March as part of Georg Fischer AG annual results.

The Board’s dividend proposal

The Board proposes to the Annual General Meeting that no dividend shall be paid for the financial year 2023. This is a deviation from the long-term financial targets, whereby the company strives for a growing annual dividend payout. Georg Fischer AG has acquired through a public tender offer more than 90 per cent of all the issued and outstanding shares and votes in Uponor and has initiated compulsory redemption proceedings for the remaining shares. Consequently, Uponor will be delisted from Nasdaq Helsinki Ltd.