Interim report January–March 2022: Sales grew and operating profit was stable at the previous year’s level

Uponor Corporation, Stock exchange release, 28 April 2022 at 08:00 a.m. EEST

Interim report January–March 2022: Sales grew and operating profit was stable at the previous year’s level

January–March 2022 in brief

  • Net sales were €349.5 (309.2) million, a growth of 13.0% or 10.7% in constant currency terms. The organic growth was 10.2% or 7.8% in constant currency terms.
  • Operating profit was €46.8 (47.0) million or 13.4% (15.2) of net sales.
  • Comparable operating profit was €47.2 (47.6) million or 13.5% (15.4) of net sales.
  • Earnings per share were €0.45 (0.43).

Guidance statement for 2022 (unchanged)

Excluding the impacts of currencies, Uponor expects its net sales and comparable operating profit to increase from 2021.

(Increase indicates a growth of 2.5% or more.)

Short-term market outlook

Uponor expects that the trends witnessed in the first quarter of 2022 will continue, with residential markets exhibiting solid levels of activity and non-residential markets stable. However, downside risks to the outlook have clearly increased, with new geopolitical and monetary policy uncertainties adding to increasingly acute supply chain challenges and a lack of skilled labour in the construction industry as well as construction material price inflation. The ongoing war in Ukraine, raw material price inflation and interest rate hikes may dampen the underlying demand.

Michael Rauterkus, President and CEO, comments:

“Uponor’s performance continued to be solid in the first quarter of 2022. The comparison period benefitted from high pent-up demand and low input prices. Uponor Group’s first quarter net sales grew by 13.0%, and organically by 10.2%, supported by improved flexibility in passing on sales price increases. The Group’s comparable operating profit decreased slightly by -0.7%. Our pricing actions had a positive impact on the operational profit. We were able to fully compensate cost increases caused by higher input prices. Nevertheless, higher overhead costs compared to the exceptionally low overhead costs in the comparison period, caused by Covid-19, lead to a lower profit level. Despite this, the comparable operating margin reached the level of 13.5% (15.4). Our earnings per share rose slightly to €0.45 (0.43). Our safety performance improved with an accident frequency rate (LTIF) of 6.4 (9.1). However, we are still far from Uponor’s target of zero accidents.

In the Building solutions – Europe division, sales price increases impacted positively net sales growth, but higher overhead costs decreased the operating profit. In the Building Solutions - North America division, the strong operational performance as well as price increases contributed positively to the operating profit, but profitability was hampered by higher costs compared to the exceptionally low cost level caused by the Covid-19 situation in the comparison period. In the Uponor Infra division, the growth was driven by sales price increases in all markets, but an unfavourable sales mix and higher extraordinary costs decreased the operating profit.

On 3 March, we suspended all exports and imports to and from Russia due to the ongoing invasion of Ukraine and we are currently exploring options related to our Russian operations. Uponor’s sales in Russia and Ukraine account for less than 2.5% of total Group sales and less than 1.5% of total Group assets.

At our Capital Markets Day in March, I was pleased to present, together with the Executive Committee, Uponor’s new strategy and financial targets. Uponor’s new strategy centres around maximizing the core and driving sustainable innovation. As a leading partner and a pioneer in sustainable water systems and indoor climate, we are well positioned to benefit from the megatrends of net zero, productivity and clean water. In our new strategy, maximizing the core refers to leveraging our strong position and accelerating growth in our core categories through systematic growth plans, commercial excellence, and M&A. We will further drive growth through a step change in innovation and new technology development and create synergies across our divisions and categories. To pursue the updated strategy and financial targets, we also launched a People First initiative to strengthen the performance mindset of our highly engaged and diverse team of Uponorians. Our strategy is also to lead the construction industry towards net zero which is well connected in a new set of ESG targets.

In line with our commitment to moving our People First agenda forward, I was pleased to welcome Jennifer Hauschildt, to a new position on our Executive Committee, as our new Chief Human Resources Officer (CHRO).

In the quarter, we also advanced on our sustainable innovation journey as we launched the world’s first bio-based PEX pipes with a reduced product carbon footprint of up to 90% compared to fossil-based PEX pipes on the market. This innovation helps our customers achieve their sustainability goals in all types of projects. The roll-out started in Sweden, Norway and Finland.

We have kept our outlook for 2022 unchanged. Overall, we had a good start to the year in a very volatile environment: continuing pandemic, supply shortages, high raw material price levels and levels of inflation. We expect the impact from strong inflationary pressures to continue in the coming quarters. To defend margins, we will continue our cost mitigation actions by adding flexibility to the terms and conditions of customer agreements.

To conclude, I want to thank our customers for their trust and all Uponorians for their hard work and commitment. The strength and motivation of our team, our strong balance sheet and market positions keep us on track to move forward with our profitable growth strategy.”

Key figures

M€  1–3/2022 1–3/2021 Change 1–12/2021
Net sales 349.5 309.2 +13.0% 1,313.2
Operating expenses 289.8 250.1 +15.9% 1,110.8
Depreciation and impairments 12.9 12.3 +5.3% 49.1
Other operating income 0.1 0.2 -61.3% 0.9
Operating profit 46.8 47.0 -0.3% 154.1
Operating profit, % 13.4 15.2 -11.8% 11.7
Comparable operating profit 47.2 47.6 -0.7% 160.5
Comparable operating profit, % 13.5 15.4 -12.2% 12.2
Financial income and expenses -1.0 -2.8 -66.0% -7.9
Profit before taxes 45.9 43.2 +6.4% 139.8
Profit for the period 33.3 31.7 +4.9% 103.4
Earnings per share 0.45 0.43 +5.8% 1.33

31 Mar 31 Mar Change

31 Dec
2022 2021 2021
Net working capital, M€ 141.5 81.3 +74.0% 93.3
Net-interest bearing debt, M€ 85.9 37.9 +126.5% 20.9
Solvency, % 48.4 43.0 +12.4% 50.2
Gearing, % 18.4 9.2 +101.0% 4.3
Return on investment, % 31.8 29.6 +7.1% 24.7

Results briefing and live webcast

A results briefing and live webcast for analysts, institutional investors and the media will be broadcast on 28 April at 13:00 EEST. The briefing is in English. The venue of the briefing is Flik Studio Eliel, Töölönlahdenkatu 2C (Sanoma House), Helsinki, Finland. The webcast can be viewed via our website at or via the Uponor IR mobile app. The recorded webcast can be viewed via the website or the app shortly after the live presentation. All presentation materials will be available at > Investors > Reports and presentations.

Uponor Corporation’s financial reporting in 2022

27 July 2022       Half-year report 1–6/2022
4 Nov 2022         Interim report 1–9/2022

For further information, please contact:

Uponor Corporation

Markus Melkko, CFO, tel. +358 20 129 2038
Franciska Janzon, SVP, Communications and Investor Relations, tel. +358 20 129 2821

Nasdaq Helsinki

Uponor in brief
Our offering, including safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure, enables a more sustainable living environment. We help our customers in residential and commercial construction, municipalities and utilities, as well as different industries to work faster and smarter. Uponor employs about 3,900 professionals in 26 countries in Europe and North America and Uponor’s products are sold in more than 80 countries. In 2021, Uponor's net sales totalled approximately €1.3 billion. Uponor Corporation is based in Finland and listed on Nasdaq Helsinki.