Q3 2023 in brief
- Order intake decreased by 6.7% to
EUR 22.8 million (Q3 2022: 24.5) -
Revenue decreased by 39.2% to
EUR 20.5 million (33.8) -
Adjusted operating profit decreased to
EUR -1.2 million (1.8) and adjusted operating profit margin to -5.9% (5.4%) -
Operating profit decreased to
EUR -0.7 million (1.7) and operating profit margin to -3.2% (5.0%) -
Earnings per share amounted to
EUR -0.05 (0.18)
Q1-Q3 2023 in brief
- Order intake decreased by 24.8% to
EUR 74.6 million (Q1-Q3 2022: 99.1) -
Revenue decreased by 29.5% to
EUR 74.7 million (106.0) -
Adjusted operating profit decreased to
EUR -1.1 million (7.1) and adjusted operating profit margin to -1.5% (6.7%) -
Operating profit decreased to
EUR -1.2 million (4.7) and operating profit margin to -1.6% (4.4%) -
Earnings per share amounted to
EUR -0.30 (0.51)
Guidance for the full year 2023
President and CEO, Paul Sohlberg
Weak market conditions impacted revenue
During the third quarter, our revenue decreased by 39% to
After showing some positive signs during the summer, we expected customers to resume more active ordering of goods. However, the supply side of the global manufacturing sector continued to face headwinds in the third quarter.
While customer activity has increased in the second half, the overall macroeconomic environment has weighed on the timing of order placement and on the schedules of certain large project orders. Consequently, our order intake declined by 6.7% during the third quarter compared to the same period last year and slow order intake is expected to continue until the end of the year.
Positive cash flow despite negative adjusted operating profit
In the third quarter of 2023, our adjusted operating profit decreased to
We have successfully continued to reduce our working capital and inventories resulting in a positive quarterly cash flow of
Continued progress with operative actions
Construction of the new facility in
We have now shut down most production lines in
Outlook for 2023
As communicated earlier, we have adjusted our guidance for the year 2023. Exel now expects that revenue will decrease significantly and adjusted operating profit will decrease significantly compared to 2022. This change was due to the overall lower order intake across our businesses, as well as the postponement of certain large orders in various segments, including wind power.
Exel's new strategy received positive feedback and implementation already underway
On
Our new strategy rests on four central pillars, and on our selected attractive growth areas.
Our first pillar is to capture organic profitable growth from large and fast-growing applications driven by decarbonization and sustainability. We are seeing strong demand for products needed for electrification, the mitigation of climate change effects as well as energy-efficiency in buildings and transportation. To capture these opportunities, we will leverage Exel's strengths which are in composites know-how, agility, independence and wide pultrusion applications exposure.
As a second strategic pillar we will focus on increasing our customer value by helping them choose composites for their applications by offering engineering support, productization and post-processing.
Our third pillar is to reorganize Exel for profitability. We will be taking swift and determined steps to transform this company. This is an industry where growth can be coupled with premium margins, and we have examples of that within Exel already today.
The main profitability driver in pultruded composites is ensuring that we have the right skills, focus and rightsized capacity to match customer demand. This ensures we keep feeding raw materials through the machines every hour while applying our unique skills to this whole process.
As part of the third pillar, we will also implement a new operating model that organizes our company into two business units, tailored and volume applications. This will simplify our structure tremendously and provide dedicated resources, focus, and speed within these businesses.
We also announced that we will be revisiting our production philosophy and that three existing sites will be placed under strategic review.
Our fourth strategic pillar is high ambition and rigorous execution. On 19 October, we announced we had already completed the first of such strategic reviews concerning the transformation of our US operations and factory. With this significant restructuring, fixed cost reduction and refocusing, expected to capture more orders in the worlds' largest composites market, leveraging Exel's strong capabilities in composites tubes, electrical products as well as applications in the building and infrastructure sectors.
Our new strategy has been well received by employees, customers, and investors. This reinforces our commitment to execute it efficiently.
We look forward to seeing you at our Capital Markets Day on
Consolidated key figures
| Q3 | Q3 | Change | Q1-Q3 | Q1-Q3 | Change | Q1-Q4 |
EUR thousand | 2023 | 2022 | % | 2023 | 2022 | % | 2022 |
|
|
|
|
|
|
|
|
Revenue | 20,538 | 33,789 | -39.2 | 74,741 | 106,004 | -29.5 | 136,988 |
