Solteq - Some signs of improvement
Solteq’s Q3 results were as expected rather weak but revenue turned to growth in comparable terms and profitability was better than feared. Revenue was at EUR 12.2m (Evli EUR 12.6m) and adj. EBIT at EUR -0.7m (Evli EUR -1.2m).
- Net sales in Q3 were EUR 12.2m (EUR 14.4m in Q3/22), slightly below our estimates (Evli EUR 12.6m). Revenue declined 14.9% y/y in Q3. In comparable terms revenue grew by 1.9% y/y.
- The operating profit and adj. operating profit in Q3 amounted to EUR -0.7m/-0.7m respectively (EUR -5.0m/-0.7m in Q3/22), above our estimates (Evli EUR -1.2m/-1.2m).
- In Utilities, profitability suffered from a heavy cost structure. The change negotiations were concluded in October and the company anticipates annual cost savings of EUR 3.8m. In Retail & Commerce the growth in comparable revenue and successful cost control resulted in improved profitability.
- Retail and commerce: revenue in Q3 amounted to EUR 9.2m (Q3/22: EUR 11.4m) vs. Evli EUR 9.3m. Revenue declined by 18.8% driven by lower demand and the divestment. The adj. EBIT was EUR 0.4m (Q3/22: EUR -0.1m) vs. Evli EUR -0.2m.
- Utilities: Revenue in Q3 amounted to EUR 3.0m (Q3/22: EUR 3.0m) vs. Evli EUR 3.3m. The adj. EBIT was EUR -1.0m (Q3/22: EUR -0.6m) vs. Evli EUR -1.0m.
- Guidance for 2023 (published 19.9.2023): group revenue is expected to be EUR 57-59m and the operating result negative (excl. divestment profit recognition).