Vaisala Corporation Interim Report January–March 2024
Vaisala
Corporation Interim
Report May
3, 2024, at 9.00 a.m. (EEST)
Vaisala Corporation Interim Report
January–March 2024
Weak net sales in Q1, record-high order book
First quarter 2024 highlights
- Orders received EUR 123.3 (132.0)
million, decrease 7%
- Order book at the end of the period
EUR 190.4 (163.7) million, increase 16%
- Net sales EUR 112.1 (131.8) million,
decrease 15%
- Operating result (EBIT) EUR 7.1 (13.3)
million, 6.4 (10.1) % of net sales
- Earnings per share EUR 0.14
(0.27)
- Cash flow from operating activities
EUR 17.1 (26.9) million
Business outlook for 2024
Vaisala estimates that its full-year 2024 net sales will be in the
range of EUR 530–570 million and its operating result (EBIT) will
be in the range of EUR 63–78 million.
Market outlook for 2024
Markets for high-end industrial instruments and life science slowed
down significantly during Q2/2023 and remained on a lower level for
the rest of the year. Markets are expected to remain flat in
H1/2024 and start improving during H2/2024. Markets for power and
energy, and liquid measurements markets are expected to grow.
Markets for the more mature markets, meteorology,
aviation, and roads, are expected to be stable. Market for
renewable energy is expected to grow.
Vaisala’s President and CEO Kai
Öistämö
“Vaisala had a slow start for the year 2024, with market activity
continuing at the same level as in the second half of 2023.
Especially in the Industrial Measurements business area, the
industrial actions in Finland and simultaneous ramp-up of the new
Enterprise Resource Planning (ERP) system had a negative impact on
our first quarter net sales. In the Weather and Environment
business area, net sales decreased, mainly due to the timing of the
project deliveries. On the other hand, growth of subscription sales
continued strong. Decrease in net sales was partly mitigated by
lower operating expenses resulting in a 6.4% operating result
margin.
Decrease in our first quarter orders received
reflects the continued low market activity level as well as the
strong comparison period for the Industrial Measurements business
area. In addition, as component availability has normalized, there
was less incentive for customers to make annual orders compared to
the beginning of last year. In the Weather and Environment business
area, orders received were at previous year’s level reflecting
stability in the market environment. On Vaisala level, the quarter
ended with a record-high order book of EUR 190 million, of which
75% is scheduled to be delivered in 2024.
In February, we also updated our company purpose,
Taking every measure for the planet, and sharpened our
strategic priorities. Our renewed purpose reflects how we intend to
expand our role as a leader in measurement instruments and
intelligence. At the core of our strategy is our ambition to enable
global climate action together with our customers, helping them to
save resources, drive the energy transition, and care for the
safety and well-being of people and societies. To support the
recalibrated purpose, we also updated our visual brand
identity.
After we closed the quarter, Vaisala’s greenhouse
gas emission reduction targets received the approval by the Science
Based Targets initiative in early April. Vaisala commits to more
than halve its direct emissions (scope 1) and purchased-energy
emissions (scope 2) from 2021 level by 2030. Moreover, Vaisala
commits to more than halve its other indirect emissions (scope 3)
in relation to gross profit within the same timeframe. As scope 3
emissions make up over 99 % of Vaisala’s total emissions, we focus
especially on these categories in our emission reduction
actions.
Looking ahead at the rest of 2024, we expect that
there will be continued uncertainty in the business environment. We
expect the market to improve and continue to anticipate that our
performance in the second half of the year will be stronger than
the first half. Despite the soft first quarter, we reiterate our
full year 2024 business outlook. We estimate that our full-year
2024 net sales will be in the range of EUR 530–570 million and that
our operating result (EBIT) will be in the range of EUR 63–78
million.”
Key figures |
|
|
|
|
MEUR |
1-3/
2024 |
1-3/
2023 |
Change |
1-12/
2023 |
Orders received |
123.3 |
132.0 |
-7% |
528.1 |
Order book |
190.4 |
163.7 |
16% |
172.5 |
Net sales |
112.1 |
131.8 |
-15% |
540.4 |
Gross profit |
60.7 |
73.9 |
-18% |
301.7 |
Gross margin, % |
54.2 |
56.1 |
|
55.8 |
Operating expenses |
53.7 |
60.7 |
-12% |
235.9 |
Operating result |
7.1 |
13.3 |
|
66.6 |
Operating result, % |
6.4 |
10.1 |
|
12.3 |
Result before taxes |
6.6 |
12.5 |
|
63.1 |
Result for the period |
5.2 |
9.6 |
|
48.9 |
Earnings per share |
0.14 |
0.27 |
-46% |
1.35 |
Return on equity, % |
8.0 |
16.0 |
|
18.9 |
Research and development costs |
16.4 |
17.9 |
-8% |
67.7 |
Capital expenditure |
2.0 |
3.1 |
-36% |
13.9 |
Depreciation, amortization and impairment |
5.7 |
5.9 |
-4% |
24.3 |
Cash flow from operating activities |
17.1 |
26.9 |
-36% |
83.8 |
Cash and cash equivalents |
105.0 |
75.4 |
39% |
90.3 |
Interest-bearing liabilities |
61.4 |
60.4 |
2% |
62.1 |
Gearing, % |
-17.8 |
-6.5 |
|
-10.5 |
Financial review Q1/2024
Orders received and order book
MEUR |
1-3/
2024 |
1-3/
2023 |
Change |
FX* |
1-12/
2023 |
Orders received |
123.3 |
132.0 |
-7% |
-6% |
528.1 |
Order book, end of period |
190.4 |
163.7 |
16% |
|
172.5 |
* Change with comparable exchange rates
First quarter 2024 orders received decreased by 7%
compared to previous year and totaled EUR 123.3 (132.0) million.
