ROBIT PLC INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023: PROFITABILITY
IMPROVED FROM THE BEGINNING OF THE YEAR
ROBIT PLC
STOCK EXCHANGE
RELEASE 23
OCTOBER 2023 AT 11.00 EEST
ROBIT PLC INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023:
PROFITABILITY IMPROVED FROM THE BEGINNING OF THE YEAR
In the text, ‘review period’ or ‘third quarter
of the year’ refers to 1 July–30 September 2023 (Q3), and
‘January–September’ refers to 1 January–30 September 2023. Figures
from the corresponding time period in 2022 are given in
parentheses. All the figures presented are in euros. Percentages
are calculated from thousands of euros.
1 July–30 September 2023 in brief
- Net sales EUR 23.7
million (28.4), change –16.6 per cent
- EBITDA EUR 1.4
million (3.5); 5.8 per cent of net sales (12.3)
- Comparable EBITDA
EUR 1.5 million (3.5); 6.4 per cent of net sales (12.3)
- EBITA EUR 0.3
million (2.2); 1.3 per cent of net sales (7.8)
- Comparable EBITA EUR
0.4 million (2.2); 1.9 per cent of net sales (7.8)
- EBIT EUR 0.3 million
(2.0); 1.1 per cent of net sales (7.0)
- Review period net
income EUR -0.3 million (1.7); -1.2 per cent of net sales
(6.0)
- Net cash flow for
operating activities EUR -0.7 million (2.9)
1 January–30 September 2023 in brief
- Net sales EUR 70.0
million (85.8); change –18.4 per cent
- EBITDA EUR 2.8
million (8.5); 3.9 per cent of net sales (9.9)
- Comparable EBITDA
EUR 3.0 million (8.5); 4.3 per cent of net sales (9.9)
- EBITA EUR -0.6
million (4.8); -0.9 per cent of net sales (5.6)
- Comparable EBITA EUR
-0.3 million (4.8); -0.5 per cent of net sales (5.6)
- EBIT EUR -1.1
million (4.1); -1.5 per cent of net sales (4.8)
- Review period net
income EUR -2.7 million (3.1); -3.8 per cent of net sales
(3.6)
- Net cash flow for
operating activities EUR 1.3 million (4.0)
- Equity ratio at the
end of the review period 46.3 per cent (48.2)
Key financials |
Q3 2023 |
Q3 2022 |
Change % |
Q1–Q3 2023 |
Q1–Q3 2022 |
Change % |
2022 |
Net
sales, EUR 1,000 |
23,706 |
28,424 |
-16.6% |
70,016 |
85,751 |
-18.4% |
111,962 |
EBITDA,
EUR 1,000 |
1,370 |
3,488 |
-60.7% |
2,763 |
8,472 |
-67.4% |
8,851 |
EBITDA,
% of net sales |
5.8% |
12.3% |
|
3.9% |
9.9% |
|
7.9% |
Adjusted
EBITDA, EUR 1,000 |
1,520 |
3,488 |
-56.4% |
3,042 |
8,472 |
-64.5% |
8,851 |
Comparable EBITDA, % |
6.4% |
12.3% |
|
4.3% |
9.9% |
|
7.9% |
EBITA,
EUR 1,000 |
296 |
2,211 |
-86.6% |
-623 |
4,781 |
-113.0% |
3,959 |
EBITA, %
of sales |
1.3% |
7.8% |
|
-0.9% |
5.6% |
|
3.5% |
Adjusted
EBITA, EUR 1,000 |
446 |
2,211 |
-79.8% |
-343 |
4,781 |
-107.2% |
2,940 |
Adjusted
EBITA, percent of sales |
1.9% |
7.8% |
|
-0.5% |
5.6% |
|
2.6% |
EBIT,
EUR 1,000 |
265 |
1,984 |
-86.6% |
-1,076 |
4,111 |
-126.2% |
3,071 |
EBIT,
per cent of sales |
1.1% |
7.0% |
|
-1.5% |
4.8% |
|
2.7% |
Result
for the period, EUR 1,000 |
-277 |
1,718 |
-116.1% |
-2,687 |
3,051 |
-188.1% |
885 |
Result
for the period, % of sales |
-1.2% |
6.0% |
|
-3.8% |
3.6% |
|
0.8% |
Earnings
per share (EPS), EUR 1,000 |
-0.02 |
0.08 |
|
-0.13 |
0.13 |
|
0.04 |
Return
on equity (ROE), % |
|
|
|
-7.7% |
7.2% |
|
1.6% |
Return
on capital employed (ROCE), % |
|
|
|
-2.2% |
5.8% |
|
3.5% |
MARKET OUTLOOK
Robit expects the global mining industry demand
to remain at the current level. Demand in the construction industry
has weakened during 2023, especially in Europe and Asia, and the
company does not see a significant change in the short term.
GUIDANCE FOR 2023
Robit Plc expects its net sales for 2023 to be
EUR 90–100 million and its comparable EBITDA profitability in euros
to be EUR 3–6 million.
CEO ARTO HALONEN:
Market demand remained at the level of the
second quarter, but lower than in the comparison period. The
weakening of market demand particularly affected the construction
industry in Europe and Asia. Demand in the mining industry remained
at a good level. Orders received totalled EUR 24.9 million, down by
9.7 per cent from the comparison period. Orders received were at a
higher level compared to the first two quarters of the year.
Robit net sales for the third quarter were EUR
23.7 million (28.4), down 16.6 per cent on the very strong
comparison period. In constant currencies, there was a decrease of
11.6 per cent. The company's net sales grew in the Australasia and
EMEA regions. In Australasia, growth came mainly from the Top
Hammer business. In EMEA, it came from both the Top Hammer and Down
the Hole businesses. Net sales in the Asia region fell by
21.5 per cent due to low demand in the construction industry. Net
sales in the Americas region also decreased as a result of lower
deliveries to certain customers. The effect of ceasing sales to
Russia on the review period was EUR 2.4 million compared to the
comparison period. During the quarter, the company's order backlog
increased, especially in the mining segment.
