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Cavotec SA
Earnings Release • Jul 25, 2024
8644_ir_2024-07-25_1463d89e-999b-4065-8363-4990bf73a0c5.pdf
Earnings Release
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Strong order intake with improved profitability and cash flow
APRIL–JUNE 2024
- Order intake increased 11.0% to EUR 40.3 million (36.3)
- Revenue decreased -7.0% to EUR 42.6 million (45.7)
- EBIT increased 101.5% to EUR 2.4 million (1.2) and the EBIT margin improved to 5.5% (2.6%)
- Net result for the period increased to EUR 0.7 million (-0.9)
- Operating cash flow improved to EUR 5.0 million (-4.6)
- Earnings per share, basic and diluted, increased to EUR 0.006 (-0.009)
JANUARY–JUNE 2024
- Order intake increased 2.5% to EUR 80.2 million (78.2)
- Order backlog decreased -15.6% to EUR 118.3 million (140.3)
- Revenue increased 0.2% to EUR 85.5 million (85.3)
- EBIT increased 191.9% to EUR 4.3 million (1.5) and the EBIT margin improved to 5.0% (1.7%)
- Net result for the period increased to EUR 1.2 million (-2.3)
- Operating cash flow improved to EUR 5.0 million (-7.5)
- Earnings per share, basic and diluted, increased to EUR 0.011 (-0.022)
- Net debt decreased to EUR -13.7 million from EUR -18.6 million at year-end 2023 and the leverage ratio improved to 0.82x from 1.29x
KEY EVENTS DURING THE SECOND QUARTER
- Order worth about USD 5 million signed for shore power with global shipping company.
- Two-year service agreement signed with Port of Salalah for Cavotec's installed MoorMaster vacuum mooring units.
- The first MoorMaster system in South America inaugurated.
- Existing bank credit facility extended to 2027.
- A cyber incident occurred early in the quarter and incurred some costs and delayed certain deliveries. The full impact of the incident is EUR -0.6 million on the operating result in the second quarter and no further impact will occur. The incident is under control and closed. Cavotec is covered by cyber insurance.
KEY EVENTS AFTER THE END OF THE SECOND QUARTER
- The Board has decided to assess the possibility of moving the registered office from Switzerland to Sweden.
- New production facility in India inaugurated.
FINANCIAL SUMMARY
| EUR 000s | Q224 | Q223 | Change | 6M24 | 6M23 | Change | LTM | 2023 | Change |
|---|---|---|---|---|---|---|---|---|---|
| Order intake | 40,304 | 36,311 | 11.0 % | 80,183 | 78,213 | 2.5 % | 159,324 | 157,354 | 1.3 % |
| Order backlog | 118,312 | 140,257 | -15.6 % | 118,312 | 140,257 | -15.6 % | 118,312 | 123,562 | -4.2 % |
| Revenue | 42,550 | 45,734 | -7.0 % | 85,453 | 85,261 | 0.2 % | 180,926 | 180,734 | 0.1 % |
| EBITDA | 3,609 | 2,656 | 35.9 % | 7,030 | 4,648 | 51.2 % | 16,786 | 14,404 | 16.5 % |
| EBITDA margin | 8.5% | 5.8% | 2.7 pp | 8.2% | 5.5% | 2.7 pp | 9.3% | 8.0% | 1.3 pp |
| EBIT (operating result) | 2,360 | 1,171 | 101.5 % | 4,311 | 1,477 | 191.9 % | 10,061 | 7,227 | 39.2 % |
| EBIT margin | 5.5% | 2.6% | 2.9 pp | 5.0% | 1.7% | 3.3 pp | 5.6% | 4.0% | 1.6 pp |
| Net profit/loss for the period | 665 | (932) | 171.4 % | 1,182 | (2,276) | 151.9 % | 3,638 | 180 | 1921.1 % |
| Operating cash flow | 4,960 | (4,572) | 208.5 % | 5,009 | (7,494) | 166.8 % | 14,436 | 1,933 | 646.8 % |
| Basic and diluted EPS, EUR | 0.006 | (0.009) | 166.7 % | 0.011 | (0.022) | 150.0 % | 0.035 | 0.002 | 1650.0 % |
| Net debt | (13,686) | (23,314) | -41.3 % | (13,686) | (23,314) | -41.3 % | (13,686) | (18,638) | -26.6 % |
| Equity/assets ratio | 36.3% | 34.7% | 1.6 pp | 36.3% | 34.7% | 1.6 pp | 36.3% | 36.0% | 0.3 pp |
| Leverage ratio | 0.82x | 3.73x | -2.91x | 0.82x | 3.73x | -2.91x | 0.82X | 1.29x | -0.47x |
Comment from the CEO
Steady profitability improvement driven by the Ports & Maritime segment
The order intake increased 11.0% in the quarter, mainly due to good demand for Ports & Mari>me's product and service offerings. Our profitability has improved steadily since the start of 2023 thanks to our extensive change programs. It is within our Ports & Mari>me segment that we see the strongest improvements being realized and we are increasing our focus on implemen>ng the same change work within the Industry segment. We con>nue to see a strong interest in our climate-friendly solu>ons, driven by customers' need to decarbonise as well as new environmental regula>ons.
