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Cavotec SA
Earnings Release • Feb 23, 2024
8644_10-k_2024-02-23_6115fa7a-1c72-47fd-88e2-df7a6436e513.pdf
Earnings Release
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Strong growth with continued improved profitability and cash flow as well as positive net profit
OCTOBER–DECEMBER 2023
- Revenue increased 14.3% to EUR 53.5 million (46.8)
- EBIT improved to EUR 4.0 million (-1.6) and the EBIT margin increased to 7.6% (-3.5%)
- Net result for the period increased to EUR 2.4 million (-8.4)
- Operating cash flow improved to EUR 5.2 million (-2.8)
- Earnings per share, basic and diluted, increased to EUR 0.022 (-0.089)
JANUARY–DECEMBER 2023
- Order backlog decreased -16.1% to EUR 123.6 million (147.2)
- Revenue increased 22.2% to EUR 180.7 million (147.8)
- EBIT improved to EUR 7.2 million (-4.5) and the EBIT margin increased to 4.0% (-3.0%)
- Net result for the period increased to EUR 0.2 million (-14.7)
- Operating cash flow increased to EUR 1.9 million (-5.5)
- Earnings per share, basic and diluted, improved to EUR 0.002 (-0.156)
KEY EVENTS DURING THE FOURTH QUARTER
- Order valued at EUR 6.65 million from one of the world's largest shipping companies for PowerFit, Cavotec's containerized solutions for high-voltage connection of vessels to shore
- Long-term service agreement signed with COSCO Group
- Order signed for mooring units with North American seaway operator worth EUR 6.4 million
KEY EVENTS AFTER THE END OF THE YEAR
- Two-year service agreement signed with APM Terminals at Port of Tanger
- Shore power retrofit order signed with major European shipping line worth USD 5.7 million
- Three-year service agreement signed for shore power systems in a large North American port
- The world's first ultra-fast 3 MW charging system for battery-powered heavy-duty vehicles now in service
FINANCIAL SUMMARY
| EUR 000s | Q423 | Q422 | Change | 2023 | 2022 | Change |
|---|---|---|---|---|---|---|
| Order backlog | 123,562 | 147,207 | -16.1% | 123,562 | 147,207 | -16.1% |
| Revenue | 53,506 | 46,819 | 14.3% | 180,734 | 147,849 | 22.2% |
| EBITDA | 6,613 | (89) | 7,530% | 14,404 | 1,631 | 783.1% |
| EBITDA margin | 12.4% | -0.2% | 12.6pp | 8.0% | 1.1% | 6.9pp |
| EBIT (operating result) | 4,043 | (1,646) | 345.7% | 7,227 | (4,506) | 260.4% |
| EBIT margin | 7.6% | -3.5% | 11.1pp | 4.0% | -3.0% | 7.0pp |
| Net profit/(loss) for the period* | 2,352 | (8,388) | 128.0% | 180 | (14,692) | 101.2% |
| Operating cash flow | 5,235 | (2,850) | 283.6% | 1,933 | (5,485) | 135.2% |
| Basic and diluted EPS, EUR* | 0.022 | (0.089) | 124.7% | 0.002 | (0.156) | 101.3% |
| Net debt* | (18,638) | (30,328) | -38.5% | (18,638) | (30,328) | -38.5% |
| Equity/assets ratio* | 36.0% | 26.2% | 9.8 pp | 36.0% | 26.2% | 9.8 pp |
| Leverage ratio* | 1.29x | 12.5x | -11.2x | 1.29x | 12.5x | -11.2x |
The income statement has been amended for the year 2022 to reflect a discontinued operation in line with IFRS 5. KPIs marked with * include the discontinued operation for the period in 2022. Please refer to page 14 for further information.
Comment from the CEO
Strengthened financial position and key customers wins
It is encouraging to see our results for the fourth quarter with good growth and cash flow, continued improved profitability and positive net profit. It shows both that we have an attractive offer and that our focus on profitable growth is effective. This has also led to Cavotec's financial position being strengthened. Although the macroeconomic situation remains uncertain, we see a strong interest in our cleantech solutions, driven by the electrification of society and regulations to reduce emissions and noise.
In the quarter, revenue increased 14.3% to EUR 53.5 million, mainly driven by deliveries of reels in the Industry segment and shore power solutions for container vessels in the Ports & Maritime segment. The projects for shore power were signed in 2022 and reflects the long lead times in the Ports & Maritime business. Currency effects had an impact on total revenue of -2.2% in the quarter.
