Nokian Tyres have released their latest financial statement for 2021.
- Net sales were EUR 512.6 million (413.4 in October−December 2020) and grew by 24.0%. With comparable currencies, net sales increased by 18.4%.
- Segments operating profit was EUR 88.0 million (80.1). Operating profit was EUR 53.0 million (71.4). EUR -35.0 million (-8.7) was booked as non-IFRS exclusions, including EUR -20.6 million impairment of goodwill and other assets.
- Segments earnings per share were EUR 0.49 (0.44). Earnings per share were EUR 0.27 (0.40).
- Cash flow from operating activities was EUR 492.6 million (429.0).
- Net sales were EUR 1,714.1 million (1,313.8 in 2020) and grew by 30.5%. With comparable currencies, net sales increased by 29.7%.
- Segments operating profit was EUR 324.8 million (190.2). Operating profit was EUR 268.2 million (120.0). EUR -56.7 million (-70.2) was booked as non-IFRS exclusions, including EUR -21.0 million impairment of goodwill and other assets.
- Segments operating profit margin was 19.0% (14.5%).
- Segments earnings per share were EUR 1.84 (1.04). Earnings per share were EUR 1.49 (0.62).
- Segments ROCE was 15.8% (9.3%).
- Cash flow from operating activities was EUR 396.5 million (422.4).
- In September, Nokian Tyres announced its revised mid-term strategy and updated targets. In mid-term, net sales target is EUR 2 billion. Target for segments operating profit margin and segments ROCE is at the level of 20%.
- The Board of Directors proposes a dividend of EUR 1.32 (1.20) per share for the financial year 2021 to be paid in two instalments.
Guidance for 2022
In 2022, Nokian Tyres’ net sales with comparable currencies are expected to grow significantly and segments operating profit is expected to grow.
The global car and tire demand is expected to grow. The COVID-19 pandemic continues to cause uncertainties, including cost inflation and availability challenges, in the whole automotive value chain. In addition, current geopolitical situation causes uncertainties in 2022.
Jukka Moisio, President and CEO:
“Nokian Tyres’ team did an excellent job in an eventful year of 2021, delivering record high net sales and improved profit combined with strong cash flow and stronger market position in all key areas. This achievement builds a foundation to continue on the same path toward EUR 2 billion net sales and improved profit targets. I want to thank everyone at Nokian Tyres for making 2021 such a successful year.
In October–December 2021, tire demand continued on a high level. Our net sales with comparable currencies increased by 18.4%, driven by higher sales volume and increased Average Selling Price. Net sales grew in all our business units and areas. Segments operating profit improved due to net sales growth, and our fourth quarter cash flow was strong.
During the second half of 2021, we witnessed sharp increase in raw material and logistics costs. We responded to this with sales price increases. Inflationary pressures are expected to continue in 2022, which will require systematic price increases and careful cost control going forward.