ETTEPLAN OYJ Financial Statement Review February 8, 2024 at 1.00 p.m. (EET)
Key points October-
- The Group's revenue increased by 4.6 percent and was
EUR 95.2 million (10-12/2022:EUR 91.0 million ). At comparable exchange rates, revenue increased by 6.5 percent. -
Operating profit (EBITA) decreased by 1.7 percent and was
EUR 9.6 (9.7) million, or 10.0 (10.7) percent of revenue. -
Operating profit (EBIT) decreased by 2.6 percent and was
EUR 8.2 (8.4) million, or 8.6 (9.2) percent of revenue. -
Operating cash flow improved and was
EUR 12.6 (11.0) million. -
Basic earnings per share were
EUR 0.24 (0.30).
Key points January-
- The Group's revenue grew by 2.8 percent and was
EUR 360.0 million (1-12/2022:EUR 350.2 million ). At comparable exchange rates, revenue increased by 4.7 percent. -
Operating profit (EBITA) decreased by 8.9 percent and was
EUR 30.9 (33.9) million, or 8.6 (9.7) percent of revenue. -
Operating profit (EBIT) decreased by 10.8 percent and was
EUR 25.5 (28.6) million, or 7.1 (8.2) percent of revenue. -
Operating cash flow was
EUR 35.6 (28.1) million. -
The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in January-December was
EUR -1.7 (-1.0) million. -
Basic earnings per share were
EUR 0.66 (0.73). -
The Board of Directors' dividend proposal is
EUR 0.30 (0.36) per share.
Key figures | ||||
10-12/2023 | 10-12/2022 | 1-12/2023 | 1-12/2022 | |
Revenue | 95,188 | 91,024 | 359,951 | 350,170 |
Operating profit (EBITA) | 9,561 | 9,731 | 30,883 | 33,915 |
EBITA, % | 10.0 | 10.7 | 8.6 | 9.7 |
Operating profit (EBIT) | 8,199 | 8,417 | 25,540 | 28,622 |
EBIT, % | 8.6 | 9.2 | 7.1 | 8.2 |
Basic earnings per share, EUR | 0.24 | 0.30 | 0.66 | 0.73 |
Equity ratio, % | 40.9 | 38.2 | 40.9 | 38.2 |
Operating cash flow | 12,587 | 11,020 | 35,571 | 28,095 |
ROCE, % | 16.8 | 18.6 | 13.3 | 15.9 |
Personnel at end of the period | 3,902 | 3,929 | 3,902 | 3,929 |
President and CEO Juha Näkki:
Changes in the operating environment swayed market demand and made forecasting difficult throughout the year. Increased uncertainty due to geopolitical tensions, especially rising interest rates, significantly impacted our customers' investment willingness, leading to prolonged decision-making on new projects. The year started with a reasonably good demand situation, but in the second quarter of the year we saw a clear decrease in demand, especially in the Software and Embedded Solutions service area. The orders received by our customers started to decrease in the second quarter, and the decreasing continued until the end of the year in several industries. Due to this, the demand situation also weakened in the Engineering Solutions and Technical Communication Solutions service areas in the second half of the year. However, investments related to the defense industry, energy efficiency and accelerating the green transition continued to grow, which leveled the decline in demand.
Despite the difficult operating environment, we managed to increase our revenue slightly during the year. We completed two acquisitions and thanks to our versatile service offering we also managed to grow organically during the year. This was supported by success in the outsourcing business, especially in the Engineering Solutions service area.
Operating profit EBITA fell short of our target level and we cannot be satisfied with this. In the second quarter, the profitability of the Software and Embedded Solutions service area fell due to a clear weakening of demand, and in the third quarter, the profitability of the Technical Communication Solutions service area was weak. The profitability of the Engineering Solutions service area remained at a good level throughout the year. As demand fell, we had to implement adaptation measures in all our service areas, and the measures yielded results. In the last quarter of the year, we again reached a 10% profit level, although we fell a little short of our full year financial guidance. Operating cash flow was at a good level throughout the year.
The changing market situation created challenges during 2023, but we managed to adapt well to the changes and I would like to thank our organization for the excellent work throughout the year. The year 2024 started in an uncertain market situation and forward-looking atmosphere. However, we assume that interest rates will decrease and demand will clearly pick up during 2024. We see a lot of growth opportunities when our customers gain enough trust in the market and investments start. We continue to develop our business, as evidenced by the Strongit acquisition in
Market outlook 2024
The most important factor affecting
Financial guidance 2024
Revenue in 2024 is as estimated to be
operating profit (EBIT) in 2024 is estimated to be
Disclosure procedure
This
Conference call and live webcast today,
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=50048363 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.videosync.fi/q4-2023. The webcast starts at
Espoo,
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
The information presented herein has not been audited.
Releases and other corporate information are available on
DISTRIBUTION:
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Major media
www.etteplan.com
In 2023, we had a turnover of
https://news.cision.com/etteplan/r/etteplan-2023--navigating-a-difficult-operating-environment,c3922643
https://mb.cision.com/Main/11766/3922643/2591418.pdf
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