EBIT has now been positive for four consecutive quarters and improved to EUR 4.0 million in the fourth quarter, a clear improvement from the loss of EUR 1.6 million in the last quarter 2022. This is an effect of our strategic initiatives in 2023 to improve the profitability of the order backlog which includes activities such as production optimization. So far, the Ports & Maritime segment has been most successful with these new ways of working, but we expect also the Industry segment to make significant progress in this area.
Lower financing costs
The improved profitability has had a positive effect on our financial position and operating cash flow increased to EUR 5.2 million (-2.8) in the quarter. For the full year, operating cash flow increased to EUR 1.9 million (-5.5), which is an effect of improved operational efficiency and financial management. It is gratifying to see that the net debt has decreased steadily during the last six months of 2023 to EUR 18.6 million at the end of the year. Our strengthened financial position means that our financing costs will be lower going forward.
Key customer wins
The order backlog has decreased during the year by -16.1% to EUR 123.6 (147.2) million. However, this reduction reflects an extraordinary high order intake 2022 and our efforts to grow profitably and a normalization of the order backlog. We meet a continuous steady stream of customer inquiries and strong interest in our cleantech solutions and service offering. We have recently signed several important orders, not least for larger projects within Ports & Maritime and key services agreements. Among the contracts can be mentioned the six vacuum mooring units we will deliver to a North American seaway operator worth EUR 6.4 million. Another deal encompasses the retrofitting of shore power solutions for a major European shipping line with a contract value of USD 5.7 million. We have also announced an order worth EUR 6.65 million from one of the world's largest shipping companies for PowerFit, our containerized solutions for high-voltage connection of vessels to shore.
In 2023, we made the strategic decision to increase the focus on our service offering, which we are now seeing the effects of. We have recently signed an agreement where we will
provide all service on the shore power systems we have installed in a large port in North America. The new thing about this agreement is that we are also responsible for connecting and disconnecting the power units, which improves performance and efficiency. In the fourth quarter, we signed a long-term service agreement with the large COSCO Group where we will provide maintenance for more than 60 oceangoing vessels equipped with our shore power systems. Earlier this week we announced a contract which covers the servicing of the 31 power and 45 MoorMaster units we have so far installed for APM Terminals in the Port of Tanger.
Ultra-fast 3 MW charger in operation
Another strategically important area for us that we will increase our focus on in 2024 is product development since we are determined to continue being a world-leading player in cleantech. A good example of our leadership is our ultra-fast 3MW charger – the world's first and most powerful – which is in full operation at a mining site in Australia. Developed by the Industry segment during 2023, it is now included in a solution that charges a prototype 240-ton electric haul truck in just 30 minutes. This technological advance paves the way for the electrification of heavy-duty vehicles and greatly reduced emissions in critical industries worldwide.
Significant progress in 2023
Thanks to our clear strategic priorities, we have made significant progress in 2023. We have strengthened customer relationships and improved our financial performance with a revenue increase of 22.2% to EUR 180.7 million and an EBIT that grew from EUR -4.5 million in 2022 to EUR 7.2 million in 2023. This is only possible thanks to the professionalism of our employees together with our close relationships with customers and suppliers.
Our recent customer wins are good examples of how our solutions meet the strong megatrend of the electrification of society. This megatrend is also supported by national and local authorities that are introducing requirements for reduced emissions and noise levels. This contributes to the strong interest from both existing and new customers for our leading cleantech solutions although the macroeconomic situation remains uncertain. I am looking forward to a new exciting year and working together with our employees for an emission-free world and a Cavotec that continues to grow profitably.
