Growing order book and turnover at New Cavotec
On March 5, 2021, Cavotec communicated its decision to concentrate its resources and invest in the port & maritime and industrial markets. Consequently, a process for the disposal of the Airports activity has been initiated. From the first quarter of 2021, Cavotec reports the activities of the ports & maritime and industry groups grouped under the name of New Cavotec. Airports are declared separately.
JULY – SEPTEMBER 2021 NEW CAVOTEC
- Order book up 20.0% compared to Q221 to € 92.8 million
- Turnover increased by 3.1% to 29.2 million euros (28.3)
- EBIT amounted to 1.2 million euros (1.9), corresponding to a margin of 4.0% (6.6%)
- EBIT adjusted for growth investments amounted to 2.5 million euros corresponding to a margin of 8.5%
JULY-SEPTEMBER 2021 TOTAL
- The backlog increased by 13.3% compared to Q221 to 120.0 million euros
- Revenues decreased by -1.7% to 36.9 million euros (37.5)
- EBIT decreased to EUR -2.1 million (0.7), corresponding to a margin of -5.8% (2.0%)
JANUARY – SEPTEMBER 2021 NEW CAVOTEC
- Order book of € 92.8 million, up 60.7% compared to fiscal 2020
- Revenues decreased by -1.4% to 84.4 million euros (85.5)
- EBIT remained stable at 4.5 million euros (4.5), corresponding to a margin of 5.3% (5.3%)
- EBIT adjusted for growth investments amounted to 6.4 million euros corresponding to a margin of 7.5%
JANUARY – SEPTEMBER 2021 TOTAL
- Revenues decreased by -6.3% to 110.7 million euros (118.2)
- EBIT decreased to EUR -2.5 million (4.4), corresponding to a margin of -2.2% (3.7%). The loss is mainly due to the performance of the airports segment in a disrupted travel market
- Net debt amounts to 23.8 million euros (T221: 19.4)
The growing interest in decarbonisation underpins the strong development of New Cavotec
We continue to see strong demand for Cavotec’s cleantech solutions to facilitate the decarbonization of the maritime industry. In the third quarter, we signed contracts worth 6.5 million euros for our prefabricated PowerFit shore power connection modules which will be modernized on a number of vessels for two of the largest shipping companies in containers to the world. This order is a recognition of our leading position in the modernization market for the thousands of ships that must be equipped with shore power in the years to come. We have also signed several orders for shore power connection systems for new ships in recognition of our large offer in this area.
The fact that shipping companies have chosen to install our equipment in anticipation of ports around the world to do the same is very encouraging, as well as our dominant position in this market. The orders are sending strong signals to ports around the world that their biggest customers foresee a reality in which port charging will be the new normal.
During the quarter, we also secured orders with the Port of Stockholm for the first MoorMaster system in Sweden, which is expected to reduce CO2 emissions by up to 5,000 tonnes per year. In fact, a new study from Starcrest Consulting Group shows that automated mooring can reduce carbon emissions in a typical cargo port of tens of thousands of tonnes. If it were installed in every container port in the world, the carbon dioxide savings alone would equal the emissions of a million cars. To help ports make the right decisions, we’ve released a free tool that can be used to estimate the potential fuel savings and emission reductions resulting from the adoption of automated vacuum mooring.
The above and other orders led to a 20% increase in New Cavotec’s backlog to € 92.8 million, almost 60% more than a year ago .
The majority of revenue from these marine orders will not materialize until 2022, as the industry planning cycle is long. It is in this encouraging context that the turnover of Nouveau Cavotec, despite long sales and delivery cycles, increased by 3.1% to 29.2 million euros over the quarter. The good turnover of Industry and Services contributed to the increase.
Our accelerated focus on investing in activities aimed at consolidating our leadership position in the market continued during the quarter. We are focused on developing our clean technology systems as well as recruiting sales and marketing staff. Additionally, we opened a new office in Malaysia to leverage our strong position in the rapidly growing electrification and port automation markets in Asia.
In total, growth investments during the third quarter amounted to € 1.3 million. These investments have a short-term impact on our profitability, but the adjusted EBIT of these growth investments amounts to 2.5 million euros corresponding to a margin of 8.5%.
The process of selling the Airports business is continuing as planned. Market conditions for the airport industry are demanding. However, in the future, demand for new construction and services is expected to increase, due to the expected increase in travel after the pandemic.
The global focus on sustainability, workplace safety and increasing efficiency in our markets is only gaining momentum and we continue to consolidate our leadership position. The growing demand is a strong sign of our expectations for the future of Cavotec.
Lugano, October 29, 2021
Chief Executive Officer
Conference call for the publication of the quarterly report
A conference call for shareholders, analysts and the media will be held on October 29, 2021 at 10:00 a.m. CEST. Mikael Norin, CEO, and Glenn Withers, CFO will participate in the Cavotec conference call.
Conference call numbers:
SE: + 46850558352
United Kingdom: + 443333009264
United States: + 16319131422
Web link: https://tv.streamfabriken.com/cavotec-q3-2021
Quarterly reports on www.cavotec.com
The full report for the period January-September 2021 and the previous quarterly and annual reports are available at: http://ir.cavotec.com/financial-reports
Analysts and media
Johan Hähnel – Head of Investor Relations
Mobile: +46 70 605 63 34 – E-mail: [email protected]
This is information that Cavotec SA is required to make public under the EU Market Abuse Regulation. The information has been submitted for publication, through the contact person indicated above, at 07:00 CEST on October 29, 2021.