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Robit Oyj
Quarterly Report • Apr 23, 2024
3337_10-q_2024-04-23_13fd0205-2f72-498d-9f51-a4fdd9f20818.pdf
Quarterly Report
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Interim Report January – March 2024
ROBIT PLC INTERIM REPORT 1 JANUARY–31 MARCH 2024: PROFITABILITY IMPROVED SIGNIFICANTLY
Q1 refers to the period from 1 January to 31 March 2024. Figures from the corresponding period in 2023 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.
1 January–31 March 2024 in brief
- Net sales EUR 22.8 million (21.9); change 4.0%
- EBITDA and comparable EBITDA EUR 2.1 million (0.1); 9.0% of net sales (0.3)
- EBIT and comparable EBIT EUR 1.1 million (-1.4); 4.7% of net sales (-6.3)
- Review period net income EUR 0.5 million (-1.7)
- Net cash flow for operating activities EUR 0.9 million (-1.3)
- Equity ratio at the end of the review period 49.3% (46.6)
| Key financials | Q1 2024 | Q1 2023 | Change% | 2023 |
|---|---|---|---|---|
| Net sales, EUR 1,000 | 22 803 | 21 933 | 4.0% | 92 917 |
| EBITDA, EUR 1,000 | 2 052 | 61 | >100% | 5 172 |
| EBITDA, % of net sales | 9.0% | 0.3% | 5.6% | |
| Comparable EBITDA, EUR 1,000 | 2 052 | 61 | 5 004 | |
| Comparable EBITDA, % of net sales | 9.0% | 0.3% | 5.4% | |
| EBIT, EUR 1,000 | 1 072 | -1 389 | >100% | 116 |
| EBIT, % of net sales | 4.7% | -6.3% | 0.1% | |
| Comparable EBIT, EUR 1,000 | 1 072 | -1 389 | >100% | -53 |
| Comparable EBIT, % of net sales | 4.7% | -6.3% | -5.7% | |
| Result of the period, EUR 1,000 | 508 | -1 670 | >100% | -3 019 |
| Result of the period, % of net sales | 2.2% | -7.6% | -3.2% | |
| Earnings per share (EPS), EUR 1,000 | 0,02 | -0,08 | -0,14 | |
| Return on equity (ROE), % | 3.9% | -14.3% | -6.3% | |
| Return on capital employed (ROCE), % | 5.5% | -6.5% | 0.4% |
MARKET OUTLOOK FOR 2024
Robit expects the global mining industry demand to remain at the current good level. Demand in the construction industry is expected to remain at the current satisfactory level in the short term. Project activity in the construction industry has picked up after bottoming out in 2023. With the projects' commencements progressing, demand is expected to develop positively in the second half of the year.
GUIDANCE FOR 2024
Robit expects net sales for 2024 and adjusted EBIT profitability in euros to improve from 2023.
Background to the guidance
The guidance is based on the assessment that demand in the mining industry will remain at a good level and that demand in the construction industry will develop positively in the second half of 2024. In addition, the guidance is based on the assumption that there will be no significant changes in the exchange rates from the level at the end of 2023.
In 2024, Robit will switch to using comparable EBIT profitability in its guidance instead of the previous comparable EBITDA profitability. In 2023, comparable EBIT was EUR -0.1 million.
CEO ARTO HALONEN:
In the early part of the year, market demand remained at the level of the end of 2023. Demand in the mining industry remained strong. Demand in the construction industry remained low. Especially in the Nordic well drilling market, the work situation of customers has been weak after several strong years. However, there are signs of moderately improved demand in the construction industry, especially as demand for infrastructure construction is picking up. Orders received during the review period totalled EUR 23.2 million, down by 0.6% growth from the corresponding period.
Robit's net sales grew by 4.0% on the previous year and totalled EUR 22.8 million (21.9). In constant currencies, there was an increase of 6.7%. The net sales grew, driven by the Top Hammer business, which grew by 10.1%. Net sales in the Down the Hole business decreased by 4.8%, primarily driven by the well drilling segment, which is especially important to the business. Net sales in the Geotechnical business decreased by 4.0% due to the low demand in the construction industry in the Nordic countries. The company's growth came from the Australasian region. Sales were boosted by new customers and good demand from existing customers in the region. In the EMEA & East region, sales remained at the level of the corresponding period. Net sales decreased in Asia and the Americas. The decline in sales in the Americas region came from South America, mainly due to the loss of an unprofitable customer in 2023.
