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ROBIT PLC INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023: PROFITABILITY IMPROVED FROM THE BEGINNING OF THE YEAR

Robit Plc
Robit Plc

ROBIT PLC          STOCK EXCHANGE RELEASE          23 OCTOBER 2023 AT 11.00 EEST

ROBIT PLC INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023: PROFITABILITY IMPROVED FROM THE BEGINNING OF THE YEAR

In the text, ‘review period’ or ‘third quarter of the year’ refers to 1 July–30 September 2023 (Q3), and ‘January–September’ refers to 1 January–30 September 2023. Figures from the corresponding time period in 2022 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.

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1 July–30 September 2023 in brief

  • Net sales EUR 23.7 million (28.4), change –16.6 per cent

  • EBITDA EUR 1.4 million (3.5); 5.8 per cent of net sales (12.3)

  • Comparable EBITDA EUR 1.5 million (3.5); 6.4 per cent of net sales (12.3)

  • EBITA EUR 0.3 million (2.2); 1.3 per cent of net sales (7.8)

  • Comparable EBITA EUR 0.4 million (2.2); 1.9 per cent of net sales (7.8)

  • EBIT EUR 0.3 million (2.0); 1.1 per cent of net sales (7.0)

  • Review period net income EUR -0.3 million (1.7); -1.2 per cent of net sales (6.0)

  • Net cash flow for operating activities EUR -0.7 million (2.9)

1 January–30 September 2023 in brief

  • Net sales EUR 70.0 million (85.8); change –18.4 per cent

  • EBITDA EUR 2.8 million (8.5); 3.9 per cent of net sales (9.9)

  • Comparable EBITDA EUR 3.0 million (8.5); 4.3 per cent of net sales (9.9)

  • EBITA EUR -0.6 million (4.8); -0.9 per cent of net sales (5.6)

  • Comparable EBITA EUR -0.3 million (4.8); -0.5 per cent of net sales (5.6)

  • EBIT EUR -1.1 million (4.1); -1.5 per cent of net sales (4.8)

  • Review period net income EUR -2.7 million (3.1); -3.8 per cent of net sales (3.6)

  • Net cash flow for operating activities EUR 1.3 million (4.0)

  • Equity ratio at the end of the review period 46.3 per cent (48.2)

Key financials

Q3 2023

Q3 2022

Change %

Q1–Q3 2023

Q1–Q3 2022

Change %

2022

Net sales, EUR 1,000

23,706

28,424

-16.6%

70,016

85,751

-18.4%

111,962

EBITDA, EUR 1,000

1,370

3,488

-60.7%

2,763

8,472

-67.4%

8,851

EBITDA, % of net sales

5.8%

12.3%

 

3.9%

9.9%

 

7.9%

Adjusted EBITDA, EUR 1,000

1,520

3,488

-56.4%

3,042

8,472

-64.5%

8,851

Comparable EBITDA, %

6.4%

12.3%

 

4.3%

9.9%

 

7.9%

EBITA, EUR 1,000

296

2,211

-86.6%

-623

4,781

-113.0%

3,959

EBITA, % of sales

1.3%

7.8%

 

-0.9%

5.6%

 

3.5%

Adjusted EBITA, EUR 1,000

446

2,211

-79.8%

-343

4,781

-107.2%

2,940

Adjusted EBITA, percent of sales

1.9%

7.8%

 

-0.5%

5.6%

 

2.6%

EBIT, EUR 1,000

265

1,984

-86.6%

-1,076

4,111

-126.2%

3,071

EBIT, per cent of sales

1.1%

7.0%

 

-1.5%

4.8%

 

2.7%

Result for the period, EUR 1,000

-277

1,718

-116.1%

-2,687

3,051

-188.1%

885

Result for the period, % of sales

-1.2%

6.0%

 

-3.8%

3.6%

 

0.8%

Earnings per share (EPS), EUR 1,000

-0.02

0.08

 

-0.13

0.13

 

0.04

Return on equity (ROE), %

 

 

 

-7.7%

7.2%

 

1.6%

Return on capital employed (ROCE), %

 

 

 

-2.2%

5.8%

 

3.5%

MARKET OUTLOOK

Robit expects the global mining industry demand to remain at the current level. Demand in the construction industry has weakened during 2023, especially in Europe and Asia, and the company does not see a significant change in the short term.

GUIDANCE FOR 2023

Robit Plc expects its net sales for 2023 to be EUR 90–100 million and its comparable EBITDA profitability in euros to be EUR 3–6 million.

CEO ARTO HALONEN:

Market demand remained at the level of the second quarter, but lower than in the comparison period. The weakening of market demand particularly affected the construction industry in Europe and Asia. Demand in the mining industry remained at a good level. Orders received totalled EUR 24.9 million, down by 9.7 per cent from the comparison period. Orders received were at a higher level compared to the first two quarters of the year.

Robit net sales for the third quarter were EUR 23.7 million (28.4), down 16.6 per cent on the very strong comparison period. In constant currencies, there was a decrease of 11.6 per cent. The company's net sales grew in the Australasia and EMEA regions. In Australasia, growth came mainly from the Top Hammer business. In EMEA, it came from both the Top Hammer and Down the Hole businesses.
 Net sales in the Asia region fell by 21.5 per cent due to low demand in the construction industry. Net sales in the Americas region also decreased as a result of lower deliveries to certain customers. The effect of ceasing sales to Russia on the review period was EUR 2.4 million compared to the comparison period. During the quarter, the company's order backlog increased, especially in the mining segment.

