ROBIT PLC STOCK EXCHANGE RELEASE 24 OCTOBER 2024 AT 9.00 A.M. EEST
ROBIT PLC INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2024: EBIT IMPROVED DESPITE A SLIGHT DECREASE IN NET SALES
In the text, 'review period' or 'third quarter of the year' refers to 1 July-30 September 2024 (Q3), and 'January-September' refers to 1 January-30 September 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 July-30 September 2024 in brief
- Received orders EUR 20.8 million (24.9); decrease 16.3%
- Net sales EUR 21.5 million (23.7); decrease 9.3%
- EBITDA EUR 1.0 million (1.4); 4.5% of net sales (5.8)
- Comparable EBITDA EUR 1.0 million (1.5); 4.5% of net sales (6.4)
- EBIT EUR 0.0 million (0.3); 0.0% of net sales (1.1)
- Comparable EBIT EUR 0.0 million (0.4); 0.0% of net sales (1.7)
- Net cash flow for operating activities EUR 0.2 million (-0.7)
1 January-30 September 2024 in brief
- Received orders EUR 69.2 million (70.6); decrease 2.0%
- Net sales EUR 68.9 million (70.0); decrease 1.6%
- EBITDA EUR 4.7 million (2.8); 6.8% of net sales (3.9)
- Comparable EBITDA EUR 4.7 million (3.0); 6.8% of net sales (4.3)
- EBIT EUR 2.9 million (-1.1); 3.2% of net sales (-1.5)
- Comparable EBIT EUR 2.9 million (-1.3); 3.2% of net sales (-1.8)
- Review period net income EUR 0.6 million (-2.7); 0.8% of net sales (-3.8)
- Net cash flow for operating activities EUR 3.0 million (1.3)
- Equity ratio at the end of the review period 47.2% (46.3)
Key financials | Q3 2024 | Q3 2023 | Change% | Q1-Q3 2024 | Q1-Q3 2023 | Change% | 2023 |
Net sales, EUR 1,000 | 21 497 | 23 706 | -9.3% | 68 896 | 70 016 | -1.6% | 92 917 |
EBITDA, EUR 1,000 | 974 | 1 370 | -28.9% | 4 709 | 2 763 | 70.4% | 5 172 |
EBITDA, % of net sales | 4.5% | 5.8% | 6.8% | 3.9% | 5.6% | ||
Comparable EBITDA, EUR 1,000 | 974 | 1 520 | -35.9% | 4 709 | 3 042 | 54.8% | 5 004 |
Comparable EBITDA, % of net sales | 4.5% | 6.4% | 6.8% | 4.3% | 5.4% | ||
EBIT, EUR 1,000 | 2 | 265 | -99.4% | 1 744 | -1 076 | >100% | 116 |
EBIT, % of net sales | 0.0% | 1.1% | 2.5% | -1.5% | 0.1% | ||
Comparable EBIT, EUR 1,000 | 2 | 415 | -99.6% | 1 744 | -1 267 | >100% | -53 |
Comparable EBIT, % of net sales | 0.0% | 1.7% | 2.5% | -1.8% | -5.7% | ||
Result for the period, EUR 1,000 | -573 | -277 | >100% | 568 | -2 687 | >100% | -3 019 |
Result of the period, % of net sales | -2.7% | -1.2% | 0.8% | -3.8% | -3.2% | ||
Earnings per share (EPS), EUR 1,000 | -0,03 | -0,02 | -47.7% | 0,02 | -0,13 | >100% | -0,14 |
Return on equity (ROE), % | 1.2% | -7.7% | -6.3% | ||||
Return on capital employed (ROCE), % | 3.2% | -2.2% | -0.4% |
MARKET OUTLOOK FOR 2024
Robit expects the global mining industry demand to remain at a good level. Demand in the construction industry is expected to remain at a weak level for the rest of 2024.
GUIDANCE FOR 2024
On 23 October 2024, Robit lowered its net sales guidance for 2024. Robit estimates that, in 2024, net sales will decline compared to 2023. The company expects its comparable EBIT profitability in euros to improve compared to the previous year.
According to the company's previous guidance, Robit estimated net sales to increase and comparable EBIT profitability in euros to improve compared to 2023.