In the first quarter, comparable EBIT grew clearly and was EUR 1.1 million (-1.4). As a percentage of net sales, the EBIT was 4.7 (-6.3). The measures already taken by the company to strengthen profitability and competitiveness were reflected in the result. We will continue the measures by focusing in particular on renewing the product offering and promoting cost-saving measures.
The Fit for Service programme focused on working capital management continued. The company's inventory value decreased by EUR 1.8 million from the level at the end of 2023. In 2024, we will focus in particular on improving the inventory turnover rate. The decrease in inventory value and strengthened profitability supported the improvement of the cash flow from the company's business operations to EUR 0.9 million (-1.3).
The company updated its long-term aims. We aim to increase our market share by growing faster than the average market growth. Our long-term profitability target is over 10% comparable EBIT.
NET SALES
Net sales by product area
| EUR thousand | Q1 2024 | Q1 2023 | Change% | 2023 |
|---|---|---|---|---|
| Top Hammer | 13 996 | 12 717 | 10.1% | 54 406 |
| Down the Hole | 5 016 | 5 268 | -4.8% | 20 862 |
| Geotechnical | 3 791 | 3 948 | -4.0% | 17 648 |
| Total | 22 803 | 21 933 | 4.0% | 92 917 |
The Group's net sales for the review period totalled EUR 22.8 million (21.9), an increase of 4.0% from the corresponding period. In constant currencies, the growth was 6.7%.
The Top Hammer business grew by 10.1%, the net sales for the review period being EUR 14.0 million (12.7). Net sales in the Top Hammer business increased especially in the Australasia region, driven by new customers, and growth also came from the EMEA region.
The Down the Hole business decreased by 4.8%, the net sales for the review period being EUR 5.0 million (5.3). Net sales in the Down the Hole business declined in the Americas region and especially in the well drilling segment.
The Geotechnical business decreased by 4.0%, the net sales for the review period being EUR 3.8 million (3.9). The decrease in net sales was affected by the low activity of the construction industry during the early part of the year.
Net sales by market area
Robit is combining the East market with the EMEA market for reporting net sales for 2024 due to the relatively small size of the East area's net sales as part of the group's net sales.
| EUT thousand | Q1 2024 | Q1 2023 | Change% | 2023 |
|---|---|---|---|---|
| EMEA & East | 11 334 | 11 299 | 0.3% | 47 279 |
| Americas | 4 485 | 4 991 | -10.1% | 20 840 |
| Asia | 2 127 | 2 196 | -3.1% | 8 950 |
| Australasia | 4 857 | 3 447 | 40.9% | 14 835 |
| Total | 22 803 | 21 933 | 4.0% | 92 917 |
PROFITABILITY
| Key figures | Q1 2024 | Q1 2023 | Change% | 2023 |
|---|---|---|---|---|
| EBITDA, EUR 1,000 | 2 052 | 61 | >100% | 5 172 |
| EBITDA, % of net sales | 9.0% | 0.3% | 5.6% | |
| Comparable EBITDA, EUR 1,000 | 2 052 | 61 | >100% | 5 004 |
| Comparable EBITDA, % of net sales | 9.0% | 0.3% | 5.4% | |
| EBIT, EUR 1,000 | 1 072 | -1 389 | >100% | 116 |
| EBIT, % of net sales | 4.7% | -6.3% | 0.1% | |
| Comparable EBIT, EUR 1,000 | 1 072 | -1 389 | >100% | -53 |
| Comparable EBIT, % of net sales | 4.7% | -6.3% | -5.7% | |
| Result for the period, EUR 1,000 | 508 | -1 670 | >100% | -3 019 |
| Result for the period, % of net sales | 2.2% | -7.6% | -3.2% |
The review period comparable EBITDA was EUR 2.1 million (0.1) Comparable EBITDA's share of net sales was 9.0% (0.3). The company's comparable EBIT was EUR 1.1 million (-1.4). The comparable EBIT was 4.7% (-6.3) of the review period's net sales.
Profitability in the review period improved significantly from the corresponding period. The effects of the company's cost saving program were mainly reflected in the profitability of the review period.
Financial income and expenses totalled EUR -0.5 million (-0.4), of which EUR -0.5 million (-0.3) was interest expenses and EUR 0.0 million (0.0) was changes in foreign exchange rates. The company's financing costs increased during the review period due to the new covenant agreement made in 2023. On March 31, 2024, the company achieved a covenant level of 2.49, as a result of which it reverts to the original covenant agreement.