Net sales in the Top Hammer business decreased
by 16.2 per cent in the third quarter compared to the comparison
period. Top Hammer sales increased in Australasia and EMEA, driven
by new customer accounts and high customer testing activity. The
decline in sales in the East region was mainly attributable to Top
Hammer and was the main reason for the decline in sales. Net sales
in the Down the Hole business decreased by 9.4 per cent The decline
came particularly from the Americas region. In the Geotechnical
business, sales in the Americas increased, but sales in Europe,
Geotechnical’s other main market, declined due to weaker demand in
the construction industry.
Comparable EBITDA for the third quarter was EUR
1.5 million (3.5), clearly below the strong comparison period.
However, thanks to the savings measures already implemented, the
company's profitability continued to improve compared to the first
two quarters of the year. The company shut down production at its
Australian plant at the end of the quarter. This will strengthen
the company's competitiveness in the Down the Hole business. The
Australian unit will focus on sales, maintenance and distribution
in the local market. The Geotechnical business’ profitability was
burdened by the increased price competition for fewer construction
projects.
The company's measures are now focusing in
particular on clarifying operations, improving profitability and
competitiveness. The closure of manufacturing in Australia is part
of this restructuring. In addition, the company will in future sell
products only under Robit brand. Previously, the company has been
active in the Down the Hole business under both the Robit and Halco
brands. This brand change makes it possible to clarify both the
organization, the company structure and the product offering.
The implementation of the Fit for Service
programme, which focuses on developing working capital management,
progressed in the third quarter. As a result of the measures taken,
the company's inventories decreased by EUR 2.4 million during the
quarter. The decline in inventory levels is expected to continue in
the last quarter of the year.
NET SALES
Net sales by product area
In 2023, the company is reporting its net sales
in three business units: Top Hammer, Down the Hole and
Geotechnical. Previously, the company reported the Geotechnical
unit as part of the Down the Hole unit. For more information on the
change, see the principles in the Notes.
EUR thousand |
Q3 2023 |
Q3 2022 |
Change % |
Q1–Q3 2023 |
Q1–Q3 2022 |
Change % |
2022 |
Top
Hammer |
13,829 |
16,492 |
-16.2% |
40,862 |
50,086 |
-18.4% |
66,834 |
Down
the Hole |
5,635 |
6,218 |
-9.4% |
15,998 |
19,488 |
-17.9% |
22,141 |
Geotechnical |
4,243 |
5,713 |
-25.7% |
13,156 |
16,177 |
-18.7% |
22,987 |
Total |
23,706 |
28,424 |
-16.6% |
70,016 |
85,751 |
-18.4% |
111,962 |
The Group’s net sales in the third quarter of
the year period totalled EUR 23.7 million (28.4). Down 16.6 per
cent from the comparison period. In constant currencies, net sales
decreased by 11.6 per cent.
The Group’s net sales in January–September
totalled EUR 70.0 million (85.8). Down 18.4 per cent from the
comparison period. In constant currencies, net sales decreased by
15.0 per cent.
Top Hammer business net sales decreased by 16.2
per cent, net sales for the review period being EUR 13.8 million
(16.5). The decrease in net sales was particularly affected by the
discontinuation of sales to Russia and weaker demand in the Asia
region. The Australasia and EMEA regions showed a positive
development in net sales.
Down the Hole business net sales decreased by
9.4 per cent, net sales for the review period being EUR 5.6 million
(6.2). Net sales decreased particularly in the Americas region due
to reduced delivery volumes to certain distributors.
Geotechnical business net sales decreased by
25.7 per cent, net sales for the review period being EUR 4.2
million (5.7). The decline in net sales was mainly due to weaker
demand in the construction industry in Europe but, in the Americas,
the other main market, net sales increased.
Net sales by market area
EUR thousand |
Q3 2023 |
Q3 2022 |
Change % |
Q1–Q3 2023 |
Q1–Q3 2022 |
Change % |
2022 |
EMEA |
12,539 |
12,199 |
2.8% |
36,459 |
36,105 |
1.0% |
48,651 |
Americas |
4,859 |
6,933 |
-29.9% |
15,407 |
20,192 |
-23.7% |
26,349 |
Asia |
2,228 |
2,836 |
-21.5% |
6,657 |
8,919 |
-25.4% |
11,686 |
Australasia |
3,920 |
3,671 |
6.8% |
10,804 |
10,665 |
1.3% |
13,892 |
East |
160 |
2,785 |
-94.2% |
688 |
9,870 |
-93.0% |
11,384 |
Total |
23,706 |
28,424 |
-16.6% |
70,016 |
85,751 |
-18.4% |
111,962 |
PROFITABILITY
Key figures
EUR thousand |
Q3 2023 |
Q3 2022 |
Change % |
Q1–Q3 2023 |
Q1–Q3 2022 |
Change % |
2022 |
EBITDA,
EUR 1,000 |
1,370 |
3,488 |
-60.7% |
2,763 |
8,472 |
-67.4% |
8,851 |
EBITDA,
% of net sales |
5.8% |
12.3% |
|
3.9% |
9.9% |
|
7.9% |
Adjusted
EBITDA, EUR 1,000 |
1,520 |
3,488 |
-56.4% |
3,042 |
8,472 |
-64.5% |
8,851 |
Adjusted
EBITDA, percent of sales |
6.4% |
12.3% |
|
4.3% |
9.9% |
|
7.9% |
EBIT,
EUR 1,000 |
265 |
1,984 |
-86.6% |
-1,076 |
4,111 |
-126.2% |
3,071 |
EBIT,
per cent of sales |
1.1% |
7.0% |
|
-1.5% |
4.8% |
|
2.7% |
Result
for the period, EUR 1,000 |
-277 |
1,718 |
-116.1% |
-2,687 |
3,051 |
-188.1% |
885 |
Result
for the period, % of sales |
-1.2% |
6.0% |
|
-3.8% |
3.6% |
|
0.8% |
Comparable EBITDA for the third quarter was EUR
1.5 million (3.5) Comparable EBITDA’s share of net sales was 6.4
per cent (12.3). The company’s EBIT was EUR 0.3 million (2.0). The
EBIT was 1.1 per cent (7.0) of the review period net sales.