Background to the guidance
The company's net sales in the Down the Hole business is expected to decline from the 2023 levels, as the completed delivery contracts have not been able to be replaced with new ones within the timeline the company aimed for. Additionally, demand in the construction industry has been lower than the company's expectations.
CEO ARTO HALONEN:
In the quarter, market demand remained at a good level in the mining industry. The demand situation in the construction industry was at a weak level and no significant new projects were launched during the quarter. Market demand in the construction industry is not expected to improve significantly during this year.
Orders received in the review period totalled EUR 20.8 million (24.9), down by 16.3 per cent from the comparison period. Robit's net sales decreased by 9.3 per cent in the review period and totalled EUR 21.5 million (23.7). In constant currencies, there was a decrease of 9.2 per cent.
Net sales in the Top Hammer business decreased by 3.1 per cent. However, the growth in the Top Hammer business remained strong in Australasia, supported by new customers. In other markets, net sales decreased due to weak demand in the construction industry, among other reasons.
Net sales in the Down the Hole business decreased by 47.3 per cent, due to the expiry of a significant supply agreement and the still low level of demand in the well drilling and exploration drilling segments, which are important for the business.
In the Geotechnical business, net sales grew by 20.7 per cent. The review period saw a lot of deliveries of projects won in the second quarter of the year. In market areas, growth came from Americas. The company's sales grew well, especially in North America.
In the third quarter, comparable EBIT was EUR 0.0 million (0.4). Lower net sales and high freight costs were the most significant factors in the decline in profitability. Freight costs decreased as expected from the second quarter of the year but were still at a clearly higher level than in the comparison period. Freight costs are expected to continue to decline in the last quarter.
The company's inventories increased by EUR 3.7 million in the quarter, totalling EUR 40.1 million. Due to extended transportation times, inventories were increased to ensure customer deliveries. The company's product availability improved in the review period. Despite the increase in inventories, the net cash flow from operations improved, amounting to EUR 0,2 million (-0,7).
The focus for the rest of the year is on winning new customers and optimising inventory levels and availability. To win new customers, we launched the Robit QuickSave concept as part of our renewed strategy, in which we guarantee the customer savings when using Robit's products. Robit QuickSave is a lightweight version of RobitSave, which is intended for bigger customers. During the review period, market-specific product launches progressed for the Robit Extreme Carbide bits released earlier this year, as well as for the H-series DTH hammer family. The products were prominently featured at events such as MinExpo (US), Electra Mining (ZA) and Expomina (PE). The products have been well received by customers.
NET SALES
Net sales by product area
EUR thousand | Q3 2024 | Q3 2023 | Change% | Q1-Q3 2024 | Q1-Q3 2023 | Change% | 2023 |
Top Hammer | 13 405 | 13 829 | -3.1% | 42 772 | 40 862 | 4.7% | 54 406 |
Down the Hole | 2 971 | 5 635 | -47.3% | 12 354 | 15 998 | -22.8% | 20 862 |
Geotechnical | 5 120 | 4 243 | 20.7% | 13 770 | 13 156 | 4.7% | 17 648 |
Total | 21 497 | 23 706 | -9.3% | 68 896 | 70 016 | -1.6% | 92 917 |
The Group's net sales in the third quarter were EUR 21.5 million (23.7). Down by 9.3 per cent from the comparison period. In constant currencies, there was a decrease of 9.2 per cent.
The Group's net sales in January-September totalled EUR 68.9 million (70.0). Down by 1.6 per cent from the comparison period. In constant currencies, there was a decrease of 0.8 per cent.
Top Hammer business net sales decreased by 3.1 per cent, net sales for the review period being EUR 13.4 million (13.8). The decrease in net sales was largely due to low demand in the construction industry, but there was positive development in Australasia with new mining customers.
Down the Hole business net sales decreased by 47.3 per cent, net sales for the review period being EUR 3.0 million (5.6). The decrease in net sales was largely due to the expiry of one significant supply contract in Australasia and continued low demand in the well drilling and prospection drilling segments.
Geotechnical business net sales grew by 20.7 per cent, net sales for the review period being EUR 5.1 million (4.2). The growth in net sales was largely due to the project deliveries made during the quarter. Net sales in the Geotechnical business increased in Americas and EMEA in particular.