Revenues decreased -7.0% to EUR 42.6 million in the quarter, which reflects our project-driven business where revenues can fluctuate between quarters depending on which projects have been completed and milestones achieved. Currency effects did not impact revenue in the quarter.
EBIT increased also in this quarter and doubled to EUR 2.4 million. The EBIT margin improved to 5.5% from 2.6% in the second quarter 2023. The steady improvement in profitability we have seen over the past six quarters is a result of the intensive and successful work with the change programs within the Ports & MariSme segment. We are not saSsfied with the development in the Industry segment and the new president that we are in the process of recruiSng will conSnue the implementaSon of the ongoing change programs to improve performance.
As previously communicated in the first quarter report, a cyber incident occurred early in the second quarter which delayed certain deliveries and incurred some costs. The impact on EBIT in the quarter is approximately EUR -0.6 million. Cavotec is covered by cyber insurance.
Order intake was strong in the quarter and increased 11.0%, mainly due to good demand for Ports & MariSme's product and service offerings. We have a large untapped market potenSal within service and have therefore hired more service engineers to conSnue growing this part of our offering.
We are pleased to report posiSve operaSng cash flow for the fourth consecuSve quarter. OperaSng cash flow improved in the quarter to EUR 5.0 million following the increased results and our group-wide internal focus on improving working capital. The leverage raSo conSnues to move in the right direcSon and decreased to 0.82x from 3.73x, a great improvement year-over-year. The development of our working capital and the further strengthening or our financial posiSon remain key focus areas during 2024.
InauguraSon of South America's first MoorMaster units
A few weeks ago, I a]ended the inauguraSon of our recently installed MoorMaster units at DP World San Antonio, the largest mulSpurpose port in Chile. Our unique mooring soluSons have a]racted a lot of interest in Chile and the inauguraSon was a]ended by Chile's Minister of Transport and TelecommunicaSons, among others. At the inauguraSon, the CEO of DP World Chile told us that the port had been hit by a big storm a few days earlier and the only part of the port that could stay open were the quays where our MoorMaster units
are installed. This is yet another tesSmonial that strengthens our brand and our posiSon as a leading supplier of soluSons that are both efficient and safe.
Strengthening of supply and sourcing
At the beginning of July, I had the pleasure of cubng the ribbon of our new facility in Chennai, India. This new facility will serve the large and growing market in India, with an array of products, including various types of reels designed for both industrial as well as ports and mariSme customers. It will also improve our supply chain and sourcing, enhancing our producSon capacity of shore power soluSons and will funcSon as a supply hub supporSng our operaSons across the globe.
New strategy and sustainability funcSons
To further strengthen our future-oriented work and increase the insights into our exisSng and potenSal customers' preferences, we have strengthened the company with Erik Lyrvall, head of strategy. Sustainability is an area that is growing in importance also at Cavotec, not least driven by our customers' demands. We have therefore recruited John Sorber as head of sustainability, and he and Erik will join Cavotec ader the summer.
Assessment of moving the registered office
The Board has decided to assess the possibility of moving the registered office from Switzerland to Sweden. The reason for the assessment is that Cavotec's investors are largely based in Sweden and that the company is listed on Nasdaq Stockholm in Sweden.
Strong posiSon and large installed base
We conSnue to see a strong interest in our climate-friendly soluSons, driven by customers' need to decarbonise as well as new environmental regulaSons. I am excited by the momentum I see in the organisaSon and Cavotec's ability to exceed customers' expectaSons. Cavotec has a strong posiSon, based on its efficient, leading soluSons and a large installed base. This, together with the clear strategic prioriSes, makes me confident in Cavotec's conSnued ability to grow and create value.
David Pagels Chief Executive Officer
Financial Review – Group
REVENUE – GROUP AND SEGMENTS – VOLUMES, PRICES, CURRENCY
| EUR 000s | Q224 | Q223 | 6M24 | 6M23 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group | Ports & | Industr | Group | Ports & | Industry | Group | Ports & | Industry | Group | Ports & | Industry | |
| Maritime | y | Maritime | Maritime | Maritime | ||||||||
| Revenue | 42,550 | 25,553 | 16,997 | 45,734 | 28,764 | 16,970 | 85,453 | 52,207 | 33,246 | 85,261 | 52,400 | 32,861 |
| Increase/(decrease) | -3,184 | -3,211 | 27 | 14,063 | 11,366 | 2,697 | 192 | -193 | 385 | 26,183 | 22,652 | 3,531 |
| Change | -7.0% | -11.2% | 0.2% | 44.4% | 65.3% | 18.9% | 0.2% | -0.4% | 1.2% | 44.3% | 76.1% | 12.0% |
| Of which | ||||||||||||
| - Volumes and prices | -7.0% | -11.3% | 0.3% | 45.4% | 66.3% | 19.9% | 0.8% | 0.2% | 1.9% | 46.4% | 77.8% | 14.6% |
| - Currency effects | 0.0% | 0.1% | -0.1% | -1.0% | -1.0% | -1.0% | -0.6% | -0.6% | -0.7% | -2.1% | -1.7% | -2.6% |
APRIL-JUNE 2024
Revenue, order intake and order backlog
Revenue decreased -7.0% to EUR 42.6 million (45.7), which reflects Cavotec's project-driven business where revenues can fluctuate between quarters depending on which projects have been completed and milestones achieved. Currency effects had no impact on total revenue in the quarter.
