Uponor Corporation’s Financial Statements Bulletin 1–12/2023: Comparable operating profit margin increase amid turbulent markets

Uponor Corporation, Stock Exchange Release, 16 February 2024 at 09:00 a.m. EET

Uponor Corporation’s Financial Statements Bulletin 1–12/2023: Comparable operating profit margin increase amid turbulent markets

October–December 2023 in brief

Net sales were €277.6 (276.5) million, an increase of 0.4%. Organic growth adjusted for currencies was 7.9%.

Comparable operating profit was €27.6 (11.0) million or 9.9% (4.0) of net sales.

Operating profit was €0.8 (1.4) million or 0.3% (0.5) of net sales. Operating profit was impacted by extraordinary items affecting comparability of €26.8 million mainly in the month of October. These extraordinary items were related to one-time expenses related to the public tender offer.

Earnings per share were €-0.09 (0.02).

Important Note: The financial results for November–December will be fully consolidated into Georg Fischer AG. In line with the expectations, the financial results in these months are seasonally low compared to the rest of the year. Reflecting the improved margin resilience demonstrated throughout the year, November and December 2023 comparable operating profit margin was clearly above the average profitability of recent years for these two months.

January–December 2023 in brief

Net sales were €1,221.0 (1,386.2) million, a decrease of -11.9%. Net sales adjusted for currencies was, €1,250.9 million (-9.8%), in line with the 2023 guidance. Organic growth adjusted for currencies was -5.8%. The impact of District Energy business and Middelfart factory closure decreased net sales by €-44.3 million.

Comparable operating profit was €150.5 (153.7) million or 12.3% (11.1) of net sales.

Operating profit was €118.5 (135.5) million or 9.7% (9.8) of net sales.

Earnings per share were €0.92 (1.21).

Guidance statement for 2024

Due to the ongoing minority share redemption process by Georg Fischer and the subsequent delisting of Uponor shares, Uponor will not issue a guidance for 2024.

A short-term market outlook will be published on 19 March as part of Georg Fischer AG annual results.

The Board’s dividend proposal

The Board proposes to the Annual General Meeting that no dividend shall be paid for the financial year 2023. This is a deviation from the long-term financial targets, whereby the company strives for a growing annual dividend payout. Georg Fischer AG has acquired through a public tender offer more than 90 per cent of all the issued and outstanding shares and votes in Uponor and has initiated compulsory redemption proceedings for the remaining shares. Consequently, Uponor will be delisted from Nasdaq Helsinki Ltd.

Michael Rauterkus, President and CEO, comments:

“In the fourth quarter of 2023, we continued to deliver on our ambition to build margin resilience under volatile market conditions. In the seasonally slow quarter, we achieved a strong comparable operating profit margin of 9.9% (4.0%). Our net sales adjusted for structural changes increased by 3.9%.

The impact of structural changes on net sales was -€44.3 million including the divestment of Uponor’s District Energy business and the closure of the factory in Middelfart, Denmark. Excluding the currency impacts, our net sales during 2023 were €1,250.9 million.

For the full year 2023, our comparable operating margin improved to 12.3% (11.1%), showing the benefits of our margin resilience initiatives and operating model. I would like to thank all Uponor employees, whose dedication and hard work in driving our transformation and financial performance has delivered strong profitability in demanding market conditions.

Building Solutions – North America continued its strong performance in Q4 and delivered an all-time record operating profit in 2023, supported by robust operational performance and successful delivery of cost initiatives. Net sales for the full year grew by 6.8% organically, driven by strong demand generation activities and price discipline.

Uponor Infra continued the successful delivery of strategy to focus on the profitable core. The 2023 net sales declined due to restructuring actions to improve profitability as well as lower market activity, but the comparable operating profit margin for the full year reached a record level of 8.2%. Adjusted for structural changes, Uponor Infra net sales decreased by 14.9% compared to the previous year.

In Building Solutions – Europe, soft demand continued during the quarter. The decisive transformation programme implementation during 2023 enabled defending the comparable operating margin. However, it did not to fully compensate the continued slow underlying market activity in our key European markets.