CASH FLOW AND INVESTMENTS
Consolidated cash flow statement
| EUR thousand | Q1 2024 | Q1 2023 | 2023 |
|---|---|---|---|
| Net cash flows from operating activities | |||
| Cash flows before changes in working capital | 2 137 | 116 | 4 509 |
| Cash flows from operating activities before financial items and taxes |
1 150 | -673 | 11 074 |
| Net cash inflow (outflow) from operating activities | 870 | -1 335 | 8 353 |
| Net cash inflow (outflow) from investing activities | 1 599 | -460 | 1 102 |
| Net cash inflow (outflow) from financing activities | -336 | -303 | -4 069 |
| Net increase (+)/decrease (-) in cash and cash equivalents | 2 134 | -2 100 | 5 386 |
| Cash and cash equivalents at the beginning of the financial year | 11 201 | 7 688 | 6 085 |
| Exchange gains/losses on cash and cash equivalents | -18 | -127 | -269 |
| Cash and cash equivalents at the end of the period | 13 307 | 5 461 | 11 201 |
The Group's cash flow before changes in working capital during the review period was EUR 2.1 million (0.1). The net cash flow of operating activities decreased to EUR 0.9 million (-1.3). The changes in working capital had an impact of EUR -1.0 million (-0.8). The change in working capital was positively affected by a decrease in accounts payable of EUR 0.7 million and an increase in inventories of EUR 1.7 million. The increase in sales and other receivables had an impact on cash flow of EUR 3.4 million.
The net cash flow from investing activities was EUR 1.6 million (-0.5), which was mainly due to the redemption of other financial assets into cash and cash equivalents. Gross investments in production were low as planned at EUR 0.1 million (0.2). The share of investments in net sales was 0.6% (1.1).
The net cash flow for financing was EUR -0.3 million (-0.3). According to IFRS 16, the repayments of lease liabilities reported totalled EUR -0.3 million (-0.3).
Depreciation, amortisation and write-downs totalled EUR 1.0 million (1.4).
FINANCIAL POSITION
| 31 Mar 2024 | 31 Mar 2023 | 31 Dec 2023 | |
|---|---|---|---|
| Cash and cash equivalents, EUR thousand | 13 317 | 3 858 | 11 201 |
| Interest-bearing liabilities, EUR thousand | 31 178 | 35 605 | 32 532 |
| of which short-term interest-bearing financial liabilities | 6 349 | 8 715 | 6 463 |
| Net interest-bearing liabilities, EUR thousand | 17 861 | 30 144 | 21 331 |
| Undrawn credit facility, EUR thousand | 4 000 | 4 045 | 4 000 |
| Gearing, % | 38.7% | 66.4% | 46.7% |
| Equity ratio, % | 49.3% | 46.6% | 48.5% |
The Group had interest-bearing debt amounting to EUR 31.2 million (35.6), of which EUR 4.1 million (6.5) was interest-bearing debt under IFRS 16. The company has reassessed the valuation of certain leases on the
balance sheet, and this has reduced liabilities under IFRS 16 by approximately EUR 0.9 million. The Group's liquid assets totalled EUR 13.3 million (3.9). Interest-bearing net debt was EUR 17.9 million (30.1), and interestbearing net bank debt without IFRS 16 debt impact was EUR 13.8 million (23.6).
The Group's equity at the end of the review period was EUR 46.3 million (47.8). The Group's equity ratio strengthened to 49.3 (46.6) and gearing stood at 38.7% (66.4).
PERSONNEL AND MANAGEMENT
The number of personnel decreased by 34 persons from the end of the comparison period, and at the end of the review period was 218 (252). At the end of the review period, 69% of the company's personnel were located outside Finland. The company also had 51 leased labour personnel (50) working mainly in mining contract customers.
In addition to CEO Arto Halonen, the company's Management Team at the end of the reporting period included Perttu Aho (VP Down the Hole), Ville Iljanko (VP Distributor Sales), Jorge Leal (VP Top Hammer), Ville Peltonen (CFO), Ville Pohja (VP Geotechnical) and Jaana Rinne (HR Director).
LONG-TERM FINANCIAL TARGETS
Robit's long-term target is to grow faster than average market growth and achieve EBIT profitability of more than 10%.
| Long-term target |
2022 | 2023 | Rolling 12 months per 31 Mar 2024 |
|
|---|---|---|---|---|
| Comparable EBIT, % of net sales, p.a. | >10% | 2.7% | -5.7% | 2.7% |
RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2024
Robit Plc's Annual General Meeting was held in Tampere on 3 April 2024. The decisions and other materials related to the meeting are available on the company's website at
https://www.robitgroup.com/investor/corporate-governance/general-meeting/.