In January–September, comparable EBITDA was EUR
3.0 million (8.5). Comparable EBITDA’s share of net sales was 4.3
per cent (9.9). The company’s EBIT was EUR -1.1 million (4.1). EBIT
was -1.5 per cent (4.8) of the review period’s net sales.
The decline in profitability was mainly due to
lower sales during the review period. In addition, the company was
not able to transfer the increased costs in full to the sales
prices. The company continues to invest in sales development and is
accelerating its cost-savings programme to support the
strengthening of profitability.
Financial income and expenses in the third
quarter of the year totalled EUR -0.6 million (-0.2), of which EUR
-0.6 million (-0.3) was interest expenses and EUR 0.1 million (0.1)
exchange rate changes. Net income for the quarter was EUR -0.3
million (1.7).
In January–September, financial income and
expenses totalled EUR -1.8 million (-1.2), of which EUR -1.6
million (-0.9) was interest expenses and EUR 0.0 million (-0.1)
exchange rate changes. Review period net income was EUR -2.7
million (3.1).
CASH FLOW AND INVESTMENTS
Consolidated cash flow statement
EUR thousand |
Q3 2023 |
Q3 2022 |
Q1–Q3 2023 |
Q1–Q3 2022 |
2022 |
Net
cash flows from operating activities |
|
|
|
|
|
Cash flows
before changes in working capital |
1,196 |
3,323 |
2,330 |
8,904 |
10,014 |
Cash flows
from operating activities before financial items and taxes |
-465 |
3,197 |
2,791 |
5,267 |
7,277 |
Net
cash inflow (outflow) from operating activities |
-695 |
2,934 |
1,332 |
3,981 |
5,556 |
|
|
|
|
|
|
Net
cash inflow (outflow) from investing activities |
-23 |
-177 |
-410 |
-982 |
-1,057 |
|
|
|
|
|
|
Net
cash inflow (outflow) from financing activities |
-587 |
-2,697 |
-1,098 |
-5,809 |
-6,421 |
|
|
|
|
|
|
Net
increase (+)/decrease (-) in cash and cash
equivalents |
-1,305 |
59 |
-175 |
-2,810 |
-1,921 |
Cash and
cash equivalents at the beginning of the period |
8,616 |
7,079 |
7,688 |
9,525 |
9,525 |
Exchange
gains/losses on cash and cash equivalents |
42 |
-122 |
-159 |
300 |
84 |
Cash
and cash equivalents at end of the period |
7,353 |
7,016 |
7,353 |
7,016 |
7,688 |
The Group’s cash flow before changes in working
capital during the third quarter was EUR 1.2 million (3.3). Net
cash flow for operating activities was EUR -0.7 million (2.9). The
changes in working capital had an impact of EUR -1.7 million
(-0.1). The change in working capital was affected by the EUR 3.9
million decrease in accounts payable due to lower purchases as part
of the company’s goal to reduce inventories. The growth in sales
and other receivables had a negative impact of EUR 0.4 million on
cash flow, and the decline of inventories a positive impact of EUR
2.6 million.
The net cash flow from investing activities for
the third quarter was EUR -0.0 million (-0.2). Gross investments in
production during the review period totalled EUR 0.0million (0.2).
The share of investments in net sales was 0.2 per cent (0.8).
The net cash flow from financing activities for
the third quarter was EUR -0.6 million (-2.7). Net changes in loans
totalled EUR -0.0 million (0.1). The change in bank overdrafts was
EUR 0.1 million (-2.4). Returns on equity were EUR -0.4 million.
The repayment of lease liabilities reported in net cash flow from
financing activities under IFRS 16 totalled EUR 0.3 million
(0.4).
Depreciation, amortization, and write-downs
totalled EUR 1.1 million (1.5).
FINANCIAL POSITION
|
30 September 2023 |
30 September 2022 |
31 December 2022 |
Cash
and cash equivalents, EUR thousand |
7,353 |
7,016 |
7,688 |
Interest-bearing liabilities, EUR thousand |
34,903 |
36,366 |
36,345 |
of which short-term interest-bearing financial liabilities: |
5,102 |
5,480 |
8,922 |
Net
interest-bearing liabilities, EUR thousand |
27,549 |
29,350 |
28,657 |
Undrawn
credit facility, EUR thousand |
3,888 |
5,807 |
4,218 |
Gearing, % |
58.9% |
54.6% |
56.4% |
Equity
ratio, % |
46.3% |
48.2% |
46.5% |
The Group had interest-bearing debt amounting to
EUR 34.9 million (36.4), of which EUR 5.9 million (7.3) was
interest-bearing debt under IFRS 16. The company had liquid assets
of EUR 7.4 million (7.0) and an undrawn credit facility of EUR 3.9
million (5.8). Interest-bearing net liabilities were EUR 27.5
million (29.4), and interest-bearing net bank debt without IFRS 16
debt impact was EUR 21.7 million (22.1).
The Group’s equity at the end of the review
period was EUR 46.7 million (53.6). The Group’s equity ratio was
46.3 per cent (48.2). Gearing was 58.9 per cent (54.6).
PERSONNEL AND MANAGEMENT
The number of employees decreased by 28 persons
compared to the end of the comparison period and stood at 238 (266)
at the end of the period, mainly due to the closure of the
Australian factory and other organisational changes. At the end of
the review period, 69.1 per cent of the company’s personnel were
located outside Finland.
In addition to CEO Arto Halonen, the company’s
Management Team at the end of the reporting period included Perttu
Aho (VP Down the Hole), Ville Iljanko (VP Distributor Sales), Jorge
Leal (VP Top Hammer), Ville Peltonen (CFO), Ville Pohja (VP
Geotechnical) and Jaana Rinne (HR Director).
FINANCIAL TARGETS
Robit’s long-term target is to achieve organic
net sales growth of 15 per cent annually and comparable EBITDA
profitability of 13 per cent.
|
Long-term target |
2021 |
2022 |
1–9 2023 |
Net sales growth, p.a. |
15% |
10.0% |
11.1% |
-8.2% |
Comparable EBITDA, % of net sales |
13% |
7.5% |
7.9% |
5.3% |
RESOLUTIONS OF THE ANNUAL GENERAL MEETING
2023
The Annual General Meeting of Robit Plc was held
in Tampere on 15 March 2023. The decisions and other materials
related to the meeting are available on the company's website
at
https://www.robitgroup.com/investor/corporate-governance/general-meeting/.
