Jøtul AS


Jotul Holdings S.A - Interim report Q4 - 31. december 2020

YTD Q4 2020, the Jotul Group reached a consolidated profit of MNOK -128.9 (Q4 2019: MNOK -86.8). The operating result totaled MNOK -66.7 in YTD Q4 2020 (Q4 2019: MNOK 27.3). The 2020 total comprehensive loss for YTD Q4 was MNOK -127.5 (Q4 2019: MNOK     - 85.7).

Sales for the period declined by 6.1% to MNOK 905.5 YTD Q4 2020 (Q4 2019 MNOK 961,1), which is less than initially anticipated at the outbreak of the COVID-19 pandemic. The fourth quarter continued to show a strong recovery in order intake, up from MNOK 269 in Q4 2019 to MNOK 305 in Q4 2020. Total order book as per Q4 2020 was MNOK 122 (Q4 2019 MNOK 29). In addition to the strong recovery in the market during the second half of 2020, the large backlog as per Q4 2020 is also related to the limited output capacity at the new production facility in Poland during the pandemic.

In Poland, the pandemic has severely hit the country, and we have seen a shortage of staff and very high absence rate as a consequence. This has been compensated with a temporary hiring effort, which in turn has had an impact on production efficiency and output. Travel restrictions has also made it very difficult to assist the new plant in Poland from other units in the Group and third-party equipment suppliers. Though, towards the end of Q4 we have seen clear improvements in terms of production output, close to reach planned daily capacity. The very low efficiency and higher scrap rates has resulted in lower margins during the quarter as well as for 2020. However, despite clear improvements in production out, it has not been able to compensate for the strong order take in the last quarters. Additionally, we have also seen the North American plant running below production capacity, directly related to the COVID-19 pandemic and particularly due to lack of staff and delivery issues from suppliers.

After the close down in the first COVID-19 wave from mid-March, the Norwegian plant has been operating close to normal since June.

Towards end of Q4 for we have seen a second wave of COVID-19 outbreak, which has led to a closure in December in some of our main European markets, Germany, France. However, we foresee that the solid market trend will continue in 2021, mainly driven by the surge in home improvements and DIY market segments, high electrical prices and a colder winter than the past years.

EBITDA (Earnings before interests, taxes, depreciation, and amortizations: Operating Result less Depreciations) was MNOK 17.1 YTD 2020 (Q4 2019: MNOK 57.3). This contains effect of non-recurring items of MNOK 63.9 YTD Q4 (Q4 2019: MNOK 79.1). Adjusted EBITDA (net of non-recurring items) was MNOK 81 YTD Q4 2020 (Q4 2019: MNOK 136.3).

In Q4 2020 non-recurring cost of MNOK 27,9 are primarily related to the transfer of production and assembly, from Norway and Denmark, and the stablisation of new operations in Poland following the challenges during the pandemic.

The Group’s capital investments in Q4 2020 amounted to MNOK 1.9 compared to MNOK 62 in Q4 2019. The investments in Q4 2019 are mainly related to the new factory in Poland.

YTD Q4, the net cash flow from operating activities was MNOK 2.4 compared to MNOK -30.7 in Q4 2019. The net cash-flow in 2020 was at MNOK 17.4 (2019 MNOK -57.3). Cash and cash equivalent as per Q4 was MNOK 70.3.

Available Revolving Credit Facility (less ancillary facilities of MNOK 21) as per Q4 was MNOK 84 giving total available liquidity of MNOK 154.3 by end of 2020. 

The Polish plant has entered into a manufacturing agreement with the Italian company Aico for pellets stoves. Besides producing for Aico, this also allows Jotul Group to extend our offering of own produced pellets stoves in the European market.

Jotul France acquired Aico France end of June 2019, and this entity had its first full-quarter effect on group financials in Q3 2019. The company contributed with MNOK 66.7 to net revenue and MNOK 1.5 to EBITDA in 2020.

As of Q4 2020, the Group had an average of 516 full-time employees (Q4 2019: an average of 538 full-time employees).

For further information, please contact:
Nils Agnar Brunborg, CEO
Tel: +47 906 05 578

The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CEST on the 26th of February 2021.


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