SHARES AND SHARE TURNOVER
On 31 March 2024, the company had 21,179,900 shares and 5,464 shareholders. Trading volume in January– March was 1,138,276 shares (4,670 247).
The company holds 47,190 treasury shares (0.2% of total shares). On 31 March 2024, the market value of the company's shares was EUR 34.5 million. The closing price of the share was EUR 1.63. The highest price in the review period was EUR 2.05 and the lowest price EUR 1.31.
RISKS AND BUSINESS UNCERTAINTIES
Robit's risks and uncertainties are related to possible changes in the company's operating environment and global economic and political developments. The company's ability to manage and prevent these risks varies.
Other uncertainties include the availability and cost of financing, exchange rate development, functioning of information systems, risks related to the security of supply and logistics as well as IPR risks. Passing on the increase in raw material costs fully to customer prices may pose a financial risk. Changes in export countries' tax and customs legislation may adversely impact the company's export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit's business. Potential changes in the business environment may adversely impact the payment behaviour of the Group's customers and increase the risk of litigation, legal claims and disputes related to Robit's products and other operations.
CHANGES IN GROUP STRUCTURE
There were no changes in the Group structure during the review period.
OTHER EVENTS DURING THE REVIEW PERIOD
On 19 January 2024, the company communicated the proposals of Robit Plc's Shareholders' Nomination Committee to the Annual General Meeting. The Nomination Committee's proposals were included in the notice to the Annual General Meeting. Timo Sallinen (Senior Vice-President, Investments, Varma Mutual Pension Insurance Company) chaired the Shareholders' Nomination Committee, with Harri Sjöholm (Chair of the Board of Five Alliance Oy), Jukka Vähäpesola (Head of Equities of Elo Mutual Pension Insurance Company) and Markus Lindqvist (Sustainability Director of Aktia Pankki Oyj) as the other members.
On 21 February 2024, Robit Plc published its financial statements release for 1 January–31 December 2023.
On 21 February 2024, the company sent Robit Plc's shareholders a notice to the Annual General Meeting of 3 April 2024.
On 13 March 2024, Robit Plc announced that the company had published its Annual Report, Corporate Governance Statement, Remuneration Report for 2023 and an updated Remuneration Policy on its website.
Later on 13 March 2024, the company published certain adjusted interim and half-yearly financial information for the financial year 2023.
EVENTS AFTER THE REVIEW PERIOD
Robit Plc's Annual General Meeting was held on 3 April 2024. The company announced the decisions of the Annual General Meeting in a separate stock exchange release on 3 April 2024.
On 3 April 2024, the company published the decisions of the constituent meeting of the company's Board of Directors. At its constituent meeting, the Board of Directors elected by Robit Plc's Annual General Meeting on 3 April 2024 elected from among its members Markku Teräsvasara as Chair of the Board and Harri Sjöholm as Vice Chair as well as members to serve on Robit Plc's Remuneration Committee, Working Committee and Audit Committee.
Robit Plc Board of Directors
Further information:
Robit Plc
Arto Halonen, CEO +358 400 280 717 [email protected]
Ville Peltonen, CFO +358 40 7599 142 [email protected]
Distribution: Nasdaq Helsinki Ltd Key media www.robitgroup.com
Robit is a global expert focused on high-quality drilling consumables for mining and construction markets to help you drill further and faster. Robit strives to be world number one company in drilling consumables. Through our high and proven quality Top Hammer, Down the Hole and Geotechnical products, and our expert services, we deliver saving in drilling costs to our customers. Robit has its own sales and service points in seven countries and an active distributor network through which it sells to more than 100 countries. Robit's manufacturing units are located in Finland, South Korea and the UK. Robit's share is listed on Nasdaq Helsinki Ltd. Further information at www.robitgroup.com.
The information presented above includes statements about future prospects. These relate to events or the company's economic development in the future. In some cases, such statements can be recognised by their use of conditional words (such as "may," "expected," "estimated," "believed," "predicted" and so on) or other similar expressions. Statements such as these are based on assumptions and factors that Robit's management have at their disposal and on current decisions and plans. There is always risk and uncertainty attached to any statements regarding future events because they pertain to events and depend on factors that are not possible to predict with certainty. For this reason, future results may differ – even significantly – from the figures expressed or assumed in statements about future prospects.