Order intake increased 11.0% to EUR 40.3 million (36.3), mainly due to good demand for Ports & Maritime's product and service offerings. The order backlog decreased -15.6% to EUR 118.3 million (140.3) and decreased -1.9% from the end of the first quarter 2024.
EBIT (operating result) EBIT increased 101.5% to EUR 2.4 million (1.2) and the EBIT margin increased 2.9 percentage points to 5.5% (2.6%). The EBIT improvement is mainly due to the successful work in Ports & Maritime to implement the change programs and the focus during 2023 on profitable growth in the order backlog. The larger share of service in the business mix also contributed positively. A cyber incident occurred early in the quarter and incurred some costs and delayed certain deliveries. The full impact of the incident is EUR -0.6 million on the operating result in the second quarter and no further impact will occur. The incident is under control and closed. Cavotec is covered by cyber insurance.
Profit for the period and earnings per share
Net financial income amounted to EUR -0.9 million (-0.7). Profit before income tax increased to EUR 1.5 million (0.4), driven by the improved EBIT margin. Income taxes amounted to EUR -0.8 million (-1.4). Profit for the period increased to EUR 0.7 million (-0.9). Earnings per share, basic and diluted, improved to EUR 0.006 (-0.009).
Cash flow
Operating cash flow increased to EUR 5.0 million (-4.6) due to improved profit and working capital.
JANUARY-JUNE 2024
Revenue and order intake
Revenue increased 0.2% to EUR 85.5 million (85.3) due to the decrease in the second quarter which reflected Cavotec's project-driven business where revenues can fluctuate between quarters depending on which projects have been completed and milestones achieved. Currency effects had a negative impact on total revenue of -0.6% during the sixmonth period.
Order intake increased 2.5% to EUR 80.2 million (78.3) due to good demand in the second quarter for Ports & Maritime's product and service offerings.
EBIT (operating result) EBIT increased 191.9% to EUR 4.3 million (1.5) and the EBIT margin increased 3.3 percentage points to 5.0% (1.7%). The EBIT improvement is mainly due to the successful work in Ports & Maritime to implement the change programs and the focus during 2023 on profitable growth in the order backlog. The larger share of service in the business mix also contributed positively.
Profit for the period and earnings per share
Net financial income amounted to EUR -1.5 million (-1.8). Profit before income tax improved to EUR 2.8 million (-0.3). Income taxes amounted to EUR -1.6 million (-2.0). Profit for the period increased to EUR 1.2 million (-2.3). Earnings per share, basic and diluted, improved to EUR 0.011 (-0.022).
Cash flow
Operating cash flow increased to EUR 5.0 million (-7.5) due to improved profit and working capital.
Financial position
Net debt decreased to EUR -13.7 million from EUR -18.6 million at 31 December 2023 and decreased from EUR -23.3 million at 30 June 2023. The leverage ratio, measured as debt-to-adjusted EBITA LTM, improved in the quarter to 0.82x from 1.29x at 31 December 2023. This is a significant decrease from 3.73x at 30 June 2023. The equity/assets ratio increased in the quarter to 36.3% from 36.0% at 31 December 2023 and grew from 34.7% at 30 June 2023. In the quarter, the existing bank credit facility was extended to 2027.
Employees
At the end of the period, Cavotec had 674 (625) full-time equivalent employees. The increase from the same period last year is to a large extent related to new recruitments in service.
Financial Review – Segments
ORDER INTAKE AND ORDER BACKLOG – SEGMENTS
| EUR 000s | 30 June 2024 | 30 June 2023 | Change | 31 March 2024 | Change | 31 Dec 2023 | Change |
|---|---|---|---|---|---|---|---|
| Order intake | |||||||
| Ports & Maritime | 24,512 | 17,100 | 43.3% | 23,260 | 5.4% | 27,740 | -11.6% |
| Industry | 15,792 | 19,211 | -17.8% | 16,620 | -5.0% | 12,940 | 22.0% |
| Group | 40,304 | 36,311 | 11.0% | 39,880 | 1.1% | 40,680 | -0.9% |
| Order backlog | |||||||
| Ports & Maritime | 95,339 | 108,755 | -12.3% | 96,373 | -1.1% | 99,801 | -4.5% |
| Industry | 22,973 | 31,502 | -27.1% | 24,170 | -5.0% | 23,761 | -3.3% |
| Group | 118,312 | 140,257 | -15.6% | 120,543 | -1.9% | 123,562 | -4.2% |
PORTS & MARITIME
APRIL-JUNE 2024
Revenue, order intake and order backlog
Revenue decreased -11.2% to EUR 25.6 million (28.8), which reflects Cavotec's project-driven business where revenues can fluctuate between quarters depending on which projects have been completed and milestones achieved. Currency effects had a positive impact of 0.1%.
