Nilfisk presents its full-year 2023 results with a revenue of 1,033.6 mEUR, compared to 1,069.5 mEUR in 2022. The decline was mostly driven by currency effects. Nilfisk delivered solid progress on most financial business metrics including significant gross margin expansion, very strong free cash flow, a visible reduction of NIBD and consequently also lower gearing.
The Service Business delivered strong growth while soft demand in EMEA and also in North America negatively impacted equipment sales. Organic growth for 2023 was -0.3% and the EBITDA margin before special items was 12.8%, both in line with Nilfisk’s outlook for 2023.
CEO of Nilfisk, René Svendsen-Tune comments:
“Nilfisk closed the year with significant progress on most financial business metrics and an acceptable set of results for 2023. We saw pockets of growth across the business, for example in LATAM and APAC, and the Service Business continued to grow.”
Solid Service Business growth
A strategic priority according to Nilfisk’s Business Plan 2026 is the Service Business, which grew 5.5% organically in 2023 driven by solid demand.
“The Service Business continued to benefit from our strategic focus and solid customer demand, and we see potential for expanding this business further over the coming years,” says CEO of Nilfisk, René Svendsen-Tune.
Solid progress with most financial business metrics
Nilfisk delivered a significant increase on the gross margin to 40.9% for the year, up from 39.5% in 2022. The expansion was driven by price management, favorable product mix and cost control offsetting inflation on raw materials and labor.
In addition, Nilfisk completed cost measures that delivered the expected 10 mEUR reduction of overhead costs in 2023, creating a solid platform going into 2024.
Free cash flow more than doubled from 2022 and reached 115.2 mEUR in 2023. Net debt was significantly reduced by 72.5 mEUR to 252.2 mEUR, and the gearing declined from 2.3x to 1.9x. Gearing is now within Nilfisk’s target range.
Steady progress with Business Plan 2026 and notable progress within sustainability
2023 was a year of steady progress with Business Plan 2026. Nilfisk continued to invest and structured the organization to build a strong foundation for long-term sustainable growth. Consequently, Nilfisk confirms its Business Plan 2026 financial targets and 2030 sustainability targets.
In addition, to align with new Danish regulation, Nilfisk revised its diversity target and increased its ambitions in this important area. The mid-term target is increased from 25% women in senior management by 2026 to 34% women in top management in 2026, and a longer-term target of equal representation in top management by 2030 is added.
Nilfisk also made notable progress with reducing Scope 1, 2, and Scope 3 greenhouse gas emissions in 2023, achieving a 16% reduction in Scope 1 and 2 from 2019 (10% in 2022) and a 25% reduction in Scope 3 (use of sold products) from 2021 (11% in 2022). Finally, Nilfisk was awarded an Ecovadis Silver Medal, scoring 65 out of 100 points, 20 points above the average in our industry.
CEO of Nilfisk, René Svendsen-Tune, comments:
“Overall, we took important steps during 2023 to build a strong foundation for the acceleration of Business Plan 2026 in the years ahead. An area that developed faster than planned is sustainability where we accelerated our efforts to reduce emissions and increase gender diversity. The progress with reducing Scope 1, 2, and Scope 3 greenhouse gas emissions took a solid leap forward in 2023 and we are on track to meet our 2030 science-based targets.”
Outlook for 2024
For 2024, organic revenue growth is expected to be in the range of 3% to 6% and the EBITDA margin before special items is expected to be in the range of 13% to 15%.
CAPEX spend is expected around 4% of revenue with more than half directed towards product investments.
Key figures
mEUR | FY 2023 | FY 2022 | Q4 2023 | Q4 2022 |
Revenue | 1,033.6 | 1,069.5 | 252.9 | 270.3 |
Organic growth | -0.3% | 4.9% | -2.9% | 2.3% |
Gross margin | 40.9% | 39.5% | 41.8% | 40.0% |
Overhead costs | 351.4 | 342.5 | 86.3 | 84.7 |
Overhead costs ratio | 34.0% | 32.0% | 34.1% | 31.3% |
EBITDA before special items | 132.4 | 140.8 | 35.1 | 39.5 |
EBITDA margin before special items | 12.8% | 13.2% | 13.9% | 14.6% |
CAPEX ratio | 3.0% | 2.5% | 4.3% | 3.3% |
Free cash flow | 115.2 | 54.5 | 32.2 | 48.4 |
Net interest-bearing debt | 252.2 | 324.7 | 252.2 | 324.7 |
Financial gearing | 1.9 | 2.3 | 1.9 | 2.3 |
Press contact
Nynne Jespersen Lee
Head of Communication & Media Relations
T: +45 42310007
M: njespersen@nilfisk.com
About Nilfisk
Nilfisk was founded in 1906 by the Danish engineer P.A. Fisker. Today the company is a world-leading global provider of professional cleaning equipment and services. More than 90% of sales are for professionals while the remaining part of the business aimed at consumers covers floorcare equipment, vacuum cleaners, and high-pressure washers.
Nilfisk’s products and services are sold in more than 100 countries and produced at 9 manufacturing sites across the globe. The main facilities are in the US, Mexico, Hungary, Italy, and China. A total of approximately 4,700 employees secured revenue of 1,033.6 mEUR in 2023. The largest single market is the USA covering 30% of revenue in 2023, followed by Germany (14%), France (10%), Denmark (6%) and the UK (4%).
