ROBIT PLC STOCK EXCHANGE RELEASE 2 AUGUST 2024 AT 9.00 EEST
ROBIT PLC HALF-YEAR REPORT 1 JANUARY-30 JUNE 2024: IMPROVED PROFITABILITY WITH MODERATE GROWTH
In the text, 'review period' refers to 1 April-30 June 2024 (Q2), and 'H1' refers to 1 January-30 June 2024. Figures from the corresponding time period in 2023 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.
1 April-30 June 2024 in brief
- Orders received EUR 25.8 million (22.8), growth 13.6%
- Net sales EUR 24.6 million (24.4), growth 0.9%
- EBITDA EUR 1.7 million (1.3); 6.8% of net sales (5.5)
- Comparable EBITDA EUR 1.7 million (1.5); 6.8% of net sales (6.0)
- EBIT EUR 0.7 million (0.0); 2.7% of net sales (0.2)
- Comparable EBIT EUR 0.7 million (0.2); 2.7% of net sales (0.7)
- Net cash flow for operating activities EUR 2.0 million (3.4)
1 January-30 June 2024 in brief
- Orders received EUR 48.4 million (45.7), growth 5.8%
- Net sales EUR 47.4 million (46.3), growth 2.4%
- EBITDA EUR 3.7 million (1.4); 7.9% of net sales (3.0)
- Comparable EBITDA EUR 3.7 million (1.5); 7.9% of net sales (3.3)
- EBIT EUR 1.7 million (-1.3); 3.7% of net sales (-2.9)
- Comparable EBIT EUR 1.7 million (-1.2); 3.7% of net sales (-2.7)
- Review period net income EUR 1.1 million (-2.4); 2.4% of net sales (-5.2)
- Net cash flow for operating activities EUR 2.8 million (2.0)
- Equity ratio at the end of the review period 48.6% (45.0)
Key financials | Q2 2024 | Q2 2023 | Change% | H1 2024 | H1 2023 | Change% | 2023 |
Net sales, EUR 1,000 | 24 597 | 24 376 | 0.9% | 47 400 | 46 309 | 2.4% | 92 917 |
EBITDA, EUR 1,000 | 1 682 | 1 332 | 26.3% | 3 735 | 1 393 | >100% | 5 172 |
EBITDA, % of net sales | 6.8% | 5.5% | 7.9% | 3.0% | 5.6% | ||
Comparable EBITDA, EUR 1,000 | 1 682 | 1 462 | 15.1% | 3 735 | 1 523 | >100% | 5 004 |
Comparable EBITDA, % of net sales | 6.8% | 6.0% | 7.9% | 3.3% | 5.4% | ||
EBIT, EUR 1,000 | 670 | 48 | >100% | 1 742 | -1 340 | >100% | 116 |
EBIT, % of net sales | 2.7% | 0.2% | 3.7% | -2.9% | 0.1% | ||
Comparable EBIT, EUR 1,000 | 670 | 178 | >100% | 1 742 | -1 235 | >100% | -53 |
Comparable EBIT, % of net sales | 2.7% | 0.7% | 3.7% | -2.7% | -5.7% | ||
Result for the period, EUR 1,000 | 633 | -741 | >100% | 1 141 | -2 411 | >100% | -3 019 |
Result of the period, % of net sales | 2.6% | -3.0% | 2.4% | -5.2% | -3.2% | ||
Earnings per share (EPS), EUR 1,000 | 0,03 | -0,03 | >100% | 0,05 | -0,12 | >100% | -0,14 |
Return on equity (ROE), % | 4.4% | -10.1% | -6.3% | ||||
Return on capital employed (ROCE), % | 5.1% | -4.2% | -0.4% |
MARKET OUTLOOK FOR 2024
Robit expects the global mining industry demand to remain at the good level. Demand in the construction industry is expected to remain at the satisfactory level through the end of 2024. Strengthening demand in the construction industry has progressed more slowly than the company previously estimated, and the company does not expect a significant change in demand during 2024.
GUIDANCE FOR 2024
The company's guidance remains unchanged. Robit expects net sales for 2024 and adjusted EBIT profitability in euros to improve from 2023.
Background to the guidance
The guidance is based on the assessment that demand in the mining industry will remain at a good level and that the lowest point for demand in the construction industry was passed in the first half of 2024, assuming that there are no significant changes in exchange rates from the levels at the end of 2023.
CEO ARTO HALONEN:
In the quarter, market demand remained at a good level in the mining industry. The demand situation in the construction industry varied by market, but overall demand improved more slowly than the company expected. In the Nordic countries, some larger construction projects were launched, and projects progressed. Similarly, in North America, demand in the construction market was lower than expected. A clear upturn in demand in the construction industry has moved forward.
Orders received during the review period totalled EUR 25.8 million, up by 13.6% growth from the corresponding period. Robit's net sales grew by 0.9% on the previous year and totalled EUR 24.6 million (24.4). In constant currencies, there was an increase of 0.9%. The company's net sales grew, driven by the Top Hammer business, which grew by 7.4%. In the Top Hammer business, growth was strongest in the Australasia region, thanks to new customers. Net sales in the Down the Hole business decreased by 14.3 per cent. Demand was at a low level in well drilling and prospection drilling segments, which are important for the business. In the Geotechnical business, net sales decreased by 2.1 per cent. The company won significant orders during the quarter, orders received by the Geotechnical business increased and the order book strengthened. Of all the market areas, the company grew the fastest in the Australasian region. In Australasia, a significant customer delivery contract ended at the end of the review period, and this will impact the area's sales in the second half of the year. Net sales in the Americas fell. The decline was particularly noticeable in South America, where winning new mining contracts progressed slower than the targets set by the company.
