Exel Composites - Results still softer than expected
Exel’s Q1 results landed below estimates. Demand shows some signs of improvement, but H1’24 results will remain quite soft. Exel retains its previous guidance as H2 should be better. The company also plans to issue up to EUR 23m of new shares.
- Exel Q1 revenue decreased by 18.9% y/y to EUR 23.4m vs our EUR 24.9m estimate. The decline was largely attributable to Europe (down 29.4% y/y) while North America increased by 15.8%.
- Exel reports revenue for a new customer industry structure; all the five industries were down y/y.
- Adjusted EBIT was EUR -0.6m, compared to the EUR 0.7m/0.8m Evli/consensus estimates. Efforts to manage working capital and costs continued and will continue through this year. Further room to improve efficiency exists.
- Order intake came in at EUR 28.6m in Q4 and grew by 9% y/y (21% q/q). Order backlog has increased 32% compared to last year. Demand is however still expected to be somewhat soft in H1’24 while Exel continues to have free production capacity.
- Exel guides revenue to increase and adjusted EBIT to increase significantly in 2024 compared to 2023 (unchanged).
- Exel plans to issue up to some EUR 23m of shares in a rights offering to strengthen capital structure and accelerate its strategy implementation.