NKT CEO Alexander Kara says:
We have had a satisfactory start to 2022. In NKT, our financial performance in Q1 2022 showed improvements compared to the same period last year. I am particularly satisfied with our performance in Applications, where positive financial development in 2021 has carried on into 2022. With execution of several offshore wind projects, we continued our contribution to the green transition. In NKT Photonics, we grew revenue further and increased focus on our core business with the divestment of the LIOS sensing business.
2022 financial outlook
In NKT, the financial outlook is unchanged from Company Announcement No. 2 of 23 February 2022.
Revenue (in std. metal prices) is expected to be approx. EUR 1.35–1.45bn and the operational EBITDA is expected to be approx. EUR 130–155m.
The financial outlook assumes limited financial impact due to the global supply chain challenges.
In NKT Photonics, the financial outlook from Company Announcement No. 2 of 23 February 2022
has been updated to reflect the accounting gain realized in Q1 2022.
Organic revenue growth is expected to be approx. 12-17%, and the operational EBITDA margin is expected to be approx. 11-14%. The operational EBITDA margin excludes the accounting gain of EUR 8.0m related to the divestment of the LIOS sensing business, which is treated as a one-off item.
An important assumption in order to fulfil the financial outlook is that the current global supply chain challenges will have limited impact on the financial results.
NKT: Revenues and operational EBITDA increased compared to Q1 2021 with Applications and Solutions as the main contributors
NKT increased revenue (std. metal prices) from EUR 296m in Q1 2021 to EUR 319m in Q1 2022, corresponding to 7% organic growth. Operational EBITDA went up from EUR 30.2m in Q1 2021 to EUR 38.3m in Q1 2022 with positive contributions from Applications and Solutions.
NKT’s high-voltage order backlog was EUR 2.75bn at end-Q1 2022 (EUR 2.35bn in std. metal prices). This was lower than EUR 2.87bn (EUR 2.43bn in std. metal prices) at the end of the previous quarter. Several variation orders to existing projects and onshore projects were added in Q1 2022.
In January 2022, NKT acquired Ventcroft Ltd to strengthen its position in fire-resistant power cable technology. With this acquisition, NKT has extended its portfolio of low-voltage power cables and building wires, an important step in its growth strategy. NKT will now focus on scaling up production to expand its presence within fire-resistant building wires across the European market.
NKT Photonics: Record-high Q1 revenue
NKT Photonics’ revenue in Q1 2022 amounted to EUR 16.1m, up from EUR 15.7m in Q1 2021. This corresponded to organic growth of 7%. The positive growth was driven by three out of four segments and was delivered on top of the strong organic growth of 26% in Q1 2021.
Operational EBITDA for Q1 2022 amounted to EUR -1.7m, which was slightly down compared to Q1 2021. This development was mainly caused by write-downs related to obsolete and slow-moving raw material inventory.
In March 2022, NKT Photonics divested its LIOS sensing business. With the divestment, NKT Photonics is fully focused on its core business within lasers and fibre optic solutions to the medical & life science, quantum and nano technology, industrial, and aerospace & defence markets.
Teleconference
NKT A/S hosts a teleconference for investors and financial analysts at 10:00 am CET on 18 May 2022. It can be accessed at investors.nkt.com. The presentation for the call will be available before the teleconference. To attend, please dial in from (confirmation code: 2198684):