Exel Composites - Cost measures continued
Exel’s Q3 headline figures were known beforehand. Volumes fell across the geographic regions and especially in North America where the business still lacked large wind power orders. Exel has continued to implement cost measures, and on the positive side working capital and inventory reductions helped produce a positive Q3 cash flow of EUR 1.2m.
- Exel’s Q3 revenue fell by 39.2% y/y to EUR 20.5m. Exel had previously published preliminary Q3 figures and so the actual headline numbers didn’t contain news. Europe declined by 28.2% y/y, while North America fell 56.3% as the business still lacked large wind power orders.
- Wind power was EUR 2.1m vs our EUR 2.0m estimate, whereas Buildings and infrastructure amounted to EUR 5.7m vs our EUR 5.1m estimate. Transportation came in at EUR 3.1m, compared to our EUR 2.3m estimate.
- Adjusted EBIT was EUR -1.2m due to the low level of revenue, while cost management activities continued. Fixed costs decreased y/y due to lower personnel costs as the company has rightsized. Exel has also reduced working capital and inventories, which resulted in a positive Q3 cash flow of EUR 1.2m.
- Order intake amounted to EUR 22.8m in Q3 as it fell by 6.7% y/y. Order intake is expected to continue slow until the end of the year.
- Exel guides revenue and adjusted EBIT to decrease significantly in FY ’23 compared to the previous year (guidance updated on Oct 19).