In the second quarter, comparable EBIT grew to be EUR 0.7 million (0.2). EBIT was 2.7% (0.7) of the net sales. The measures already taken by the company to strengthen profitability and competitiveness were reflected in the result. However, the improvement in profit fell short of the company's goals. The result was particularly burdened by high air freight costs. Longer transport times and challenges in availability in certain rapidly growing product categories led to the use of air freight to secure customer service. The costs of air freight are expected to decrease in the second half of the year.
Net cash flow from operations was EUR 2.0 million (3.4). The company's inventories grew by EUR 2.0 million in the quarter and were EUR 36.3 million. The increase in inventories was due to longer transport times and the ramp-up of new customer-specific inventories. The company continued the Fit for Service programme, which focuses on working capital management, with the specific aim of improving inventory turnover rate.
The company updated its strategy for 2024-2027 during the quarter. Robit helps its clients to achieve lower drilling costs and aims to be their chosen partner in drilling equipment. The company prioritises its growth investments in selected high-potential markets, while securing and strengthening its position in markets where it currently has a strong foothold. Accelerating the pace through the distributor network is key to the company's growth strategy. As part of the strategy update, the company will focus more clearly on growth through its core product range in the Top Hammer, Down the Hole and Geotechnical businesses, and will not seek growth with products not designed by Robit. At the core of implementing the strategy are Robit's dedicated drilling equipment experts, whose expertise the company will continue to further develop. During the strategy period, Robit is committed to its long-term financial goals of revenue growth faster than market growth and a comparable EBIT profitability of 10%.
SUSTAINABILITY
In terms of emissions intensity, the development was positive, as electricity consumption has fallen significantly due to the cessation of production in Australia. In addition, the company's electricity contract in Finland has been changed to be CO2 neutral. Consultative sales hours have progressed according to the annual target set by the company. Lost Time Incident Frequency (LTIF) developed negatively in the review period, consisting of five accidents that resulted in absences. Further measures to improve safety have been added. Robit's factories and sites are constantly working to increase safety awareness.
Emission intensity | Waste | Consultative sales hours per year | LTIF | Sustainable suppliers | Sustainable distributors | |
06/2024 | -35.7% | 86.8% | 669h | 10.4 | 97.7% | 79.1% |
12/2023 | -25.7% | 88.1% | 1 919h | 4.7 | 99.3% | 86.0% |
Target | -50.0% | >90.0% | >1 000h | 0.0 | >90.0% | >90.0% |
NET SALES
Net sales by product area
EUR thousand | Q2 2024 | Q2 2023 | Change% | H1 2024 | H1 2023 | Change% | 2023 |
Top Hammer | 15 372 | 14 317 | 7.4% | 29 367 | 27 033 | 8.6% | 54 406 |
Down the Hole | 4 367 | 5 095 | -14.3% | 9 383 | 10 363 | -9.5% | 20 862 |
Geotechnical | 4 859 | 4 965 | -2.1% | 8 650 | 8 913 | -3.0% | 17 648 |
Total | 24 597 | 24 376 | 0.9% | 47 400 | 46 309 | 2.4% | 92 917 |
The Group's net sales in Q2 totalled EUR 24.6 million (24.4), There was an increase of 0.9% over the comparison period. In constant currencies, there was an increase of 0.9%.
The Group's net sales in H1 totalled EUR 47.4 million (46.3), There was an increase of 2.4% from the corresponding period. In constant currencies, there was an increase of 3.6%.
Top Hammer business net sales grew by 7.4 per cent, net sales for the review period being EUR 15.4 million (14.3). The growth in net sales was particularly influenced by new customers in the Australasia region. There were positive net sales developments in the EMEA region as well.
Down the Hole business net sales decreased by 14.3 per cent, net sales for the review period being EUR 4.4 million (5.1). The decrease in net sales was particularly affected by the continued low demand in the well drilling and prospection drilling segments in all market areas.
Geotechnical business net sales decreased by 2.1 per cent, net sales for the review period being EUR 4.9 million (5.0). The decrease in net sales was affected by the low demand from in construction industry, especially in North America. The Asia regions showed a positive development in net sales.
Net sales by market area
For reporting net sales for 2024, Robit is combining the East market with the EMEA market due to the termination of business in Russia and the relatively small size of net sales in the East region as part of the Group's net sales.
