Q3 2023 INTERIM REPORT: Nilfisk’s Service and Consumer Businesses drive growth | Nilfisk
November 16, 2023

Q3 2023 INTERIM REPORT: Nilfisk’s Service and Consumer Businesses drive growth


Nilfisk – a leading global supplier of professional cleaning equipment and services – presented its Q3 2023 results with strong progress with most business KPI’s including gross margin and EBITDA margin, overhead cost, cash flow, debt reduction and gearing. The strategically important Service Business continued to grow, while Professional declined from softer demand. The Consumer Business returned to growth.

Today, Nilfisk reported its Q3 2023 results with a total revenue of 247.8 mEUR. Compared to a strong organic growth in prior year, Nilfisk saw a decline of 0.7% in Q3 2023. Total reported growth was -5.8%, of which 5.0%-points was driven by negative foreign exchange rate effects. The results are in line with Nilfisk’s Business Plan 2026 and in particular the strategically important Service Business delivered organic revenue growth of 2.9% in the Quarter.

CEO of Nilfisk, René Svendsen-Tune comments:

“For the third quarter of 2023, we delivered strong progress on many business KPI’s. We improved the gross margin and EBITDA margin bsi, lowered our overhead costs, and delivered strong improvements in free cash flow, our debt levels, and gearing. The topline was impacted by a softened demand, particularly for the products in our Professional Business, which was partly mitigated by price discipline. We saw growth areas across the business, for example in LATAM and Australasia, while North America and Europe were impacted by declining demand.”

Consumer Business returns to growth
The Consumer Business returned to growth in Q3 2023 and grew with 6.6%. While consumer demand was one of the first to see a decline in 2022, during the global economic slowdown, we are now seeing the demand return and driving growth in the Consumer Business.

René Svendsen-Tune, CEO, says:

“We are satisfied to see that our Consumer Business is back to growth, supported by the return of consumer demand. With our new S1 cordless stick vacuum cleaner launched here in November, we remain optimistic on this business, which is an important part of Nilfisk legacy.”

Improved gross margin and continued strong cash flow generation
The continued improvement in gross margin to the highest level in the last 10 quarters was driven by price management, lower freight costs for overseas shipment, and product mix effects mitigating the negative impact of cost inflation, including labor and materials.

The overhead costs declined to 86.5 mEUR in Q3 2023 from 89.1 mEUR in Q3 2022 as a result of the structural cost efficiency measures implemented earlier in the year. The EBITDA margin before special items increased to 12.6% in Q3 2023, up from 11.1% in Q3 2022. The free cash flow improved to 29.8 mEUR in Q3 2023, up by 12.1 mEUR compared to Q3 2022. Net interest-bearing debt was 271.1 mEUR at the end of Q3 2023, a reduction of 94.0 mEUR from Q3 2022. Gearing at the end of Q3 2023 was 2.0x versus 2.7x a year ago. At 2.0x the gearing is now reaching our longer-term target range.

CFO Reinhard Mayer comments:

“Nilfisk’s diligent efforts to counter inflationary pressures and optimize production have led to a continual improvement in the gross margin. Our strategic measures to enhance the structural efficiency of our business have successfully lowered the cost levels. Consequently, the EBITDA margin bsi increased to 12.6% in Q3 2023, up from 11.1% in Q3 2022.

We are highly pleased with the sustained robust cash flow generation and the outcomes of our initiatives to decrease working capital and the level of net interest-bearing debt.”

Outlook for 2023
With one quarter left of 2023, we are narrowing our outlook for the full year. We have factored in that the current macroeconomic uncertainty will continue for the remainder of 2023, leading to continued volume decline. The expected organic revenue growth for 2023 is now around 0% (previously -2% to 2%). The EBITDA margin before special items is expected to be around 13% (previously 12% to 14%).

Key figures Q3 2023

mEUR

Q3 2023

Q3 2022

Revenue

247.8

263.0

Organic growth

-0.7%

5.4%

Gross margin

41.2%

39.1%

Overhead cost

86.5

89.1

Overhead cost ratio

34.9%

33.9%

EBITDA before special items

31.2

29.2

EBITDA margin before special items

12.6%

11.1%

CAPEX ratio

3.1%

2.2%

Free cash flow

29.8

17.7

Net interest-bearing debt

271.1

365.1

Financial gearing

2.0x

2.7x

Read the full report

Press contact
Nynne Jespersen Lee
Head of Communication & Media Relations
T: +45 42310007
M: njespersen@nilfisk.com


About Nilfisk
Nilfisk was founded in 1906 by the Danish engineer P.A. Fisker. Today the company is a world-leading global provider of professional cleaning equipment and services. More than 90% of sales are for professionals while the remaining part of the business aimed at consumers covers floorcare equipment, vacuum cleaners, and high-pressure washers.

Nilfisk’s products and services are sold in more than 100 countries and produced at 9 manufacturing sites across the globe. The main facilities are in the US, Mexico, Hungary, Italy, and China. A total of approximately 4,700 employees secured revenue of 1,069.5 mEUR in 2022. The largest single market is the USA covering 30% of revenue in 2022, followed by France (11%), Germany (10%), the UK (5%) and Denmark (4%).

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