Order intake increased 43.3% to EUR 24.5 million (17.1) due to good demand for Ports & Maritime's product and service offerings. The order backlog decreased -12.3% to EUR 95.3 million (108.8) and decreased -1.1% from EUR 96.4 in the first quarter 2024. During the second quarter, Cavotec signed an order for shore power with a global shipping company, valued at about USD 5 million. The order includes a substantial number of PowerFit shore power units with deliveries scheduled later this year. Cavotec also signed a two-year service agreement with Port of Salalah in Oman in the second quarter, covering the support of 32 installed MoorMaster vacuum units.
EBITDA EBITDA increased 42.9% to EUR 2.7 million (1.9) and the EBITDA margin improved 4.1 percentage points to 10.7% (6.7%) due to the successful work to implement the change programs and the focus during 2023 on profitable growth in the order backlog.
JANUARY-JUNE 2024
Revenue and order intake
Revenue decreased slightly -0.4% to EUR 52.2 million (52.4). Currency effects had a negative impact of -0.6%.
Order intake increased 8.2% to EUR 47.8 million (44.2) due to a good order intake in the second quarter. In the first quarter 2024, Cavotec signed a contract to retrofit vessels with shore power solutions for a major European shipping line. The order value is USD 5.7 million and deliveries are scheduled throughout 2024. A two-year service agreement with APM Terminals at the Port of Tanger was also signed in the first quarter 2024 which means that Cavotec will perform service of its so far installed 31 Power Units and 45 MoorMaster NxG units at the terminals. A three-year agreement was also signed for all service of the shore power systems Cavotec has installed in a large North American port.
EBITDA EBITDA increased 82.9% to EUR 5.5 million (3.0) and the EBITDA margin improved 4.8 percentage points to 10.6% (5.8%) following good profitability development in both the first and second quarters.
INDUSTRY
APRIL-JUNE 2024
Revenue, order intake and order backlog
Revenue increased slightly 0.2% to EUR 17.0 million (17.0). Currency effects had a negative impact of -0.1%.
Order intake decreased -17.8% to EUR 15.8 million (19.2). The order backlog decreased -27.1% to EUR 23.0 million (31.5) and decreased -5.0% from EUR 24.2 million in the first quarter 2024.
EBITDA EBITDA increased 17.9% to EUR 0.9 million (0.7) and the EBITDA margin increased 0.8 percentage points to 5.1% (4.3%).
JANUARY-JUNE 2024
Revenue and order intake
Revenue increased 1.2% to EUR 33.2 million (32.9). Currency effects had a negative impact of -0.7%.
Order intake decreased -4.8% to EUR 32.4 million (34.0).
EBITDA EBITDA decreased -7.7% to EUR 1.5 million (1.6) and the EBITDA margin decreased -0.4 percentage points to 4.5% (4.9%) reflecting a weaker performance in the first quarter.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |
|---|---|---|---|---|---|
| EUR 000s | three months 30 Jun, 2024 |
three months 30 Jun, 2023 |
six months 30 Jun, 2024 |
six months 30 Jun, 2023 |
year 31 Dec, 2023 |
| Revenue from sales of goods and services | 42,550 | 45,734 | 85,453 | 85,261 | 180,734 |
| Other income | 56 | 681 | 792 | 1,094 | 2,076 |
| Cost of materials | (19,670) | (25,194) | (41,423) | (46,774) | (101,219) |
| Employee benefit costs | (13,113) | (13,239) | (27,266) | (25,266) | (47,895) |
| Operating expenses | (6,214) | (5,326) | (10,527) | (9,667) | (19,292) |
| Gross operating result | 3,609 | 2,656 | 7,030 | 4,648 | 14,404 |
| Depreciation and amortisation | (626) | (668) | (1,198) | (1,574) | (2,782) |
| Depreciation of right-of-use of leased asset | (622) | (871) | (1,520) | (1,597) | (3,311) |
| Impairment losses | - | - | - | - | (1,084) |
| Operating result (EBIT) | 2,360 | 1,171 | 4,311 | 1,477 | 7,227 |
| Interest income | 10 | 10 | 13 | 7 | 18 |
| Interest expenses | (856) | (807) | (1,533) | (1,844) | (3,471) |
| Currency exchange differences – net | (64) | 72 | 12 | 113 | (16) |
| Other financial item | - | (18) | - | (32) | 5 |
| Profit / (loss) before income tax | 1,451 | 428 | 2,802 | (279) | 3,763 |
| Income taxes | (785) | (1,360) | (1,620) | (1,997) | (3,583) |
| Profit / (loss) for the period | 665 | (932) | 1,182 | (2,276) | 180 |
| Other comprehensive income: | |||||
| Items that will not be reclassified to profit or loss | (2) | (1) | 5 | 3 | (99) |