Orders received decreased in Industrial Measurements business area
and were at comparison period’s level in Weather and Environment
business area.
At the end of March 2024, order book was all-time
high and amounted to EUR 190.4 (Dec 31, 2023: 172.5) million and
increased by 10% compared to end of 2023. Order book increased
strongly in Weather and Environment business area and somewhat in
Industrial Measurements business area. EUR 141.4 (Dec 31, 2023:
127.7) million of the order book is scheduled to be delivered in
2024.
Financial performance
MEUR |
1-3/
2024 |
1-3/
2023 |
Change |
FX** |
1-12/
2023 |
Net sales |
112.1 |
131.8 |
-15% |
-15% |
540.4 |
Product sales |
79.8 |
99.1 |
-19% |
|
397.7 |
Project sales |
11.8 |
14.8 |
-21% |
|
69.5 |
Service sales |
10.9 |
9.3 |
17% |
|
38.9 |
Subscription sales |
9.4 |
8.2 |
15% |
|
32.5 |
Lease income |
0.2 |
0.4 |
-48% |
|
1.8 |
Gross margin, % |
54.2 |
56.1 |
|
|
55.8 |
Operating result |
7.1 |
13.3 |
|
|
66.6 |
% of net sales |
6.4 |
10.1 |
|
|
12.3 |
|
|
|
|
|
|
R&D costs |
16.4 |
17.9 |
-8% |
|
67.7 |
Amortization* |
1.7 |
2.1 |
|
|
8.1 |
* Amortization of intangible assets related to
the acquired businesses
** Change with comparable exchange rates
First quarter 2024 net sales decreased by 15%
compared to previous year and were EUR 112.1 (131.8) million. In
constant currencies, net sales decreased by 15%. Combined impact of
the industrial actions in Finland and ramp-up of the new ERP
(Enterprise Resource Planning) system decreased net sales. Net
sales decreased in both business areas. Net sales decreased in all
other market segments than in power and energy and renewable energy
market segments.
Gross margin decreased to 54.2 (56.1) %. Low
delivery volumes decreased utilization rate at the factories
covering less fixed costs and, therefore, burdening gross
margin.
First quarter 2024 operating result decreased
compared to previous year following decrease in net sales and gross
margin and was EUR 7.1 (13.3) million, 6.4 (10.1) % of net
sales. Operating expenses were lower than in the previous year due
to temporarily lower activity levels among others in R&D and
marketing.
First quarter 2024 financial income and expenses
were EUR -0.5 (-0.8) million. This was mainly a result of valuation
of foreign currency denominated items and currency hedging. Income
taxes were EUR 1.5 (2.9) million and estimated effective tax rate
for the whole year was 22.4 (23.0) %. Result before taxes was EUR
6.6 (12.5) million and result for the period EUR 5.2 (9.6) million.
Earnings per share was EUR 0.14 (0.27).
Statement of financial position and cash
flow
Vaisala’s financial position remained strong during January–March
2024. At the end of March, statement of financial position totaled
EUR 456.4 (Dec 31, 2023: 442.8) million. Net debt amounted to EUR
-43.7 (-28.2) million. Cash and cash equivalents totaled EUR 105.0
(90.3) million. Dividend liability, decided by the Annual General
Meeting on March 26, 2024, totaled EUR 27.2 million. On March 31,
2024, Vaisala had interest-bearing borrowings totaling EUR 50.0
(Dec 31, 2023: 50.0) million, which related to an unsecured term
loan due in 2026. The loan has a financial covenant (gearing)
tested semi-annually. Vaisala had not issued any domestic
commercial papers on March 31, 2024, as at the end of 2023. Vaisala
has also a EUR 50 million committed revolving credit facility,
which was undrawn on March 31, 2024, as at the end of 2023. In
addition, interest-bearing lease liabilities totaled EUR 11.4 (Dec
31, 2023: 12.1) million.
In January–March 2024, cash flow from operating
activities decreased to EUR 17.1 (26.9) million. This was mainly a
result of EUR 6.5 (14.8) million change in net working capital and
decrease in net result.
Capital expenditure
In January–March 2024, capital expenditure in intangible assets and
property, plant, and equipment totaled EUR 2.0 (3.1) million.
Capital expenditure was mainly related to investments in machinery
and equipment to develop and maintain Vaisala’s production,
R&D, and service operations as well as facilities.
Depreciation, amortization, and impairment were EUR
5.7 (5.9) million. This included EUR 1.7 (2.1) million of
amortization of identified intangible assets related to the
acquired businesses.
Personnel
The average number of personnel employed during January–March 2024
was 2,306 (2,266). At the end of March 2024, the number of
employees was 2,313 (Dec 31, 2023: 2,314). 77 (77) % of employees
were located in EMEA, 16 (16) % in Americas and 7 (7) % in APAC. 66
(66) % of employees were based in Finland.