EUR thousand | Q2 2024 | Q2 2023 | Change% | H1 2024 | H1 2023 | Change% | 2023 |
EMEA & East | 13 185 | 13 149 | 0.3% | 24 519 | 24 448 | 0.3% | 47 279 |
Americas | 5 009 | 5 556 | -9.8% | 9 494 | 10 547 | -10.0% | 20 840 |
Asia | 2 283 | 2 234 | 2.2% | 4 409 | 4 430 | -0.5% | 8 950 |
Australasia | 4 121 | 3 437 | 19.9% | 8 977 | 6 884 | 30.4% | 14 835 |
Total | 24 597 | 24 376 | 0.9% | 47 400 | 46 309 | 2.4% | 92 917 |
PROFITABILITY
Key figures
EUR thousand | Q2 2024 | Q2 2023 | Change% | H1 2024 | H1 2023 | Change% | 2023 |
EBITDA, EUR 1,000 | 1 682 | 1 332 | 26.3% | 3 735 | 1 393 | >100% | 5 172 |
EBITDA, % of net sales | 6.8% | 5.5% | 7.9% | 3.0% | 5.6% | ||
Comparable EBITDA, EUR 1,000 | 1 682 | 1 462 | 15.1% | 3 735 | 1 523 | >100% | 5 004 |
Comparable EBITDA, % of net sales | 6.8% | 6.0% | 7.9% | 3.3% | 5.4% | ||
EBIT, EUR 1,000 | 670 | 48 | >100% | 1 742 | -1 340 | >100% | 116 |
EBIT, % of net sales | 2.7% | 0.2% | 3.7% | -2.9% | 0.1% | ||
Comparable EBIT, EUR 1,000 | 670 | 178 | >100% | 1 742 | -1 235 | >100% | -53 |
Comparable EBIT, % of net sales | 2.7% | 0.7% | 3.7% | -2.7% | -5.7% | ||
Result for the period, EUR 1,000 | 633 | -741 | >100% | 1 141 | -2 411 | >100% | -3 019 |
Result for the period, % of net sales | 2.6% | -3.0% | 2.4% | -5.2% | -3.2% |
Comparable EBITDA for the second quarter was EUR 1.7 million (1.5). Comparable EBITDA's share of net sales was 6.8 per cent (6.0). The company's EBIT was EUR 0.7 million (0.0). The EBIT was 2.7 per cent (0.2) of the review period net sales.
Comparable EBITDA for the first quarter of the year was EUR 3.7 million (1.5) Comparable EBITDA's share of net sales was 7.9 per cent (3.3). The company's EBIT improved by EUR 3.0 million, reaching EUR 1.7 million (-1.3). The EBIT was 3.7% (-2.9) of the review period net sales.
Profitability improved significantly from the corresponding period. The effects of the company's savings programme were mainly reflected in the profitability of the review period. The company merged its two locations in England into the Chesterfield office.
Financial income and expenses in the second quarter of the year totalled EUR -0.1 million (-0.8), of which EUR -0.3 million (-0.7) was interest expenses and EUR 0.2 million (-0.1) exchange rate changes. The company's financing expenses decreased in the review period with the net debt/EBITDA level pursuant to the financing agreement. Net income for the quarter improved significantly to EUR 0.6 million (-0.7).
Financial income and expenses in the first quarter of the year totalled EUR -0.6 million (-1.2), of which EUR -0.8 million (-1.0) was interest expenses and EUR 0.2 million (-0.1) exchange rate changes. The review period income improved significantly to EUR 1.1 million (-2.4).
CASH FLOW AND INVESTMENTS
Consolidated cash flow statement
EUR thousand | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | 2023 |
Net cash flows from operating activities | |||||
Cash flows before changes in working capital | 1 412 | 1 018 | 3 549 | 1 134 | 4 509 |
Cash flows from operating activities before financial items and taxes | 2 498 | 3 928 | 3 638 | 3 256 | 11 074 |
Net cash inflow (outflow) from operating activities | 1 961 | 3 363 | 2 831 | 2 027 | 8 353 |
Net cash inflow (outflow) from investing activities | -88 | 73 | 1 511 | -387 | 1 102 |
Net cash inflow (outflow) from financing activities | -1 768 | -206 | -2 104 | -511 | -4 069 |
Net increase (+)/decrease (-) in cash and cash equivalents | 105 | 3 229 | 2 239 | 1 129 | 5 386 |
Cash and cash equivalents at the beginning of the review period | 13 307 | 5 461 | 11 201 | 7 688 | 6 085 |
Exchange gains/losses on cash and cash equivalents | 74 | -74 | 46 | -201 | -269 |
Cash and cash equivalents at end of the review period | 13 486 | 8 616 | 13 486 | 8 616 | 11 201 |
The Group's cash flow before changes in working capital during the second quarter was EUR 1.4 million (1.0). Net cash flow for operating activities was EUR 2.0 million (3.4). The changes in working capital had an impact of EUR 1.1 million (2.9). The positive change in working capital was caused by the EUR 3.7 million increase in accounts payable. The impact of the increase in inventory on cash flow was EUR 1.5 million, and the increase in sales and other receivables was EUR 1.1 million.
Net cash inflow (outflow) from investing activities for the second quarter was EUR -0.1 million (0.1). Gross investments in production were low at EUR 0.1 million (0.2). The share of investments in net sales was 0.4 per cent (0.9).
Net cash inflow (outflow) from financing activities for the second quarter was EUR -1.8 million (-0.2). Loan payments totalled EUR -1.5 million (2.0). The repayment of lease liabilities reported from financing activities under IFRS 16 totalled EUR -0.3 million (-0.3).
Fixed assets depreciation, amortisation and write-downs totalled EUR -1.0 million (-1.3).
