January – March 2020 in Summary
• Order intake SEKm 124.1 (86.4)
• Sales SEKm 144.7 (105.2)
• EBITDA SEKm 38.3 (28.8)
• EBITDA-margin 26.5% (27.4)
• Operating profit (EBIT) SEKm 31.4 (23.6)
• EBIT-margin1 21.7 % (22.5)
• Net profit SEKm 17.9 (10.5)
• Earnings per share SEK 1.20 (0.79)
• Cash-flow from operations SEKm -4.8 (18.0)
“QleanAir has a strong market position in its niche, indoor air cleaning, and delivered its best quarter ever, both in terms of sales and earnings. All markets developed well. Net Sales increased with 38 percent to SEKm 144.7 (105.1). The organic growth amounted to 29 percent. The EBITDA-margin amounted to 26.5 (27.4) percent, and the EBITDA-result increased by 33 percent to SEKm 38.3 (28.8). In March, QleanAir cleaned m3 3.7 (3.1) billions’ air per month, an increase with 19 percent. The Covid-19 increase the interest for indoor air cleaning in the long-term perspective. It has been a challenging time since the outbreak of the pandemic. QleanAir has, as an organization, proven its capacity to live up to the values and challenges we have in front of us. This makes me both proud and optimistic about the future in the long run,” statement from the CEO Andreas Göth.
A word from the CEO
Best ever quarter
QleanAir has delivered a best ever quarter, in terms of both sales and earnings. All markets performed well. Sales increased with 38 percent to SEKm 144.7 (105.1), the organic growth amounted to 29 percent, the EBITDA-margin amounted to 26.5 (27.4) percent and the EBITDA-result increased with 33 percent to SEKm 38.3 (28.8).
A strong position in the market niche indoor air cleaning
QleanAir has established a strong market position based on a combination of high quality, comprehensive solutions and service offer that give us a competitive advantage when companies and organizations look to fully outsource indoor air cleaning. Our investment in Facility Solutions continuing with the focus on warehousing, logistics, food production and other production segments. The product category Facility Solutions increased sales with 7 percent to SEKm 11.0 (10.3) during the first quarter.
Our clean rooms, Room Solutions, enjoyed strong growth on the American market with the delivery and installation of orders booked in 2019. The anticipated rules and regulations on the secure handling of certain drugs on in the American market have had a positive impact on us. The product category Room Solutions increased sales with 125 percent to SEKm 16.0 (7.1).
Japan has been a growth market for QleanAir’s category Cabin Solutions for over ten years and is continuing to grow. Over the last two quarters, the health promotion legislation that came into force in April has positively affected sales. In the interim report for the fourth quarter, I explained about a new customer within the transport sector. This customer has continued to grow and place orders. The order intake continued during the first quarter, and we increased the presence outside of Tokyo. The sales in APAC increased with 67 percent to SEKm 73.3 (43.9). The product category Cabin solutions in total increased sales with 34 percent to SEKm 117.7 (87.7).
COVID-19 is increasing interest in the cleaning of indoor air in the long term
In association with the outbreak of Covid-19, we are also experiencing increasing demand for air cleaning solutions in hospital environments. This is a clear demonstration of the high quality of our products and solutions and QleanAir’s extensive air cleaning know-how. We are continuing to invest in product development and product launches, especially when it comes to Facility Solutions. During the first quarter, we launched value creating product modifications to meet demand from hospital environments. At the start of the second quarter 2020, we have also launched a new model that has been tailored for the food industry in Europe.
Our growth strategy in the long term remains firmly focused on developing new product categories, Facility Solutions and Room Solutions, while we also see opportunities to continue to grow product category Cabin Solutions in APAC in particular. In the shorter perspective, we, like most companies, are being impacted by the ongoing coronavirus pandemic. We have seen a reduction in activity levels on most of our markets since late March. We are actively monitoring developments and taking actions as and when necessary to limit the negative effects on our business. Right now, large parts of the world have come to a standstill and this will affect us in the second quarter, especially in EMEA and the Americas. The powerful shutdown of many states in the US from the end of March has impacted our sales opportunities in the US market and forced us temporarily to suspend installations of clean rooms, Room Solutions. However, our focus on long-term rental contracts and a high proportion of recurring revenues, means our business model has the robustness to withstand tough times on our markets. In the slightly longer term, we are also convinced that the coronavirus pandemic will increase the need for indoor air cleaning and control and associated good and healthy air quality.
Our enterprise is based on creating healthy indoor environments that help improve the productivity of employees, products and processes. This is our mission and the basis of our company culture and the path to achieving our long-term aims. In March 2020, QleanAir cleaned billion 3.7 (3.1) m3 of air per month, an increase of 19 percent compared to March 2019. The outbreak of the pandemic has brought challenging times. QleanAir has, as an organization, proved to possess the capacity to live up to the values and challenges we are facing, something that makes me feel both proud and optimistic about the future in the long term. I would like to extend an especially big thank you to our fantastic employees and partners, all of whom are dedicated to developing QleanAir even in such extremely challenging times.
Andreas Göth, CEO QleanAir Holding AB
Solna, May 13, 2020
QleanAir invites to teleconference/audiocast on May 13, 2020 at 9 am CET. The company’s CEO, Andreas Göth, and CFO, Henrik Resmark, will present the first quarter 2020 results in English with presentation slides in English.
Here is the link to follow the presentation online: https://tv.streamfabriken.com/qleanair-holding-q1-2020
Telephone numbers for dial-in: