Financial Statements Release 1 January−31 December 2022: Net sales increased and EBITDA improved clearly
Componenta Corporation Stock Exchange Release, 2 March 2023 at 8 a.m. EET
January–December 2022
- Net sales increased clearly from the previous year, amounting to EUR 109.1 million (EUR 87.3 million)
- EBITDA also improved clearly, amounting to EUR 7.1 million (EUR 5.0 million)
- The operating result was EUR 1.6 million (EUR 0.0 million)
- Cash flow from operating activities was EUR 6.2 million (EUR 2.8 million).
October–December 2022
- Net sales increased to EUR 30.1 million (EUR 25.3 million)
- EBITDA was EUR 2.8 million (EUR 1.4 million)
- The operating result was EUR 1.4 million (EUR 0.8 million)
- Cash flow from operating activities was EUR 3.5 million (EUR 2.3 million).
The information presented in this Financial Statements Release concerns the Componenta Group’s performance in January–December 2022 and in the corresponding period in 2021 unless otherwise stated. The figures in this release have not been audited.
Dividend proposal
The Group’s profit for the financial year was EUR 0.1 million (EUR -0.4 million). On 31 December 2022, the parent company’s distributable funds totalled EUR 16.4 million (EUR 15.7 million). Based on the balance sheet to be confirmed for the financial year that ended on 31 December 2022, the Board of Directors proposes that no dividend be paid for 2022.
Componenta’s guidance for 2023
Componenta expects the Group’s net sales to be EUR 110–120 million in 2023. EBITDA is expected to improve from the previous year. The Group’s net sales in 2022 were EUR 109.1 million, and its EBITDA was EUR 7.1 million.
Poor availability of raw materials, increases in the prices of raw materials and electricity, the general economic situation and competitive climate, and the development of customers’ sales volumes may affect business outlooks. Because of the crisis in Ukraine and the COVID-19 pandemic, the development of sales and profitability involves uncertainties and poor predictability. An unfavourable development of the geopolitical situation in relation to Russia and Ukraine may have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and electricity, and the availability of foreign labour, all of which increase uncertainty in terms of forecasts.
Sami Sivuranta, President and CEO:
“We managed well in the very challenging operating environment through the financial year. Our net sales developed very well throughout the year, and our market share and EBITDA continued to grow in line with our strategy in 2022. Considering the circumstances, we are pleased with the result. Our liquidity also remained at a very good level through the year.
We strengthened our liquidity in the last quarter of the year by signing an agreement on a EUR 4 million working capital loan to prepare for Componenta’s continuously growing volumes and rapid price fluctuations, ensure the availability of key materials, and enable the continuity of our own development measures.
Our full-year profitability was burdened by the very exceptional price development of raw materials, materials and especially electricity, which caused our manufacturing costs to increase significantly during the second half of the year in particular. In terms of our main raw materials and electricity, the cost development is largely tied to our customer agreements through indices that are reflected quarterly in our sales prices with a delay. We have also separately agreed with our customers on compensation for cost increases not tied to any indices. In our own operations, we have successfully managed our supply chain and secured our production and deliveries to customers in a challenging operating environment.
Quality and productivity challenges at the Karkkila foundry affected our profitability to some extent during the year under review. The exceptionally rapid growth in the production volumes of our Karkkila unit has created special needs and challenges in terms of increasing human resources and rapidly growing the technical process capacity. Our measures to address these challenges in Karkkila have progressed as planned, and the performance indicators developed favourably during the second half of the year.
In the course of the second half of the year in particular, we also had to prepare for significant fluctuations in the price of electricity and possible availability restrictions. In our most energy-intensive operations, we increased the amount of night-time production, which contributed to the manageability of the electricity system in Finland. The highest volatility in the energy market is currently easing, but the situation will remain uncertain for at least the first half of the year.
Our employees’ flexibility and strong commitment ensured a solid foundation for positive development. Our employees’ ability to adapt to changes in the operating environment has ensured good service capability. The availability of production labour began to improve during 2022, and our personnel resources are in line with the current production situation. All our personnel showed excellent flexibility in maintaining our production and delivery reliability through the year under review.
The prolonged situation in Ukraine has increased overall market uncertainty and challenges in material availability and cost development, in addition to having a strong impact on the price of electricity. The impacts through our customers’ and suppliers’ business operations have been minor. We are actively monitoring developments in our business environment and seeking to ensure the availability of raw materials in all situations and circumstances.
Our customers’ order backlogs, forecasts and expectations remained generally positive through2022, and our order book was at a very strong level at the end of the year. Thanks to the current customer outlook and our own sales success, our expectations for 2023 are positive.
As communicated by our customers they oare moving their production chains closer to Europe and its neighbouring regions to improve their operations in terms of risk management and sustainability.
We will actively continue our efforts to strengthen our market position and further improve our profitability as part of our growth strategy. In addition, we are focusing on our service capability, close customer relationships, sustainability and highly competent personnel, as well as on expanding our offering. We are aiming for close partnerships with our customers and to be their preferred supplier with an extensive offering and excellent service.”
Key figures | 2022 | 2021 | Change, % |
Net sales, EUR thousand | 109,087 | 87,254 | 25.0 |
EBITDA, EUR thousand | 7,086 | 4,959 | 42.9 |
Operating result, EUR thousand | 1,555 | 13 | 11,864.5 |
Operating result, % | 1.4 | 0,0 | 9,524.9 |
Result after financial items, EUR thousand | -107 | -405 | 73.5 |
Net result, EUR thousand | 52 | -405 | 112.9 |
Basic earnings per share, EUR | 0.01 | -0.04 | 123.5 |
Diluted earnings per share, EUR | 0.01 | -0.04 | 123.8 |
Cash flow from operating activities, EUR thousand | 6,171 | 2,837 | 117.5 |
Interest-bearing net debt, EUR thousand | 4,818 | 6,714 | -28.2 |
Net gearing, % | 20.0 | 28.6 | -30.1 |
Return on equity, % | 0.2 | -1.7 | 111.7 |
Return on investment, % | 4.3 | 3.2 | 35.5 |
Equity ratio, % | 41.1 | 42.3 | -2.9 |
Capital expenditure incl. lease liabilities, EUR thousand | 3,617 | 1,249 | 189.7 |
Number of personnel at the end of the period, incl. leased workers | 643 | 612 | 5.1 |
Average number of personnel during the period, incl. leased workers | 643 | 592 | 8.6 |
Order book at the end of the period, EUR thousand | 18,481 | 13,954 | 32.4 |
Webcast
President and CEO Sami Sivuranta will present the Results Review for investors, analysts and the media in a webcast on 2 March 2023 at 10 a.m. EET. The webcast will be in Finnish. Please follow the webcast via the company pages at www.componenta.com or via this link: https://live.esf.fi/componenta-q4-2022.
COMPONENTA CORPORATION
Board of Directors
For further information, please contact:
Sami Sivuranta, President and CEO, tel. +358 10 403 2200
Marko Karppinen, CFO, tel. +358 10 403 2101
Componenta Corporation is an international technology company and Finland’s leading contract manufacturer in the machine building industry. Sustainability and customers’ needs are at the core of the company’s extensive technology portfolio. Componenta produces components for its global customers, which are manufacturers of machinery and equipment. The company’s shares are listed on the Nasdaq Helsinki. www.componenta.com