FINANCIAL POSITION
30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 | |
Cash and cash equivalents, EUR thousand | 13 486 | 8 616 | 11 201 |
Interest-bearing liabilities, EUR thousand | 29 868 | 35 161 | 32 532 |
of which short-term interest-bearing financial liabilities | 4 745 | 5 106 | 6 463 |
Net interest-bearing liabilities, EUR thousand | 16 382 | 26 544 | 21 331 |
Undrawn credit facility, EUR thousand | 6 000 | 6 000 | 4 000 |
Gearing, % | 34,6 % | 59,6 % | 46,7 % |
Equity ratio, % | 48,6 % | 45,0 % | 48,5 % |
The Group had interest-bearing debt amounting to EUR 29.9 million (35.2), of which EUR 4.4 million (6.2) was interest-bearing debt under IFRS 16. The company had liquid assets of EUR 13.5 million (8.6) and an undrawn credit facility of EUR 6.0 million (6.0). Interest-bearing net liabilities were EUR 16.4 million (26.5), and interest-bearing net bank debt without IFRS 16 debt impact was EUR 12.0 million (20.4).
The Group's equity at the end of the review period was EUR 47.3 million (47.2). The Group's equity ratio was 48.6 per cent (45.0). Gearing improved significantly, reaching 34.6 per cent (59.6).
PERSONNEL AND MANAGEMENT
The number of personnel decreased by 14 persons from the end of the comparison period, and at the end of the review period was 232 (246). At the end of the review period, 66% of the company's personnel were located outside Finland. In addition, the company had 50 agency contract workers (52) working mainly in mining customer relationships.
The company's Management Team at the end of the reporting period was composed of Arto Halonen (CEO), 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 grow faster than average market growth and achieve comparable EBIT profitability of more than 10%.
Long-term target | 2022 | 2023 | Rolling 12 months per 30 Jun 2024 | |
Comparable EBIT, % of net sales, p.a. | >10% | 2.7% | -5.7% | 3.4% |
RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2024
Robit Plc's Annual General Meeting was held in Tampere on 3 April 2024. The decisions and other materials related to the meeting are available on the company's website at https://www.robitgroup.com/investor/corporate-governance/general-meeting/.
SHARES AND SHARE TURNOVER
On 30 June 2024, the company had 21,179,900 shares and 5,375 shareholders. Trading volume in January-June was 1,828,171 shares (6,323,939).
The company holds 42,205 treasury shares (0.2% of total shares). On 30 June 2024, the market value of the company's shares was EUR 35.8 million. The closing price of the share was EUR 1.69. The highest price in January-June was EUR 2.05, and the lowest price was EUR 1.31.
RISKS AND BUSINESS UNCERTAINTIES
Robit's risks and uncertainties are related to possible changes in the company's operating environment and global economic and political developments. The company's ability to manage and prevent these risks varies.
The company's net sales development and profitability may be affected by the overall market demand trends, especially in the construction industry, as well as the potential loss of significant customers for the company.
Other uncertainty factors include the price and availability of financing, exchange rate development, the functioning of information systems, risks related to the security of supply and logistics, and IPR risks. Passing on the increase in raw material costs fully to customer prices may pose a financial risk. Changes in export countries' tax and customs legislation may adversely impact the company's export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit's business. Potential changes in the business environment may adversely impact the payment behaviour of the Group's customers and increase the risk of litigation, legal claims and disputes related to Robit's products and other operations.
CHANGES IN GROUP STRUCTURE
There were no changes in the Group structure during the review period.
OTHER EVENTS IN JANUARY-JUNE 2024
On 19 January 2024, the company communicated the proposals of Robit Plc's Shareholders' Nomination Committee to the Annual General Meeting. The Nomination Committee's proposals were included in the notice to the Annual General Meeting. Timo Sallinen (Senior Vice-President, Investments, Varma Mutual Pension Insurance Company) chaired the Shareholders' Nomination Committee, with Harri Sjöholm (Chair of the Board of Five Alliance Oy), Jukka Vähäpesola (Head of Equities of Elo Mutual Pension Insurance Company) and Markus Lindqvist (Sustainability Director of Aktia Pankki Plc) as the other members.
On 21 February 2024, Robit Plc published its financial statements release for 1 January-31 December 2023.
On 21 February 2024, the company sent Robit Plc's shareholders a notice to the Annual General Meeting of 03 April 2024.
On 13 March 2024, Robit Plc announced that the company had published its Annual Report, Corporate Governance Statement, Remuneration Report for 2023 and an updated Remuneration Policy on its website.
Later on 13 March 2024, the company published certain adjusted interim and half-yearly financial information for the financial year 2023.
Robit Plc's Annual General Meeting was held on 3 April 2024. The company announced the decisions of the Annual General Meeting in a separate stock exchange release on 3 April 2024.
On 3 April 2024, the company published the decisions of the constituent meeting of the company's Board of Directors. At its constituent meeting, the Board of Directors elected by Robit Plc's Annual General Meeting on 3 April 2024 elected from among its members Markku Teräsvasara as Chair of the Board and Harri Sjöholm as Vice Chair as well as members to serve on Robit Plc's Remuneration Committee, Working Committee and Audit Committee.
Robit Plc announced on 23 April 2024 that the Board of Directors of the company had decided to transfer, without consideration, a total of approximately 4,985 treasury shares held by the company to 11 key employees within the scope of the Group company share incentive scheme in accordance with the terms and conditions of the Performance Share Plan for Key Persons and Senior Management LTI2021-2023. The transfer of shares by means of a directed free share issue is based on the authorisation given to the Board of Directors by the Annual General Meeting held on 3 April 2024. The shares were transferred by 6 May 2024. After the transfer, the company held 42,205 treasury shares. This share incentive scheme was originally announced in a stock exchange release issued on 15 June 2021.
On 23 April 2024, the company updated its long-term financial targets. The company's long-term target is to grow faster than average market growth and achieve comparable EBIT profitability of more than 10%. Previously, Robit's long-term target was to achieve organic net sales growth of 15% annually and comparable EBITDA profitability of 13%.