Net sales by market area
EUR thousand | Q3 2024 | Q3 2023 | Change% | Q1-Q3 2024 | Q1-Q3 2023 | Change% | 2023 |
EMEA & East | 11 092 | 12 699 | -12.7% | 35 611 | 37 147 | -4.1% | 47 279 |
Americas | 5 136 | 4 859 | 5.7% | 14 630 | 15 407 | -5.0% | 20 840 |
Asia | 1 927 | 2 228 | -13.5% | 6 336 | 6 657 | -4.8% | 8 950 |
Australasia | 3 341 | 3 920 | -14.8% | 12 319 | 10 804 | 14.0% | 14 835 |
Total | 21 497 | 23 706 | -9.3% | 68 896 | 70 016 | -1.6% | 92 917 |
PROFITABILITY
Key figures
EUR thousand | Q3 2024 | Q3 2023 | Change% | Q1-Q3 2024 | Q1-Q3 2023 | Change% | 2023 |
EBITDA, EUR 1,000 | 974 | 1 370 | -9.3% | 4 709 | 2 763 | 70.4% | 5 172 |
EBITDA, % of net sales | 4.5% | 5.8% | 6.8% | 3.9% | 5.6% | ||
Comparable EBITDA, EUR 1,000 | 974 | 1 520 | -28.9% | 4 709 | 3 042 | 54.8% | 5 004 |
Comparable EBITDA, % of net sales | 4.5% | 6.4% | 6.8% | 4.3% | 5.4% | ||
EBIT, EUR 1,000 | 2 | 265 | -99.4% | 1 744 | -1 076 | >100% | 116 |
EBIT, % of net sales | 0.0% | 1.1% | 2.5% | -1.5% | 0.1% | ||
Comparable EBIT, EUR 1,000 | 2 | 415 | -99.6% | 1 744 | -1 267 | >100% | -53 |
Comparable EBIT, % of net sales | 0.0% | 1.7% | 2.5% | -1.8% | -5.7% | ||
Result for the period, EUR 1,000 | -573 | -277 | >100% | 568 | -2 687 | >100% | -3 019 |
Result for the period, % of net sales | -2.7% | -1.2% | 0.8% | -3.8% | -3.2% |
Comparable EBITDA for the third quarter was EUR 1.0 million (1.5). Comparable EBITDA's share of net sales was 4.5 per cent (6.4). The company's EBIT was EUR 0.0 million (0.3). The EBIT was 0.0 per cent (1.1) of the review period net sales.
In January-September, comparable EBITDA was EUR 4.7 million (3.0). Comparable EBITDA's share of net sales was 6.8 per cent (4.3). The company's EBIT improved by EUR 2.8 million to EUR 1.7 million (-1.1). EBIT was 2.5 per cent (-1.5) of the review period's net sales.
The company's profitability in the quarter remained low due to the decline in net sales. The company continued to invest in sales development by training its personnel.
The financial income and expenses in the third quarter totalled EUR -0.6 million (-0.6), of which EUR -0.4 million (-0.6) was interest expenses and EUR -0.2 million (0.1) exchange rate changes. Net income for the quarter decreased to EUR -0.6 million (-0.3).
In January-September, financial income and expenses totalled EUR -1.2 million (-1.8), of which EUR -1.2 million (-1,6) was interest expenses and EUR -0.1 million (0.0) was exchange rate changes. The review period income improved to EUR 0.6 million (-2.7).
CASH FLOW AND INVESTMENTS
Consolidated cash flow statement
EUR thousand | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | 2023 |
Net cash flows from operating activities | |||||
Cash flows before changes in working capital | 1 286 | 1 196 | 4 835 | 2 330 | 4 509 |
Cash flows from operating activities before financial items and taxes | 328 | -465 | 3 966 | 2 791 | 11 074 |
Net cash inflow (outflow) from operating activities | 200 | -695 | 3 032 | 1 332 | 8 353 |
Net cash inflow (outflow) from investing activities | 133 | -23 | 1 644 | -410 | 1 102 |
Net cash inflow (outflow) from financing activities | -995 | -587 | -3 099 | -1 098 | -4 069 |
Net increase (+)/decrease (-) in cash and cash equivalents | -662 | -1 305 | 1 577 | -175 | 5 386 |
Cash and cash equivalents at the beginning of the review period | 13 486 | 7 013 | 11 201 | 6 085 | 6 085 |
Exchange gains/losses on cash and cash equivalents | -89 | 42 | -43 | -159 | -269 |
Cash and cash equivalents at end of the review period | 12 735 | 5 751 | 12 735 | 5 751 | 11 201 |
The Group's cash flow before changes in working capital during the third quarter was EUR 1.3 million (1.2). Net cash flow for operating activities was EUR 0.2 million (-0.7). The changes in working capital had an impact of EUR -1.0 million (-1.7). The change in working capital was caused by the EUR 2.1 increase in accounts payable. Increase in inventories had an impact of EUR -3.9 million and decrease in sales and other receivables an impact of EUR 0.8 million on the cash flow.