CONDENSED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR thousand | 1–3/2024 | 1–3/2023 | 2023 |
|---|---|---|---|
| Net sales | 22 803 | 21 933 | 92 917 |
| Other operating income | 387 | 488 | 1 882 |
| Materials and services* | -14 695 | -14 845 | -61 625 |
| Employee benefit expense | -3 549 | -3 984 | -15 388 |
| Depreciation and amortisation | -980 | -1 449 | -5 055 |
| Impairment | -132 | -138 | -205 |
| Other operating expense* | -2 762 | -3 393 | -12 409 |
| EBIT (Operating profit/loss) | 1 072 | -1 389 | 116 |
| Finance income and costs | |||
| Interest income and finance income | 151 | 56 | 214 |
| Interest cost and finance cost | -661 | -445 | -2 758 |
| Finance income and costs net | -510 | -389 | -2 544 |
| Profit/loss before tax | 562 | -1 777 | -2 427 |
| Taxes | |||
| Income tax | -4 | -4 | -444 |
| Change in deferred taxes | -50 | 111 | -148 |
| Income taxes | -54 | 108 | -592 |
| Result for the period | 508 | -1 670 | -3 019 |
| Attributable to: | |||
| Parent company shareholders | 471 | -1 764 | -3 048 |
| Non-controlling interest** | 37 | 95 | 29 |
| 508 | -1 670 | -3 019 | |
| Other comprehensive income | |||
| Items that may be reclassified to profit or loss in subsequent periods: | |||
| Cash flow hedges | 87 | -13 | -233 |
| Translation differences** | -78 | -1 415 | -1 402 |
| Other comprehensive income, net of tax | 9 | -1 427 | -1 624 |
| Total comprehensive income | 516 | -3 097 | -4 644 |
| Attributable to: | |||
| Parent company shareholders | 531 | -3 156 | -4 630 |
| Non-controlling interest** | -14 | 59 | -14 |
| Consolidated comprehensive income | 516 | -3 097 | -4 644 |
| Earnings per share Basic earnings per share |
0,02 | -0,08 | -0,14 |
*In the condensed income statement, changes in inventories are presented in Materials and services, and manufacture for own use in Other operating expenses.
**Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.
*** The Group has internal loans that are treated as net investments in foreign entities in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR thousand | 31.3.2024 | 31.3.2023 | 31.12.2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 5 393 | 5 248 | 5 308 |
| Other intangible assets | 790 | 1 264 | 817 |
| Property, plant and equipment | 17 867 | 23 298 | 19 561 |
| Loan receivables | 225 | 421 | 276 |
| Other receivables | 0 | 0 | 0 |
| Derivatives | 678 | 832 | 569 |
| Deferred tax assets | 1 133 | 1 828 | 1 417 |
| Total non-current assets | 26 085 | 32 891 | 27 948 |
| Current assets | |||
| Inventories | 34 281 | 44 270 | 36 054 |
| Account and other receivables | 19 902 | 20 220 | 16 820 |
| Loan receivables | 72 | 78 | 70 |
| Current tax assets | 227 | 145 | 323 |
| Other financial assets | 0 | 1 603 | 1 628 |
| Cash and cash equivalents | 13 317 | 3 858 | 11 201 |
| Total current assets Total assets |
67 798 93 883 |
70 175 103 065 |
66 096 94 043 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 705 | 705 | 705 |
| Share premium | 202 | 202 | 202 |
| Reserve for invested unrestricted equity | 82 147 | 82 570 | 82 147 |
| Translation differences | -3 131 | -3 173 | -3 103 |
| Fair value reserve | 542 | 665 | 455 |
| Retained earnings | -35 084 | -31 787 | -32 054 |
| Profit/loss for the year | 471 | -1 764 | -3 048 |
| Equity attributable to parent company shareholders in total | 45 852 | 47 418 | 45 304 |
| Non-controlling interests* | 311 | 398 | 325 |
| Capital and reserves in total | 46 163 | 47 816 | 45 629 |
| Liabilities Non-current liabilities |
|||
| Borrowings | 22 078 | 21 882 | 22 123 |
| Lease liabilities | 2 751 | 5 008 | 3 946 |
| Deferred tax liabilities | 354 | 592 | 389 |
| Employee benefit obligations | 548 | 727 | 504 |
| Total non-current liabilities | 25 731 | 28 209 | 26 962 |
| Current liabilities | |||
| Borrowings | 5 046 | 7 229 | 5 180 |
| Lease liabilities | 1 303 | 1 486 | 1 283 |
| Advances received | 333 | 377 | 22 |
| Income tax liabilities | 18 | 141 | 130 |
| Account payables and other liabilities | 15 206 | 17 803 | 14 742 |
| Other provisions | 83 | 5 | 97 |
| Total current liabilities | 21 989 | 27 040 | 21 453 |
| Total liabilities | 47 720 | 55 249 | 48 415 |
| Total equity and liabilities | 93 883 | 103 065 | 94 043 |
* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA
CONSOLIDATED CASH FLOW STATEMENT