Q1/2024 review by business
area
Industrial Measurements business
area
MEUR |
1-3/
2024 |
1-3/
2023 |
Change |
FX** |
1-12/
2023 |
Orders received |
51.7 |
59.9 |
-14% |
-12% |
222.4 |
Order book, end of period |
36.5 |
38.6 |
-5% |
|
35.2 |
Net sales |
48.0 |
63.0 |
-24% |
-24% |
227.3 |
Product sales |
41.7 |
58.2 |
-28% |
|
207.4 |
Service sales |
6.3 |
4.8 |
30% |
|
19.9 |
Gross margin, % |
58.4 |
62.6 |
|
|
61.8 |
Operating result |
6.5 |
15.0 |
|
|
45.2 |
of net sales, % |
13.5 |
23.8 |
|
|
19.9 |
|
|
|
|
|
|
R&D costs |
6.6 |
7.1 |
-7% |
|
25.9 |
Amortization* |
0.2 |
0.4 |
|
|
1.7 |
* Amortization of intangible assets related to
the acquired businesses
** Change with comparable exchange rates
Q1/2024 review
Industrial Measurements business area’s first quarter 2024 orders
received decreased by 14% compared to previous year totaling EUR
51.7 (59.9) million. Orders received decreased industrial
instruments, life science, and liquid measurements markets
segments, while orders received grew very strongly in power and
energy market segment.
At the end of March 2024, Industrial Measurements
business area’s order book amounted to EUR 36.5 (Dec 31, 2023:
35.2) million and increased by 5% compared to end of 2023. EUR 32.5
(Dec 31, 2023: 31.6) million of the order book is scheduled to be
delivered in 2024. Order book increased in life science, industrial
instruments as well as in power and energy market segments and
decreased in liquid measurements market segment.
First quarter 2024 net sales decreased by 24% from
previous year and were EUR 48.0 (63.0) million. In constant
currencies, net sales decreased by 24%. Combined impact of the
industrial actions in Finland and ramp-up of the new ERP
(Enterprise Resource Planning) system decreased net sales. Net
sales decreased very strongly in life science, industrial
instruments, and liquid measurements market segments, while net
sales in power and energy market segment grew compared to previous
year.
Gross margin decreased from previous year and was
58.4 (62.6) %. Low delivery volumes decreased utilization rate at
the factory burdening gross margin.
Industrial Measurements business area’s first
quarter 2024 operating result decreased compared to previous year
following decrease in net sales and gross margin and totaled EUR
6.5 (15.0) million, 13.5 (23.8) % of net sales. Operating expenses
were lower than in the previous year due to temporarily lower
activity levels among others in R&D and marketing.
Weather and Environment business
area
MEUR |
1-3/
2024 |
1-3/
2023 |
Change |
FX** |
1-12/
2023 |
Orders received |
71.5 |
72.1 |
-1% |
0% |
305.8 |
Order book, end of period |
153.9 |
125.1 |
23% |
|
137.3 |
Net sales |
64.1 |
68.8 |
-7% |
-6% |
313.1 |
Product sales |
38.1 |
40.9 |
-7% |
|
190.3 |
Project sales |
11.8 |
14.8 |
-21% |
|
69.5 |
Service sales |
4.6 |
4.5 |
3% |
|
19.0 |
Subscription sales |
9.4 |
8.2 |
15% |
|
32.5 |
Lease income |
0.2 |
0.4 |
-48% |
|
1.8 |
Gross margin, % |
51.0 |
50.2 |
|
|
51.5 |
Operating result |
0.6 |
-1.7 |
|
|
21.1 |
of net sales, % |
1.0 |
-2.5 |
|
|
6.7 |
|
|
|
|
|
|
R&D costs |
9.8 |
10.8 |
-9% |
|
41.8 |
Amortization* |
1.5 |
1.7 |
|
|
6.4 |
* Amortization of intangible assets related to
the acquired businesses
** Change with comparable exchange rates
Q1/2024 review
Weather and Environment business area’s first quarter 2024 orders
received were at previous year’s level and totaled EUR 71.5 (72.1)
million. Orders received decreased very strongly in aviation market
segment and were at previous year’s level in meteorology and
renewable energy market segment. Orders received for roads market
grew very strongly compared to previous year.
At the end of March 2024, Weather and Environment
business area’s order book amounted to EUR 153.9 (Dec 31,
2023: 137.3) million and increased by 12% compared to end of 2023.
EUR 108.9 (Dec 31, 2023: 96.1) million of the order book is
scheduled to be delivered in 2024. Order book increased in
meteorology, roads and renewable energy market segment and
decreased in aviation market segment.
First quarter 2024 net sales decreased by 7%
compared to previous year and totaled EUR 64.1 (68.8) million. In
constant currencies, net sales decreased by 6%. Timing of the
project deliveries was the main reason for the decrease in net
sales. Net sales decreased in meteorology, roads, and aviation
market segments and were at previous year’s level in renewable
energy market segment.
Gross margin improved compared to previous year and
was 51.0 (50.2) %. More favorable business mix improved gross
margin.
Weather and Environment business area’s first
quarter 2024 operating result increased compared to previous year
following improved gross margin and lower operating expenses and
totaled EUR 0.6 (-1.7) million,
1.0 (-2.5) % of net sales.
Sustainability
Vaisala’s journey of increasing climate action and reducing
emissions continues as the Science Based Targets initiative (SBTi)
approved Vaisala’s near-term science-based emission reduction
targets in April 2024. According to the targets, Vaisala commits to
more than halve its direct greenhouse gas emissions (scope 1) and
purchased-energy emissions (scope 2) from 2021 level by 2030.
Moreover, Vaisala commits to more than halve its other indirect
emissions (scope 3) in relation to gross profit within the same
timeframe.
In March 2024, as part of Vaisala’s sustainability
work and the new purpose, Taking every measure for the
planet, the company’s existing term loan and revolving credit
facility were amended as sustainability linked facilities.
Changes in Leadership Team
In February 2024, Vaisala appointed Girish Agarwal as Chief Digital
& Information Officer (CDIO). He will join the Vaisala
Leadership Team and report to the President and CEO Kai Öistämö. He
will start in his role in June 2024. Agarwal will succeed Olli
Nastamo, the current EVP, Operational Excellence, who will retire
in August 2024.