The net cash flow from investing activities for the third quarter was EUR 0.1 million (-0.0). Gross investments in production remained low as planned. The share of investments in net sales was 0.1 per cent (0.2).
The net cash flow from financing activities for the third quarter was EUR -1.0 million (-0.6). Loan payments totalled EUR -0.3 million (-0.0). The repayment of lease liabilities reported from financing activities under IFRS 16 totalled EUR -0.7 million (-0.3).
Fixed assets deprecation and impairment in the third quarter totalled EUR 1.0 million (1.1).
FINANCIAL POSITION
30.9.2024 | 30.9.2023 | 31.12.2023 | |
Cash and cash equivalents, EUR thousand | 12 735 | 5 751 | 11 201 |
Interest-bearing liabilities, EUR thousand | 29 769 | 34 903 | 32 532 |
of which short-term interest-bearing financial liabilities | 4 723 | 5 102 | 6 463 |
Net interest-bearing liabilities, EUR thousand | 17 034 | 29 152 | 21 331 |
Undrawn credit facility, EUR thousand | 6 000 | 3 888 | 4 000 |
Gearing, % | 36.7% | 62.4% | 46.7% |
Equity ratio, % | 47.2% | 46.3% | 48.5% |
The Group had interest-bearing debt amounting to EUR 29.8 million (34.9), of which EUR 4.4 million (5.9) was interest-bearing debt under IFRS 16. The company had liquid assets of EUR 12.7 million (5.8) and an undrawn credit facility of EUR 6.0 million (3.9). The interest-bearing net liabilities were EUR 17.0 million (29.2) and interest-bearing net bank debt without IFRS 16 debt impact was EUR 12.6 million (21.7).
The Group's equity at the end of the review period was EUR 46.4 million (46.7). The Group's equity ratio was 47.2 per cent (46.3). Gearing was 36.7 per cent (62.2).
PERSONNEL AND MANAGEMENT
The number of personnel decreased by 9 persons from the end of the comparison period, and at the end of the review period was 229 (238). At the end of the review period, 66 per cent of the company's personnel were located outside Finland. In addition, the company had 51 agency contract workers (47) working mainly in mining customer relationships.
The company's Management Team at the end of the reporting period was composed of Arto Halonen (Group CEO), Perttu Aho (VP Down the Hole), Ville Iljanko (VP Distributor Sales), Jorge Leal (VP Top Hammer), Ville Peltonen (Group 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 Sep 2024 | |
Comparable EBIT, % of net sales, p.a. | >10 % | 2.7 % | -5.7 % | 3.2 % |
RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2024
Robit Plc's Annual General Meeting was held in Tampere on 03 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 September 2024, the company had 21,179,900 shares and 5,332 shareholders (5,601). Trading volume in January-September was 2,350,542 shares (4,254,349).
The company holds 42,205 treasury shares (0.2% of total shares). On 30 September 2024, the market value of the company's shares was EUR 34.5 million. The closing price of the share was EUR 1.63. The highest price in January-September was EUR 2.05 and the lowest price 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 development of the company's net sales and profitability are affected by the development of general market demand, especially in the construction industry, as well as the possible loss of customer relationships significant 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 and 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 2024
Half-year report
On 2 August 2024, Robit Plc published its half-year report for 1 January-30 June 2024.
Changes in management
On 22 August 2024, the company announced that Pia Mutanen (b. 1980, M.Sc. Tech) had been appointed as Robit Plc's new HR Director and a member of the Management Team as of 1 January 2025.
Shareholders' nomination committee
On 2 September 2024, the four largest shareholders of Robit Plc elected their representatives to the Shareholders' Nomination Committee on the basis of the list of shareholders dated 2 September 2024:
- Harri Sjöholm, Chairman, 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 2025.