David Pagels Chief Executive Officer
Financial Review – Group
REVENUE – GROUP AND SEGMENTS – VOLUMES, PRICES, CURRENCY
| EUR 000s | Q423 | Q422 | 2023 | 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group | Ports & | Industry | Group | Ports & | Industry | Group | Ports & | Industry | Group | Ports & | Industry | |
| Maritime | Maritime | Maritime | Maritime | |||||||||
| Revenue | 53,506 | 34,867 | 18,639 | 46,819 | 32,173 | 14,646 | 180,734 | 114,689 | 66,045 | 147,849 | 88,258 | 59,591 |
| Increase/(decrease) | 6,687 | 2,694 | 3,993 | 15,392 | 15,857 | (465) | 32,885 | 26,431 | 6,454 | 32,055 | 26,387 | 5,668 |
| Change | 14.3% | 8.4% | 27.3% | 49.0% | 97.2% | -3.1% | 22.2% | 29.9% | 10.8% | 27.7% | 42.6% | 10.5% |
| Of which | ||||||||||||
| - Volumes and prices | 16.5% | 10.5% | 29.7% | 47.6% | 95.7% | -4.4% | 25.2% | 32.6% | 14.1% | 25.1% | 39.3% | 8.8% |
| - Currency effects | -2.2% | -2.1% | -2.4% | 1.4% | 1.5% | 1.3% | -3.0% | -2.7% | -3.3% | 2.6% | 3.3% | 1.7% |
OCTOBER-DECEMBER 2023
Revenue and order backlog
Revenue increased 14.3% to EUR 53.5 million (46.8), mainly driven by deliveries of reels in the Industry segment and shore power solutions for container vessels in the Ports & Maritime segment. Revenue from the service operations also contributed to the growth in the quarter. Currency effects had a negative impact on total revenue of -2.2% in the quarter.
Order backlog decreased -16.1% to EUR 123.6 million from EUR 147.2 million as a consequence of the focus on profitable growth. This approach, introduced in 2023, has resulted in a normalization of the order backlog while there is a continuous steady stream of customer inquiries and strong interest in Cavotec's cleantech solutions and service offering.
EBIT (operating result) EBIT improved to EUR 4.0 million (-1.6) and the EBIT margin increased 11.1% points to 7.6% (-3.5%). The EBIT improvement is mainly a consequence of the successful work in Ports & Maritime to focus on profitable growth in the order backlog.
Profit for the period and earnings per share
Net financial income amounted to EUR -0.9 million (-0.2), impacted by higher interest rates. Income taxes amounted to EUR 0.8 million (1.3). Profit for the period increased to EUR 2.4 million (-8.4). Earnings per share, basic and diluted, improved to EUR 0.022 (-0.089).
Cash flow
Operating cash flow increased to EUR 5.2 million (-2.8) due to improved profitability.
JANUARY–DECEMBER 2023
Revenue and order backlog
Revenue increased 22.2% to EUR 180.7 million (147.8) where currency effects had a negative impact of -3.0%. The strong growth is mainly driven deliveries in the Ports & Maritime segment related to shore power solutions on container vessels. Most of the orders for shore power solutions for new-built container vessels were signed in 2022 and follow ship building activity running also into 2024. Demand for reels in the Industry segment and the services operations also contributed to the overall growth.
In the regions, growth was especially strong in North America increasing 81.6% to EUR 23.0 million (12.7), and in Asia Pacific where revenue grew 31.8% to EUR 69.8 million (53.0). In Europe and Middle East revenue increased 7.0% to EUR 88.0 million (82.2).
In 2023, the order backlog decreased -16.1% to EUR 123.6 million (147.2) as a consequence of the focus on profitable growth. This approach, introduced in 2023, has resulted in a normalization of the order backlog while there is a continuous steady stream om customer inquiries and strong interest in Cavotec's cleantech solutions and service offering.
EBIT (operating result) EBIT improved to EUR 7.2 million (-4.5) and the EBIT margin increased 7.0 percentage points to 4.0% (-3.0%). The EBIT improvement is mainly a consequence of the successful work in Ports & Maritime to focus on profitable growth in the order backlog.
Profit for the period and earnings per share
Net financial income amounted to EUR -3.5 million (-1.2), impacted by higher interest rates. Income taxes amounted to EUR 3.6 million (2.9). Profit for the year increased to EUR 0.2 million (-14.7). Earnings per share, basic and diluted, improved to EUR 0.002 (-0.156).
Cash flow
Operating cash flow increased to EUR 1.9 million (-5.5) due to improved profitability during the year.
Financial position
Net debt decreased to EUR 18.6 million from EUR 30.3 million at 31 December 2022. Net debt also decreased from 30 September 2023 when it amounted to EUR 21.4 million. The leverage ratio (measured as debt-to-equity) improved in the quarter to 1.29x from 2.68x at the end of the previous quarter. The equity/assets ratio increased from 26.2% at 31 December 2022 to 36.0% at the end of 2023 and increased from 33.3% at the end of the previous quarter.
Employees
At the end of the year, Cavotec had 660 (640) full-time equivalent employees.
