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systemairs resilience shines despite financial hurdles a strategic review 12


Systemair's Resilience Shines Despite Financial Hurdles: A Strategic Review


Benjamin Hughes

June 4, 2024 - 05:15 am


Systemair Reports Mixed Financial Outcomes Amidst Restructuring and Market Challenges

Quarterly Reflections on Revenue and Growth

SKINNSKATTEBERG, Sweden, June 4, 2024 /PRNewswire/ -- Renowned ventilation giant, Systemair, faced a slight reduction in net sales for the fourth quarter of the financial year, ending April 2024, with figures descending by 1.9 percent, arriving at SEK 3,069 million, compared to the SEK 3,129 million reported in the previous year. Despite this decrease, the company maintained a positive stance with its organic growth recording a 1.0 percent upsurge, though it presents a stark contrast to the 13.0 percent growth of the preceding year.

Systemair's financial health during the quarter also demonstrated a downward adjustment, with operating profits settling at SEK 233 million, which pales in comparison to the previously impressive SEK 734 million mark, leading to an operating margin of 7.6 percent. Adjusted operating profits delivered a similar storyline, clocking in at SEK 209 million against the past year's SEK 282 million, accommodating for a Norwegian credit loss and a positive hyperinflation adjustment.

Profit after tax also witnessed a substantial fall, recording a figure of SEK 190 million from the robust SEK 619 million in the preceding term. However, cash flow from operating activities signaled a moderate improvement, amassing SEK 191 million, outdoing last year's SEK 170 million. The earnings per share (basic) experienced a more significant slump, concluding at SEK 0.88 instead of the previous value of SEK 2.96.

Reflecting on the entire 12-month period from May 2023 to April 2024, net sales exhibited a modest uptick of 1.6 percent, reaching SEK 12,257 million, rising from SEK 12,058 million, with organic growth charting a commendable figure of 4.1 percent.

Annual Performance at a Glance

Over the span of 12 months, the adjusted operating profit for the company amounted to SEK 1,085 million, a slight drop from SEK 1,110 million. This encompasses the largest adjustment of SEK 125 million related to the restructuring process, which included moving Menerga's production activities to Slovenia. Notable too was the previous fiscal year's SEK 445 million capital gain from the disbanded air conditioning sector. Despite the various changes, the company preserved a relatively solid adjusted operating margin of 8.8 percent.

The enduring profitability did however not translate as effectively to the profit after tax, which showed a more pronounced decrease to SEK 654 million from the prior period's SEK 1,045 million. On a brighter note, the cash flow from operating activities surged impressively to SEK 1,333 million - more than double the last term's inflow. Earnings per share (basic) settled at SEK 3.10, shedding a fair portion from the SEK 5.00 reported previously. The Board of Directors has proposed a dividend increase to SEK 1.20 per share, showing a marginal increase from SEK 1.10 per share.

Executive Insights on Performance and Strategy

Roland Kasper, the CEO of Systemair, shared his perspective on the company's trajectory amidst current market conditions. "The fourth quarter sales were on par with the previous year," Kasper commented, drawing attention to the considerable challenge this equivalence posed given the formidable figures from a year ago as well as the existing volatile market landscape. His commentary underlined the firm's core strengths and its potential for sustained organic growth and profitability enhancements. Systemair, he insists, will continue to boost its delivery capabilities and invest diligently in product innovation, with the global climate objectives and energy-saving directives backing their strategic thrust.

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Upcoming Press and Analyst Event

The press and analyst community are poised to gain deeper insights into Systemair's business as a meeting is set to be held at 09:00 CET on June 4, 2024. Roland Kasper, along with CFO Anders Ulff, will present the company's year-end report. All interested parties can participate in the live webcast by registering through the provided link. Post-registration, a confirmation link will be sent via email. Participants also have the opportunity to pose written questions during the live presentation.

How to Engage with the Event

For those wishing to join via phone, details are as follows:

  • Sweden: +46 (0)8 5051 0031
  • International: +44 (0) 207 107 06 13
  • Access Code: 43948174

The event will be accessible for later viewing, with both the presentation and webcast hosted on the Systemair website.

Contact Information for Further Queries

Should there be any inquiries, Roland Kasper, CEO, and Anders Ulff, CFO, are available through their respective contact numbers:

  • Roland Kasper, CEO: +46 73 094 40 13
  • Anders Ulff, CFO: +46 70 577 40 09

Systemair's Long-Term Success

It's imperative to highlight the achievements of Systemair since its inception in 1974. Marking its history with consistent operating profits every year, the company has established itself as a vital player in the ventilation industry. Systemair now operates across 51 countries, including Europe, North America, the Middle East, Asia, Australia, and Africa. With 6,600 employees, the financial year of 2023/24 saw a significant turnover of SEK 12.3 billion, showcasing the firm’s expansive growth trajectory averaging 9.0 percent over the last decade.

The company's success stems from its commitment to improving indoor climates via energy-efficient and sustainable product offerings that are strategically aligned with the reduction of carbon dioxide emissions. Systemair's global presence is fortified by selling products under brands such for as Systemair, Frico, Fantech, and Menerga, catering to a broad range of consumer needs and preferences. Its shares, listed on the Nasdaq OMX Nordic Exchange in Stockholm since October 2007, underscore the company's standing and accessibility in the marketplace.

Final Thoughts on Results and Future Outlook

Revisiting the financial outcomes and executive foresight, Systemair's year-end report presents a compelling narrative of resilience and strategic adaptation in the face of an ever-evolving business climate. Despite the financial fluctuations, Systemair's dedication to innovation, sustainability, and market expansion continues to be the cornerstone of its long-term business model. As the company positions itself for future growth, stakeholders maintain an optimistic outlook, encouraged by the proposition of dividends and sustained investment in key areas of the business.

This information is essential for investors and aligns with Systemair's obligation for transparency, following the EU Market Abuse Regulation and the Securities Markets Act. The published data, courtesy of designated contact persons at the precise hour of 07:00 (CEST) on June 4, 2024, underscores the company's commitment to timely and accurate communication.

Reference Links and Downloads

For more information and additional resources, please visit the following links:

This detailed report is disseminated through Cision News at the URL:

In conclusion, as Systemair moves forward into the next fiscal year, it is evident that the company has faced its share of challenges, from sales contraction to restructuring costs. However, its unwavering focus on core business strengths, market expansion, and a sustainable future, positions it well to navigate uncertainties. With proactive leadership at the helm, the forward trajectory for Systemair remains clear, as it upholds its promise of innovation and growth parallel to environmental consciousness. Shareholders, analysts, and the broader market will undoubtedly watch for the actualization of these plans, as Systemair continues to breathe life into its ambitious vision for a better indoor climate worldwide.