EVENTS AFTER THE REVIEW PERIOD
No events after the review period.
Lempäälä, 24 October 2024
ROBIT PLC
Board of Directors
For more 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 | 7-9/2024 | 7-9/2023 | 1-9/2024 | 1-9/2023 | 2023 | |
Net sales | 21 497 | 23 706 | 68 896 | 70 016 | 92 917 | |
Other operating income | 117 | 319 | 695 | 1 092 | 1 882 | |
Materials and services* | -14 371 | -15 849 | -45 771 | -46 672 | -61 625 | |
Employee benefit expense | -3 349 | -3 724 | -10 553 | -11 694 | -15 388 | |
Depreciation and amortisation | -972 | -1 105 | -2 965 | -3 838 | -5 055 | |
Impairment | -127 | -174 | -345 | -345 | -205 | |
Other operating expense* | -2 791 | -3 083 | -8 214 | -9 979 | -12 409 | |
EBIT (Operating profit/loss) | 2 | 265 | 1 744 | -1 076 | 116 | |
Finance income and costs | ||||||
Interest income and finance income | -125 | 1 | 215 | 205 | 214 | |
Interest cost and finance cost | -512 | -603 | -1 457 | -1 986 | -2 758 | |
Finance income and costs net | -637 | -602 | -1 242 | -1 781 | -2 544 | |
Profit/loss before tax | -635 | -337 | 501 | -2 857 | -2 427 | |
Taxes | ||||||
Income tax | 8 | 14 | 0 | 7 | -444 | |
Change in deferred taxes | 54 | 46 | 66 | 163 | -148 | |
Income taxes | 62 | 60 | 66 | 170 | -592 | |
Result for the period | -573 | -277 | 568 | -2 687 | -3 019 | |
Attributable to: | ||||||
Parent company shareholders | -624 | -354 | 446 | -2 823 | -3 048 | |
Non-controlling interest** | 51 | 77 | 121 | 136 | 29 | |
-573 | -277 | 568 | -2 687 | -3 019 | ||
Other comprehensive income | ||||||
Items that may be reclassified to profit or loss in subsequent periods: | ||||||
Cash flow hedges | -67 | 5 | -57 | 75 | 633 | |
Translation differences*** | -302 | 218 | 208 | -1 045 | 41 | |
Other comprehensive income, net of tax |
-369 | 224 | 151 | -970 | 674 | |
Total comprehensive income | -942 | -53 | 719 | -3 657 | 1 560 | |
Attributable to: | ||||||
Parent company shareholders | -1 038 | -143 | 578 | -3 747 | 1 501 | |
Non-controlling interest** | 96 | 90 | 141 | 90 | 58 | |
Consolidated comprehensive income | -942 | -53 | 719 | -3 657 | 1 560 | |
Earnings per share | ||||||
Basic and diluted earnings per share | -0,03 | -0,02 | 0,02 | -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 | 30.9.2024 | 30.9.2023 | 31.12.2023 |
ASSETS | |||
Non-current assets | |||
Goodwill | 5 518 | 5 335 | 5 308 |
Other intangible assets | 736 | 915 | 817 |
Property, plant and equipment | 17 099 | 21 519 | 19 561 |
Loan receivables | 161 | 377 | 276 |
Other receivables | 0 | 0 | 0 |
Derivatives | 438 | 941 | 569 |
Deferred tax assets | 1 442 | 2 188 | 1 417 |
Total non-current assets | 25 395 | 31 274 | 27 948 |
Current assets | |||
Inventories | 40 076 | 40 347 | 36 054 |
Account and other receivables | 20 116 | 21 768 | 16 820 |
Loan receivables | 67 | 74 | 70 |
Current tax assets | 143 | 178 | 323 |
Other financial assets | 0 | 1 603 | 1 628 |
Cash and cash equivalents | 12 735 | 5 751 | 11 201 |
Total current assets | 73 136 | 69 720 | 66 096 |
Total assets | 98 531 | 100 994 | 94 043 |
EQUITY AND LIABILITIES | |||
Equity | |||
Share capital | 705 | 705 | 705 |
Share premium | 202 | 202 | 202 |
Reserve for invested unrestricted equity | 82 147 | 82 178 | 82 147 |
Translation differences | -2 895 | -2 744 | -3 103 |
Fair value reserve | 398 | 753 | 455 |
