Nokian Tires reports 26% growth in net sales for the quarter

Nov 08, 2021

Nokian Tires reports 26% growth in net sales for the quarter

Nokian Tires' net sales in the third quarter of 2021 were up 26.8% year-on-year to € 443.5 million.

Adjusted operating income was € 96.9 million.

“In the third quarter of 2021, we achieved record results compared to the same periods in the entire history of the group. Thanks to the excellent performance of all our divisions and business regions, as well as early delivery times, net sales in comparable currencies were up 24.6% compared to Q3 2020, '' said Jukka Moisio, President and CEO of Nokian Tires. ... “In September, we announced an updated growth strategy for Nokian Tires and updated financial and non-financial targets. The non-financial targets are focused on introducing new environmental and product safety technologies, reducing CO₂ emissions, further improving workplace safety and monitoring supplier sustainability. Nokian Tires' financial goals are to achieve € 2 billion in net sales and maintain high margins, targeting an adjusted operating profit and an adjusted return on capital employed (ROCE) of 20%. ”

Between January and September 2021, net sales amounted to € 1,201.5 million (€ 900.4 million in January-September 2020) and increased by 33.4%. Adjusted operating income was € 236.8 million (€ 110.1 million in the same period in 2020), with a negative currency impact of approximately € 14 million. Operating profit amounted to € 215.2 million (€ 48.6 million in January-September 2020).

In the third quarter of 2021, Nokian Tires' raw material costs (€ / kg) in production, including the cost of inbound logistics, increased by 25.1% compared to the same period in 2020, under the negative impact of exchange rates, and increased by 11 , 7% compared to Q2 2021.

From January to September 2021, Nokian Tires' raw material costs (€ / kg), including inbound logistics costs, increased by 6.8%, under the negative influence of currencies, compared to the same period last year.

Investments for the first three quarters of 2021 amounted to 59.6 million euros (118.5 million euros in the same period in 2020).

In the third quarter of 2021, net sales of tires for passenger cars and SUVs were € 330.6 million (€ 254.9 million in the third quarter of 2020).

Net sales were up in all major markets. The average selling price in comparable currencies improved as price increases more than offset the negative impact of the higher share of Russian volume. Currencies had a positive impact on the average selling price.

Adjusted operating income of € 97.7 million (€ 71.8 million in the third quarter of 2020) driven by increased sales.

Nokian Tires' Russian plant was operating at full capacity to ensure the availability of premium tires from Nokian Tires.

From January to September 2021, net sales of tires for passenger cars and SUVs were € 856.4 million (€ 609.2 million). Net sales increased in all major markets of the Group. The average selling price in comparable currencies remained at the level of the previous year. The increase in prices compensates for the negative impact of the higher share of the Russian market, as well as summer and all-season tires. Currencies had a negative impact on the average selling price.

In January - September 2021, the share of sales of winter tires was 61% (67% in the same period of 2020), the share of sales of summer tires was 24% (20%), and the share of sales of all-season tires was 15% (13%).

Adjusted operating income of € 221.1 million (€ 111.3 million in January-September 2020) driven by increased sales.

In January - September 2021, the production in pieces increased by 46% compared to the same period last year. In January - September 2021, 82% (87%) of tires for passenger cars and SUVs under the Nokian Tires brand were produced at a plant in Russia. Additional production shifts have been introduced at Nokian Tires' plants in the USA and Finland to increase production.

In January 2021, Nokian Tires unveiled the new Nokian Hakkapeliitta 10 studded passenger car tires and the Nokian Hakkapeliitta 10 SUV for SUVs and crossovers, as well as the Nokian Nordman 8 and Nokian Nordman 8 SUVs in the mid-price segment. For the first time in history, Nokian Tires has additionally launched specially designed versions of its flagship product for the Russian market - the Nokian Hakkapeliitta 10p and Nokian Hakkapeliitta 10p SUV. These models are designed for maximum safety on winter roads whilst fully complying with Russian winter tire regulations. Also in the lineup there was a studded novelty Nokian Hakkapeliitta 10 EV - modification of fl


© Tirebird, 2020