| Cash flows from operating activities Profit before tax 562 -1 777 -2 427 Adjustments: Depreciation, amortisation, and impairment 980 1 449 5 055 Finance income and costs 510 389 2 610 Share-based payments to employees -18 93 -139 Loss (+)/Gain (-) on sale of property, plant and equipment -117 0 -959 Other non-cash transactions 220 -38 369 Cash flows before changes in working capital 2 137 116 4 509 Change in working capital Increase (-) in account and other receivables -3 377 886 3 629 Increase (-) / decrease (+) in inventories 1 660 -929 6 836 Increase (+) in account and other payables 720 -747 -3 900 Cash flows from operating activities before financial items and taxes 1 150 -673 11 074 Interest and other finance expenses paid -346 -452 -2 200 Interest and other finance income received 70 10 100 Income taxes paid -3 -221 -621 Net cash inflow (outflow) from operating activities 870 -1 335 8 353 Cash flows from investing activities Other financial assets increase (-) / decrease (+) 1 628 0 0 Purchases of property, plant and equipment -134 -189 -379 Purchases of intangible assets -12 -50 -64 Proceeds from the sale of property, plant and equipment 70 -37 1 571 Proceeds from loan receivables 47 -184 -26 Net cash inflow (outflow) from investing activities 1 599 -460 1 102 Cash flows from financing activities Acquisition of own shares 0 0 -150 Dividend payment 0 0 -441 Drawdowns of non-current loans -64 -186 3 500 Amortizations of non-current loans 0 0 -3 352 Change in bank overdrafts 0 173 -1 782 Payment of leasing liabilities -271 -290 -1 844 Net cash inflow (outflow) from financing activities -336 -303 -4 069 2 134 -2 100 5 386 Net increase (+)/decrease (-) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year 11 201 6 085 6 085 Exchange gains/losses on cash and cash equivalents -18 -127 -269 |
EUR thousand | 1–3/2024 | 1–3/2023 | 2023 |
|---|---|---|---|---|
| Cash and cash equivalents at end of the year | 13 317 | 3 858 | 11 201 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| A = Share capital | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| B = Share premium | |||||||||
| C = Reserve for invested unrestricted equity | |||||||||
| D = Cumulative translation difference | |||||||||
| E = Fair value reserve | |||||||||
| F = Retained earnings | |||||||||
| G = Equity attributable to parent company shareholders | |||||||||
| H = Non-controlling interests | |||||||||
| I = Capital and reserves in total | |||||||||
| Tuhatta euroa | A | B | C | D | E | F | G | H | I |
| Equity as at 1 January 2023 | 705 | 202 | 82 570 | -1 744 | 678 | -31 875 | 50 533 | 339 | 50 822 |
| Profit for the period | -1 764 | -1 764 | 95 | -1 669 | |||||
| Other comprehensive income | |||||||||
| Cash flow hedges | -13 | -13 | -13 | ||||||
| Translation differences | -1 429 | -1 428 | -36 | -1 464 | |||||
| Total comprehensive changes | -1 429 | -13 | -1 764 | -3 204 | 59 | -3 147 | |||
| Share-based payments to employees | 87 | 87 | 87 | ||||||
| Total transactions with owners, recognised directly in equity | 87 | 87 | 87 | ||||||
| Equity as at 31 March 2023 | 705 | 202 | 82 570 | -3 173 | 665 | -33 552 | 47 418 | 398 | 47 816 |
| EUR thousand | A | B | C | D | E | F | G | H | I |
| Equity as at 1 January 2024 | 705 | 202 | 82 570 | -3 103 | 455 | -35 102 | 45 304 | 325 | 45 629 |
| Profit for the period | 471 | -1 764 | 37 | 508 | |||||
| Other comprehensive income | |||||||||
| Cash flow hedges | 87 | -13 | 87 | ||||||
| Translation differences | -28 | -1 428 | -51 | -78 | |||||
| Total comprehensive changes | -28 | -13 | 471 | 530 | -14 | 516 | |||
| Share-based payments to employees | 18 | 18 | 18 | ||||||
| Total transactions with owners, recognised directly in equity |
18 | 18 | 18 | ||||||
| Equity as at 31 March 2024 | 705 | 202 | 82 570 | -3 131 | 542 | -34 613 | 45 852 | 311 | 46 163 |
NOTES
Contents
- 1. Scope and principles of the interim report
- 2. Key figures and calculation
- 3. Breakdown of net sales
- 4. Financing arrangements
- 5. Changes to property, plant and equipment
- 6. Given guarantees
- 7. Business acquisitions
- 8. Derivatives
1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT
This interim report has been prepared in accordance with the IAS 34 standard for interim financial reporting and using the same principles as for the annual financial statements. The interim report has not been audited.