On 23 April 2024, Robit Plc published its interim financial reporting for 1 January-31 March 2024.
On 25 June 2024, the company announced that the Board of Directors of Robit Plc had decided on a performance-based share reward scheme for key personnel. The purpose of the share scheme is to align the owners' and the key persons' goals in order to increase the value of the company in the long term, to commit the key persons to the company and to encourage them to achieve the company's key strategic goals as well as to provide them with a competitive long-term incentive scheme. The share-based incentive scheme covers approximately 12 individuals. The scheme has three elements: investment by Robit's key personnel in the company's shares, reward shares by the company (stay matching) and performance-based additional share plan (performance matching). The performance-based additional share plan includes three earning periods of one year: the calendar years 2025, 2026 and 2027. No later than in January of the year in question, the Board of Directors decides on the targets for each year separately. The company's stay matching shares and performance matching shares will be paid in April 2028. If all three main elements of the scheme are fulfilled in full as determined in the scheme and according to the target setting of the company's Board of Directors, a total of 303,750 shares will be awarded based on the share scheme, corresponding to 1.43% of the current total share capital.
EVENTS AFTER THE REVIEW PERIOD
No events after the review period.
Lempäälä, 2 August 2024
ROBIT PLC
Board of Directors
Further information:
Arto Halonen, Group CEO
+358 40 028 0717
arto.halonen@robitgroup.com
Ville Peltonen, Group CFO
+358 40 759 9142
ville.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 share is 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 | 4-6/2024 | 4-6/2023 | 1-6/2024 | 1-6/2023 | 2023 | ||
Net sales | 24 597 | 24 376 | 47 400 | 46 309 | 92 917 | ||
Other operating income | 191 | 284 | 578 | 772 | 1 882 | ||
Materials and services* | -16 705 | -15 978 | -31 400 | -30 822 | -61 625 | ||
Employee benefit expense | -3 655 | -3 986 | -7 203 | -7 970 | -15 388 | ||
Depreciation and amortisation | -1 012 | -1 284 | -1 993 | -2 733 | -5 055 | ||
Impairment | -86 | -218 | -205 | ||||
Other operating expense* | -2 660 | -3 365 | -5 422 | -6 896 | -12 409 | ||
EBIT (Operating profit/loss) | 670 | 48 | 1 742 | -1 340 | 116 | ||
Finance income and costs | |||||||
Interest income and finance income | 188 | 148 | 339 | 204 | 214 | ||
Interest cost and finance cost | -284 | -938 | -945 | -1 383 | -2 758 | ||
Finance income and costs net | -96 | -791 | -605 | -1 180 | -2 544 | ||
Profit/loss before tax | 574 | -743 | 1 137 | -2 520 | -2 427 | ||
Taxes | |||||||
Income tax | -4 | -4 | -8 | -8 | -444 | ||
Change in deferred taxes | 63 | 6 | 12 | 117 | -148 | ||
Income taxes | 59 | 2 | 4 | 109 | -592 | ||
Result for the period | 633 | -741 | 1 141 | -2 411 | -3 019 | ||
Attributable to: | |||||||
Parent company shareholders | 599 | -705 | 1 071 | -2 469 | -3 048 | ||
Non-controlling interest** | 34 | -36 | 70 | 58 | 29 | ||
633 | -741 | 1 141 | -2 411 | -3 019 | |||
Other comprehensive income | |||||||
Items that may be reclassified to profit or loss in subsequent periods: | |||||||
Cash flow hedges | -77 | 82 | 10 | 70 | 633 | ||
Translation differences** | 558 | 201 | 479 | -1 263 | 41 | ||
Other comprehensive income, net of tax | 480 | 284 | 414 | -1 193 | 674 | ||
Total comprehensive income | 1 113 | -457 | 1 630 | -3 604 | 1 560 | ||
Attributable to: | |||||||
Parent company shareholders | 1 074 | -459 | 1 591 | -3 606 | 1 501 | ||
Non-controlling interest** | 39 | 2 | 39 | 2 | 58 | ||
Consolidated comprehensive income | 1 113 | -457 | 1 630 | -3 604 | 1 560 | ||
Earnings per share | |||||||
Basic and diluted earnings per share | 0,03 | -0,03 | 0,05 | -0,12 | 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 | 30.6.2024 | 30.6.2023 | 31.12.2023 |
ASSETS | |||
Non-current assets | |||
Goodwill | 5 448 | 5 373 | 5 308 |
Other intangible assets | 749 | 1 014 | 817 |
Property, plant and equipment | 17 636 | 22 421 | 19 561 |
Loan receivables | 208 | 397 | 276 |
Other receivables | 0 | 0 | 0 |
Derivatives | 549 | 935 | 569 |
Deferred tax assets | 1 430 | 2 112 | 1 417 |
Total non-current assets | 26 020 | 32 252 | 27 948 |
Current assets | |||
Inventories | 36 328 | 42 750 | 36 054 |
Account and other receivables | 21 500 | 21 065 | 16 820 |
Loan receivables | 72 | 72 | 70 |
Current tax assets | 132 | 149 | 323 |
Other financial assets | 0 | 1 603 | 1 628 |
Cash and cash equivalents | 13 486 | 7 013 | 11 201 |
Total current assets | 71 519 | 72 652 | 66 096 |
Total assets | 97 538 | 104 904 | 94 043 |