Retained earnings | -35 055 | -31 957 | -32 054 |
Profit/loss for the year | 446 | -2 823 | -3 048 |
Equity attributable to parent company shareholders in total | 45 949 | 46 313 | 45 304 |
Non-controlling interests* | 466 | 429 | 325 |
Capital and reserves in total | 46 414 | 46 743 | 45 629 |
Liabilities | |||
Non-current liabilities | |||
Borrowings | 22 060 | 25 372 | 22 123 |
Lease liabilities | 2 987 | 4 429 | 3 946 |
Deferred tax liabilities | 296 | 926 | 389 |
Employee benefit obligations | 414 | 540 | 504 |
Total non-current liabilities | 25 757 | 31 267 | 26 962 |
Current liabilities | |||
Borrowings | 3 262 | 3 680 | 5 180 |
Lease liabilities | 1 461 | 1 421 | 1 283 |
Advances received | 85 | 40 | 22 |
Income tax liabilities | 0 | 27 | 130 |
Account payables and other liabilities | 21 525 | 17 661 | 14 742 |
Other provisions | 28 | 154 | 97 |
Total current liabilities | 26 360 | 22 984 | 21 453 |
Total liabilities | 52 117 | 57 704 | 48 415 |
Total equity and liabilities | 98 531 | 100 994 | 94 043 |
* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.
CONSOLIDATED CASH FLOW STATEMENT | |||||
EUR thousand | 7-9/2024 | 7-9/2023 | 1-9/2024 | 1-9/2023 | 2023 |
Cash flows from operating activities | |||||
Profit before tax | -635 | -337 | 501 | -2 857 | -2 427 |
Adjustments: | |||||
Depreciation, amortisation, and impairment | 972 | 1 105 | 2 965 | 3 838 | 5 055 |
Finance income and costs | 637 | 602 | 1 242 | 1 781 | 2 610 |
Share-based payments to employees | 4 | -2 | 39 | -67 | -139 |
Loss (+)/Gain (-) on sale of property, plant and equipment | -77 | 7 | -146 | -260 | -959 |
Other non-cash transactions | 385 | -178 | 233 | -105 | 369 |
Cash flows before changes in working capital | 1 286 | 1 196 | 4 835 | 2 330 | 4 509 |
Change in working capital | |||||
Increase (-) / decrease (+) in account and other receivables | 835 | -364 | -3 675 | -864 | 3 629 |
Increase (-) / decrease (+) in inventories | -3 872 | 2 615 | -3 676 | 2 943 | 6 836 |
Increase (+) / decrease (-) in account and other payables | 2 079 | -3 912 | 6 482 | -1 619 | -3 900 |
Cash flows from operating activities before financial items and taxes | 328 | -465 | 3 966 | 2 791 | 11 074 |
Interest and other finance expenses paid | -107 | -197 | -1 050 | -1 166 | -2 200 |
Interest and other finance income received | 31 | 19 | 137 | 48 | 100 |
Income taxes paid | -51 | -52 | -21 | -340 | -621 |
Net cash inflow (outflow) from operating activities | 200 | -695 | 3 032 | 1 332 | 8 353 |
Cash flows from investing activities | |||||
Other financial assets increase (-) / decrease (+) | 0 | 0 | 1 628 | 0 | 0 |
Purchases of property, plant and equipment | -17 | -36 | -254 | -450 | -379 |
Purchases of intangible assets | -15 | -5 | -27 | -59 | -64 |
Proceeds from the sale of property, plant and equipment | 112 | -3 | 182 | 229 | 1 571 |
Proceeds from loan receivables | 53 | 22 | 114 | -130 | -26 |
Net cash inflow (outflow) from investing activities | 133 | -23 | 1 644 | -410 | 1 102 |
Cash flows from financing activities | |||||
Acquisition of own shares | 0 | -9 | 0 | -9 | -150 |
Dividend payment | 0 | -393 | 0 | -393 | -441 |
Drawdowns of non-current loans | -277 | 0 | 0 | 3 500 | 3 500 |
Amortizations of non-current loans | 0 | -45 | -1 853 | -1 715 | -3 352 |