SHARES AND SHARE TURNOVER
On 30 September 2023, the company had 21,179,900
shares and 5,601 shareholders. Trading volume in January–September
was 7,001,449 shares (4,254,349).
On 30 September 2023, the company held 24,273
treasury shares (0.11 per cent of total shares). On 30 September
2023, the market value of the company’s shares was EUR 31.8
million. The closing price of the share was EUR 1.50. The highest
price in January–September was EUR 3.48 and the lowest price EUR
1.31.
RISKS AND BUSINESS UNCERTAINTIES
The covenant of the Robit parent company’s
financing agreement, net interest-bearing debt/EBITDA, did not meet
the terms of the financing agreement on 30 September 2023. The
company obtained the consent of its main financier to the breach of
the covenant on 26 September 2023. This led to a higher financial
cost and risk for the company. The company has hedged against
interest rate risk with an EUR 10 million interest rate swap
agreement, which entered into force on 30 June 2023 and expires on
30 June 2026.
The geopolitical situation, which is growing
tenser, poses a risk to the company’s business. The war in Ukraine
and the sanctions imposed on Russia affect the development of net
sales and profitability especially in Russia, Belarus and Ukraine,
which accounted for approximately 8 per cent of the company’s sales
in the 2022 financial year. The company has no business
operations in Russia in 2023.
Other uncertainty factors include the exchange
rate development, functioning of information systems, risks related
to the security of supply and logistics as well as IPR risks. Fully
transferring the increase in raw material costs to customer prices
may pose a financial risk. Changes in export countries’ tax and
customs legislation may adversely impact the company’s export trade
or its profitability. Risks related to information security and
cyber threats may also have a detrimental effect on Robit’s
business. Potential changes in the business environment may
adversely impact the payment behaviour of the Group’s customers and
increase the risk of litigation, legal claims and disputes related
to Robit’s products and other operations.
CHANGES IN GROUP STRUCTURE
There were no changes in the Group structure during the review
period.
OTHER EVENTS IN JULY–SEPTEMBER 2023
Half-year Report
On 1 August 2023, Robit Plc published its financial reporting
for 1 January–30 June 2023.
Shareholders' Nomination Committee
On 4 September 2023, the four largest shareholders of the
company elected their representatives to the Shareholders'
Nomination Committee on the basis of the list of shareholders dated
1 September 2023:
- Harri Sjöholm, Chairman of the Board, Five Alliance Oy
- Timo Sallinen, Senior Vice President, Investments, Varma Mutual
Pension Insurance Company
- Jukka Vähäpesola, Head of Equities, Mutual Employment Pension
Insurance Company Elo
- Markus Lindqvist, Director, Sustainability, Aktia Bank Plc
The Nomination Committee will submit its
proposal regarding the members of the Board of Directors and the
remuneration to the Board of Directors by 31 January 2024.
Acquisition of treasury
shares
Based on the authorisation given to the Board of
Directors by the Annual General Meeting on 15 March 2023, Robit Plc
decided on 18 September 2023 to repurchase a maximum of 100 000
shares, corresponding to approximately 0.5 per cent of the
company's share capital. The acquisition of shares was announced to
start on 20 September 2023 at the earliest and to end on 30
November 2023 at the latest.
Change in number of treasury
shares
Robit Plc announced on 29 September 2023 that on
27 September 2023 a total of 2,500 of its treasury shares were
returned to the company free of charge in accordance with the terms
of the share-based compensation plan 2020 due to the termination of
the employment of a key employee. After this transaction, the
company held 24,273 treasury shares.
EVENTS AFTER THE REVIEW PERIOD
No events after the review period.
Lempäälä, 23 October 2023
ROBIT PLC Board of Directors
For more information, contact:
Arto Halonen, CEO +358 40 028 0717
arto.halonen@robitgroup.com
Ville Peltonen, CFO+358 40 759
9142ville.peltonen@robitgroup.com
Distribution: Nasdaq Helsinki Ltd Key media
www.robitgroup.com
Robit is a strongly international growth company
servicing global customers and selling drilling consumables for
applications in mining, construction, geotechnical engineering and
well drilling. The company’s offering is divided into three product
and service ranges: Top Hammer, Down the Hole and Geotechnical.
Robit has sales and service points in seven countries as well as an
active sales network in more than 100 countries. Robit’s
manufacturing units are located in Finland, South Korea and the UK.
Robit’s shares are listed on Nasdaq Helsinki Ltd. Further
information is available at www.robitgroup.com.
The information presented above includes
statements about future prospects. These relate to events or the
company’s economic development in the future. In some cases, such
statements can be recognised by their use of conditional words
(such as “may”, “expected”, “estimated”, “believed”, “predicted”
and so on) or other similar expressions. Statements such as these
are based on assumptions and factors that Robit’s management have
at their disposal and on current decisions and plans. There is
always risk and uncertainty attached to any statements regarding
future events because they pertain to events and depend on factors
that are not possible to predict with certainty. For this reason,
future results may differ – even significantly – from the figures
expressed or assumed in statements about future prospects.