Robit combines the 2024 net sales reporting of the East area with the EMEA area due to the relatively small size of the East area's net sales as part of the company's revenue.
All figures in the condensed financial statements and in the notes are rounded, which is why the sum of individual figures may deviate from the sum presented.
2.1 KEY FIGURES
| Consolidated key figures | Q1 2024 | Q1 2023 | 2023 |
|---|---|---|---|
| Net sales, EUR 1,000 | 22 803 | 21 933 | 92 917 |
| EBIT, EUR 1000 | 1 072 | -1 389 | 116 |
| EBIT, per cent of sales | 9,0 % | -6,3 % | 0,1 % |
| Earnings per share (EPS), EUR | 0,02 | -0,08 | -0,14 |
| Return on equity (ROE), % | 3,9 % | -14,3 % | -6,3 % |
| Return on capital employed (ROCE), % | 5,5 % | -6,5 % | 0,4 % |
| Equity ratio, % | 49,3 % | 46,6 % | 48,5 % |
| Net gearing, % | 38,7 % | 63,1 % | 46,7 % |
| Gross investments, EUR 1,000 | 146 | 239 | 443 |
| Gross investments, % of net sales | 0,6 % | 1,1 % | 0,5 % |
| Number of shares (outstanding shares) | 21 132 170 | 21 127 592 | 21 132 710 |
| Treasury shares (owned by the Group) | 47 190 | 52 308 | 47 190 |
| Percentage of votes/shares | 0,22 % | 0,25 % | 0,22 % |
2.2 CALCULATION OF KEY FIGURES
| EBITDA: | |
|---|---|
| EBIT + Depreciation, amortization and impairment | |
| EBITA | |
| EBIT + Amortisation of customer relationships | |
| Net working capital | |
| Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities | |
| Earnings per share (EPS), EUR | |
| Profit (loss) for the financial year | |
| Amount of shares adjusted with the share issue (average during the financial year) | |
| Return on equity (ROE), % | |
| Profit (loss) for the financial year Equity (average during the financial year) |
x 100 |
| Return on capital employed (ROCE), % | |
| Profit before taxes + Interest expenses and other financing expenses | |
| Equity (average during the financial year) + Interest-bearing financial liabilities (long-term and | x 100 |
| short-term loans from financial institutions, average during the financial year) | |
| Net interest-bearing financial liabilities | |
| Long-term and short-term loans from financial institutions – Cash and cash equivalents – Short | |
| term financial securities | |
| Equity ratio, % | |
| Equity | x 100 |
| Balance sheet total – Advances received | |
| Gearing, % | |
| Net interest-bearing financial liabilities | |
| Equity | x 100 |
3. BREAKDOWN OF NET SALES
The IFRS 15 recognition of entries as revenue is identical within each business unit and market area.
NET SALES
| Net sales by business unit | ||||
|---|---|---|---|---|
| EUR thousand | Q1 2024 | Q1 2023 | Change % | 2023 |
| Top Hammer | 13 996 | 12 717 | 10,1 % | 54 406 |
| Down the Hole | 5 016 | 5 268 | -4,8 % | 20 862 |
| Geotechnical | 3 791 | 3 948 | -4,0 % | 17 648 |
| Total | 22 803 | 21 933 | 4,0 % | 92 917 |
Net sales by market area
| EUR thousand | Q1 2024 | Q1 2023 | Change % | 2023 |
|---|---|---|---|---|
| EMEA | 11 334 | 11 299 | 0,3 % | 48 291 |
| Americas | 4 485 | 4 991 | -10,1 % | 20 840 |
| Asia | 2 127 | 2 196 | -3,1 % | 8 950 |
| Australasia | 4 857 | 3 447 | 40,9 % | 14 835 |
| Total | 22 803 | 21 933 | 4,0 % | 92 917 |
4. FINANCING ARRANGEMENTS
The company's cash and cash equivalents totalled EUR 13.3 million on 31 March 2024. In addition, the company has an EUR 4.0 million credit facility. The company's sufficient liquidity is secured by way of cash and cash equivalents and an undrawn credit facility.
