22 February 2023
Announcement No. 2
NKT A/S Annual Report 2022: 15% organic growth for the third consecutive year and improved operational EBITDA despite a year with supply chain disruptions and macroeconomic slowdown
NKT CEO Alexander Kara says:
- We are satisfied with our financial performance where we delivered in the high end of the financial outlook for 2022. For the third year in a row we grew our revenues organically by 15% despite an extraordinary year with supply chain disruptions and macroeconomic slowdown. Our results form the basis for further growth to meet the increasing demand for power cable solutions driven by the green transition.
Operational EBITDA margin
* Std. metal prices
2023 financial outlook
Revenue (in std. metal prices) is expected to be approx. EUR 1.75–1.85bn and the operational EBITDA is expected to be approx. EUR 185–215m.
The financial outlook is based on several assumptions including limited financial impact due to the uncertain global macroeconomic environment, supply chain challenges, and the high inflationary pressure.
Positive development in operational EBITDA driven by Solutions
In 2022, NKT improved financial performance despite supply chain disruptions, macroeconomic slowdown and increasing inflation. Solutions reached a record-high order backlog driven by project awards in Europe and North America. Applications’ higher revenue level was due to increased prices as NKT passed on the high inflationary pressure on several cost items. The medium-voltage business continued to grow driven by sustainable megatrends. Service & Accessories experienced a decrease in revenues and earnings in 2022, as expected, due to reduced offshore repair work in Service compared to 2021.
The organic growth in 2022 was 15% for the third consecutive year. NKT’s revenues (std. metal prices) increased by EUR 184m in 2022, to EUR 1,447m. The operational EBITDA of EUR 155m in 2022 was EUR 23.4m higher than in 2021. The operational EBITDA margin (based on revenues in std. metal prices) was 10.7% in 2022 against 10.4% in 2021.
NKT’s net result from continuing operations for 2022 amounted to EUR 55.1m, an increase of EUR 43.2m from 2021.
At end-2022, the high-voltage order backlog was EUR 4.7bn (EUR 4.1bn in std. metal prices). Driven by the ongoing transition towards renewable energy, NKT was awarded a number of new projects in 2022 with a total order intake of approx. EUR 2.7bn. NKT estimates that the value of projects awarded in its addressable high-voltage power cable market for 2022 was around EUR 8bn.
As planned, NKT continued the investment programme to upgrade and expand the high-voltage production sites in Cologne and Karlskrona during 2022 including the inauguration of the second extrusion tower in Karlskrona in Q4 2022.
In 2022, NKT entered into an agreement to divest NKT Photonics. Together with the previous divestment of its subsidiary LIOS, the strategic review of NKT Photonics is completed pending the closing of the transaction around end-Q1 2023.
NKT demonstrates continued progress within sustainability
In the Sustainability Report for 2022, NKT reports a 20% reduction in corporate CO2e emissions (Scope 1 and 2) which adds to a total reduction of 79% since 2019. Further, workforce diversity continued to increase and the safety performance improved compared to 2021.
NKT A/S hosts a teleconference for investors and financial analysts at 10:00am CET on 22 February 2023. The presentation to be used during the call will be available before the start of the teleconference. To attend, please register and access on investors.nkt.com
Investor Relations: Michael Nass Nielsen, Head of Investor Relations, Tel.: +45 2494 1654
Media Relations: Louise Westh Naldal, Head of Group Communications, Tel.: +45 2982 0022