| Currency translation differences | 367 | (881) | (49) | (1,410) | (1,836) |
| Items that may be subsequently reclassified to profit / (loss) | 367 | (881) | (49) | (1,410) | (1,836) |
| Other comprehensive income for the period, net of tax | 365 | (882) | (44) | (1,407) | (1,935) |
| Total comprehensive income for the period | 1,030 | (1,814) | 1,138 | (3,683) | (1,755) |
| Total comprehensive income attributable to: | |||||
| Equity holders of the Group | 1,030 | (1,814) | 1,138 | (3,683) | (1,755) |
| Total | 1,030 | (1,814) | 1,138 | (3,683) | (1,755) |
| Profit / (loss) attributed to: | |||||
| Equity holders of the Group | 665 | (932) | 1,182 | (2,276) | 180 |
| Total | 665 | (932) | 1,182 | (2,276) | 180 |
| Basic and diluted earnings per share attributed to the equity holders of the | 0.006 | (0.009) | 0.011 | (0.022) | 0.002 |
| Group Average number of shares |
106,696,030 | 106,696,030 | 106,696,030 | 101,467,217 | 104,103,112 |
CONSOLIDATED BALANCE SHEET
| EUR 000s | Unaudited 30 Jun, 2024 |
Unaudited 30 Jun, 2023 |
Unaudited 31 Dec, 2023 |
|---|---|---|---|
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 15,803 | 8,664 | 15,056 |
| Trade receivables | 30,823 | 27,926 | 27,942 |
| Contract assets | 199 | 1,750 | 2,862 |
| Tax assets | 489 | 475 | 544 |
| Other current receivables | 10,777 | 11,119 | 9,123 |
| Inventories | 38,782 | 42,766 | 37,429 |
| Assets held for sale | - | 2,084 | 1,814 |
| Total current assets | 96,875 | 94,783 | 94,770 |
| Non-current assets | |||
| Property, plant and equipment | |||
| 5,335 | 5,313 | 5,414 | |
| Right-of-use of leased assets | 11,342 | 11,965 | 11,529 |
| Intangible assets | 36,653 | 38,182 | 37,315 |
| Non-current financial assets | 288 | 155 | 68 |
| Deferred tax assets | 7,656 | 6,269 | 6,897 |
| Other non-current receivables | 1,247 | 1,085 | 1,231 |
| Total non-current assets | 62,520 | 62,969 | 62,454 |
| Total assets | 159,394 | 157,752 | 157,224 |
| Equity and Liabilities | |||
| Current liabilities | |||
| Current lease liabilities | (2,526) | (2,605) | (2,527) |
| Trade payables | (24,652) | (29,805) | (26,004) |
| Contract liabilities | (26,318) | (21,792) | (19,268) |
| Tax liabilities | (4,859) | (2,230) | (5,111) |
| Provision for risk and charges, current | (2,241) | (2,161) | (2,171) |
| Other current liabilities | (10,890) | (12,513) | (11,320) |
| Total current liabilities | (71,485) | (71,106) | (66,401) |
| Non-current liabilities | |||
| Non-current financial liabilities | (17,619) | (19,302) | (21,468) |
| Non-current lease liabilities | (8,964) | (9,374) | (9,167) |
| Deferred tax liabilities | (1,254) | (1,129) | (1,251) |
| Other non-current liabilities | (31) | (174) | (12) |
| Provision for risk and charges, non-current | (1,434) | (1,427) | (1,794) |
| Employee benefit obligation | (759) | (541) | (569) |
| Total non-current liabilities | (30,061) | (31,947) | (34,261) |
| Total liabilities | (101,546) | (103,053) | (100,662) |
| Equity | |||
| Share Capital | (54,130) | (54,131) | (54,130) |
| Reserves | (55,427) | (55,914) | (55,323) |
| Retained earnings | 51,709 | 55,346 | 52,891 |
| Equity attributable to owners of the parent | (57,848) | (54,699) | (56,562) |
| Non-controlling interests | - | - | - |
| Total equity | (57,848) | (54,699) | (56,562) |
| Total equity and liabilities | (159,394) | (157,752) | (157,224) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| EUR 000s | Share Capital |
Reserves | Retained earnings |
Equity related to owners of the parent |
Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|
| Balance as at 1 January 2023 | (45,288) | (51,633) | 53,071 | (43,850) | - | (43,850) |
| (Profit) / Loss for the period | - | - | 2,276 | 2,276 | - | 2,276 |
| Currency translation differences | - | 1,410 | - | 1,410 | - | 1,410 |
| Remeasurements of post-employment benefit obligations | - | (3) | - | (3) | - | (3) |
| Total comprehensive income and expenses | - | 1,407 | 2,276 | 3,683 | - | 3,683 |
| Employees share scheme | - | (93) | - | (93) | - | (93) |
| Capital increase | (8,843) | - | - | (8,843) | - | (8,843) |
| Share Premium Reserve | - | (5,595) | - | (5,595) | - | (5,595) |
| Transactions with shareholders | (8,843) | (5,688) | - | (14,531) | - | (14,531) |
| Balance as at 30 June 2023 | (54,131) | (55,914) | 55,346 | (54,699) | - | (54,699) |
| Unaudited | ||||||
| Balance as at 1 January 2023 | (45,288) | (51,633) | 53,071 | (43,850) | - | (43,850) |