Members of the Vaisala Leadership Team on March 31,
2024
- Kai Öistämö,
President and CEO, Chair of the Leadership Team
- Anne Jalkala,
Chief Sustainability and Strategy Officer
- Sampsa Lahtinen,
EVP, Industrial Measurements business area
- Timo Leskinen,
EVP, Human Resources
- Heli Lindfors,
Chief Financial Officer
- Olli Nastamo, EVP,
Operational Excellence
- Vesa Pylvänäinen,
EVP, Operations
- Jarkko Sairanen,
EVP, Weather and Environment business area
- Katriina Vainio,
EVP, Group General Counsel
Annual General Meeting 2024
Vaisala Corporation’s Annual General Meeting was held on March 26,
2024. The meeting approved the financial statements and discharged
the members of the Board of Directors and the President and CEO
from liability for the financial period January 1–December 31,
2023.
Dividend
The Annual General Meeting resolved a dividend of EUR 0.75 per
share. The record date for the dividend payment was March 28, 2024,
and the payment date was April 12, 2024.
Board of Directors
The Annual General Meeting confirmed that the number of Board
members is nine. Petri Castrén, Antti Jääskeläinen, Jukka
Rinnevaara, Kaarina Ståhlberg, Tuomas Syrjänen, Raimo Voipio, and
Ville Voipio will continue as members of the Board of Directors.
Annica Bresky and Lotte Rosenberg were elected as new members.
The Annual General Meeting confirmed that the
annual remuneration payable to the Chair of the Board of Directors
is EUR 55,000 and each Board member EUR 40,000 per year.
Approximately 40% of the annual remuneration will be paid in
Vaisala Corporation’s series A shares acquired from the market and
the rest in cash. In addition, the Annual General Meeting confirmed
that the meeting fee for the Chair of the Audit Committee will be
EUR 1,500 per attended meeting and EUR 1,000 for each member of the
Audit Committee and Chair and each member of the People and
Sustainability Committee, the Nomination Committee and any other
committee established by the Board of Directors for a term until
the close of the Annual General Meeting in 2025. In addition,
members of the Board residing outside of Finland will be paid a
meeting fee of EUR 1,000 per physical meeting attended. The meeting
fees are paid in cash. Possible travel expenses are reimbursed
according to the travel policy of the company.
Auditor
The Annual General Meeting elected PricewaterhouseCoopers Oy as the
auditor of the company and APA Ylva Eriksson will act as the
auditor with the principal responsibility. The Auditor is
reimbursed according to invoice presented to the company.
Sustainability reporting
assurer
The Annual General Meeting elected PricewaterhouseCoopers Oy as the
sustainability reporting assurer of the company and Ylva Eriksson,
Authorized Sustainability Auditor (KRT), as the assurer with
principal authority. The assurer is reimbursed according to invoice
presented to the company.
Authorization for the directed repurchase
of own series A shares
The Annual General Meeting authorized the Board of Directors to
resolve on the directed repurchase of a maximum of 800,000 of the
company's own series A shares in one or more instalments by using
company's unrestricted equity. The authorization is valid until the
closing of the next Annual General Meeting, however, no longer than
September 26, 2025.
Authorization on the issuance of the
company's own series A shares
The Annual General Meeting authorized the Board of Directors to
resolve on the issuance of a maximum of 936,697 company's own
series A shares. The issuance of own shares may be carried out in
deviation from the shareholders' pre-emptive rights (directed
issue). The authorization entitles the issuance of treasury series
A shares as a directed issue without payment as part of the
company's share-based incentive plan. The subscription price of the
shares can instead of cash also be paid in full or in part as
contribution in kind. The authorization is valid until September
26, 2025. The authorization for the company's incentive program
shall however be valid until March 26, 2028.
The organizing meeting of the Board of
Directors
At its organizing meeting held after the Annual General Meeting the
Board elected Ville Voipio as the Chair of the Board of Directors
and Raimo Voipio as the Vice Chair.
Kaarina Ståhlberg was elected as the Chair and
Petri Castrén, Lotte Rosenberg, and Raimo Voipio as members of the
Audit Committee. Antti Jääskeläinen was elected as the Chair and
Annica Bresky, Jukka Rinnevaara, Tuomas Syrjänen, and Ville Voipio
as members of the People and Sustainability Committee. Ville Voipio
was elected as the Chair and Annica Bresky, Tuomas Syrjänen, and
Raimo Voipio as members of the Nomination Committee. The Chair and
all members of the Audit Committee, People and Sustainability
Committee as well as Nomination Committee are independent both of
the company and of significant shareholders.
Shares and shareholders
Share capital and shares
Vaisala’s share capital totaled EUR 7,660,808 on March 31, 2024.
Vaisala has 36,436,728 shares, of which 6,731,092 are series K
shares and 29,705,636 series A shares. Series A shares are listed
on the Nasdaq Helsinki Ltd. The series K shares and series A shares
are differentiated by the fact that each series K share entitles
its owner to 20 votes at a General Meeting of Shareholders while
each series A share entitles its owner to 1 vote. The series A
shares represented 81.5% of the total number of shares and 18.1% of
the total votes. The series K shares represented 18.5% of the total
number of shares and 81.9% of the total votes.
Trading and share price
development
In January–March 2024, a total of 619,264 series A shares with a
value totaling EUR 22.8 million were traded on the Nasdaq Helsinki
Ltd. The closing price of the series A share on the Nasdaq Helsinki
stock exchange was EUR 37.95. Shares registered a high of EUR 39.75
and a low of EUR 35.10. Volume-weighted average share price was EUR
36.87.