We achieved many industry firsts in our sustainability work during 2023. Uponor produced the world’s first circular PEX pipe based on its own production waste in cooperation with Wastewise, Neste and Borealis. We also received as the first company in our industry validation for our net zero target by the Science Based Targets initiative. To support its commitment to leading the construction industry towards net zero by example, Uponor has created a Carbon Neutral Factory concept, which highlights our efforts to reduce carbon emissions. As the first Uponor factory to achieve the status of a Carbon Neutral factory, Uponor’s factory in Nastola, Southern Finland, reached full carbon neutrality in its own operations on 4 December 2023. Our objective is to replicate the Carbon Neutral Factory concept in other Uponor factories. In 2023, Uponor was also awarded the Gold level by the EcoVadis sustainability rating for the first time, reflecting Uponor’s long-standing commitment to sustainability and transparency in its ESG reporting. I am particularly proud that our rolling 12 months’ accident frequency (LTIFR) reached a record low level of 4.0 (8.5) for the full year.

Going forward, Uponor will, as a result of the successful tender offer, be delisted and transfer under the ownership of Georg Fischer AG (GF). GF possesses a long-term track record of strong growth and innovation. With our exceptionally engaged employees, I am confident that together with GF we have the possibility to further accelerate growth and innovation, as we join forces to target global leadership in water and flow solutions.

I want to thank all our colleagues for their tireless commitment in improving Uponor’s performance in the past years. As we continue our profitable growth journey as part of Georg Fischer AG, I wish to extend a special thank you to all of Uponor’s shareholders over the years, who have believed in us during the past two decades of being a publicly listed company.”

Key figures

M€  10–12/2023 10–12/2022 Change 1–12/2023 1–12/2022 Change
Net sales 277.6 276.5 +0.4% 1,221.0 1,386.2 -11.9%
Operating expenses 263.8 261.3 +1.0% 1,066.2 1,197.1 -11.0%
Depreciation and impairments 12.9 14.8 -12.5% 51.5 54.5 -5.5%
Operating profit 0.8 1.4 -45.4% 118.5 135.5 -12.5%
Operating profit, % 0.3 0.5 -45.6% 9.7 9.8 -0.6%
Comparable operating profit 27.6 11.0 +149.6% 150.5 153.7 -2.1%
Comparable operating profit, % 9.9 4.0 +148.6% 12.3 11.1 +11.2%
Financial income and expenses -3.1 -1.7 -84.5% -7.2 -1.0 -636.8%
Profit before taxes -2.1 0.0 -6,469.7% 111.7 134.9 -17.2%
Profit for the period -6.3 1.5 -517.4% 74.2 97.5 -23.9%
Earnings per share -0.09 0.02 -461.7% 0.92 1.21 -24.0%

31 Dec

31 Dec
2023 2022
Net working capital, M€ 120.6 164.5 -26.7%
Net-interest bearing debt, M€ 65.4 48.5 +35.0%
Solvency, % 50.5 55.2 -8.6%
Gearing, % 14.3 9.1 +57.7%


This financial statements bulletin is unaudited.

Uponor Corporation’s financial calendar 2024

28 Jun 2024       Annual General Meeting 2024
18 Jul 2024        Half-Year Financial Report 1–6/2024

Shareholders who wish to have items put on the agenda of the Annual General Meeting shall notify the company thereof latest by 10 May 2024 via email to agm@uponor.com.

Georg Fischer AG (GF) has acquired through a public tender offer more than 90 per cent of all the issued and outstanding shares and votes in Uponor. GF has on 17 November 2023 filed an application with the Redemption Committee of the Finland Chamber of Commerce to initiate compulsory redemption proceedings for the remaining shares under the Finnish Companies Act. GF has announced that it intends to cause the shares of Uponor to be delisted from Nasdaq Helsinki Ltd. as soon as permitted and practicable under applicable laws.

The publication of the half-year financial report 2024 is subject to the timing of the delisting and will be published only if there is a regulatory requirement for this.

For further information, please contact:
Markus Melkko, CFO, tel. +358 20 129 2038

Nasdaq Helsinki

About Uponor
Uponor, a leading global provider of sustainable and innovative flow solutions, was acquired in November 2023 and became a division of Georg Fischer. We help customers in residential and commercial construction be more productive and continuously find new ways to conserve, manage and provide water responsibly in buildings and homes, unlocking its potential to provide comfort, health and efficiency. Our safe drinking and waste water solutions as well as energy-efficient radiant heating and cooling solutions are sold in more than 80 countries. www.uponorgroup.com




Uponor Financial Statements Bulletin 2023