Financial Review – Segments
ORDER BACKLOG – SEGMENTS
| EUR 000s | 31 Dec, 2023 | 31 Dec, 2022 | Change | 30 Sep, 2023 | Change |
|---|---|---|---|---|---|
| Order backlog | |||||
| Ports & Maritime | 99,801 | 116,916 | -14.6% | 107,015 | -6.7% |
| Industry | 23,761 | 30,291 | -21.6% | 29,495 | -19.4% |
| Group | 123,562 | 147,207 | -16.1% | 136,510 | -9.5% |
PORTS & MARITIME
OCTOBER-DECEMBER 2023
Revenue and order backlog
Revenue increased 8.4% to EUR 34.9 million (32.2), mainly driven by deliveries of shore power solutions for container vessels. Currency effects had a negative impact of -2.1%.
Order backlog decreased -6.7% to EUR 99.8 million from EUR 107.0 million in the previous quarter. In the fourth quarter 2023, a shore power order valued at EUR 6.65 million was signed with a world leading shipping line. A long-term service agreement was also signed with COSCO Group, one of the world's largest shipping companies. As part of the agreement, Cavotec will provide service to more than 60 ocean-going vessels equipped with Cavotec's shore power systems.
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 signed 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 improved to EUR 6.0 million (0.7) and the EBITDA margin increased 14.9 percentage points to 17.2% (2.3%), mainly as a consequence of the successful work to focus on profitable growth in the order backlog.
JANUARY–DECEMBER 2023
Revenue and order backlog
Revenue increased 29.9% to EUR 114.7 million (88.3), mainly driven by deliveries of shore power solutions for new-built container vessels as well as cruise terminals. Most of the orders for shore power solutions for new-built container vessels were signed in 2022 and follow ship building activity running also into 2024. Currency effects had a negative impact of -2.7%. The strong development was driven by good growth in North America of 111.6% to EUR 18.2 million (8.6) and in Asia Pacific 130.0% to EUR 50.7 million (39.0). Revenue in Europe and Middle East grew 12.6% to EUR 45.7 million (40.6).
Order backlog decreased -14.6% to EUR 99.8 million (116.9).
EBITDA EBITDA improved significantly to EUR 11.2 million (-2.4) and the EBITDA margin increased 12.5 percentage points to 9.8% (-2.7%) thanks to the focus on profitable growth introduced during the year which, among other things, includes improved production optimization.
INDUSTRY
OCTOBER-DECEMBER 2023
Revenue and order backlog
Revenue increased by 27.3% to EUR 18.6 million (14.6), mainly driven by deliveries of reels. Currency effects had a negative impact of -2.4%.
Order backlog decreased -19.4% to EUR 23.8 million from EUR 29.5 million in the previous quarter.
Cavotec's world's first ultra-fast 3 MW charging system is from the fourth quarter 2023 in service at a mining site in Australia. This unique charging system is targeting battery-powered heavy-duty vehicles and it is charging a prototype 240 tons electric haul truck in just 30 minutes.
EBITDA EBITDA increased to EUR 0.6 million (-0.8) and the EBITDA margin improved 8.6 percentage points to 3.3% (-5.3%).
JANUARY–DECEMBER 2023
Revenue and order backlog
Revenue increased 10.8% to EUR 66.0 million (59.6), mainly driven by good demand for reels. Growth in North America amounted to 17.6% to EUR 4.8 million (4.0) and in Asia Pacific to 36.7% to EUR 19.1 million (14.0). Revenue in Europe and Middle East grew 1.5% to EUR 42.2 million (41.6).
Order backlog decreased -21.6% to EUR 23.8 million (30.3).
