Valmet, a Finnish industrial equipment and automation company, has reported a 17-per cent year-on-year (YoY) increase to €1,552 million in orders received in the first quarter (Q1) of fiscal 2023 (FY23), compared to the same period last year. Orders received also increased in South America, North America, and Europe, the Middle East, and Africa (EMEA), remained stable in Asia-Pacific, and decreased in China.

The order backlog at the end of the reporting period amounted to €4,595 million, the same level as at the end of December 2022 and March 2022. Net sales for Q1 FY23 increased by 38 per cent YoY to €1,321 million. Net sales increased in all three segments, with stable business accounting for 52 per cent of Valmet’s net sales, the company said in a press release.

Measured by net sales in Q1 FY23, the top three countries were the USA, China, and Brazil, which together accounted for 42 per cent of total net sales. Comparable EBITA increased by 68 per cent YoY to €133 million in Q1 FY23, corresponding to 10.1 per cent of net sales. Operating profit (EBIT) for Q1 FY23 was €97 million, 7.3 per cent of net sales. Net financial income and expenses were minus €5 million.

The profit before taxes for Q1 FY23 was €91 million, with the profit attributable to owners of the parent being €70 million, corresponding to earnings per share (EPS) of €0.38. Adjusted EPS was €0.51.

Valmet estimates that net sales in FY23 will increase compared to FY22 (€5,074 million), and Comparable EBITA in FY23 will also increase compared to FY22 (€533 million).

President and CEO Pasi Laine said: “Valmet’s orders received increased to €1.55 billion in the first quarter of 2023. This is a record-high quarterly order intake for us. Orders received increased in the services and automation segments and decreased in the process technologies segment. Orders received in Valmet’s stable business totalled €3.2 billion during the last four quarters. Valmet has a strong order backlog amounting to €4.6 billion at the end of the quarter.

“The first quarter was good also in terms of net sales and comparable EBITA, which both increased. Net sales increased in all segments. Comparable EBITA margin was 16.1 per cent in services, 16.3 per cent in automation and 4.7 per cent in process technologies. Valmet’s comparable EBITA increased to €133 million and margin to 10.1 per cent.”