EQUITY AND LIABILITIES | |||
Equity | |||
Share capital | 705 | 705 | 705 |
Share premium | 202 | 202 | 202 |
Reserve for invested unrestricted equity | 82 147 | 82 570 | 82 147 |
Translation differences | -2 592 | -2 951 | -3 103 |
Fair value reserve | 465 | 748 | 455 |
Retained earnings | -35 058 | -31 946 | -32 054 |
Profit/loss for the year | 1 071 | -2 469 | -3 048 |
Equity attributable to parent company shareholders in total | 46 939 | 46 859 | 45 304 |
Non-controlling interests* | 364 | 341 | 325 |
Capital and reserves in total | 47 303 | 47 200 | 45 629 |
Liabilities | |||
Non-current liabilities | |||
Borrowings | 22 050 | 25 351 | 22 123 |
Lease liabilities | 3 073 | 4 704 | 3 946 |
Deferred tax liabilities | 365 | 909 | 389 |
Employee benefit obligations | 498 | 625 | 504 |
Total non-current liabilities | 25 986 | 31 589 | 26 962 |
Current liabilities | |||
Borrowings | 3 389 | 3 651 | 5 180 |
Lease liabilities | 1 356 | 1 455 | 1 283 |
Advances received | 206 | 49 | 22 |
Income tax liabilities | 0 | 66 | 130 |
Account payables and other liabilities | 19 215 | 20 890 | 14 742 |
Other provisions | 83 | 4 | 97 |
Total current liabilities | 24 250 | 26 115 | 21 453 |
Total liabilities | 50 236 | 57 704 | 48 415 |
Total equity and liabilities | 97 538 | 104 904 | 94 043 |
* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.
CORNSOLIDATED CASH FLOW STATEMENT | |||||
EUR thousand | 4-6/2024 | 4-6/2023 | 1-6/2024 | 1-6/2023 | 2023 |
Cash flows from operating activities | |||||
Profit before tax | 574 | -743 | 1 137 | -2 520 | -2 427 |
Adjustments: | |||||
Depreciation, amortisation, and impairment | 1 012 | 1 284 | 1 993 | 2 733 | 5 055 |
Finance income and costs | 96 | 791 | 605 | 1 180 | 2 610 |
Share-based payments to employees | 53 | -158 | 36 | -65 | -139 |
Loss (+)/Gain (-) on sale of property, plant and equipment | 48 | -267 | -69 | -267 | -959 |
Other non-cash transactions | -372 | 110 | -153 | 73 | 369 |
Cash flows before changes in working capital | 1 412 | 1 018 | 3 549 | 1 134 | 4 509 |
Change in working capital | |||||
Increase (-) / decrease (+) in account and other receivables | -1 133 | -1 385 | -4 510 | -499 | 3 629 |
Increase (-) / decrease (+) in inventories | -1 464 | 1 256 | 196 | 327 | 6 836 |
Increase (+) / decrease (-) in account and other payables | 3 683 | 3 040 | 4 402 | 2 293 | -3 900 |
Cash flows from operating activities before financial items and taxes | 2 498 | 3 928 | 3 638 | 3 256 | 11 074 |
Interest and other finance expenses paid | -597 | -516 | -943 | -969 | -2 200 |
Interest and other finance income received | 36 | 18 | 106 | 28 | 100 |
Income taxes paid | 24 | -67 | 30 | -288 | -621 |
Net cash inflow (outflow) from operating activities | 1 961 | 3 363 | 2 831 | 2 027 | 8 353 |
Cash flows from investing activities | |||||
Other financial assets increase (-) / decrease (+) | 0 | 0 | 1 628 | 0 | 0 |
Purchases of property, plant and equipment | -103 | -225 | -236 | -414 | -379 |
Purchases of intangible assets | 0 | -4 | -12 | -54 | -64 |
Proceeds from the sale of property, plant and equipment | 1 | 270 | 71 | 233 | 1 571 |
Proceeds from loan receivables | 14 | 32 | 61 | -152 | -26 |
Net cash inflow (outflow) from investing activities | -88 | 73 | 1 511 | -387 | 1 102 |
Cash flows from financing activities | |||||
Acquisition of own shares | 0 | 0 | 0 | 0 | -150 |
Dividend payment | 0 | 0 | 0 | 0 | -441 |
Drawdowns of non-current loans | 0 | 3 500 | 0 | 3 500 | 3 500 |
Amortizations of non-current loans | -1 512 | -1 485 | -1 576 | -1 671 | -3 352 |
Change in bank overdrafts | 0 | -1 955 | 0 | -1 782 | -1 782 |
Payment of leasing liabilities | -256 | -266 | -528 | -558 | -1 844 |
Net cash inflow (outflow) from financing activities | -1 768 | -206 | -2 104 | -511 | -4 069 |
Net increase (+)/decrease (-) in cash and cash equivalents | 105 | 3 229 | 2 239 | 1 129 | 5 386 |
Cash and cash equivalents at the beginning of the financial year | 13 307 | 3 858 | 11 201 | 6 085 | 6 085 |
Exchange gains/losses on cash and cash equivalents | 74 | -74 | 46 | -201 | -269 |
Cash and cash equivalents at end of the year | 13 486 | 7 013 | 13 486 | 7 013 | 11 201 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||
A = Share capital | ||||||||||
B = Share premium | ||||||||||
C = Reserve for invested unrestricted equity | ||||||||||
D = Cumulative translation difference | ||||||||||
E = Fair value reserve | ||||||||||
F = Retained earnings | ||||||||||
G = Equity attributable to parent company shareholders | ||||||||||
H = Non-controlling interests | ||||||||||
I = Capital and reserves in total | ||||||||||
EUR Thousand | A | B | C | D | E | F | G | H | I | |
Equity as of 1 January 2023 | 705 | 202 | 82 570 | -1744 | 678 | -31 928 | 50 483 | 339 | 50 822 | |