EBITDA EBITDA amounted to EUR 3.2 million (4.0) and the EBITDA margin decreased -2.0 percentage points to 4.8% (6.8%). Profitability has been negatively impacted by a high proportion of larger projects.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR 000s | Unaudited three months 31 Dec, 2023 |
Unaudited three months 31 Dec, 2022 |
Unaudited year 31 Dec, 2023 |
Audited year 31 Dec, 2022 |
|---|---|---|---|---|
| Revenue from sales of goods and services | 53,506 | 46,819 | 180,734 | 147,849 |
| Other income | 911 | 192 | 2,076 | 1,776 |
| Cost of materials | (31,312) | (26,840) | (101,219) | (80,911) |
| Employee benefit costs | (11,382) | (13,296) | (47,895) | (47,807) |
| Operating expenses | (5,110) | (6,964) | (19,292) | (19,276) |
| Gross operating result | 6,613 | (89) | 14,404 | 1,631 |
| Depreciation and amortisation | (645) | (525) | (2,782) | (2,906) |
| Depreciation of right-of-use of leased asset | (941) | (805) | (3,311) | (3,222) |
| Impairment losses | (984) | (228) | (1,084) | (9) |
| Operating result (EBIT) | 4,043 | (1,646) | 7,227 | (4,506) |
| Interest income | 9 | 108 | 18 | 108 |
| Interest expenses | (859) | (306) | (3,471) | (1,354) |
| Currency exchange differences – net | (110) | (3,465) | (16) | 5,471 |
| Other financial item | 43 | - | 5 | - |
| Profit / (loss) before income tax | 3,126 | (5,309) | 3,763 | (281) |
| Income taxes | (774) | (1,311) | (3,583) | (2,890) |
| Profit / (loss) for the period, continuing operations | 2,352 | (6,620) | 180 | (3,170) |
| Profit / (loss) for the period, discontinued operations | - | (1,768) | - | (11,522) |
| Profit / (loss) for the period | 2,352 | (8,388) | 180 | (14,692) |
| Other comprehensive income: | ||||
| Remeasurements of post-employment benefit obligations continued operations | (102) | 514 | (99) | 507 |
| Remeasurements of post-employment benefit obligations discontinued operations | - | 214 | - | 193 |
| Items that will not be reclassified to profit or loss | (102) | 728 | (99) | 700 |
| Currency translation differences | (671) | 1,370 | (1,836) | (8,364) |
| Currency translation differences of discontinued operations | - | - | - | (155) |
| Items that may be subsequently reclassified to profit / (loss) | (671) | 1,370 | (1,836) | (8,519) |
| Other comprehensive income for the period, net of tax | (773) | 2,098 | (1,935) | (7,819) |
| Total comprehensive income for the period | 1,579 | (6,289) | (1,755) | (22,540) |
| Total comprehensive income attributable to: | ||||
| Equity holders of the Group | 1,579 | (6,255) | (1,755) | (22,511) |
| Non-controlling interest | - | (34) | - | (29) |
| Total | 1,579 | (6,289) | (1,755) | (22,540) |
| Profit / (loss) attributed to: | ||||
| Equity holders of the Group continued operations | 2,352 | (6,620) | 180 | (3,170) |
| Equity holders of the Group discontinued operations | - | (1,768) | - | (11,522) |
| Total | 2,352 | (8,388) | 180 | (14,692) |
| Basic and diluted earnings per share from continuing operations attributed to the equity holders of the Group |
0.022 | (0.070) | 0.002 | (0.034) |
| Basic and diluted earnings per share from discontinued operations attributed to the equity holders of the Group |
- | (0.019) | - | (0.122) |
| Basic and diluted earnings per share attributed to the equity holders of the Group | 0.022 | (0.089) | 0.002 | (0.156) |
| Average number of shares | 106,696,030 | 94,243,200 | 104,103,112 | 94,243,200 |
CONSOLIDATED BALANCE SHEET
| EUR 000s | Unaudited 31 Dec, 2023 |
Audited 31 Dec, 2022 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 15,056 | 9,625 |
| Trade receivables | 27,942 | 33,315 |
| Contract assets | 2,862 | 1,171 |
| Tax assets | 4,718 | 6,399 |
| Other current receivables | 4,949 | 6,256 |
| Inventories | 37,429 | 43,002 |
| Assets held for sale | 1,814 | 2,320 |
| Total current assets | 94,770 | 102,088 |
| Non-current assets | ||
| Property, plant and equipment | 5,414 | 5,941 |
| Right-of-use of leased assets | 11,529 | 13,213 |
| Intangible assets | 37,315 | 38,920 |
| Non-current financial assets | 68 | 106 |
| Deferred tax assets | 6,897 | 6,201 |
| Other non-current receivables | 1,231 | 1,215 |