Change in bank overdrafts | 0 | 112 | 0 | -1 669 | -1 782 |
Payment of leasing liabilities | -718 | -253 | -1 246 | -881 | -1 844 |
Net cash inflow (outflow) from financing activities | -995 | -587 | -3 099 | -1 098 | -4 069 |
Net increase (+)/decrease (-) in cash and cash equivalents | -662 | -1 305 | 1 577 | -175 | 5 386 |
Cash and cash equivalents at the beginning of the financial year | 13 486 | 7 013 | 11 201 | 6 085 | 6 085 |
Exchange gains/losses on cash and cash equivalents | -89 | 42 | -43 | -159 | -269 |
Cash and cash equivalents at end of the year | 12 735 | 5 751 | 12 735 | 5 751 | 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 | -1 744 | 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 of 30 September 2023 | 705 | 202 | 82 178 | -2 744 | 753 | -34 780 | 46 313 | 429 | 46 743 | |
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 | 446 | 446 | 121 | 568 | ||||||
Other comprehensive income | ||||||||||
Cash flow hedges | -57 | -57 | -57 | |||||||
Translation differences | 208 | 208 | 20 | 228 | ||||||
Total comprehensive changes | 208 | -57 | 446 | 597 | 141 | 738 | ||||
Share-based payments to employees | 48 | 48 | 48 | |||||||
Total transactions with owners, recognised directly in equity | 48 | 48 | 48 | |||||||
Equity as of 30 September 2024 | 705 | 202 | 82 147 | -2 895 | 398 | -34 608 | 45 949 | 466 | 46 414 | |
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 combines the East market with the EMEA market due to the ceased business operations in Russia and the subsequent relatively small size of net sales in East 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 | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | 2023 |
Net sales, EUR 1,000 | 21 497 | 23 706 | 68 896 | 70 016 | 92 917 |
EBIT, EUR 1000 | 2 | 265 | 1 744 | -1 076 | 116 |
EBIT, per cent of sales | 0,0 % | 1,1 % | 2,5 % | -1,5 % | 0,1 % |
Earnings per share (EPS), EUR | -0,03 | -0,02 | 0,2 | -0,13 | -0,14 |
Return on equity (ROE), % | 1,2 % | -7,7 % | -6,3 % | ||
Return on capital employed (ROCE), % | 3,2 % | -2,2 % | 0,4 % | ||
Equity ratio, % | 47,2 % | 46,3 % | 48,5 % | ||
Net gearing, % | 36,7 % | 62,4 % | 46,7 % | ||
Gross investments, EUR 1,000 | 32 | 41 | 280 | 509 | 443 |
Gross investments, % of net sales | 0,1 % | 0,2 % | 0,4 % | 0,7 % | 0,5 % |
Number of shares (outstanding shares) | 21 137 695 | 21 153 331 | 21 132 710 | ||
Treasury shares (owned by the Group) | 42 205 | 26 569 | 47 190 | ||
Percentage of votes/shares | 0,20 % | 0,13 % | 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 EBIT | |||||||||
EUR thousand | 7-9/2024 | 7-9/2023 | 1-9/2024 | 1-9/2023 | 2023 | ||||
EBIT (Operating profit) | 2 | 265 | 1 744 | -1 076 | 116 | ||||
Depreciation and amortisation | 972 | 1 105 | 2 965 | 3 838 | 5 055 | ||||
EBITDA | 974 | 1 370 | 4 709 | 2 763 | 5 172 | ||||
Items affecting comparability | |||||||||
Reorganizing expenses | 0 | 150 | 0 | 280 | -168 | ||||
Comparable EBITDA | 974 | 1 520 | 4 709 | 3 042 | 5 004 | ||||
EBIT (Operating profit) | 2 | 265 | 1 744 | -1 076 | 116 | ||||
Amortisation of acquisitions | 37 | 32 | 109 | 453 | 487 | ||||
Impairments | 225 | ||||||||
EBITA | 38 | 296 | 1 853 | -623 | 829 | ||||
EBIT (Operating profit) | 2 | 265 | 1 744 | -1 076 | 116 | ||||
Items affecting comparability | |||||||||
Reorganizing expenses | 0 | 150 | 0 | 280 | -168 | ||||