Profit for the period | -2 469 | -2 469 | 58 | -2 411 | ||||||
Other comprehensive income | ||||||||||
Cash flow hedges | 70 | 70 | 70 | |||||||
Translation differences | -1 207 | -1 207 | -56 | -1 264 | ||||||
Total comprehensive changes | -1 207 | 70 | -2 469 | -3 607 | 2 | -3 605 | ||||
Share-based payments to employees | -17 | -17 | -17 | |||||||
Total transactions with owners, recognised directly in equity | -17 | -17 | -17 | |||||||
Equity as of 30 June 2023 | 705 | 202 | 82 570 | -2 951 | 748 | -34 415 | 46 859 | 341 | 47 200 | |
EUR thousand | A | B | C | D | E | F | G | H | I | |
Equity as of 1 January 2024 | 705 | 202 | 82 147 | -3 103 | 455 | -35 102 | 45 304 | 325 | 45 629 | |
Profit for the period | 1 071 | 1 071 | 70 | 1 141 | ||||||
Other comprehensive income | ||||||||||
Cash flow hedges | 10 | 10 | 10 | |||||||
Translation differences | 511 | 511 | -31 | 479 | ||||||
Total comprehensive changes | 511 | 10 | 1 071 | 1 591 | 39 | 1 630 | ||||
Share-based payments to employees | 44 | 44 | 44 | |||||||
Total transactions with owners, recognised directly in equity | 44 | 44 | 44 | |||||||
Equity as of 30 June 2024 | 705 | 202 | 82 147 | -2 592 | 465 | -33 987 | 46 939 | 364 | 47 303 | |
NOTES
Contents
1.Scope and principles of the interim report
2.Key figures and calculation
3.Breakdown of net sales
4.Financing arrangements
5.Changes to property, plant and equipment
6.Given guarantees
7.Business acquisitions
8.Derivatives
1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT
This interim report has been prepared in accordance with the IAS 34 standard for interim financial reporting and using the same principles as for the annual financial statements. The interim report has not been audited.
For reporting net sales for 2024, Robit is combining the East market with the EMEA market due to the termination of business in Russia and the relatively small size of net sales in the East region as part of the Group's net sales.
All figures in the condensed financial statements and in the notes are rounded, which is why the sum of individual figures may deviate from the sum presented.
2.1 KEY FIGURES
Consolidated key figures | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | 2023 |
Net sales, EUR 1,000 | 24 597 | 24 376 | 47 400 | 46 309 | 92 917 |
EBIT, EUR 1000 | 670 | 48 | 1 742 | -1 340 | 116 |
EBIT, per cent of sales | 2,7 % | 0,2 % | 3,7 % | -2,9 % | 0,1 % |
Earnings per share (EPS), EUR | 0,03 | -0,03 | 0,5 | -0,12 | -0,14 |
Return on equity (ROE), % | 4,4 % | -10,1 % | -6,3 % | ||
Return on capital employed (ROCE), % | 5,1 % | -4,2 % | 0,4 % | ||
Equity ratio, % | 48,6 % | 45,0 % | 48,5 % | ||
Net gearing, % | 34,6 % | 59,6 % | 46,7 % | ||
Gross investments, EUR 1,000 | 103 | 229 | 248 | 468 | 443 |
Gross investments, % of net sales | 0,4 % | 0,9 % | 0,9 % | 1,0 % | 0,5 % |
Number of shares (outstanding shares) | 21 137 695 | 21 166 092 | 21 132 710 | ||
Treasury shares (owned by the Group) | 42 205 | 13 808 | 47 190 | ||
Percentage of votes/shares | 0,20 % | 0,07 % | 0,22 % |
2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES
Robit presents alternative key figures to supplement the key figures given in the IFRS-compliant consolidated profit and loss accounts, consolidated balance sheets and consolidated cash flow statements. Robit considers that the alternative figures provide significant extra insight into Robit's performance, financial position and cash flows. These figures are often used by analysts, investors and other parties.
The alternative key figures should not be examined separate from the IFRS key figures or as replacing the IFRS key figures. Not all companies calculate their alternative key figures in a uniform manner 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 | 4-6/2024 | 4-6/2023 | 1-6/2024 | 1-6/2023 | 2023 |
EBIT (Operating profit) | 670 | 48 | 1 742 | -1 340 | 116 |
Depreciation and amortisation | 1 012 | 1 284 | 1 993 | 2 733 | 5 055 |
EBITDA | 1 682 | 1 332 | 3 735 | 1 393 | 5 172 |
Items affecting comparability | |||||
Reorganizing expenses | 0 | 130 | 0 | 130 | -168 |
Comparable EBITDA | 1 682 | 1 462 | 3 735 | 1 523 | 5 004 |
EBIT (Operating profit) | 670 | 48 | 1 742 | -1 340 | 116 |
Amortisation of acquisitions | 36 | 207 | 73 | 421 | 487 |
Impairments | 225 | ||||
EBITA | 706 | 255 | 1 815 | -919 | 829 |
EBIT (Operating profit) | 670 | 48 | 1 742 | -1 340 | 116 |
Items affecting comparability | |||||
Reorganizing expenses | 0 | 130 | 0 | 130 | -168 |
Comparable EBIT (Operating profit) | 670 | 178 | 1 742 | -1 211 | -53 |
2.3 CALCULATION OF KEY FIGURES
EBITDA: | |
EBIT + Depreciation, amortisation 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
The IFRS 15 recognition of entries as revenue is identical within each business unit and market area.