The covenants of the parent company's loans are based on the company's net liabilities/EBITDA ratio and the company's equity ratio. The covenants are tested on a quarterly basis and the company met all the conditions on 31 March 2024.
BORROWINGS/LOANS/INTEREST-BEARING LOANS
| EUR thousand | 31.3.2024 | 31.3.2023 | 31.12.2023 |
|---|---|---|---|
| Non-current borrowings | |||
| Loans from credit institutions | 22 066 | 21 870 | 22 111 |
| Other loans | 12 | 11 | 12 |
| Lease liabilities | 2 751 | 5 008 | 3 946 |
| Total non-current borrowings | 24 829 | 26 890 | 26 069 |
| Current borrowings | |||
| Loans from credit institutions | 5 045 | 5 274 | 5 179 |
| Other loans | 0 | 0 | 0 |
| Bank overdrafts | 0 | 1 955 | 0 |
| Lease liabilities | 1 304 | 1 486 | 1 284 |
| Total current borrowings | 6 349 | 8 715 | 6 463 |
| Total borrowings | 31 178 | 35 605 | 32 532 |
5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT
| EUR thousand | 31.3.2024 | 31.3.2023 | 31.12.2023 |
|---|---|---|---|
| Cost at the beginning of period | 46 483 | 55 562 | 55 562 |
| *Other changes | -1 188 | ||
| Additions | 194 | 189 | 903 |
| Disposals | -871 | 0 | -6 356 |
| Reclassification | 0 | 0 | -969 |
| Exchange differences | -243 | -1 253 | -1 469 |
| Cost at the end of period | 45 563 | 54 499 | 46 483 |
| Accumulated depreciation and impairment at the beginning of period *Other changes |
-26 922 | -30 634 | -30 634 1 000 |
| Depreciation | -930 | -1 165 | -4 082 |
| Disposals | 3 | 0 | 5 128 |
| Reclassification | 0 | 0 | 969 |
| Exchange differences | 153 | 597 | 697 |
| Accumulated depreciation and impairment at the end of period | -27 696 | -31 201 | -26 922 |
| Net book amount at the beginning of period | 19 561 | 24 928 | 24 928 |
| Net book amount at the end of period | 17 867 | 23 298 | 19 561 |
*Adjustments resulting from corrections to IFRS 16 calculations
6. GIVEN GUARANTEES
| EUR thousand | 31.3.2024 | 31.3.2023 | 31.12.2023 |
|---|---|---|---|
| Guarantees and mortgages given on own behalf | 49 508 | 48 181 | 49 505 |
| Other guarantee liabilities | 48 | 49 | 48 |
| Total | 49 556 | 48 230 | 49 553 |
7. ACQUISITIONS
There were no changes in the Group structure during the review period.
8. DERIVATIVES
The company hedges the most significant net currency positions that can be forecast for time, volume and interest rate risk.
There were no open currency derivatives at the end of the review period.
On 8 June 2021, the company concluded a EUR 30 million financing agreement and, in connection with this, a EUR 10 million interest rate swap with an interest rate cap in order to hedge part of its exposure to variable interest rates. The interest rate swap will took effect on 30 June 2023 and it will end on 30 June 2026. The company applies hedge accounting in accordance with IFRS 9. This effectively leads to the recording of interest expenses on a hedged floating rate loan at a fixed rate.
The company's main interest rate risk arises from long-term loans with floating interest rates that expose the Group's cash flow to interest rate risk. The Group's policy is to use, if necessary, a floating to fixed interest rate swap.
Interest derivatives
| EUR thousand | 31.3.2024 | 31.3.2023 | 31.12.2023 |
|---|---|---|---|
| Interest rate swaps | |||
| Nominal value | 10 000 | 10 000 | 10 000 |
| Fair value | 678 | 832 | 569 |
Robit Plc • Vikkiniityntie 9, FI33880 Lempäälä (Tampere) Tel. +358 (0)3 3140 3400 • [email protected] • Business ID: 0825627-0 • robitgroup.com Comments of Robit's Interim Report via email: [email protected]
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Robit Plc – Interim Report 1 January–31 March 2024