Comparable EBIT (Operating profit) | 2 | 415 |
1 744 | -796 | -53 | ||||
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
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 | 7-9/2024 | 7-9/2023 | Change % | 1-9/2024 | 1-9/2023 | Change % | 2023 |
Top Hammer | 13 405 | 13 829 | -3,1 % | 42 772 | 40 862 | 4,7 % | 54 406 |
Down the Hole | 2 971 | 5 635 | -47,3 % | 12 354 | 15 998 | -22,8 % | 20 862 |
Geotechnical | 5 120 | 4 243 | 20,7 % | 13 770 | 13 156 | 4,7 % | 17 648 |
Total | 21 497 | 23 706 | -9,3 % | 68 896 | 70 016 | -1,6 % | 92 917 |
Net sales by market area | |||||||
EUR thousand | 7-9/2024 | 7-9/2023 | Change % | 1-9/2024 | 1-9/2023 | Change % | 2023 |
EMEA & East | 11 092 | 12 699 | -12,7 % | 35 611 | 37 147 | -4,1 % | 47 279 |
Americas | 5 136 | 4 859 | 5,7 % | 14 630 | 15 407 | -5,0 % | 20 840 |
Asia | 1 927 | 2 228 | -13,5 % | 6 336 | 6 657 | -4,8 % | 8 950 |
Australasia | 3 341 | 3 920 | -14,8 % | 12 319 | 10 804 | 14,0 % | 14 835 |
Total | 21 497 | 23 706 | -9,3 % | 68 896 | 70 016 | -1,6 % | 92 917 |
4. FINANCING ARRANGEMENTS
The company's cash and cash equivalents totalled EUR 12.7 million on 30 September 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 September 2024.
INTEREST-BEARING LOANS | ||||||
EUR thousand | 30.9.2024 | 30.9.2023 | 31.12.2023 | |||
Non-current borrowings | ||||||
Loans from credit institutions | 22 048 | 25 360 | 22 111 | |||
Other loans | 12 | 12 | 12 | |||
Lease liabilities | 2 987 | 4 429 | 3 946 | |||
Total non-current borrowings | 25 047 | 29 801 | 26 069 | |||
Current borrowings | ||||||
Loans from credit institutions | 3 262 | 3 568 | 5 179 | |||
Bank overdrafts | 0 | 112 | 0 | |||
Lease liabilities | 1 461 | 1 422 | 1 284 | |||
Total current borrowings | 4 723 | 5 102 | 6 463 | |||
Total borrowings | 29 769 | 34 903 | 32 532 | |||
5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT | ||||||
EUR thousand | 30.9.2024 | 30.9.2023 | 31.12.2023 | |||
Cost at the beginning of period | 46 483 | 55 562 | 55 562 | |||
Other changes* | -1 188 | |||||
Additions | 1 486 | 600 | 903 | |||
Disposals | -1 264 | -537 | -6 356 | |||
Reclassification | 686 | 0 | -969 | |||
Exchange differences | -101 | -1 268 | -1 469 | |||
Cost at the end of period | 47 290 | 54 357 | 46 483 | |||
Accumulated depreciation and impairment at the beginning of period | -26 922 | -30 634 | -30 634 | |||
Other changes* | 1 000 | |||||
Depreciation | -2 830 | -3 054 | -4 082 | |||
Disposals | 253 | 375 | 5 128 | |||
Reclassification | -686 | 0 | 969 | |||
Exchange differences | -6 | 567 | 697 | |||
Accumulated depreciation and impairment at the end of period | -28 333 | -32 746 | -26 922 | |||
Net book amount at the beginning of period | 19 561 | 24 928 | 24 928 | |||
Net book amount at the end of period | 17 099 | 21 611 | 19 561 | |||
*Adjustments resulting from corrections to IFRS 16 calculations | ||||||
6. GIVEN GUARANTEES | |||
EUR thousand | 30.6.2024 | 30.9.2023 | 31.12.2023 |
Guarantees and mortgages given on own behalf | 48 037 | 48 166 | 49 505 |
Other guarantee liabilities | 49 | 49 | 48 |
Total | 48 086 | 48 214 | 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 | 30.9.2024 | 30.9.2023 | 31.12.2023 |
Interest rate swaps | |||
Nominal value | 10 000 | 10 000 | 10 000 |
Fair value | 438 | 941 | 569 |