The market value of series A shares on March 31,
2024, was EUR 1,122.2 million, excluding company’s treasury shares.
Valuing the series K shares – which are not traded on the stock
market – at the rate of the series A share’s closing price on the
last trading day of March, the total market value of all the series
A and series K shares together was EUR 1,377.6 million, excluding
company’s treasury shares.
Treasury shares
In March 2024, a total of 49,932 of Vaisala Corporation's treasury
shares were conveyed without consideration to the 43 key employees
participating in the Performance Share Plans 2021–2023, 2022–2024,
and 2023–2025 under the terms and conditions of the plans. This
directed share issue was based on an authorization given by the
Annual General Meeting held on March 28, 2023.
The total number of series A treasury shares on
March 31, 2024, was 135,544, which represents 0.5% of series A
shares and 0.4% of total shares.
Shareholders
At the end of March 2024, Vaisala had 15,362 (14,002) registered
shareholders. Ownership outside of Finland and nominee
registrations represented 21.4 (21.3) % of the company's shares.
Households owned 40.6 (40.5) %, private companies 13.8 (12.8)
%, financial and insurance institutions 10.0 (11.5) %, non-profit
organizations 10.0 (10.1) % and public sector organizations 4.2
(3.9) % of the shares.
More information about Vaisala’s shares and
shareholders are presented on the company’s website at
vaisala.com/investors.
Near-term risks and
uncertainties
Changes in geopolitical situation, interest rates and inflationary
environment may affect industrial investments and economic
situation and increase risk of achieving Vaisala’s financial
targets.
Industrial actions in Finland may cause disruptions
in Vaisala’s operations and deteriorate Vaisala’s delivery
capability. Vaisala’s delivery capability may deteriorate due to
disruptions in suppliers’ operations, Vaisala’s production or
project delivery operation, or disruptions in incoming and/or
outgoing logistics. Temporary component shortage may cause delays
or interruptions in deliveries or generate additional material
costs. Cyber risk and long disruptions in IT systems may impact
operations and delivery capability.
New and changing regulations impacting product
acceptance, operation’s capability to meet changing compliance
requirements, and changes in international trade policies may cause
delays or interruptions in supply chain. Customers’ preference for
local manufacturing may reduce demand for Vaisala’s products and
services. Customers’ budgetary constraints, complex decision-making
processes, and missing financing solutions may postpone closing of
infrastructure contracts in Weather and Environment business
area.
Further information about risk management and risks
are available on Annual Report’s Corporate Governance/Risk
management section and on the company’s website at vaisala.com.
Events after reporting period
On April 5, 2024, Vaisala made a voluntary prepayment of EUR 15
million regarding EUR 50 million unsecured term loan initially
signed on March 31, 2023. Term loan is due in 2026.
Financial calendar 2024
Half Year Financial Report 2024: July 25, 2024
Interim Report January–September 2024: October 24, 2024
Vantaa, May 2, 2024
Vaisala Corporation
Board of Directors
The forward-looking statements in this report are
based on the current expectations, known factors, decisions, and
plans of Vaisala's management. Although the management believes
that the expectations reflected in these forward-looking statements
are reasonable, there is no assurance that these expectations would
prove to be correct. Therefore, the results could differ materially
from those implied in the forward-looking statements, due to for
example changes in the economic, market and competitive
environments, regulatory or other government-related changes, or
shifts in exchange rates.
Financial information and changes in
accounting policies
This Interim Report has been prepared in accordance with IAS 34
Interim Financial Reporting, following the same accounting policies
and principles as in the annual financial statements for 2023. All
figures in this Interim Report are group figures. All presented
figures have been rounded and consequently the sum of individual
figures may deviate from the sum presented. The Interim Report is
unaudited.
Preparation of Interim Report in accordance with
IFRS requires Vaisala’s management to make estimates and
assumptions that affect the valuation of the reported assets and
liabilities and the recognition of income and expenses in statement
of income. Although estimates are based on management’s best
knowledge at the date of Interim Report, actual results may differ
from those estimates.
New and amended IFRS standards effective
for the year 2024
Amendment to IAS 1 (Presentation of financial statements –
Classification of liabilities as current or non-current) has been
adopted from January 1, 2024. The adoption of the amendment is not
expected to have an impact on the consolidated financial statements
in future periods except for the new requirements on notes to the
financial statements. In addition, amendments to IFRS 16 (Leases –
Lease liability in a sale and leaseback) as well as to IAS 7 and
IFRS 7 (Supplier finance arrangements) have been adopted from
January 1, 2024. The adoption of these amendments may have an
impact on the group’s consolidated financial statements in future
periods should such transactions arise.
Change in accounting policy
As of January 1, 2024, Vaisala has amended the accounting policy
related to the share-based payments and recognizes equity related
bookings in retained earnings instead of former policy recognizing
those in other reserves. This voluntary change in accounting
principle based on market practice is applied retrospectively and
retained earnings and other reserves are adjusted for the earliest
prior period presented. The change in accounting policy does not
have impact on consolidated statement of income or total
equity.