| (Profit) / Loss for the period | - | - | (180) | (180) | - | (180) |
| Currency translation differences | - | 1,836 | - | 1,836 | - | 1,836 |
| Remeasurements of post-employment benefit obligations | - | 99 | - | 99 | - | 99 |
| Total comprehensive income and expenses | - | 1,935 | (180) | 1,755 | - | 1,755 |
| Employees share scheme | - | 58 | - | 58 | - | 58 |
| Capital increase | (8,843) | - | - | (8,843) | - | (8,843) |
| Share Premium Reserve | - | (5,683) | - | (5,683) | - | (5,683) |
| Transactions with shareholders | (8,843) | (5,625) | - | (14,467) | - | (14,467) |
| Balance as at 31 December 2023 | (54,130) | (55,323) | 52,891 | (56,562) | - | (56,562) |
| Balance as at 1 January 2024 | (54,130) | (55,323) | 52,891 | (56,562) | - | (56,562) |
| (Profit) / Loss for the period | - | - | (1,182) | (1,182) | - | (1,182) |
| Currency translation differences | - | 49 | - | 49 | - | 49 |
| Remeasurements of post-employment benefit obligations | - | (5) | - | (5) | - | (5) |
| Total comprehensive income and expenses | - | 44 | (1,182) | (1,138) | - | (1,138) |
| Employees share scheme | - | (148) | - | (148) | - | (148) |
| Transactions with shareholders | - | (148) | - | (148) | - | (148) |
| Balance as at 30 June 2024 | ||||||
| (54,130) | (55,427) | 51,709 | (57,848) | - | (57,848) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR 000s | Unaudited three months |
Unaudited three months |
Unaudited six months |
Unaudited six months |
Audited 31 Dec, 2023 |
|---|---|---|---|---|---|
| Profit / (loss) for the period | 30 Jun, 2024 665 |
30 Jun, 2023 (932) |
30 Jun, 2024 1,182 |
30 Jun, 2023 (2,276) |
180 |
| Adjustments for: | |||||
| Net interest expenses | 846 | 798 | 1,521 | 1,837 | 3,453 |
| Current taxes | 1,011 | 1,513 | 2,357 | 2,025 | 4,221 |
| Depreciation and amortization | 626 | 668 | 1,198 | 1,574 | 2,782 |
| Depreciation of right-of-use of leased assets | 622 | 817 | 1,520 | 1,597 | 3,311 |
| Impairment losses | - | - | - | - | 1,084 |
| Deferred tax | (225) | (153) | (736) | (28) | (638) |
| Provision for risks and charges | 687 | 210 | 129 | 429 | 69 |
| Capital (gain) or loss on assets | (1) | - | 27 | 2 | (20) |
| Other items not involving cash flows | 129 | (1,850) | (99) | (1,749) | (454) |
| Interest paid | (844) | (619) | (1,482) | (1,736) | (3,057) |
| Taxes (paid) / received | (1,985) | (1,674) | (2,713) | (681) | (66) |
| 866 | (290) | 1,721 | 3,270 | 10,685 | |
| Cash flow before changes in working capital | 1,531 | (1,222) | 2,902 | 994 | 10,685 |
| Impact of changes in working capital: | |||||
| Inventories | (1,825) | 980 | (1,571) | (436) | 5,451 |
| Trade receivables and contract assets | (1) | 1,173 | (230) | 5,060 | 4,381 |
| Other current receivables | 802 | (69) | (1,456) | (1,153) | 843 |
| Trade payables and contract liabilities | 5,956 | (6,219) | (5,697) | (12,655) | (18,979) |
| Other current liabilities | (1,504) | 785 | (333) | 696 | (628) |
| Impact of changes involving working capital | 3,429 | (3,349) | (2,106) | (8,487) | (8,932) |
| Net cash inflow / (outflow) from operating activities | 4,960 | (4,572) | 5,009 | (7,494) | 1,933 |
| Financial activities: | |||||
| Increase of equity capital | - | - | - | 14,438 | 14,526 |
| Net changes in loans and borrowings | (2,501) | (2,649) | (4,023) | (6,618) | (4,696) |
| Repayment of lease liabilities | (1,167) | (1,154) | (1,501) | (1,451) | (3,156) |
| Net cash inflow / (outflow) from financial activities | (3,668) | (3,803) | (5,524) | 6.369 | 6,674 |
| Investing activities: | |||||
| Investments in property, plant and equipment | (169) | (178) | (352) | (276) | (911) |
| Investments in intangible assets | (56) | - | (58) | (2) | (624) |
| (Increase)/Decrease of non-current financial asset | - | (51) | (220) | (51) | 38 |
| Disposal of assets | (3) | - | 1,745 | - | (29) |
| Net cash inflow / (outflow) from investing activities | (229) | (229) | 1,116 | (329) | (1,526) |
| Cash at the beginning of the period | 14,169 | 16,543 | 15,056 | 9,625 | 9,625 |
| Cash flow for the period Currency exchange differences |
1,063 572 |
(8,603) 725 |
601 147 |
(1,454) 493 |
7,081 (1,650) |
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS
The Group derives revenue from the transfer of goods and services over time and at a point in time in the following divisions and geographical regions.
