Aspo - Telko supported earnings
Aspo’s EUR 7.4m Q3 EBIT landed well above estimates. The positive surprise seems to have been driven by Telko. Aspo had to cut away the upper half of its previous guidance range as there are still market challenges in the form of soft demand.
- Aspo Q3 revenue from continuing operations was EUR 130.0m vs the EUR 141.5m/136.7m Evli/consensus estimates. Adjusted EBIT from continuing operations amounted to EUR 7.4m, compared to the EUR 6.6m/6.0m Evli/consensus estimates.
- ESL Q3 top line was EUR 43.0m vs our EUR 48.9m estimate, while EBIT amounted to EUR 4.0m vs our EUR 4.5m estimate. Volumes picked up after the summer and ESL was able to optimize transportation flows and capacity utilization. Q4 industrial activity and volumes are seen lower than they were previous year.
- Telko revenue came in at EUR 53.8m, compared to our EUR 55.7m estimate, whereas EBIT landed at EUR 3.1m vs our EUR 2.1m estimate. Market prices, especially those of plastics, stabilized and Telko was able to gain market share. Demand outlook remains somewhat low for Q4.
- Leipurin revenue amounted to EUR 33.2m vs our EUR 36.9m estimate. Adj. EBIT was EUR 1.3m, compared to our EUR 1.3m estimate. Pricing levels flattened out while volumes seem to be stabilizing. Management sees opportunities for organic growth and efficiency improvements, while M&A is also on the agenda.
- Other operations cost EUR 1.0m vs our EUR 1.3m estimate.
- Aspo specifies FY ‘23 guidance: the new guidance range is for EUR 25-30m in comparable EBIT, whereas the previous was EUR 25-35m.