Operating profit | -655 | 1,683 | -138.9 | -1,187 | 4,717 | -125.2 | 3,002 |
% of revenue | -3.2 | 5.0 |
| -1.6 | 4.4 |
| 2.2 |
Adjusted operating profit 1) | -1,206 | 1,815 | -166.5 | -1,136 | 7,111 | -116.0 | 8,029 |
% of revenue | -5.9 | 5.4 |
| -1.5 | 6.7 |
| 5.9 |
Profit before tax | -421 | 3,225 | -113.1 | -2,593 | 8,676 | -129.9 | 3,600 |
% of revenue | -2.1 | 9.5 |
| -3.5 | 8.2 |
| 2.6 |
Profit for the period | -639 | 2,052 | -131.2 | -3,712 | 5,971 | -162.2 | 2,145 |
% of revenue | -3.1 | 6.1 |
| -5.0 | 5.6 |
| 1.6 |
Profit for the period excluding non-controlling interest | -581 | 2,086 | -127.9 | -3,564 | 6,074 | -158.7 | 2,293 |
% of revenue | -2.8 | 6.2 |
| -4.8 | 5.7 |
| 1.7 |
Shareholders' equity | 23,578 | 34,894 | -32.4 | 23,578 | 34,894 | -32.4 | 30,385 |
Interest-bearing liabilities | 50,475 | 47,607 | 6.0 | 50,475 | 47,607 | 6.0 | 48,498 |
Cash and cash equivalents | 17,823 | 10,012 | 78.0 | 17,823 | 10,012 | 78.0 | 17,397 |
Net interest-bearing liabilities | 32,652 | 37,595 | -13.1 | 32,652 | 37,595 | -13.1 | 31,101 |
Capital employed | 74,053 | 82,501 | -10.2 | 74,053 | 82,501 | -10.2 | 78,883 |
Return on equity, % | -10.7 | 24.3 | -144.1 | -18.3 | 24.1 | -176.1 | 7.0 |
Return on capital employed, % | -3.3 | 8.1 | -141.1 | -1.9 | 7.6 | -125.5 | 3.7 |
Equity ratio, % | 23.3 | 31.0 | -25.0 | 23.3 | 31.0 | -25.0 | 26.9 |
Net gearing, % | 138.5 | 107.7 | 28.5 | 138.5 | 107.7 | 28.5 | 102.4 |
Net cash flow from operating activities | 1,172 | 2,590 | -54.8 | 3,692 | 2,406 | 53.4 | 6,767 |
Net cash flow from investing activities | -614 | 143 | -529.1 | -2,211 | -1,949 | 13.4 | 2,018 |
Capital expenditure | 633 | 1,527 | -58.6 | 2,708 | 3,441 | -21.3 | 4,592 |
% of revenue | 3.1 | 4.5 |
| 3.6 | 3.2 |
| 3.4 |
Research and development costs | 813 | 865 | -6.0 | 2,745 | 2,576 | 6.6 | 3,426 |
% of revenue | 4.0 | 2.6 |
| 3.7 | 2.4 |
| 2.5 |
Order intake 2) | 22,834 | 24,475 | -6.7 | 74,559 | 99,090 | -24.8 | 124,735 |
Order backlog | 28,474 | 34,607 | -17.7 | 28,474 | 34,607 | -17.7 | 29,110 |
Earnings per share, diluted and undiluted, EUR | -0.05 | 0.18 | -127.9 | -0.30 | 0.51 | -158.7 | 0.19 |
Equity per share, EUR | 1.96 | 2.90 | -32.22 | 1.96 | 2.90 | -32.22 | 2.53 |
Average share price, EUR | 3.47 | 6.19 | -44.0 | 4.03 | 6.63 | -39.2 | 6.30 |
Average number of shares, diluted and undiluted, 1,000 shares | 11,854 | 11,854 | 0.0 | 11,854 | 11,849 | 0.0 | 11,850 |
Employees, average | 642 | 720 | -10.9 | 679 | 736 | -7.7 | 732 |
Employees, end of period | 639 | 724 | -11.7 | 639 | 724 | -11.7 | 721 |
1) Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and costs related to planned or realized business acquisitions or disposals
2) Can include order cancellations during the quarter
Revenue by customer industry
| Q3 | Q3 | Change | Q1-Q3 | Q1-Q3 | Change | Q1-Q4 |
EUR thousand | 2023 | 2022 | % | 2023 | 2022 | % | 2022 |
Buildings and infrastructure | 5,671 | 7,808 | -27.4 | 19,929 | 24,397 | -18.3 | 32,456 |
Equipment and other industries | 3,972 | 5,567 | -28.7 | 14,581 | 18,781 | -22.4 | 23,127 |
Wind power | 2,129 | 8,031 | -73.5 | 5,865 | 21,273 | -72.4 | 26,765 |
Machinery and electrical | 3,432 | 4,952 | -30.7 | 12,112 | 14,522 | -16.6 | 19,705 |
Transportation | 3,138 | 3,743 | -16.2 | 11,035 | 14,046 | -21.4 | 17,380 |
Defense | 1,379 | 1,954 | -29.4 | 6,880 | 5,598 | 22.9 | 7,524 |
Telecommunications | 818 | 1,735 | -52.9 | 4,339 | 7,387 | -41.3 | 10,031 |
Total | 20,539 | 33,790 | -39.2 | 74,741 | 106,004 | -29.5 | 136,988 |
Revenue by region 1)
| Q3 | Q3 | Change | Q1-Q3 | Q1-Q3 | Change | Q1-Q4 |
EUR thousand | 2023 | 2022 | % | 2023 | 2022 | % | 2022 |
12,961 | 18,056 | -28.2 | 50,592 | 58,390 | -13.4 | 76,651 | |
4,270 | 9,764 | -56.3 | 13,918 | 29,630 | -53.0 | 37,272 | |
2,545 | 5,734 | -55.6 | 8,577 | 15,887 | -46.0 | 20,930 | |
Rest of the world | 763 | 236 | 222.9 | 1,654 | 2,097 | -21.1 | 2,135 |
Total | 20,539 | 33,790 | -39.2 | 74,741 | 106,004 | -29.5 | 136,988 |
1) Revenue by customer location
Operating profit
In the third quarter of 2023, the Group's operating profit decreased to
Financial position
Net cash flow from operating activities for January-
On
Changes in the Group Management Team
Events during the reporting period
The majority of the measures to transfer pultrusion production from
Events after the reporting period test
New strategy
On
On
Shareholders' Nomination Board
On
The largest shareholders entitled to appoint members to the Nomination Board were determined based on the registered holdings in the company's shareholder register held by
The Nomination Board prepares the proposals concerning Board of Directors' members and their remuneration for the following Annual General Meeting.
Vantaa,
Board of Directors
Financial results briefing
For further information, please contact:
Exel Composites in brief
At
Our collaborative approach and global footprint set us apart from our competition. We use our expertise to help customers reduce weight, improve performance and energy efficiency and decrease total lifetime costs. We want to be the first choice for sustainable composite solutions globally.
Headquartered in
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