Food & Water Division
The division offers different types of products for heat transfer, separation and hygienic fluid handling and targets customers in food, pharmaceuticals, biotech, vegetable oils, brewery, dairy and body care products. In addition, the division focuses on public and industrial water treatment as well as wastewater and waste treatment.
The Food & Water Division consists of six Business Units: Decanters, Food Heat Transfer, Food Systems, Hygienic Fluid Handling, High Speed Separators and Desmet.
| Food & Water Division | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Orders received | 26,368 | 21,909 |
| Order backlog 1) | 15,977 | 14,381 |
| Net sales | 25,280 | 20,691 |
| Operating income 2) | 3,698 | 3,339 |
| Adjusted EBITA 3) | 3,942 | 3,458 |
| Adjusted EBITA margin 4) | 15.6% | 16.7% |
| Depreciation | 502 | 449 |
| Amortisation | 244 | 119 |
| Investments 5) | 472 | 360 |
| Assets 1) | 20,376 | 21,196 |
| Liabilities 1) | 8,295 | 8,291 |
| Number of employees 1) | 8,283 | 8,052 |
1) At end of period. 2) Excluding comparison distortion items. 3) Alternative performance measure. 4) Adjusted EBITA/net sales. 5) Excluding new leases.
Order intake
| Order bridge | ||
| Consolidated | ||
| SEK millions/% | 2023 | 2022 |
| Order intake last year | 21,909 | 16,664 |
| Organic 1) | 0.0% | 11.8% |
| Structural 1) | 15.4% | 7.5% |
| Currency | 5.0% | 12.2% |
| Total | 20.4% | 31.5% |
| Order intake current year | 26,368 | 21,909 |
1) Change excluding currency effects.
The organic growth was flat compared to last year despite generally weaker macro-economic conditions, where high inflation and geo-political uncertainty impacted the propensity to investment for several customers and industries. However, primarily the sustainability related areas were disconnected from the weaker macro-economic activity and grew, thereby compensating for declining areas. The division held on to its market shares through a strong presence and technological leadership in many areas, a result of the innovation focus and R&D spending since several years back. Geographically, Europe was showing a somewhat higher activity and the North American market a somewhat lower activity, to a large extent due to a non-repeat of a very large order in 2022. Asia overall was unchanged but held back by a lower activity in China.
The order intake for dairy was almost unchanged, following previous years of significant capacity build up in the industry, both in the industrialised and the developing part of the world. The pharma and biotech market was down after several years of constant growth. A short-term saturation post the pandemic years has been noted, with previously ordered additional capacity now being commissioned. This is evident not least in China. The trend is however still to invest in upgrading national supply chains in the pharma sector to avoid vulnerability in future critical or high demand situations. The waste & water industry contracted slightly. Many countries prioritize the water sector, approving governmental support to encourage investments but releasing funding typically takes longer than planned. The activity in traditional oils & fats was good. The ever more important HVO* technology for biodiesel also grew and combined with the growth in ethanol, they represented an important part of the sustainability related business. The growth in ethanol is very much driven by environmental regulation. One example being higher blending requirements in petrol globally, not least in the U.S., Brazil and India, but also higher oil prices driving demand for alternative fuels. The brewery sector was down and not comparable with last year with the largest order ever of SEK 721 million, for a new brewery in North America last year. Overall new capacity addition in the industry has been somewhat lower during the year.
The aftermarket was strong across almost all key industries. Growth was solid for parts, but even stronger for service scopes. A wider presence and a structured approach of addressing the installed base of equipment following several years of strong new sales, contributed to the overall growth.
* Hydrotreated Vegetable Oil.
Net sales
| Sales bridge | ||
| Consolidated | ||
| SEK millions/% | 2023 | 2022 |
| Net sales last year | 20,691 | 14,640 |
| Organic 1) | 5.2% | 13.0% |
| Structural 1) | 12.0% | 15.4% |
| Currency | 5.0% | 12.9% |
| Total | 22.2% | 41.3% |
| Net sales current year | 25,280 | 20,691 |
1) Change excluding currency effects.
Net sales increased compared to last year, secured through a 2023 opening backlog being solid and benefitting from a more normalized supply chain after several years of disruption. Sales of capital equipment was solid, but aftermarket sales were very strong during the year, which changed the mix somewhat. Net sales grew above average in pharma, water, ethanol, protein, prepared food as well as brewery and was flat or contracted somewhat in dairy and oils & fats.
Adjusted EBITA
| Income bridge | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Adjusted EBITA last year | 3,458 | 2,680 |
| Volume 1) | 1,097 | 1,496 |
| Mix 1) | -261 | -420 |
| Costs 1) | -490 | -582 |
| Currency | 138 | 284 |
| Adjusted EBITA current year | 3,942 | 3,458 |
1) Change excluding currency effects.
The adjusted EBITA increased compared to last year, mainly driven by a positive volume effect. The negative mix effect is explained by the mix between product groups, a higher share of large projects with higher project related costs and the Desmet project business, partly mitigated by the higher service share. Costs increased as a result of general inflationary pressure and an overall high business activity, partly mitigated by a positive currency effect.