| 30 June 2024 | ||||
|---|---|---|---|---|
| EUR 000s | Ports & Maritime | Industry | Total | |
| Revenue from external customer | ||||
| Timing of revenue recognition | ||||
| At a point in time | 50,910 | 33,246 | 84,156 | |
| Over time | 1,297 | - | 1,297 | |
| Total | 52,207 | 33,246 | 84,453 | |
| 30 June 2023 | Ports & Maritime | Industry | Total | |
| EUR 000s | ||||
| Revenue from external customer | ||||
| Timing of revenue recognition | ||||
| At a point in time | 52,325 | 32,861 | 85,186 | |
| Over time | 75 | - | 75 | |
| Total | 52,400 | 32,861 | 85,261 | |
| 31 December 2023 | Ports & Maritime | Industry | Total | |
| EUR 000s | ||||
| Revenue from external customer | ||||
| Timing of revenue recognition | ||||
| At a point in time | 110,712 | 66,045 | 176,757 | |
| Over time | 3,976 | - | 3,976 | |
| Total | 114,688 | 66,045 | 180,734 | |
| 30 June 2024 | ||||
| EUR 000s | AMER | EMEA | APAC | Total |
| Ports & Maritime | 10,387 | 12,544 | 29,276 | 52,207 |
| Industry | 3,043 | 23,201 | 7,002 | 33,246 |
| Total | 13,430 | 35,745 | 36,278 | 85,453 |
| 30 June 2023 | ||||
| EUR 000s | AMER | EMEA | APAC | Total |
| Ports & Maritime | 7,628 | 21,663 | 23,109 | 52,400 |
| Industry | 2,605 | 23,232 | 7,024 | 32,861 |
| Total | 10,233 | 44,895 | 30,133 | 85,261 |
| 31 December 2023 | AMER | EMEA | APAC | Total |
| EUR 000s | ||||
| Ports & Maritime | 18,239 | 45,726 | 50,723 | 114,688 |
| Industry | 4,751 | 42,228 | 19,067 | 66,045 |
| Total | 22,990 | 87,954 | 69,790 | 180,734 |
SEGMENT INFORMATION
| EUR 000s | Ports & Maritime | Industry | Other reconciling items |
Total |
|---|---|---|---|---|
| Unaudited | ||||
| Three months ended 30 June 2024 | ||||
| Revenue from sales of goods and services | 25,553 | 16,997 | - | 42,550 |
| Other income | (37) | 93 | - | 56 |
| Cost of materials and operating expenses | (21,268) | (15,280) | (2,449) | (38,997) |
| before depreciation and amortization | ||||
| Gross Operating Result (EBITDA) | 4,248 | 1,810 | (2,449) | 3,609 |
| Unaudited | ||||
| Three months ended 30 June 2023 | ||||
| Revenue from sales of goods and services | 28,764 | 16,970 | - | 45,734 |
| Other income | 473 | 209 | - | 681 |
| Cost of materials and operating expenses | (26,459) | (16,001) | (1,299) | (43,759) |
| before depreciation and amortization | ||||
| Gross Operating Result (EBITDA) | 2,777 | 1,178 | (1,299) | 2,656 |
| Unaudited Six months ended 30 June 2024 |
||||
| Revenue from sales of goods and services | 52,207 | 33,246 | - | 85,453 |
| Other income | 412 | 380 | - | 792 |
| Cost of materials and operating expenses before depreciation and amortization |
(44,603) | (30,578) | (4,035) | (79,215) |
| Gross Operating Result (EBITDA) | 8,016 | 3,049 | (4,035) | 7,030 |
| Unaudited | ||||
| Six months ended 30 June 2023 | ||||
| Revenue from sales of goods and services | 52,400 | 32,861 | - | 85,261 |
| Other income | 628 | 467 | - | 1,094 |
| Cost of materials and operating expenses | (48,352) | (30,858) | (2,497) | (81,707) |
| before depreciation and amortization Gross Operating Result (EBITDA) |
4,675 | 2,470 | (2,497) | 4,648 |
| Unaudited Year ended 31 December 2023 |
||||
| Revenue from sales of goods and services | 114,688 | 66,045 | - | 180,734 |
| Other income | 1,048 | 1,028 | - | 2,076 |
| Cost of materials and operating expenses | ||||
| before depreciation and amortization | (101,237) | (61,902) | (5,266) | (168,406) |
PARENT COMPANY – CONDENSED STATEMENT OF COMPREHENSIVE INCOME
| Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
|---|---|---|---|---|---|
| CAVOTEC SA | three months | three months | six months | six months | 31 Dec, 2023 |
| EUR 000s | 30 Jun, 2024 | 30 Jun, 2023 | 30 Jun, 2024 | 30 Jun, 2023 | |
| Other income | 1,049 | 1,508 | 1,603 | 2,060 | 2,352 |
| Employee benefit costs | (843) | (261) | (1,145) | (612) | (240) |
| Operating expenses | (612) | (760) | (1,158) | (1,395) | (2,482) |
| Operating Result | (407) | 487 | (700) | 55 | (370) |
| Interest expenses – net | (506) | (355) | (932) | (997) | (1,767) |
| Currency exchange differences – net | 2 | 27 | 13 | 83 | 70 |
| Other financial items | - | (18) | - | (37) | - |
| Profit / (Loss) for the period | (910) | 143 | (1,620) | (898) | (2,068) |
| Income taxes | (3) | (5) | (5) | (6) | (12) |
| Profit / (Loss) for the period | (913) | 138 | (1,625) | (904) | (2,080) |
| Other comprehensive income: | |||||
| Actuarial gain (loss) | - | - | - | - | - |
| Total comprehensive income for the period | (913) | 138 | (1,625) | (904) | (2,080) |
PARENT COMPANY – CONDENSED BALANCE SHEET
| Unaudited 30 Jun, 2024 486 1,692 8 1,057 3,243 93,365 139 |
Unaudited 30 Jun, 2023 (681) 1,794 20 1,829 2,962 93,365 |
Audited 31 Dec, 2023 152 3,023 25 380 3,580 93,365 |
|---|---|---|
| - | 185 | |
| 288 | 68 | 68 |
| 93,791 | 93,433 | 93,618 |
| 97,034 | 96,395 | 97,198 |
| (2,213) | (1,669) | (1,279) |
| (3,433) | (8,649) | (4,772) |
| (5,646) | (10,318) | (6,051) |
| (38,615) | (30,599) | (36,915) |
| (31) | (18) | (12) |
| (38,646) | (30,617) | (36,927) |
| (42,978) | ||
| (52,743) | (55,460) | (54,220) |