Table below presents December 31, 2022, and 2023
quarterly comparative figures after amendment described above:
|
Dec 31,
2022 |
Mar 31,
2023 |
Jun 30,
2023 |
Sep 30,
2023 |
Dec 31,
2023 |
|
Earlier reported |
Restated |
Earlier reported |
Restated |
Earlier reported |
Restated |
Earlier reported |
Restated |
Earlier reported |
Restated |
Other reserves |
3.5 |
0.6 |
-0.1 |
0.6 |
0.8 |
0.6 |
0.3 |
0.6 |
2.3 |
0.6 |
Retained earnings |
238.5 |
241.4 |
222.0 |
221.2 |
230.0 |
230.1 |
248.4 |
248.2 |
261.3 |
263.0 |
Consolidated statement of income |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Net sales |
112.1 |
131.8 |
540.4 |
Cost of goods sold |
-51.4 |
-57.9 |
-238.8 |
Gross profit |
60.7 |
73.9 |
301.7 |
|
|
|
|
Sales, marketing and administrative costs |
-37.3 |
-42.8 |
-168.2 |
Research and development costs |
-16.4 |
-17.9 |
-67.7 |
Other operating income and expenses |
0.0 |
0.0 |
0.9 |
Operating result |
7.1 |
13.3 |
66.6 |
|
|
|
|
Share of result in associated company |
- |
- |
0.2 |
Financial income |
1.5 |
3.8 |
8.2 |
Financial expenses |
-2.0 |
-4.6 |
-11.9 |
Result before taxes |
6.6 |
12.5 |
63.1 |
|
|
|
|
Income taxes |
-1.5 |
-2.9 |
-14.2 |
Result for the period |
5.2 |
9.6 |
48.9 |
|
|
|
|
Attributable to |
|
|
|
Owners of the parent company |
5.2 |
9.6 |
48.9 |
|
|
|
|
Earnings per share for result attributable to the equity
holders of the parent company |
|
|
|
Earnings per share, EUR |
0.14 |
0.27 |
1.35 |
Diluted earnings per share, EUR |
0.14 |
0.26 |
1.35 |
Consolidated statement of comprehensive
income |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Items that will not be reclassified to profit or loss (net
of taxes) |
|
|
|
Actuarial profit (loss) on post-employment benefits |
0.0 |
0.0 |
-0.0 |
Total |
0.0 |
0.0 |
-0.0 |
|
|
|
|
Items that may be reclassified subsequently to profit or
loss |
|
|
|
Translation differences |
1.3 |
-1.7 |
-3.3 |
Total |
1.3 |
-1.7 |
-3.3 |
|
|
|
|
Total other comprehensive income |
1.3 |
-1.7 |
-3.3 |
|
|
|
|
Comprehensive income for the period |
6.4 |
7.9 |
45.6 |
|
|
|
|
Attributable to |
|
|
|
Owners of the parent company |
6.4 |
7.9 |
45.6 |
Consolidated statement of financial position |
|
|
|
EUR million |
|
|
|
Assets |
Mar 31,
2024 |
Mar 31,
2023 |
Dec 31,
2023 |
|
|
|
|
Non-current assets |
|
|
|
Intangible assets |
61.3 |
68.8 |
62.5 |
Property, plant and equipment |
94.4 |
95.4 |
95.0 |
Right-of-use assets |
12.5 |
11.4 |
13.1 |
Investments in shares |
0.1 |
0.1 |
0.1 |
Investment in associated company |
1.4 |
1.4 |
1.4 |
Non-current receivables |
1.3 |
0.9 |
1.3 |
Deferred tax assets |
8.8 |
8.3 |
7.8 |
Total non-current assets |
179.7 |
186.3 |
181.1 |
|
|
|
|
Current assets |
|
|
|
Inventories |
62.5 |
65.6 |
58.8 |
Trade and other receivables |
84.4 |
88.5 |
85.5 |
Contract assets and other accrued revenue |
21.9 |
24.1 |
24.2 |
Income tax receivables |
2.8 |
3.3 |
2.8 |
Cash and cash equivalents |
105.0 |
75.4 |
90.3 |
Total current assets |
276.7 |
257.0 |
261.7 |
|
|
|
|
Total assets |
456.4 |
443.2 |
442.8 |
Equity and liabilities |
Mar 31,
2024 |
Mar 31,
2023 |
Dec 31,
2023 |
|
|
|
|
Equity |
|
|
|
Share capital |
7.7 |
7.7 |
7.7 |
Other reserves |
0.6 |
0.6 |
0.6 |
Translation differences |
2.1 |
2.4 |
0.8 |
Treasury shares |
-3.4 |
-2.1 |
-4.2 |
Retained earnings |
238.5 |
221.2 |
263.0 |
Total equity attributable to owners of parent
company |
245.5 |
229.8 |
267.9 |
|
|
|
|
Non-controlling interests |
- |
- |
- |
|
|
|
|
Total equity |
245.5 |
229.8 |
267.9 |
|
|
|
|
Non-current liabilities |
|
|
|
Interest-bearing borrowings |
50.0 |
0.0 |
50.0 |
Interest-bearing lease liabilities |
8.6 |
8.0 |
9.3 |
Post-employment benefits |
2.1 |
2.7 |
2.3 |
Deferred tax liabilities |
2.2 |
4.0 |
2.9 |
Provisions |
0.4 |
0.3 |
0.4 |
Other non-current liabilities |
4.4 |
5.8 |
4.2 |
Total non-current liabilities |
67.6 |
20.8 |
69.0 |
|
|
|
|
Current liabilities |
|
|
|
Interest-bearing borrowings |
0.0 |
50.0 |
0.0 |
Interest-bearing lease liabilities |
2.7 |
2.5 |
2.8 |
Trade and other payables |
104.3 |
99.8 |
66.5 |
Contract liabilities and other deferred revenue |
28.8 |
36.6 |
30.7 |
Income tax liabilities |
4.9 |
1.3 |
3.3 |
Provisions |
2.6 |
2.5 |
2.5 |
Total current liabilities |
143.3 |
192.6 |
105.9 |
|
|
|
|
Total liabilities |
210.9 |
213.4 |
175.0 |
|
|
|
|
Total equity and liabilities |
456.4 |
443.2 |
442.8 |
