Raute - Improved results despite headwinds
Raute’s Q1 results were a bit better than we estimated despite certain operational issues caused by political strikes in Finland as well as somewhat unfavorable sales mix due to a low Analyzers revenue.
- Raute Q1 revenue grew by 21.4% y/y to EUR 44.7m, compared to our EUR 42.1m estimate. Wood Processing amounted to EUR 32.0m vs our EUR 29.2m estimate whereas Services was EUR 9.8m, compared to our EUR 8.2m estimate. Analyzers landed at EUR 2.9m vs our EUR 4.7m estimate. The 30% y/y fall in Analyzers revenue was partly due to timing of revenue recognition as well as some delays in certain project deliveries. There were no particular big surprises within Wood Processing and Services as political strikes’ impact was mitigated.
- Comparable EBITDA was EUR 3.0m, compared to our EUR 2.6m estimate. EBIT came in at EUR 1.5m vs our EUR 1.2m estimate. Political strikes had some negative impact on profitability. Wood Processing comparable EBITDA was EUR 1.2m, clearly above our EUR 0.6m estimate. Services’ profitability was also twice what we estimated, while Analyzers fell behind as its result was slightly negative.
- Q1 order intake amounted to EUR 36m vs our EUR 49m estimate as smaller orders remained quite low. Market uncertainty has continued, affecting demand for new production lines and modernizations.
- Order book was EUR 259m at the end of Q1 (EUR 121m a year ago).
- Raute guides FY ’24 revenue to be between EUR 170-195m and comparable EBITDA between EUR 10-14m (unchanged).