Hamburg, 8 November 2021. Nordex SE (ISIN DE000A0D6554) today presents preliminary results for the first three quarters of 2021 and a revised guidance for the current financial year. The impacts of rising inflationary pressures, especially the current instability in logistics markets, as well as other after-effects of the coronavirus pandemic have been much larger than anticipated in the second half of the year. However, the Group expects to overcome the current challenges and continues to aim for the strategic target of an 8 percent EBITDA margin in the medium term.
Despite unexpectedly increasing headwinds in 2021, the Nordex Group generated consolidated sales of EUR 4.0 billion in the first nine months of 2021 (9M 2020: EUR 3.2 billion). This sales growth is due to a strong performance in installations and production in the segment “projects”. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 100.7 million (9M 2020: EUR 70.8 million), corresponding to an EBITDA margin of 2.5 percent (9M 2020: 2.2 percent). The working capital ratio as a percentage of consolidated sales stood at minus 7.7 percent (9M 2020: minus 5.7 percent) at the end of the quarter. With the completion of the rights issue announced on 30 June 2021, the Nordex Group ended the quarter with a strong equity ratio of 28.5 percent and net cash position of EUR 516 million.
The decrease in profitability is primarily a result of the effects of the increasing volatility in commodity and shipping costs, which adversely affected Nordex Group’s EBITDA and are expected to further impact results in the fourth quarter of 2021 as well as 2022. Prices of raw materials and logistics, shipping costs in particular, continued to increase to unprecedented levels.
The guidance for the financial year 2021 has been revised to take into account developments in the third quarter and the outlook for the fourth quarter: Driven by high demand and strong performance in project execution, the Nordex Group now anticipates consolidated sales of EUR 5.0–5.2 billion (previously: EUR 4.7-5.2 billion) in 2021. Against the background of the unexpected cost increases because of the volatility in commodity and logistics markets, the operating (EBITDA) margin of previously 4.0-5.5 percent has been adjusted to around 1.0 percent. Expectations for capital expenditure (approx. EUR 180 million) and the working capital ratio (below minus 6 percent) remain unchanged.
However, the Nordex Group continues to be optimistic about future business performance, which will be driven by the global momentum for renewable energy, the very low cost of energy of onshore wind and strong demand for the highly competitive Delta4000-series.
“Sales have developed better than expected and initiatives to enhance operational excellence and further expand capacity have been very successful – but this has not been enough to fully offset the increasing costs of materials and logistics, particularly the surge in shipping costs during the third quarter”, says José Luis Blanco, CEO of the Nordex Group. “These inflationary pressures are currently severe, but in the medium term we expect to benefit from the fundamentals shaping the industry and to return to a more positive business development.”
CEO José Luis Blanco will expand on today’s press release in a conference call for analysts and investors tomorrow, 9 November 2021, at 9am CET.
The dial-in details will be sent to analysts and investors shortly and can be requested from Investor Relations. Final figures and the complete report for the third quarter of 2021 will be published on 15 November 2021.