Aspo - Challenging Q1 conditions hit EBIT
Aspo’s Q1 results were burdened by political strikes in Finland especially in the case of ESL, which also had to operate in exceptionally icy conditions. Aspo’s guidance continues to suggest EBIT improves particularly after the summer.
- Aspo Q1 revenue from continuing operations was EUR 132.7m, compared to the EUR 132.7m/134.7m Evli/consensus estimates. Comparable EBIT amounted to EUR 4.8m vs the EUR 5.9m/6.3m Evli/consensus estimates.
- ESL Q1 revenue was EUR 49.9m, compared to the EUR 47.1m/47.7m Evli/consensus estimates. Comparable EBIT landed at EUR 2.7m vs the EUR 3.7m/3.5m Evli/consensus estimates. Political strikes had a negative impact on profitability, in addition to an exceptionally cold January in Northern Scandinavia (combined effect estimated to have been some EUR 3.5m in Q1). Strikes are estimated to affect Q2 by around EUR 0.5m. Steel industry demand is expected to remain at a good level and gradually to pick up in forest industry.
- Telko’s revenue came in at EUR 50.2m vs the EUR 52.3m/53.6m Evli/consensus estimates, whereas EBIT was EUR 2.2m vs the EUR 2.8m/2.7m Evli/consensus estimates. Political strikes had a negative impact of about EUR 0.1m in Q1 (similar effect is seen for Q2). Market is expected to develop stable going forward.
- Leipurin top line amounted to EUR 32.6m, compared to the EUR 33.3m/34.2m Evli/consensus estimates, while EBIT was EUR 1.1m vs the EUR 1.1m/1.2m Evli/consensus estimates. Political strikes had a negative impact of about EUR 0.1m in Q1 (similar effect is seen for Q2). Market is expected to be slightly deflationary with modest volume growth.
- Aspo guides comparable FY ‘24 EBIT to exceed EUR 30m (unchanged).