Consti - Weaker finish to the year than expected
Consti's net sales in Q4 amounted to EUR 86.1m, below our estimates (Evli est. EUR 96.1m.), with decline of 7.7% y/y. EBIT amounted to EUR 3.9m, also weaker than our estimates (Evli est. EUR 4.8m).
- Net sales in Q4 were EUR 86.1m (EUR 93.3m in Q4/22), below our estimates (EUR 96.1m). Sales declined 7.7% y/y.
- Public Sector was the only business area that grew in Q4, supported by ongoing school projects. Low order intake in the third quarter affected sales more than we had estimated.
- Operating profit in Q4 amounted to EUR 3.9m (EUR 4.8m in Q4/22), below our estimates (EUR 4.8m) at a margin of 4.5% (5.2%). The EBIT miss is mostly related to lower-than-expected volumes.
- EPS in Q4 amounted to EUR 0.37 (EUR 0.49 in Q4/22), also below our estimates (EUR 0.46)
- The order backlog at the end of Q4 was EUR 270.0m (EUR 246.7m in Q4/22), up by 9.5% y/y. Order intake was EUR 91.6m in Q4 (Q4/22: EUR 109.1m).
- Free cash flow amounted to EUR 2.8m (Q4/22: EUR 10.4m).
- Guidance for 2024: Operating result for 2024 will be in the range of EUR 9–12 million, Evli current est. at EUR 13.3m
- Consti updated its strategy for 2024-2027. The updated strategy is based on achieving growth in construction and building technology by responding to the demand created by the ageing building stock, urbanisation, and climate change.
- By the end of the strategy period, the aim is to have total net sales of roughly EUR 400m with an operating margin of 5%, EBIT amounting to EUR 20m. We will comment more on the updated strategy in our company update.