CONDENSED FINANCIAL STATEMENTS
CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR thousand |
7–9/2023 |
7–9/2022 |
1–9/2023 |
1–9/2022 |
2022 |
Net sales |
23,706 |
28,424 |
70,016 |
85,751 |
111,962 |
Other operating income |
319 |
1211 |
1,092 |
3,817 |
4,117 |
Materials and services* |
-15,849 |
-18,860 |
-46,672 |
-56,120 |
-73,729 |
Employee benefit expense |
-3,724 |
-3,749 |
-11,694 |
-12,538 |
-17,075 |
Depreciation, amortisation and
impairment |
-1,105 |
-1,504 |
-3,838 |
-4,361 |
-5,779 |
Other operating expenses* |
-3,083 |
-3,538 |
-9,979 |
-12,438 |
-16,425 |
EBIT (Operating profit/loss) |
265 |
1,984 |
-1,076 |
4,111 |
3,071 |
|
|
|
|
|
|
Finance income and costs |
|
|
|
|
|
Interest income and finance income |
1 |
711 |
205 |
2272 |
2,277 |
Interest cost and finance cost |
-603 |
-954 |
-1,986 |
-3,477 |
-4,010 |
Finance income and costs net |
-602 |
-243 |
-1,781 |
-1,205 |
-1,733 |
|
|
|
|
|
|
Profit/loss before tax |
-337 |
1,741 |
-2,857 |
2,906 |
1,338 |
|
|
|
|
|
|
Taxes |
|
|
|
|
|
Income tax |
14 |
-15 |
7 |
-158 |
-533 |
Change in deferred taxes |
46 |
-7 |
163 |
303 |
80 |
Income
taxes |
60 |
-22 |
170 |
145 |
-453 |
Result for the period |
-277 |
1,718 |
-2,687 |
3,051 |
885 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Parent company shareholders |
-354 |
1,647 |
-2,823 |
2,788 |
819 |
Non-controlling interest** |
77 |
71 |
136 |
264 |
66 |
|
-277 |
1,718 |
-2,687 |
3,051 |
885 |
Other comprehensive
income |
|
|
|
|
|
Items that may be
reclassified to profit or loss in subsequent periods: |
Cash flow hedges |
5 |
221 |
75 |
587 |
633 |
Translation differences** |
218 |
-1,019 |
-1,045 |
763 |
41 |
Other comprehensive income, net
of tax |
224 |
-798 |
-970 |
1,351 |
674 |
Total comprehensive income |
-53 |
920 |
-3,657 |
4,402 |
1,560 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Parent company shareholders |
-143 |
849 |
-3,747 |
4,165 |
1,501 |
Non-controlling interest** |
90 |
71 |
90 |
268 |
58 |
Consolidated comprehensive income |
-53 |
920 |
-3,657 |
4,402 |
1,560 |
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
-0.02 |
0.08 |
-0.13 |
0.13 |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
*In the condensed income statement, changes in inventories are
presented in Materials and services, and manufacture for own use in
Other operating expenses. **Founded in 2015 by Robit SA, Black
Employees Empowerment Trust owns 26% of the shares of Robit SA.***
The Group has internal loans that are treated as net investments in
foreign entities in accordance with IAS 21 The Effects of Changes
in Foreign Exchange Rates.
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION |
|
|
|
EUR thousand |
30 Sep 2023 |
30 Sep 2022 |
31 Dec 2022 |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Goodwill |
5,335 |
5,225 |
5,203 |
Other intangible assets |
915 |
1,770 |
1,498 |
Property, plant and equipment |
21,519 |
25,375 |
24,929 |
Loan receivables |
377 |
264 |
248 |
Other receivables |
0 |
0 |
6 |
Derivatives |
941 |
790 |
848 |
Deferred tax assets |
2,188 |
2,203 |
1,859 |
Total non-current assets |
31,274 |
35,628 |
34,590 |
|
|
|
|
Current assets |
|
|
|
Inventories |
40,347 |
45,847 |
44,311 |
Account and other receivables |
21,768 |
23,471 |
22,342 |
Loan receivables |
74 |
92 |
80 |
Current tax assets |
178 |
200 |
108 |
Cash and cash equivalents |
7,353 |
7,016 |
7,688 |
Total current assets |
69,720 |
76,627 |
74,529 |
Total assets |
100,994 |
112,255 |
109,119 |
|
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
Equity |
|
|
|
Share capital |
705 |
705 |
705 |
Share premium |
202 |
202 |
202 |
Reserve for invested unrestricted
equity |
82,178 |
82,570 |
82,570 |
Translation differences |
-2,744 |
-1,026 |
-1,744 |
Fair value reserve |
753 |
632 |
678 |
Retained earnings |
-31,957 |
-32,794 |
-32,748 |
Profit/loss for the year |
-2,823 |
2,788 |
819 |
Equity attributable to parent company shareholders in
total |
46,313 |
53,077 |
50,482 |
Non-controlling interests* |
429 |
541 |
339 |
Capital and reserves in total |
46,743 |
53,618 |
50,822 |
|
|
|
|
Liabilities |
|
|
|
Non-current
liabilities |
|
|
|
Borrowings |
25,372 |
25,270 |
22,085 |
Lease liabilities |
4,429 |
5,617 |
5,338 |
Deferred tax liabilities |
926 |
683 |
690 |
Employee benefit obligations |
540 |
754 |
732 |
Total non-current liabilities |
31,267 |
32,323 |
28,846 |
|
|
|
|
Current
liabilities |
|
|
|
Borrowings |
3,680 |
3,813 |
7,278 |
Lease liabilities |
1,421 |
1,667 |
1,644 |
Advances received |
40 |
763 |
145 |
Income tax liabilities |
27 |
3 |
321 |
Account payables and other
liabilities |
17,661 |
19,796 |
19,916 |
Other provisions |
154 |
273 |
147 |
Total current liabilities |
22,984 |
26,314 |
29,451 |
Total liabilities |
54,251 |
58,637 |
58,297 |
|
|
|
|
Total equity and liabilities |
100,994 |
112,255 |
109,119 |
|
|
|
|
|
|
* Founded in 2015 by Robit SA, Black Employees Empowerment Trust
owns 26% of the shares of Robit SA.