| Total non-current assets | 62,454 | 65,597 |
| Total assets | 157,224 | 167,685 |
| Equity and Liabilities | ||
| Current liabilities | ||
| Current financial liabilities | - | (4,914) |
| Current lease liabilities | (2,527) | (2,687) |
| Trade payables | (26,004) | (36,126) |
| Contract liabilities | (19,268) | (28,125) |
| Tax liabilities | (5,111) | (3,101) |
| Provision for risk and charges, current | ||
| Other current liabilities | (2,171) | (2,032) |
| Total current liabilities | (11,320) | (11,906) |
| (66,401) | (88,891) | |
| Non-current liabilities | ||
| Non-current financial liabilities | (21,468) | (21,172) |
| Non-current lease liabilities | (9,167) | (10,353) |
| Deferred tax liabilities | (1,251) | (1,100) |
| Other non-current liabilities | (12) | (461) |
| Provision for risk and charges, non-current | (1,794) | (1,357) |
| Employee benefit obligation | (569) | (501) |
| Total non-current liabilities | (34,261) | (34,944) |
| Total liabilities | (100,662) | (123,835) |
| Equity | ||
| Share Capital | (54,130) | (45,288) |
| Reserves | (55,323) | (51,633) |
| Retained earnings | 52,891 | 53,071 |
| Equity attributable to owners of the parent | (56,562) | (43,850) |
| Non-controlling interests | - | - |
| Total equity | (56,562) | (43,850) |
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 |
|---|---|---|---|---|---|---|
| Audited | ||||||
| Balance as at 1 January 2022 | (100,169) | (4,833) | 38,379 | (66,623) | (29) | (66,652) |
| (Profit) / Loss for the period | - | - | 14,692 | 14,692 | 29 | 14,721 |
| Currency translation differences | - | 8,519 | - | 8,519 | - | 8,519 |
| Remeasurements of post-employment benefit obligations | - | (700) | - | (700) | - | (700) |
| Total comprehensive income and expenses | - | 7,819 | 14,692 | 22,511 | 29 | 22,540 |
| Employees share scheme | - | 262 | - | 262 | - | 262 |
| Share Premium Reserve | 54,881 | (54,881) | - | - | - | - |
| Transactions with shareholders | 54,881 | (54,619) | - | 262 | - | 262 |
| Balance as at 31 December 2022 | (45,288) | (51,633) | 53,071 | (43,850) | - | (43,850) |
| 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) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR 000s | Unaudited three months 31 Dec, 2023 |
Unaudited three months 31 Dec, 2022 |
Unaudited year 31 Dec, 2023 |
Audited year 31 Dec, 2022 |
|---|---|---|---|---|
| Profit / (loss) for the period | 2,352 | (8,388) | 180 | (14,692) |
| Loss from discontinued operations, net of income taxes | - | (1,768) | - | (11,522) |
| Adjustments for: | ||||
| Net interest expenses | 850 | 198 | 3,453 | 1,246 |
| Current taxes | 1,205 | 1,202 | 4,221 | 2,709 |
| Depreciation and amortization | 645 | 525 | 2,782 | 2,906 |
| Depreciation of right-of-use of leased assets | 941 | 805 | 3,311 | 3,222 |
| Impairment losses | 984 | 228 | 1,084 | 9 |
| Deferred tax | (432) | (47) | (638) | 181 |
| Provision for risks and charges | (418) | (1,228) | 69 | (827) |
| Capital (gain) or loss on assets | (2) | 22 | (20) | - |
| Other items not involving cash flows | (577) | 3,619 | (454) | (4,907) |
| Interest paid | (727) | (133) | (3,057) | (945) |
| Taxes (paid) / received | (628) | (2,792) | (529) | (6,225) |
| 1,841 | 2,399 | 10,222 | (2,631) | |
| Cash flow before changes in working capital | 4,195 | (4,221) | 10,402 | (5,802) |
| Impact of changes in working capital: | ||||
| Inventories | 9,397 | (910) | 5,451 | (12,960) |
| Trade receivables and contract assets | 531 | (5,984) | 4,381 | (8,784) |
| Other current receivables | ||||
| Trade payables and contract liabilities | 3,525 | (1,279) | 1,306 | (2,613) |
| Other current liabilities | (11,164) | 7,969 | (18,979) | 23,161 |
| Impact of changes involving working capital | (1,249) 1,040 |
1,575 1,371 |
(628) (8,469) |
1,513 317 |
| Net cash inflow / (outflow) from operating activities from continued operations | 5,235 | (2,850) | 1,933 | (5,485) |
| Net cash inflow / (outflow) from operating activities from discontinued operations | - | (2,756) | - | (15,508) |
| Net cash inflow / (outflow) from operating activities | 5,235 | (5,606) | 1,933 | (20,993) |
