Enedo Plc Stock Exchange Release October 15, 2020 9:55 am
Enedo Plc reduces the estimate of the financial development for 2020
Based on the latest outlook for the sales development especially in US market for the rest of the year 2020, Enedo Plc reduces the full year 2020 net sales and profit estimates.
Enedo has continued taking active measures to develop supply capability, improve cost efficiency and profitability, and achieve new customer and sales synergies. The implementation of the strategy launched in February and the reversal of the company's direction, as well as the building of a healthy future, have continued after the challenging first half of the year. We have also been able to deliver most of the delayed orders from the Tunisian plant.
In the half year financial report on August 13, 2020, the company reported on the uncertainty in the development of the US market and its possible impact on the company's second-half net sales growth. Due to the limitations and market uncertainty caused by the coronavirus, the collaborative projects and campaigns planned with customers in the United States have continued to move forward during the second half of the year. At present, we do not believe that this development will end during the rest of 2020. This will have an impact especially on the sales of the company's Italy products in the second half of the year. For this reason, the company is updating its estimate of financial development. Demand for Finland products has remained stable.
The company estimates net sales from continuing operations to be EUR 40-44 million in 2020. Full year 2020 EBITDA (adjusted for items affecting comparability) is estimated to be EUR 0,0-1,5 million and operating profit (adjusted for items affecting comparability) negative EUR 2,1-3,6 million. At the moment, the company will not give guidance of financial development for 2021 due to increased uncertainties.
The company estimates that the net sales of continuing operations in 2020 will be EUR 37-41 million. EBITDA for 2020 (adjusted for items affecting comparability) is estimated at EUR -0,7 - +0,7 million and operating profit (adjusted for items affecting comparability) negative EUR 3,1 – 4,3 million.
President and CEO
For further information please contact the CEO Vesa Leino, tel. +358 40 7598956.
Nasdaq Helsinki Oy
Enedo is a European designer and producer of high-quality electronic power supplies and systems for critical equipment even in the most demanding environments. Enedo´s mission is to make electricity better – more reliable, more secure, more energy efficient – and just right to fit its purpose. Enedo´s three main product categories are Led Drivers, Power supplies and Power Systems. In 2019 the group´s revenue was EUR 43,3 million. Enedo has 394 employees and its main functions are located in Finland, Italy, Tunisia and USA. The group´s head office is in Finland and parent company Enedo Oyj is listed on Nasdaq Helsinki Oy.