CONSOLIDATED CASH FLOW
STATEMENT |
|
|
|
|
|
EUR
thousand |
7-9/2023 |
7-9/2022 |
1-9/2023 |
1-9/2022 |
2022 |
Cash flows from operating
activities |
|
|
|
|
|
Profit before tax |
-337 |
1,741 |
-2,857 |
2,906 |
1,338 |
Adjustments: |
|
|
|
|
|
Depreciation, amortisation and impairment |
1,105 |
1,504 |
3,838 |
4,361 |
5,779 |
Finance income and costs |
602 |
243 |
1,781 |
1,205 |
1,733 |
Share-based payments to employees |
-2 |
4 |
-67 |
93 |
115 |
Loss (+)/Gain (-) on sale of property, plant and equipment |
7 |
0 |
-260 |
-24 |
-74 |
Other non-cash transactions |
-178 |
-169 |
-105 |
363 |
1,122 |
Cash flows before changes in working capital |
1,196 |
3,323 |
2,330 |
8,904 |
10,014 |
|
|
|
|
|
|
Change in working capital |
|
|
|
|
|
Increase (-) in account and other receivables |
-364 |
2,694 |
-864 |
3,455 |
2,975 |
Increase (-)/decrease (+) in inventories |
2,615 |
844 |
2,943 |
-1,345 |
-606 |
Increase (+) in account and other payables |
-3,912 |
-3,664 |
-1,619 |
-5,747 |
-5,107 |
Cash flows from operating activities before financial items and
taxes |
-465 |
3,197 |
2,791 |
5,267 |
7,277 |
|
|
|
|
|
|
Interest and other finance expenses
paid |
-197 |
-121 |
-1,166 |
-722 |
-1,250 |
Interest and other finance income
received |
19 |
4 |
48 |
4 |
20 |
Income taxes paid |
-52 |
-146 |
-340 |
-569 |
-490 |
Net cash inflow (outflow) from operating
activities |
-695 |
2,934 |
1,332 |
3,981 |
5,556 |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
Purchases of property, plant and
equipment |
-36 |
-183 |
-450 |
-1,009 |
-1,194 |
Purchases of intangible assets |
-5 |
-42 |
-59 |
-80 |
-131 |
Proceeds from the sale of property, plant
and equipment |
-3 |
48 |
229 |
81 |
150 |
Proceeds from loan receivables |
22 |
-1 |
-130 |
27 |
119 |
Net cash inflow (outflow) from investing
activities |
-23 |
-177 |
-410 |
-982 |
-1,057 |
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
Dividend payment |
-393 |
0 |
-393 |
0 |
-30 |
Changes in non-current loans |
-45 |
134 |
1,785 |
-1,416 |
-3,187 |
Change in bank overdrafts |
112 |
-2,409 |
-1,669 |
-3,068 |
-1,480 |
Payment of leasing liabilities |
-253 |
-423 |
-811 |
-1,325 |
-1,723 |
Net cash inflow (outflow) from financing
activities |
-587 |
-2,698 |
-1,098 |
-5,809 |
-6,421 |
|
|
|
|
|
|
Net increase (+)/decrease (-) in
cash and cash equivalents |
-1,305 |
59 |
-175 |
-2,810 |
-1,921 |
Cash and cash equivalents at the beginning
of the financial year |
8,616 |
7,079 |
7,688 |
9,525 |
9,525 |
Exchange gains/losses on cash and cash
equivalents |
42 |
-122 |
-159 |
300 |
84 |
Cash and cash equivalents at end of the year |
7,353 |
7,016 |
7,353 |
7,016 |
7,688 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY |
A = Share
capital |
|
|
|
|
|
|
|
|
|
B = Share
premium |
|
|
|
|
|
|
|
|
|
C = Reserve
for invested unrestricted equity |
|
|
|
|
|
|
|
|
|
D = Cumulative
translation difference |
|
|
|
|
|
|
|
|
|
E = Fair value
reserve |
|
|
|
|
|
|
|
|
|
F = Retained
earnings |
|
|
|
|
|
|
|
|
|
G = Equity
attributable to parent company shareholders |
|
|
|
|
|
|
|
|
|
H =
Non-controlling interests |
|
|
|
|
|
|
|
|
|
I = Capital and reserves in total |
|
|
|
|
|
|
|
|
|
EUR thousand |
A |
B |
C |
D |
E |
F |
G |
H |
I |
Equity as at 1 January 2022 |
705 |
202 |
82,570 |
-1,793 |
45 |
-32,846 |
48,883 |
281 |
49,114 |
Profit for the period |
|
|
|
|
|
2,788 |
2,788 |
264 |
3,051 |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
|
|
|
587 |
|
587 |
|
587 |
Translation differences |
|
|
|
767 |
|
|
767 |
-4 |
763 |
Total comprehensive changes |
|
|
|
767 |
587 |
2,788 |
4,142 |
260 |
4,402 |
Share-based payments to employees |
|
|
|
|
|
52 |
52 |
|
52 |
Total transactions with owners, recognised directly in
equity |
|
|
|
|
|
52 |
52 |
|
52 |
Equity as at 30 September 2022 |
705 |
202 |
82,570 |
-1,026 |
632 |
-30,006 |
53,077 |
541 |
53,618 |
|
|
|
|
|
|
|
|
|
|
EUR thousand |
A |
B |
C |
D |
E |
F |
G |
H |
I |
Equity as at 1 January 2023 |
705 |
202 |
82,570 |
-1744 |
678 |
-31,928 |
50,483 |
339 |
50,822 |
Profit for the period |
|
|
|
|
|
-2,823 |
-2,823 |
135 |
-2,688 |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
|
|
|
75 |
|
75 |
|
75 |
Translation differences |
|
|
|
-999 |
|
|
-1,207 |
-45 |
-1,045 |
Total comprehensive changes |
|
|
|
-999 |
75 |
-2,823 |
-3,748 |
90 |
-3,658 |
Share-based payments to employees |
|
|
|
|
|
-20 |
-20 |
|
-20 |
Acquisition of treasury shares |
|
|
|
|
|
-9 |
-9 |
|
-9 |
Distribution of dividends |
|
|
-393 |
|
|
|
-393 |
|
-393 |
Total transactions with owners, recognised directly in
equity |
|
|
|
|
|
-29 |
-422 |
|
-422 |
Equity as at 30 September 2023 |
705 |
202 |
82,178 |
-2,744 |
753 |
-34,780 |
46,313 |
429 |
46,743 |
NOTESContents
- Scope and principles of the interim
report
- Key figures and calculation
- Breakdown of net sales
- Financing arrangements
- Changes to property, plant and equipment
- Given guarantees
- Business acquisitions
- Goodwill impairment testing
- Derivatives
1. SCOPE AND PRINCIPLES OF THE INTERIM
REPORT
This interim report has been prepared in
accordance with the IAS 34 standard for interim financial reporting
and using the same principles as for the annual financial
statements. The interim report has not been audited.
