ETTEPLAN OYJ Financial Statement Review February 12, 2025 at 1.00 p.m. (EET)
Etteplan 2024: In a difficult market situation, we prepared for future growth
Key points October-December 2024
- The Group's revenue decreased by 4.1 percent and was EUR 91.3 million (10-12/2023: EUR 95.2 million).
- Operating profit (EBITA) decreased by 32.7 percent and was EUR 6.4 (9.6) million, or 7.1 (10.0) percent of revenue.
- Operating profit (EBIT) decreased by 39.6 percent and was EUR 5.0 (8.2) million, or 5.4 (8.6) percent of revenue.
- The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in October-December was EUR -0.9 (-0.2) million.
- Operating cash flow improved and was EUR 14.2 (12.6) million.
- Basic earnings per share was EUR 0.12 (0.24).
Key points January-December 2024
- The Group's revenue increased by 0.3 percent and was EUR 361.0 million (1-12/2023: EUR 360.0 million).
- Operating profit (EBITA) decreased by 21.1 percent and was EUR 24.4 (30.9) million, or 6.8 (8.6) percent of revenue.
- Operating profit (EBIT) decreased by 27.9 percent and was EUR 18.4 (25.5) million, or 5.1 (7.1) percent of revenue.
- Operating cash flow declined and was EUR 31.0 (35.6) million.
- The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in January-December was EUR -3.0 (-1.7) million.
- Basic earnings per share was EUR 0.41 (0.66).
- The Board of Directors' dividend proposal is EUR 0.22 (0.30) per share.
Etteplan also monitors non-IFRS performance measures, because they provide additional information on Etteplan's development. More information on performance measures is provided at the end of the release.
| Key figures | ||||
| EUR 1,000 | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| Revenue | 91,315 | 95,188 | 361,020 | 359,951 |
| Operating profit (EBITA) | 6,438 | 9,561 | 24,373 | 30,883 |
| EBITA, % | 7.1 | 10.0 | 6.8 | 8.6 |
| Operating profit (EBIT) | 4,953 | 8,199 | 18,410 | 25,540 |
| EBIT, % | 5.4 | 8.6 | 5.1 | 7.1 |
| Basic earnings per share, EUR | 0.12 | 0.24 | 0.41 | 0.66 |
| Equity ratio, % | 40.5 | 40.9 | 40.5 | 40.9 |
| Operating cash flow | 14,194 | 12,587 | 30,961 | 35,571 |
| ROCE, % | 10.1 | 16.8 | 9.4 | 13.3 |
| Personnel at end of the period | 3,803 | 3,902 | 3,803 | 3,902 |
President and CEO Juha Näkki:
The year 2024 was a very difficult period for us. Orders received by our customers, and their order backlogs, were generally on a declining trend throughout the year, and very few decisions on new investments were made in the highly uncertain market situation. This led to a weakening of the demand situation in all four quarters. The defense industry and the energy industry were the only customer industries that saw positive development. In Europe, the Finnish and German markets were particularly challenging, but demand was also weak in other markets. The Chinese market developed in the opposite direction in the second half of the year. The demand situation in China improved substantially, which supported the development of our business.
In a challenging market situation, our organic revenue decreased, but we achieved slight growth in total revenue supported by acquisitions. Our extensive adaptation measures, which continued in the fourth quarter, had a significant negative impact on our operating profit, which was modest for the year. Nevertheless, the adaptation measures were effective, as operational profitability in the fourth quarter improved across all of our service areas when compared to the preceding quarters. We were successful in managing our cash flow in the challenging situation, and our operating cash flow was at a good level throughout the year.
During the year, we continued to develop the company and invested in future growth. We acquired two companies, invested in the development of our service offering and implemented our first AI-powered service solutions for our customers. We also strengthened our cost competitiveness by acquiring a minority stake in the Bangladesh-based company BJIT. We worked on our strategy during the year and, at the end of the year, we published our updated strategy and strategic targets. Our updated strategy, which is strongly driven by artificial intelligence, will guide our operations over the next three years. We will transform as a company and again create new added value for our customers with the help of new technologies and AI.
Although we had to make difficult decisions in 2024, our organization was able to perform well even in difficult situations, and I would like to take this opportunity to thank everyone for their perseverance and good work. After the difficult decisions, we are ready to move forward and implement our new strategy. We enter 2025 in a market situation that is still difficult, but we got off to a strong start by acquiring Germany-based Novacon Powertrain in January. We also expect our customers' investments to get started, and we anticipate that the demand situation will improve over the course of the year. Consequently, we expect a clear year-on-year improvement in both revenue and operating profit.
Market outlook 2025
The most important factor affecting Etteplan's business is the global development of the machinery and metal industry. Uncertainty is continuing in the markets due to geopolitical tensions and the global political situation. Order backlogs are generally on a downward trend, which affects our customers' willingness to invest and keeps our demand situation at a modest level at the start of 2025. Investments related to the defense industry are continuing at a good level, while investments related to the energy industry are at a moderate level. However, investments related to accelerating the green transition have slowed slightly. Nevertheless, we expect the market situation to take a turn for the better in 2025.
Financial guidance 2025
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range and issues the following estimate:
Revenue in 2025 is estimated to be EUR 365-400 (2024: 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 23-30 (2024: 18.4) million.
Disclosure procedure
This stock exchange release is a summary of Etteplan's 2024 Financial Statement Review. The complete Financial Statement Review is attached to this stock exchange release in pdf format and is also available on Etteplan's website at www.etteplan.com.
Conference call and live webcast today, February 12, 2025
Etteplan's President and CEO Juha Näkki will present the Company's result for 2024 in a conference call and a live webcast, held in English language, on February 12, 2025 starting at 1.00 p.m. (EET).
Questions can be asked in Finnish and in English after President and CEO's presentation only through conference call connection. Participants must register through this link https://palvelu.flik.fi/teleconference/?id=50051395 to ask questions through the conference call lines. After registering the participants will receive a teleconference number and a code to join the call. The participants are asked to press *5 to join the queue for questions.
Juha Näkki's presentation can be followed as a live webcast on https://etteplan.events.inderes.com/q4-2024. The webcast starts at 1.00 p.m. (EET). A recording of the webcast will be available later at www.etteplan.com.
Espoo, February 12, 2025
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at www.etteplan.com.
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com
Etteplan in brief
Etteplan is a growing technology service company with the purpose of bringing people and technology together to change things for the better. Together with our customers, we are building a world where every system, process, and product can be made smarter, more efficient, and more sustainable. Our customers include world's leading companies in the manufacturing industry. In 2024, we had a revenue of EUR 361.0 million and around 4,000 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com