| Financial activities: | ||||
| Increase of equity capital | - | - | 14,526 | - |
| Net changes in loans and borrowings | (180) | 6,715 | (4,696) | 12,257 |
| Repayment of lease liabilities | (1,296) | (1,084) | (3,156) | (3,073) |
| Net cash inflow / (outflow) from financial activities from continued operations | (1,476) | 5,631 | 6,674 | 9,184 |
| Net cash inflow / (outflow) from financial activities from discontinued operations | - | - | - | (907) |
| Net cash inflow / (outflow) from financial activities | (1,476) | 5,631 | 6,674 | 8,277 |
| Investing activities: | ||||
| Investments in property, plant and equipment | (550) | (589) | (911) | (1,183) |
| Investments in intangible assets | (303) | (255) | (624) | (1,399) |
| (Increase)/Decrease of non-current financial asset | 38 | (31) | 38 | (50) |
| Disposal of assets | (50) | 311 | (29) | 1,142 |
| Net cash inflow / (outflow) from investing activities from continued operations | (865) | (564) | (1,526) | (1,490) |
| Net cash inflow / (outflow) from investing activities from discontinued operations | - | (2,359) | - | 9,679 |
| Net cash inflow / (outflow) from investing activities | (865) | (2,923) | (1,526) | 8,189 |
| Cash at the beginning of the period | 12,493 | 8,995 | 9,625 | 12,230 |
| Cash flow for the period from continued operations | 2,894 | 2,217 | 7,081 | 2,209 |
| Cash flow for the period from discontinued operations | - | (5,115) | - | (6,736) |
| Cash flow for the period | 2,894 | (2,898) | 7,081 | (4,527) |
| Currency exchange differences | (331) | 3,528 | (1,650) | 1,922 |
| Cash at the end of the period | 15,056 | 15,056 | 9,625 | |
| 9,625 |
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.
| 31 December 2023 | |||
|---|---|---|---|
| EUR 000s | Ports & Maritime | Industry | Total |
| 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 |
31 December 2022
| EUR 000s | Ports & Maritime | Industry | Total |
|---|---|---|---|
| Revenue from external customer | |||
| Timing of revenue recognition | |||
| At a point in time | 85,855 | 59,590 | 145,445 |
| Over time | 2,404 | - | 2,404 |
| Total | 88,259 | 59,590 | 147,849 |
31 December 2023
| EUR 000s | AMER | EMEA | APAC | Total |
|---|---|---|---|---|
| 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 |
31 December 2022
| EUR 000s | AMER | EMEA | APAC | Total |
|---|---|---|---|---|
| Ports & Maritime | 8,621 | 40,616 | 39,022 | 88,259 |
| Industry | 4,040 | 41,602 | 13,948 | 59,590 |
| Total | 12,661 | 82,218 | 52,970 | 147,849 |
SEGMENT INFORMATION
| EUR 000s | Ports & Maritime | Industry | Other reconciling items |
Total |
|---|---|---|---|---|
| Unaudited | ||||
| Three months ended 31 December 2023 | ||||
| Revenue from sales of goods and services | 34,867 | 18,639 | - | 53,506 |
| Other income | 574 | 337 | - | 911 |
| Cost of materials and operating expenses | (28,652) | (1,279) | (47,804) | |
| before depreciation and amortization | (17,873) | |||
| Gross Operating Result (EBITDA) | 6,790 | 1,103 | (1,279) | 6,613 |
| Unaudited | ||||
| Three months ended 31 December 2022 (restated) | ||||
| Revenue from sales of goods and services | 32,174 | 14,645 | - | 46,819 |
| Other income | (69) | 261 | - | 192 |
| Cost of materials and operating expenses | ||||
| before depreciation and amortization | (58,045) | (15,405) | (713) | (47,100) |
| Gross Operating Result (EBITDA) | (1,060) | (497) | (713) | (89) |
| 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) | (61,903) | (5,266) | (168,406) |
| Gross Operating Result (EBITDA) | 14,499 | 5,171 | (5,266) | 14,404 |
| Unaudited Year ended 31 December 2022 (restated) |
||||
| Revenue from sales of goods and services | 88,259 | 59,590 | - | 147,849 |
| Other income | 830 | 946 | - | 1,776 |
| Cost of materials and operating expenses | ||||
| before depreciation and amortization | (89,026) | (54,294) | (4,673) | (147,994) |
| Gross Operating Result (EBITDA) | 61 | 6,243 | (4,673) | 1,631 |
From 1 January 2023, the Group has changed the organizational structure and reporting to the CODM. The Segment information reflects these changes, the comparatives are restated in line with the revised segments.