Robit is reporting 2023 net sales for three
business units: Top Hammer, Down the Hole and Geotechnical.
Previously, the company reported the Geotechnical unit as part of
the Down the Hole unit. The Geotechnical unit focuses on drill
piling, which is a support method used in different kinds of
construction projects. Down the Hole focuses on DTH drilling
equipment used in mines, quarries and well drilling. Top Hammer
focuses on top hammer drilling equipment used in mines, quarries,
construction projects and tunnelling.
All figures in the summarised financial
statement have been rounded to the nearest figure and, therefore,
the sum of the reported figures may not exactly match those
presented.2.1 KEY FIGURES
Consolidated key figures |
Q3 2023 |
Q3 2022 |
Q1-Q3 2023 |
Q1-Q3 2022 |
2022 |
Net
sales, EUR 1,000 |
23,706 |
28,424 |
70,016 |
85,751 |
111,962 |
EBIT,
EUR 1000 |
265 |
1,984 |
-1,076 |
4,111 |
3,071 |
EBIT,
per cent of sales |
1.1% |
7.0% |
-1.5% |
4.8% |
2.7% |
Earnings per share (EPS), EUR |
-0.02 |
0.08 |
-0.13 |
0.13 |
0.04 |
Return
on equity (ROE), % |
|
|
-7.7% |
1.8% |
1.6% |
Return
on capital employed (ROCE), % |
|
|
-2.2% |
2.5% |
3.5% |
Equity
ratio, % |
|
|
46.3% |
48.1% |
46.5% |
Net
gearing, % |
|
|
58.9% |
54.6% |
56.4% |
Gross
investments, EUR 1,000 |
41 |
188 |
509 |
1,089 |
1,326 |
Gross
investments, % of net sales |
0.2% |
0.7% |
0.7% |
1.3% |
1.2% |
Number
of shares (outstanding shares) |
|
|
21,153,331 |
21,091,436 |
21,127,592 |
Treasury shares (owned by the Group) |
|
|
26,569 |
88,464 |
52,308 |
Percentage of votes/shares |
|
|
0.13% |
0.42% |
0.24% |
2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES
Robit presents alternative key figures to
supplement the key figures given in the Group’s income statements,
balance sheets and cash flow statements that have been drawn up
according to IFRS standards. Robit considers that the alternative
figures give significant extra insight into the result of Robit’s
operations, its financial position and cash flows. These figures
are often used by analysts, investors and other parties.
Alternative key figures should not be studied
apart from the key figures according to IFRS or instead of them.
Not all companies calculate their alternative key figures in the
same way and, therefore, Robit’s alternative figures may not be
directly comparable to those presented by other companies, even if
they carry the same headings.
Adjusted EBITDA and
EBITA |
|
|
|
|
|
EUR thousand |
7–9/2023 |
7–9/2022 |
1–9/2023 |
1–9/2022 |
2022 |
EBIT (Operating profit) |
265 |
1,984 |
-1,076 |
4,111 |
2,080 |
Depreciation, amortization and impairment |
1,105 |
1,504 |
3,838 |
4,361 |
5,514 |
EBITDA |
1,370 |
3,488 |
2,763 |
8,472 |
7,595 |
Items affecting comparability |
|
|
|
|
|
Reorganising expenses |
150 |
0 |
280 |
0 |
0 |
Adjusted EBITDA |
1,520 |
3,488 |
3,042 |
8,472 |
7,595 |
|
|
|
|
|
|
EBIT (Operating
profit) |
265 |
1,984 |
-1,076 |
4,111 |
2,080 |
Amortisation of acquisitions |
32 |
227 |
453 |
671 |
859 |
EBITA |
296 |
2,211 |
-623 |
4,781 |
2,940 |
|
|
|
|
|
|
EBIT (Operating
profit) |
265 |
1,984 |
-1,076 |
4,111 |
2,080 |
Items affecting
comparability |
|
|
|
|
|
Reorganising expenses |
150 |
0 |
280 |
0 |
0 |
Adjusted EBIT (Operating profit) |
415 |
1,984 |
-796 |
4,111 |
2,080 |
Items affecting
comparability |
|
|
|
|
|
Amortization of acquisitions |
32 |
0 |
453 |
0 |
859 |
Adjusted EBITA |
446 |
2,211 |
-343 |
4,781 |
2,940 |
|
|
|
|
|
|
|
|
|
|
2.3 CALCULATION OF KEY FIGURES
EBITDA: |
EBIT
+ Depreciation, amortization and impairment |
|
EBITA |
EBIT
+ Amortisation of customer relationships |
|
Net working capital |
Inventory + Accounts receivables and other receivables – Accounts
payables and other liabilities |
|
Earnings
per share (EPS), EUR |
|
Profit (loss) for the financial year |
|
Amount of shares
adjusted with the share issue (average during the financial
year) |
|
|
Return on equity (ROE), % |
Profit (loss) for the financial year |
x
100 |
Equity (average
during the financial year) |
|
Return on capital employed (ROCE), % |
Profit before appropriations and taxes + Interest expenses and
other financing expenses |
x
100 |
Equity (average
during the financial year) + Interest-bearing financial liabilities
(long-term and short-term loans from financial institutions,
average during the financial year) |
|
Net interest-bearing financial liabilities |
Long-term and
short-term loans from financial institutions – Cash and cash
equivalents – Short-term financial securities |
|
|
Equity ratio, % |
Equity |
x
100 |
Balance sheet
total – Advances received |
|
Gearing, % |
Net interest-bearing financial liabilities |
x
100 |
Equity |
3. BREAKDOWN OF NET SALES
Entries are recorded according to IFRS 15 in the same way for
each business unit and market area.
