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28 JANUARY 2021 AL CIRCLE

Gränges reported net sales of SEK 10,620 million in 2020; sales volume slightly up

EDITED BY : HEENA IQBAL 2MINS READ

Gränges, a supplier of rolled aluminium products for heat exchanger applications, reported sales volume of 350.6 ktonnes during the full year 2020, an increase of 0.9 per cent year-on-year. Net sales decreased by 8.1 per cent to SEK 11,008 million.

Excluding acquisitions, sales volume and net sales decreased by 3.2 per cent and 11.3 per cent to 336.1 ktonnes and SEK 10,620 million.

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Gränges’ CEO Johan Menckel said, “Despite challenging market conditions following the COVID-19 pandemic, 2020 has been a productive year in many ways with a continued focus on expansion and growth as well as cost reductions and efficiency improvements in all regions.

On the positive side, cash generation was very strong in the year with a cash conversion of 182 per cent and adjusted cash flow before financing of SEK 1,180 million. We ended the year with a net debt equivalent to 2.2 times EBITDA.

In view of the financial results, and our outlook into account, the Board of Directors proposes that the dividend for 2020 will be 1.10 SEK per share.”

Adjusted operating profit came in at SEK 648 million. Excluding acquisitions, adjusted operating profit was SEK 632 million. Operating profit amounted to SEK 584 million in 2020. The profit for the period was SEK 363 million and diluted earnings per share stood at SEK 4.21.

The company’s total assets amounted to SEK 13,652 million as of 31 December 2020, from SEK 10,480 million in 2019.

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“For the first quarter 2021 the research firm IHS currently assumes that the global light vehicle production will increase by 17 per cent year over year. For the first quarter 2021, Gränges currently expects an organic increase in sales volume, excluding Gränges Konin, by low-double digits compared with last year. This includes a low-double digit growth for the Automotive and a mid-single digit growth for the HVAC and Other business. Gränges Konin is operating at close to full capacity and is under current market conditions expected to contribute with a sales volume of about 24 ktonnes in the first quarter. The development of foreign exchange rates is expected to have a negative impact on profitability in the first quarter,” Johan Menckel, CEO said.


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EDITED BY : HEENA IQBAL 2MINS READ

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