| (97,198) | ||
| (44,291) (97,034) |
(40,935) (96,395) |
Other information
General information
Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonization of ports and industrial applications worldwide. Backed by close to 50 years of experience, our systems ensure safe, efficient, and sustainable operations for a wide variety of customers and applications worldwide. Our credibility comes from our application expertise, dedication to innovation and world class operations. Our success rests on the core values we live by: Integrity, Accountability, Performance and Teamwork. Cavotec's personnel represent many cultures and provide customers with local support, backed by the Group's global network of engineering expertise. Cavotec SA, the Parent company, is a limited liability company incorporated and domiciled in Switzerland. Cavotec SA is listed on Nasdaq Stockholm in the Mid Cap segment.
These audited Financial Statements have been approved by the Board of Directors for publication on 25 July 2024.
Basis of preparation of Financial Statements
This quarterly report was prepared in accordance with IFRS, applying IAS 34 Interim Financial Reporting. The same accounting and valuation policies were applied in the most recent annual report. The amendments to the standards that became applicable for the current reporting period did not have an impact on Cavotec accounts. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended in December 2023. The preparation of quarterly financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses. Actual results may differ from these estimates.
Segment information
Operating segments have been determined based on the Group Management structure in place and on the management information and used by the Chief Operating Decision Maker (CODM) to make strategic decisions.
The two operating segments are:
a) Ports & Maritime – development, manufacture and service of innovative automation and electrification technologies for the global ports and maritime sectors. b) Industry – development, manufacture and service of electrification and radio control products for industrial applications, such as cranes, energy, processing and transportation, mining, and tunnelling.
Noteworthy risks and uncertainties
Cavotec's significant risks and uncertainties are divided into three categories: market, credit, and liquidity risks. In these categories, there are both risks due to political and macroeconomic trends and specific risks directly linked to business carried out by the Group. Market risk includes currency and interest rate risk. Credit risk includes the risk of managing our customers and other receivables while liquidity risk includes the management of cash in a diverse, global group. Read more about the risks in the Annual Report 2023.
Forward looking statement
Some statements in this report are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly discussed, other factors could have a material effect on the actual outcome. Such factors include, but are not limited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of competing products and their pricing, product development, commercialization and technological difficulties, interruptions in supply, and major customer credit losses.
Annual General Meeting 2024
The Annual General Meeting 2024 took place 4 June 2024 in Lugano, Switzerland.
Assessment of moving the registered office
The Board has decided to assess the possibility of moving the registered office from Switzerland to Sweden. The reason for the assessment is that Cavotec's investors are largely based in Sweden and that the company is listed on Nasdaq Stockholm in Sweden.
Financial calendar
Third quarter report 8 November 2024 Fourth quarter report 21 February 2025 Annual and Sustainability Week that begins Report 2024 31 March 2025
Webcasted presentation and telco
CEO David Pagels and CFO Joakim Wahlquist will present the interim report on Thursday 25 July at 10:00 am CEST. If you wish to participate via webcast, please use the link https://ir.financialhearings.com/cavotec-sa-
q2-report-2024. Via the webcast you may submit written questions. If you wish to participate via teleconference, please register on the link https://conference.financialhearings.com/teleconferenc e/?id=50048866. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. The presentation is in English.
Interim reports on cavotec.com
The full report and previous interim and annual reports are available on https://ir.cavotec.com/financialreports.
Contact person for analysts and media
Joakim Wahlquist, CFO Phone +41 91 911 4010 Email [email protected]
This is information that Cavotec SA is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 am CEST on 25 July 2024.
About Cavotec
Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonization of ports and industrial applications. Backed by close to 50 years of experience, our systems ensure safe, efficient and sustainable operations for a wide variety of customers and applications worldwide. To find out more about Cavotec, please visit cavotec.com.