NET
SALES |
|
|
|
|
|
|
|
Net
sales by product area |
EUR thousand |
7–9/2023 |
7–9/2022 |
Change % |
1–9/2023 |
1–9/2022 |
Change % |
2022 |
Top Hammer |
13,829 |
16,492 |
-16.2% |
40,862 |
50,086 |
-18.4% |
66,834 |
Down the Hole |
5,635 |
6,218 |
-9.4% |
15,998 |
19,488 |
-17.9% |
22,141 |
Geotechnical |
4,243 |
5,713 |
-25.7% |
13,156 |
16,177 |
-18.7% |
22,987 |
Total |
23,706 |
28,424 |
-16.6% |
70,016 |
85,751 |
-18.4% |
111,962 |
|
|
|
|
|
|
|
|
Net
sales by market area |
|
|
|
|
|
|
EUR thousand |
7–9/2023 |
7–9/2022 |
Change % |
1–9/2023 |
1–9/2022 |
Change % |
2022 |
EMEA |
12,539 |
12,199 |
2.8% |
36,459 |
36,105 |
1.0% |
48,651 |
Americas |
4,859 |
6,933 |
-29.9% |
15,407 |
20,192 |
-23.7% |
26,349 |
Asia |
2,228 |
2,836 |
-21.5% |
6,657 |
8,919 |
-25.4% |
11,686 |
Australasia |
3,920 |
3,671 |
6.8% |
10,804 |
10,665 |
1.3% |
13,892 |
East |
160 |
2,785 |
-94.2% |
688 |
9,870 |
-93.0% |
11,384 |
Total |
23,706 |
28,424 |
-16.6% |
70,016 |
85,751 |
-18.4% |
111,962 |
4. FINANCING ARRANGEMENTS
The company’s cash and cash equivalents were EUR
7.4 million on 30 September 2023. The company has sufficient
liquidity to take care of its debt management and liquidity.
The parent company’s covenants are based on the
company’s net debt/EBITDA ratio and the company’s equity ratio. The
covenants are tested on a quarterly basis. The ratio of net debt to
EBITDA on 30 September 2023 was 8.8.
The covenant of Robit Plc’s financing agreement,
net interest-bearing debt/EBITDA, did not meet the terms of the
financing agreement on 30 June 2023. The company obtained the
consent of its main financier to the breach of the covenant on 26
September 2023.
BORROWINGS/LOANS/INTEREST-BEARING
LOANS |
|
|
|
EUR thousand |
30 Sep 2023 |
30 Sep 2022 |
31 Dec 2022 |
Non-current borrowings |
|
|
|
Loans from credit institutions |
25,360 |
25,259 |
22,073 |
Other loans |
12 |
11 |
11 |
Lease liabilities |
4,429 |
5,616 |
5,338 |
Total non-current borrowings |
29,801 |
30,886 |
27,423 |
|
|
|
|
Current borrowings |
|
|
|
Loans from credit institutions |
3,568 |
3,563 |
5,462 |
Other loans |
0 |
0 |
10 |
Bank overdrafts |
112 |
193 |
1,782 |
Lease liabilities |
1,422 |
1,724 |
1,669 |
Total current borrowings |
5,102 |
5,480 |
8,922 |
|
|
|
|
Total borrowings |
34,903 |
36,366 |
36,345 |
5.
CHANGES TO PROPERTY, PLANT AND
EQUIPMENT |
EUR thousand |
30 Sep 2023 |
30 Sep 2022 |
31 Dec 2022 |
Cost at the beginning of period |
55,562 |
53,794 |
53,794 |
Additions |
600 |
961 |
2,251 |
Disposals |
-537 |
-43 |
-195 |
Reclassification |
0 |
0 |
0 |
Exchange differences |
-1,268 |
124 |
-288 |
Cost at
the end of period |
54,357 |
54,836 |
55,562 |
|
|
|
|
Accumulated depreciation and impairment
at the beginning of period |
-30,634 |
-26,398 |
-26,398 |
Depreciation |
-3,054 |
-2,176 |
-4,477 |
Disposals |
375 |
34 |
131 |
Reclassification |
0 |
-44 |
0 |
Exchange differences |
567 |
-116 |
110 |
Accumulated depreciation and impairment
at the end of period |
-32,746 |
-28,700 |
-30,634 |
Net book amount at the beginning of period |
24,928 |
27,396 |
27,396 |
Net book amount at the end of period |
21,611 |
26,135 |
24,928 |
|
|
|
|
6. GIVEN GUARANTEES |
|
|
|
EUR thousand |
30 Sep 2023 |
30 Sep 2022 |
31 Dec 2022 |
Guarantees and mortgages given on own
behalf |
48,166 |
47,839 |
48,425 |
Other
guarantee liabilities |
49 |
48 |
49 |
Total |
48,214 |
47,888 |
48,474 |
7. BUSINESS ACQUISITIONS
There were no changes in the Group structure during the review
period.
8. GOODWILL IMPAIRMENT TESTING
The amount of goodwill is reviewed at least
annually in accordance with the IFRS provisions. The values of the
goodwill testing variables are also revised if there have been
material changes in business, competition, the market or other
assumptions of goodwill testing. The company has three cash
flow-generating units (Top Hammer, Down the Hole and Geotechnical).
The company weakened its guidance on 27 June 2023, as a result of
which the company has performed goodwill testing in the 31 August
situation. Based on the impairment testing, there is no need for
write-downs, but the sensitivity for impairment is highest in the
Geotechnical business unit. The factors affecting goodwill items
will be reviewed during the fourth quarter.
9. DERIVATIVES
The company hedges the most significant net
currency positions that can be predicted in time and volume and
interest rate risk.
There were no open currency derivatives at the end of the review
period.
On 8 June 2021, the company concluded a
financing agreement of EUR 30 million and, in connection with this,
an interest rate swap of EUR 10 million with an interest rate cap
in order to hedge part of its exposure to fluctuating interest
rates. The interest rate swap took effect on 30 June 2023 and it
will end on 30 June 2026. The company applies hedge accounting in
accordance with IFRS 9. This effectively leads to the recording of
interest expenses on a hedged floating rate loan at a fixed
rate.
The company’s main interest rate risk arises
from long-term loans with floating interest rates that expose the
Group’s cash flow to interest rate risk. The Group’s policy is to
use, if necessary, a floating to fixed interest rate swap.
Interest derivatives |
|
|
|
EUR thousand |
30 September 2023 |
30 September 2022 |
31 December 2022 |
Interest rate
swaps |
|
|
|
Nominal value |
10,000 |
10,000 |
10,000 |
Fair value |
941 |
790 |
848 |
- Robit Plc - Interim Report 1.1.-30.9.2023
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