PARENT COMPANY – CONDENSED STATEMENT OF COMPREHENSIVE INCOME
| Unaudited | Unaudited | Unaudited | Audited | |
|---|---|---|---|---|
| CAVOTEC SA | three months | three months | year | year |
| EUR 000s | 31 Dec, 2023 | 31 Dec, 2022 | 31 Dec, 2023 | 31 Dec, 2022 |
| Other income | (227) | 568 | 2,352 | 1,104 |
| Employee benefit costs | 622 | (185) | (240) | (1,481) |
| Operating expenses | (460) | (586) | (2,482) | (7,393) |
| Operating Result | (65) | (203) | (370) | (7,770) |
| Interest expenses – net | (391) | (11) | (1,767) | (319) |
| Currency exchange differences – net | (11) | (4) | 70 | (29) |
| Other financial items | 37 | - | - | - |
| Write down on investments | - | - | - | 3,776 |
| Profit / (Loss) for the period | (429) | (218) | (2,068) | (4,342) |
| Income taxes | (1) | (8) | (12) | (87) |
| Profit / (Loss) for the period | (430) | 1,616 | (2,080) | (4,429) |
| Other comprehensive income: | ||||
| Actuarial gain (loss) | - | - | - | (22) |
| Total comprehensive income for the period | (430) | (226) | (2,080) | (4,451) |
PARENT COMPANY – CONDENSED BALANCE SHEET
| CAVOTEC SA EUR 000s |
Unaudited 31 Dec, 2023 |
Audited 31 Dec, 2022 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 152 | 166 |
| Trade receivables | 3,023 | 1,136 |
| Tax assets | 25 | 85 |
| Other current receivables | 380 | 13,664 |
| Total current assets | 3,580 | 15,051 |
| Non-current assets | ||
| Investment in subsidiary companies | 93,365 | 93,365 |
| Intangible assets | 185 | - |
| Other non-current financial liabilities | 68 | 68 |
| Total non-current assets | 93,618 | 93,433 |
| Total assets | 97,198 | 108,484 |
| Equity and Liabilities | ||
| Current liabilities | ||
| Bank overdraft | - | (1,081) |
| Current financial liabilities | - | (2,955) |
| Trade payables | (1,279) | (3,647) |
| Other current liabilities | (4,772) | (16,669) |
| Total current liabilities | (6,051) | (24,352) |
| Non-current liabilities | ||
| Provision for risks and charges – non-current | - | - |
| Long-term financial debt | (36,915) | (42,045) |
| Other non-current liabilities | (12) | (14) |
| Total non-current liabilities | (36,927) | (42,059) |
| Total liabilities | (42,978) | (66,411) |
| Total equity | (54,220) | (42,073) |
| Total equity and liabilities | (97,198) | (108,484) |
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 more than 40 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 23 February 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 2022. 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.
In 2022 Cavotec completed the divestment of its airports business. As a result of the divestment process, from 1 January 2023, the Group has changed the organizational structure and reporting to the CODM.
The Segment information presented in the Q423 report reflects these changes, the comparatives are restated in line with the revised segments. The two new 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 2022.
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 will take place on 4 June 2024 in Lugano, Switzerland. Shareholders wishing to raise an issue for discussion at the AGM may do so by submitting their proposal to the Chairman of Cavotec by email: [email protected] or by post to: Cavotec SA, AGM 2024, Corso Elvezia 16, CH-6900 Lugano, Switzerland. To ensure their inclusion in the notice and thus on the agenda for the AGM, proposals must be received by the Company no later than 5 April 2024.
The Nomination Committee
Prior to the Annual General Meeting 2024, the Nomination Committee consists of Henrik Blomquist, representing Bure Equity AB, Fabio Cannavale, representing Nomina SA, Per Colleen, representing TomEnterprise Private AB, Thomas Ehlin, representing The Fourth Swedish National Pension Fund, and Patrik Tigerschiöld, Chairman of Cavotec's Board of Directors. Henrik Blomquist is the Chairman of the Nomination Committee. Shareholders wishing to submit proposals to the Nomination Committee for the 2024 AGM may do so by sending an email to [email protected] or writing to: Cavotec SA, Nomination Committee, Corso Elvezia 16, CH-6900 Lugano, Switzerland. Proposals must be submitted no later than 17 April 2024.
Financial calendar
Annual and Sustainability Week that begins Report 2023 15 April, 2024 First quarter report 26 April, 2024 Second quarter report 25 July, 2024 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 Friday 23 February at 10:00 am CET. If you wish to participate via webcast, please use the link
https://ir.financialhearings.com/cavotec-sa-q4-report-2023. 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=50046776. 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, Group 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. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 am CET on 23 February 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 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.
