Aspo - Earnings slightly below estimates
Aspo’s Q3 earnings didn’t quite reach estimates as ESL’s EBITA remained low while Telko’s EUR 4.6m EBITA clearly topped expectations. Aspo’s EUR 8.7m Q3 comparable EBITA thus improved, but not as fast as was estimated. Aspo retains its guidance.
- Aspo Q3 revenue from continuing operations was EUR 146.6m, compared to the EUR 155.0m/153.3m Evli/consensus estimates. Comparable EBITA amounted to EUR 8.7m vs the EUR 9.3m/9.6m Evli/consensus estimates.
• ESL revenue landed at EUR 41.3m, compared to the EUR 56.2m/50.4m Evli/consensus estimates, while comparable EBITA was EUR 3.8m vs the EUR 6.3m/6.0m Evli/consensus estimates. Handysize vessels’ spot market volumes remained limited and pricing levels were overall weak; the same was true for coasters. Coaster contractual volumes experienced a decline, while that of handysize was in line with expectations. Steel industry demand should remain rather good while forest industry recovery may be slow.
• Telko revenue was EUR 72.4m vs the EUR 65.1m/69.0m Evli/consensus estimates, while comparable EBITA was EUR 4.6m vs our EUR 3.2m estimate. Positive sales margin development continued, but demand has remained soft in most European markets. Volumes grew on an organic basis, in addition to M&A, while prices were quite stable although still on the soft side. Demand and price levels should slowly pick up going forward.
• Leipurin revenue amounted to EUR 32.9m, compared to the EUR 33.7m/33.9m Evli/consensus estimates, whereas comparable EBITA came in at EUR 1.3m vs the EUR 1.3m/1.4m Evli/consensus estimates. Market prices decreased in certain product categories. The intention to improve sales mix resulted in lower volumes in low margin categories. Artesan customer demand has overall been rather soft but varied significantly between countries. Market is expected to be slightly deflationary also going forward.
• Aspo guides FY’24 comparable EBITA to exceed EUR 32m (unchanged).