Consolidated cash flow statement |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Result for the period |
5.2 |
9.6 |
48.9 |
|
|
|
|
Depreciation, amortization and impairment |
5.7 |
5.9 |
24.3 |
Financial income and expenses |
0.5 |
0.8 |
3.7 |
Gains and losses on sale of intangible assets and property, plant
and |
|
|
|
equipment |
- |
- |
-0.2 |
Share of result in associated company |
- |
- |
-0.2 |
Income taxes |
1.5 |
2.9 |
14.2 |
Other adjustments |
-0.7 |
-2.3 |
-0.7 |
|
|
|
|
Inventories, increase (-) / decrease (+) |
-4.0 |
-4.1 |
3.0 |
Non-interest-bearing receivables, increase (-) / decrease (+) |
3.1 |
14.8 |
16.2 |
Non-interest-bearing liabilities, increase (+) / decrease (-) |
7.4 |
4.1 |
-9.7 |
Changes in working capital |
6.5 |
14.8 |
9.5 |
|
|
|
|
Interest and other financial items received |
0.8 |
0.2 |
1.7 |
Interest and other financial items paid |
-0.7 |
-1.4 |
-4.4 |
Income taxes paid |
-1.6 |
-3.6 |
-12.9 |
Cash flow from operating activities |
17.1 |
26.9 |
83.8 |
|
|
|
|
Capital expenditure on intangible assets and property, plant
and |
|
|
|
equipment |
-2.0 |
-3.1 |
-13.9 |
Proceeds from sale of intangible assets and property, plant
and |
|
|
|
equipment |
0.1 |
- |
0.3 |
Cash flow from investing activities |
-1.9 |
-3.1 |
-13.7 |
|
|
|
|
Dividends paid |
- |
- |
-26.1 |
Purchase of treasury shares |
- |
- |
-2.1 |
Change in loan receivables |
-0.0 |
0.0 |
-0.3 |
Proceeds from borrowings |
- |
17.4 |
77.4 |
Repayment of borrowings |
- |
-20.0 |
-79.9 |
Principal payments of lease liabilities |
-0.7 |
-0.7 |
-3.1 |
Cash flow from financing activities |
-0.7 |
-3.3 |
-34.1 |
|
|
|
|
Change in cash and cash equivalents increase (+) / decrease
(-) |
14.5 |
20.5 |
36.0 |
|
|
|
|
Cash and cash equivalents at the beginning of period |
90.3 |
55.5 |
55.5 |
Change in cash and cash equivalents |
14.5 |
20.5 |
36.0 |
Effect from changes in exchange rates |
0.2 |
-0.6 |
-1.2 |
Cash and cash equivalents at the end of
period |
105.0 |
75.4 |
90.3 |
Consolidated statement of changes in equity |
EUR million |
Share capital |
Other reserves |
Translation differences |
Treasury shares |
Retained earnings |
Equity attributable to owners of the parent company |
Non-controlling interests |
Total |
|
|
|
|
|
|
|
|
|
Equity at Dec 31, 2022 |
7.7 |
3.5 |
4.1 |
-3.3 |
238.5 |
250.5 |
0.0 |
250.5 |
|
|
|
|
|
|
|
|
|
Change in share-based payments |
|
-2.9 |
|
|
2.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity at Jan 1, 2023 |
7.7 |
0.6 |
4.1 |
-3.3 |
241.4 |
250.5 |
0.0 |
250.5 |
|
|
|
|
|
|
|
|
|
Result for the period |
|
|
|
|
9.6 |
9.6 |
|
9.6 |
Other comprehensive income |
|
-0.0 |
-1.7 |
|
|
-1.7 |
|
-1.7 |
Dividend distribution |
|
|
|
|
-26.1 |
-26.1 |
|
-26.1 |
Share-based payments |
|
|
|
1.2 |
-3.6 |
-2.5 |
|
-2.5 |
Changes in non-controlling interest that |
|
|
|
|
|
|
|
|
did not result in changes in control |
|
|
|
|
0.0 |
0.0 |
-0.0 |
|
Equity at Mar 31, 2023 |
7.7 |
0.6 |
2.4 |
-2.1 |
221.2 |
229.8 |
- |
229.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR million |
Share capital |
Other reserves |
Translation differences |
Treasury shares |
Retained earnings |
Equity attributable to owners of the parent company |
Non-controlling interests |
Total |
|
|
|
|
|
|
|
|
|
Equity at Dec 31, 2023 |
7.7 |
0.6 |
0.8 |
-4.2 |
263.0 |
267.9 |
- |
267.9 |
|
|
|
|
|
|
|
|
|
Result for the period |
|
|
|
|
5.2 |
5.2 |
|
5.2 |
Other comprehensive income |
|
|
1.3 |
|
|
1.3 |
|
1.3 |
Dividend distribution |
|
|
|
|
-27.2 |
-27.2 |
|
-27.2 |
Share-based payments |
|
|
|
0.8 |
-2.4 |
-1.6 |
|
-1.6 |
Equity at Mar 31, 2024 |
7.7 |
0.6 |
2.1 |
-3.4 |
238.5 |
245.5 |
- |
245.5 |
Notes to the report |
|
|
|
|
|
|
|
Orders received by business area |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Industrial Measurements |
51.7 |
59.9 |
222.4 |
Weather and Environment |
71.5 |
72.1 |
305.8 |
Total |
123.3 |
132.0 |
528.1 |
|
|
|
|
Order book by business area |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Industrial Measurements |
36.5 |
38.6 |
35.2 |
Weather and Environment |
153.9 |
125.1 |
137.3 |
Total |
190.4 |
163.7 |
172.5 |
|
|
|
|
Net sales by business area |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Industrial Measurements |
|
|
|
Product sales |
41.7 |
58.2 |
207.4 |
Service sales |
6.3 |
4.8 |
19.9 |
Total |
48.0 |
63.0 |
227.3 |
|
|
|
|
Weather and Environment |
|
|
|
Product sales |
38.1 |
40.9 |
190.3 |
Project sales |
11.8 |
