STOCKHOLM - Munters Group AB, a global leader in energy-efficient air treatment and climate solutions, has released a summary of its preliminary results for the fourth quarter and full year of 2023, following a ransomware attack on its hosting provider, Tietoevry. The company announced that its financial consolidation system and a portion of its business systems have been compromised due to the cyberattack.
For the fourth quarter, Munters reported an 82% organic increase in order intake, totaling MSEK 5,651, and a 16% organic growth in net sales, reaching MSEK 3,659. The adjusted EBITA for the quarter stood at MSEK 467, up from MSEK 304 the previous year, reflecting an improved adjusted EBITA-margin of 12.8%. However, net income fell to MSEK 58, down from MSEK 131, affected by higher financial expenses, taxes, and costs from restructuring and M&A activities. The company also experienced a positive cash flow from operating activities at MSEK 670.
For the full year 2023, Munters saw a 21% decrease in organic order intake, with figures at MSEK 14,116, while net sales increased by 27%, amounting to MSEK 13,930. The adjusted EBITA for the year was MSEK 1,839, resulting in a margin of 13.2%, and net income for the year was MSEK 792. The company's cash flow from operating activities totaled MSEK 1,066.
Despite the challenges posed by the ransomware attack, Munters' net debt to adjusted EBITDA ratio improved to 2.1x at the end of December 2023, down from 2.9x the previous year.
Munters CEO and President, Klas Forsström, stated that the company takes the incident at Tietoevry very seriously and is in constant communication with the provider. He also expressed that he looks forward to discussing the results in more detail during the full year report presentation.
Munters has decided not to release any further information regarding the 2023 results until the full report is published on February 1, 2024. The company will hold a webcast and telephone conference on that day to present the year-end report.
All figures presented in this summary are preliminary and unaudited. This information is based on a press release statement from Munters Group AB.
InvestingPro Insights
As Munters Group AB navigates the aftermath of the cyberattack and releases its preliminary results for 2023, real-time data from InvestingPro offers additional context on the company's financial health and market performance. Munters has demonstrated resilience with a notable 82% organic increase in order intake for Q4 and a 16% organic growth in net sales. With a current Market Cap of $2.71 billion and a P/E Ratio of 33.16, the company's valuation reflects confidence in its earnings potential, especially considering the PEG Ratio of 0.7, highlighting that its earnings growth rate is outpacing its P/E ratio.
InvestingPro Tips also shed light on the company's financial prospects. Munters has raised its dividend for three consecutive years, indicative of management's confidence in the company's steady cash flow and future. Additionally, analysts expect net income to grow this year, complementing the company's strong 53.06% return over the last year. This suggests that investors may find Munters an attractive option, particularly when considering the company's moderate level of debt and the fact that liquid assets exceed short-term obligations.
For those seeking a deeper dive into Munters' financials and market prospects, InvestingPro offers a wealth of additional tips. Subscribers can access these insights and benefit from the special New Year sale, with discounts of up to 50%. Use coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. With the next earnings date set for February 1, 2024, these insights could be invaluable for investors looking to make informed decisions.
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