#Sweden #Stockholm #FoodTech #Munters Group #DCT

Munters Group AB's Strong Performance in Q1 2025

In the first quarter of 2025, Munters Group AB experienced significant growth in its order intake and overall revenues despite challenging market conditions. Reporting an impressive 27% increase in order intake and an 18% rise in net sales, the company demonstrated robust performance driven primarily by its Data Center Technologies (DCT) and FoodTech sectors.

Overview of Financial Performance

During the January-March period, Munters reported an organic growth of 8% in order intake, with DCT and FoodTech being the standout performers. While DCT showcased one of the highest first-quarter order intakes in its history, bolstered by solid demand across multiple customer segments in the data center sector, FoodTech's performance benefited from several new customer agreements, strengthening its position in the market.

On the other hand, the AirTech segment reported a decline, attributed to ongoing challenges in the battery market. The overall financial health remains solid, reflected in the stable cash flow from operating activities and improved working capital management, with the OWC/net sales ratio moving within the company’s target range.

Strategic Changes and Divestment Plans

A notable strategic move for Munters has been its decision to divest the FoodTech Equipment offering for MEUR 97.5, which is expected to close in the second quarter of 2025. This divestment marks a shift in focus towards a more digital-oriented strategy that emphasizes software and control systems rather than hardware-based offerings.

Additionally, the company has acquired the remaining shares in MTech Systems, further showcasing its commitment to enhancing its digital capabilities within the FoodTech space. These strategic transitions are aimed at enhancing the company’s growth prospects in a rapidly evolving market.

CEO Insights and Market Monitoring

CEO Klas Forsström expressed optimism about the company’s performance amid a volatile macroeconomic environment. He highlighted the sustainable growth trends driving Munters, including increased data traffic, the electrification of society, and a global push towards more sustainable food production.

Forsström acknowledged the impact of economic uncertainties, particularly concerning trade tariffs, but affirmed that Munters’ established regional production strategy offers a competitive edge and resilience in challenging times. The company’s strategic approach ensures that approximately 90% of sales in key regions are produced locally, enabling quicker response times and stronger customer ties.

Future Outlook

Looking ahead, Munters remains focused on executing its growth strategy and enhancing efficiencies across its operations. With strong momentum in DCT and FoodTech, the company is well-positioned to capitalize on upcoming opportunities while also addressing challenges in the AirTech segment. Efforts to improve service offerings and growth in component business within AirTech are underway, with plans to regionalize production to bolster capabilities.

In summary, Munters Group AB's performance in Q1 2025 showcases a resilient approach amid uncertainties, with strategic shifts in focus likely to play a crucial role in its future growth trajectory. The company’s proactive steps are expected to strengthen its market position further and enhance profitability moving forward.

Join the Discussion

For stakeholders and analysts looking for detailed discussions regarding Munters’ performance and outlook, a public webcast hosted by CEO Klas Forsström and CFO Katharina Fischer will be held on April 29, 2025, providing insights into the company's financial report and future plans.