14.8 |
69.5 |
Service sales |
4.6 |
4.5 |
19.0 |
Subscription sales |
9.4 |
8.2 |
32.5 |
Lease income |
0.2 |
0.4 |
1.8 |
Total |
64.1 |
68.8 |
313.1 |
|
|
|
|
Total net sales |
112.1 |
131.8 |
540.4 |
|
|
|
|
Operating result by business area |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Industrial Measurements |
6.5 |
15.0 |
45.2 |
Weather and Environment |
0.6 |
-1.7 |
21.1 |
Other |
0.0 |
0.0 |
0.3 |
Total |
7.1 |
13.3 |
66.6 |
|
|
|
|
Net sales by region |
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Americas |
34.7 |
45.8 |
200.4 |
APAC |
36.6 |
44.1 |
160.2 |
EMEA |
40.8 |
41.9 |
179.8 |
Total |
112.1 |
131.8 |
540.4 |
Timing of revenue recognition |
|
|
|
|
EUR million |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
|
Performance obligations satisfied at a point in time |
89.3 |
107.9 |
434.8 |
|
Performance obligations satisfied over time |
22.7 |
23.5 |
104.0 |
|
Lease income recognized on a straight-line basis |
0.2 |
0.4 |
1.7 |
|
Total |
112.1 |
131.8 |
540.4 |
|
|
|
|
|
|
Personnel |
|
|
|
|
|
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
|
Average personnel |
2,306 |
2,266 |
2,327 |
|
Personnel at the end of period |
2,313 |
2,287 |
2,314 |
|
|
|
|
|
|
Derivative financial instruments |
|
|
|
|
EUR million |
Mar 31,
2024 |
Mar 31,
2023 |
Dec 31,
2023 |
|
Nominal value of derivative financial contracts |
40.8 |
42.8 |
43.7 |
|
|
|
|
|
|
Fair values of derivative financial contracts, assets |
0.1 |
1.3 |
0.4 |
|
Fair values of derivative financial contracts, liabilities |
0.6 |
0.1 |
0.4 |
|
|
|
|
|
|
Derivative financial instruments consist solely of foreign exchange
forward contracts, and they are measured based on price information
derived from active markets and commonly used valuation methods
(Fair value hierarchy 2). Derivative financial contracts are
executed only with counterparties that have high credit
ratings. |
Share information |
|
|
|
EUR/thousand |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Number of shares outstanding |
36,301 |
36,301 |
36,251 |
Number of treasury shares |
136 |
136 |
185 |
Number of shares, weighted average, diluted |
36,333 |
36,349 |
36,379 |
Number of shares, weighted average |
36,268 |
36,251 |
36,259 |
Number of shares traded |
619 |
600 |
3,090 |
Share price, highest |
39.75 |
43.45 |
44.55 |
Share price, lowest |
35.10 |
37.70 |
30.30 |
|
|
|
|
Key ratios |
|
|
|
EUR |
1-3/
2024 |
1-3/
2023 |
1-12/
2023 |
Earnings per share |
0.14 |
0.27 |
1.35 |
Diluted earnings per share |
0.14 |
0.26 |
1.35 |
Equity per share |
6.76 |
6.33 |
7.39 |
Return on equity, % |
8.0 |
16.0 |
18.9 |
Cash flow from operating activities per share |
0.47 |
0.74 |
2.31 |
Solvency ratio, % |
53.8 |
52.7 |
61.3 |
Gearing, % |
-17.8 |
-6.5 |
-10.5 |
Key exchange rates |
|
|
|
|
|
Average rates |
Period end rates |
|
1-3/
2024 |
1-3/
2023 |
Mar 31,
2024 |
Mar 31,
2023 |
Dec 31,
2023 |
USD |
1.0904 |
1.0706 |
1.0811 |
1.0875 |
1.1050 |
CNY |
7.8062 |
7.3481 |
7.8144 |
7.4763 |
7.8509 |
JPY |
159.68 |
142.39 |
163.45 |
144.83 |
156.33 |
GBP |
0.8600 |
0.8816 |
0.8551 |
0.8792 |
0.8691 |
Further information
Paula Liimatta
+358 9 8949 2020, ir@vaisala.com
Vaisala Corporation
Audiocast and
teleconference
An audiocast and a conference call for analysts, investors and
media will be held in English on May 3, 2024, starting at 1:00 p.m.
(Finnish time).
You can participate in the live audiocast via
following link: https://vaisala.videosync.fi/q1-2024
Questions may be presented by participating in the
teleconference. You can access the teleconference by registering on
the link below. After the registration, you will receive an email
with the dial-in numbers and a conference ID.
https://palvelu.flik.fi/teleconference/?id=50048551
A recording will be available at
Vaisala.com/investors later the same day.
Distribution
Nasdaq Helsinki
Key media
vaisala.com
Vaisala is a global leader in
measurement instruments and intelligence for climate action. We
equip our customers with devices and data to improve resource
efficiency, drive energy transition, and care for the safety and
well-being of people and societies worldwide. With almost 90 years
of innovation and expertise, we employ a team of over 2,300 experts
committed to taking every measure for the planet. Vaisala series A
shares are listed on the Nasdaq Helsinki stock exchange.
vaisala.com
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