STOCKHOLM - Munters Group AB, a global leader in energy-efficient air treatment and climate solutions, has reported significant growth in its fourth-quarter and full-year results for 2023. The company saw an 82% organic increase in order intake during the last quarter, mainly driven by substantial growth in its Data Center Technologies (DCT) segment and a positive trend in FoodTech. Despite these gains, AirTech experienced slower growth compared to the previous year.
In the fourth quarter, the company received two large orders in North America totaling approximately 2.2 billion Swedish krona (BSEK) and several smaller orders across the Americas and Europe. The adjusted EBITA margin improved, largely due to the increase in net sales in DCT, efficiency improvements across all business areas, and contributions from net price adjustments. However, earnings per share decreased to SEK 0.3 from SEK 0.7 in the same period last year.
For the full year, the company's order intake decreased organically by 21%, which was attributed to customers placing orders further in advance in 2022 due to supply chain challenges, leading to shorter lead times in 2023. Nevertheless, net sales grew organically by 27%, with DCT and AirTech driving the growth, while FoodTech remained flat. The adjusted EBITA margin saw a significant improvement, and earnings per share for the year increased to SEK 4.30 from SEK 3.18 (before dilution) and SEK 3.17 (after dilution) in the previous year.
Munters' net debt to adjusted EBITDA ratio improved to 2.1x, down from 2.9x at the end of December 2022. The Board of Directors has proposed a dividend of SEK 1.30 per share, up from SEK 0.95 per share last year, to be paid in two equal installments, representing 30% of the net income in 2023.
Following a ransomware attack on a hosting provider, Tietoevry, Munters released preliminary results on January 22, but expects no impact from the event in 2024.
The company also highlighted strategic moves, including the acquisition of ZECO, an Indian air treatment solutions manufacturer, and the construction of a new site in North America designed to support Munters' Net Zero goal by 2030.
Munters' CEO, Klas Forsström, expressed confidence in the company's position for future growth and mentioned ongoing investments in global footprint and innovation. The strategic review of the equipment business in FoodTech is expected to conclude in the first half of 2024.
This article is based on a press release statement from Munters Group AB.
InvestingPro Insights
Munters Group AB's significant growth in the Data Center Technologies segment and an optimistic outlook for 2024 are echoed in the real-time data and InvestingPro Tips. The company's market capitalization stands at a robust $2.92 billion, reflecting investor confidence. Munters' P/E ratio, at 35.39, while on the higher side, is somewhat mitigated by a PEG ratio of 0.77, suggesting that the company's earnings growth could justify the valuation. Additionally, the company's revenue growth is noteworthy, with a 40.82% increase over the last twelve months as of Q1 2023.
InvestingPro Tips highlight that Munters has raised its dividend for three consecutive years and that net income is expected to grow this year. These factors, combined with the anticipation of sales growth in the current year, position Munters favorably for investors looking for stable growth potential. It's also worth noting that the company's liquid assets exceed its short-term obligations, indicating financial resilience.
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