Solteq - Slight comparable EBIT improvement
Solteq’s Q4 results were as expected weak and slightly below our estimates. Revenue was at EUR 14.2m (Evli EUR 14.6m) and adj. EBIT at EUR -1.0m (Evli EUR -0.8m). Solteq expects the comparable revenue in 2024 to grow compared with 2023 and the operating profit to be positive.
- Net sales in Q4 were EUR 14.2m (EUR 16.9m in Q4/22), slightly below our estimates (Evli EUR 14.6m). Revenue declined 15.6% y/y in Q4. In comparable terms revenue was at previous year levels.
- The operating profit and adj. operating profit in Q4 amounted to EUR -1.0m/-9.1m respectively (EUR –1.2m/-1.0m in Q4/22), below our estimates (Evli EUR -7.1m/-0.8m).
- Solteq’s Q4 was impacted by write-offs of activated product development costs amounting to EUR 7.5m and other charges relating to the change negotiations. The comparable operating result was EUR 0.4m better than the comparison period.
- Retail and commerce: revenue in Q4 amounted to EUR 10.5m (Q4/22: EUR 13.3m) vs. Evli EUR 11.0m. Revenue declined by 21.1% driven by divestments but also minor comparable revenue decline. The adj. EBIT was EUR -0.2m (Q4/22: EUR 0.1m) vs. Evli EUR 0.7m.
- Utilities: Revenue in Q4 amounted to EUR 3.8m (Q4/22: EUR 3.6m) vs. Evli EUR 3.6m. The adj. EBIT was EUR -0.8m (Q4/22: EUR -1.0m) vs. Evli EUR -1.5m.
- Guidance for 2024: Solteq expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was EUR 54.2m in 2023.
- Dividend proposal: Solteq’s BoD proposes that no dividend be paid for FY 2023 (Evli EUR 0.00).