NET SALES | |||||||
Net sales by product area | |||||||
EUR thousand | 4-6/2024 | 4-6/2023 | Change % | 1-6/2024 | 1-6/2023 | Change % | 2023 |
Top Hammer | 15 372 | 14 317 | 7,4 % | 29 367 | 27 033 | 8,6 % | 54 406 |
Down the Hole | 4 367 | 5 095 | -14,3 % | 9 383 | 10 363 | -9,5 % | 20 862 |
Geotechnical | 4 859 | 4 965 | -2,1 % | 8 650 | 8 913 | -3,0 % | 17 648 |
Total | 24 597 | 24 376 | 0,9 % | 47 400 | 46 309 | 2,4 % | 92 917 |
Net sales by market area | |||||||
EUR thousand | 4-6/2024 | 4-6/2023 | Change % | 1-6/2024 | 1-6/2023 | Change % | 2023 |
EMEA & East | 13 185 | 13 149 | 0,3 % | 24 519 | 24 448 | 0,3 % | 47 279 |
Americas | 5 009 | 5 556 | -9,8 % | 9 494 | 10 547 | -10,0 % | 20 840 |
Asia | 2 283 | 2 234 | 2,2 % | 4 409 | 4 430 | -0,5 % | 8 950 |
Australasia | 4 121 | 3 437 | 19,9 % | 8 977 | 6 884 | 30,4 % | 14 835 |
Total | 24 597 | 24 376 | 0,9 % | 47 400 | 46 309 | 2,4 % | 92 917 |
4. FINANCING ARRANGEMENTS
The company's cash and cash equivalents totalled EUR 13.5 million on 30 June 2024. In addition, the company has an EUR 6.0 million credit facility. The company's sufficient liquidity is secured by way of cash and cash equivalents and an undrawn credit facility.
The covenants of the parent company's loans are based on the company's net liabilities/EBITDA ratio and the company's equity ratio. The covenants are tested on a quarterly basis and the company met all the conditions on 30 June 2024.
INTEREST-BEARING LOANS | |||
EUR thousand | 30.6.2024 | 30.6.2023 | 31.12.2023 |
Non-current borrowings | |||
Loans from credit institutions | 22 038 | 25 339 | 22 111 |
Other loans | 12 | 12 | 12 |
Lease liabilities | 3 073 | 4 704 | 3 946 |
Total non-current borrowings | 25 123 | 30 055 | 26 069 |
Current borrowings | |||
Loans from credit institutions | 3 389 | 3 651 | 5 179 |
Lease liabilities | 1 356 | 1 455 | 1 284 |
Total current borrowings | 4 745 | 5 106 | 6 463 |
Total borrowings | 29 868 | 35 161 | 32 532 |
5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT | |||
EUR thousand | 30.6.2024 | 30.6.2023 | 31.12.2023 |
Cost at the beginning of period | 46 483 | 55 562 | 55 562 |
Other changes* | -1 188 | ||
Additions | 1 090 | 414 | 903 |
Disposals | -988 | -260 | -6 356 |
Reclassification | -387 | 0 | -969 |
Exchange differences | -230 | -1 403 | -1 469 |
Cost at the end of period | 45 969 | 54 313 | 46 483 |
Accumulated depreciation and impairment at the beginning of period | -26 922 | -30 634 | -30 634 |
Other changes* | 1 000 | ||
Depreciation | -1 893 | -2 049 | -4 082 |
Disposals | 23 | 258 | 5 128 |
Reclassification | 367 | 0 | 969 |
Exchange differences | 93 | 624 | 697 |
Accumulated depreciation and impairment at the end of period | -28 333 | -31 801 | -26 922 |
Net book amount at the beginning of period | 19 561 | 24 928 | 24 928 |
Net book amount at the end of period | 17 636 | 22 512 | 19 561 |
*Adjustments resulting from corrections to IFRS 16 calculations |
6. GIVEN GUARANTEES | |||
EUR thousand | 30.6.2024 | 30.6.2023 | 31.12.2023 |
Guarantees and mortgages given on own behalf | 48 021 | 48 134 | 49 505 |
Other guarantee liabilities | 49 | 49 | 48 |
Total | 48 070 | 48 183 | 49 553 |
7. BUSINESS ACQUISITIONS
There were no changes in the Group structure during the review period.
8. DERIVATIVES
The company hedges the most significant net currency positions that can be forecast for time, volume and interest rate risk.
There were no open currency derivatives at the end of the review period.
On 8 June 2021, the company concluded a EUR 30 million financing agreement and, in connection with this, a EUR 10 million interest rate swap with an interest rate cap in order to hedge part of its exposure to variable interest rates. The interest rate swap will take 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 | 30.6.2024 | 30.6.2023 | 31.12.2023 |
Interest rate swaps | |||
Nominal value | 10 000 | 10 000 | 10 000 |
Fair value | 549 | 935 | 569 |