Net sales in the Top Hammer business decreased by 16.2 per cent in the third quarter compared to the comparison period. Top Hammer sales increased in Australasia and EMEA, driven by new customer accounts and high customer testing activity. The decline in sales in the East region was mainly attributable to Top Hammer and was the main reason for the decline in sales. Net sales in the Down the Hole business decreased by 9.4 per cent The decline came particularly from the Americas region. In the Geotechnical business, sales in the Americas increased, but sales in Europe, Geotechnical’s other main market, declined due to weaker demand in the construction industry.

Comparable EBITDA for the third quarter was EUR 1.5 million (3.5), clearly below the strong comparison period. However, thanks to the savings measures already implemented, the company's profitability continued to improve compared to the first two quarters of the year. The company shut down production at its Australian plant at the end of the quarter. This will strengthen the company's competitiveness in the Down the Hole business. The Australian unit will focus on sales, maintenance and distribution in the local market. The Geotechnical business’ profitability was burdened by the increased price competition for fewer construction projects.

The company's measures are now focusing in particular on clarifying operations, improving profitability and competitiveness. The closure of manufacturing in Australia is part of this restructuring. In addition, the company will in future sell products only under Robit brand. Previously, the company has been active in the Down the Hole business under both the Robit and Halco brands. This brand change makes it possible to clarify both the organization, the company structure and the product offering.

The implementation of the Fit for Service programme, which focuses on developing working capital management, progressed in the third quarter. As a result of the measures taken, the company's inventories decreased by EUR 2.4 million during the quarter. The decline in inventory levels is expected to continue in the last quarter of the year.

NET SALES

Net sales by product area

In 2023, the company is reporting its net sales in three business units: Top Hammer, Down the Hole and Geotechnical. Previously, the company reported the Geotechnical unit as part of the Down the Hole unit. For more information on the change, see the principles in the Notes.

EUR thousand

Q3 2023

Q3 2022

Change %

Q1–Q3 2023

Q1–Q3 2022

Change %

2022

Top Hammer

13,829

16,492

-16.2%

40,862

50,086

-18.4%

66,834

Down the Hole

5,635

6,218

-9.4%

15,998

19,488

-17.9%

22,141

Geotechnical

4,243

5,713

-25.7%

13,156

16,177

-18.7%

22,987

Total

23,706

28,424

-16.6%

70,016

85,751

-18.4%

111,962

The Group’s net sales in the third quarter of the year period totalled EUR 23.7 million (28.4). Down 16.6 per cent from the comparison period. In constant currencies, net sales decreased by 11.6 per cent.

The Group’s net sales in January–September totalled EUR 70.0 million (85.8). Down 18.4 per cent from the comparison period. In constant currencies, net sales decreased by 15.0 per cent.

Top Hammer business net sales decreased by 16.2 per cent, net sales for the review period being EUR 13.8 million (16.5). The decrease in net sales was particularly affected by the discontinuation of sales to Russia and weaker demand in the Asia region. The Australasia and EMEA regions showed a positive development in net sales.

Down the Hole business net sales decreased by 9.4 per cent, net sales for the review period being EUR 5.6 million (6.2). Net sales decreased particularly in the Americas region due to reduced delivery volumes to certain distributors.

Geotechnical business net sales decreased by 25.7 per cent, net sales for the review period being EUR 4.2 million (5.7). The decline in net sales was mainly due to weaker demand in the construction industry in Europe but, in the Americas, the other main market, net sales increased.

Net sales by market area

EUR thousand

Q3 2023

Q3 2022

Change %

Q1–Q3 2023

Q1–Q3 2022

Change %

2022

EMEA

12,539

12,199

2.8%

36,459

36,105

1.0%

48,651

Americas

4,859

6,933

-29.9%

15,407

20,192

-23.7%

26,349

Asia

2,228

2,836

-21.5%

6,657

8,919

-25.4%

11,686

Australasia

3,920

3,671

6.8%

10,804

10,665

1.3%

13,892

East

160

2,785

-94.2%

688

9,870

-93.0%

11,384

Total

23,706

28,424

-16.6%

70,016

85,751

-18.4%

111,962


PROFITABILITY

Key figures

EUR thousand

Q3 2023

Q3 2022

Change %

Q1–Q3 2023

Q1–Q3 2022

Change %

2022

EBITDA, EUR 1,000

1,370

3,488

-60.7%

2,763

8,472

-67.4%

8,851

EBITDA, % of net sales

5.8%

12.3%

 

3.9%

9.9%

 

7.9%

Adjusted EBITDA, EUR 1,000

1,520

3,488

-56.4%

3,042

8,472

-64.5%

8,851

Adjusted EBITDA, percent of sales

6.4%

12.3%

 

4.3%

9.9%

 

7.9%

EBIT, EUR 1,000

265

1,984

-86.6%

-1,076

4,111

-126.2%

3,071

EBIT, per cent of sales

1.1%

7.0%

 

-1.5%

4.8%

 

2.7%

Result for the period, EUR 1,000

-277

1,718

-116.1%

-2,687

3,051

-188.1%

885

Result for the period, % of sales

-1.2%

6.0%

 

-3.8%

3.6%

 

0.8%

Comparable EBITDA for the third quarter was EUR 1.5 million (3.5) Comparable EBITDA’s share of net sales was 6.4 per cent (12.3). The company’s EBIT was EUR 0.3 million (2.0). The EBIT was 1.1 per cent (7.0) of the review period net sales.

In January–September, comparable EBITDA was EUR 3.0 million (8.5). Comparable EBITDA’s share of net sales was 4.3 per cent (9.9). The company’s EBIT was EUR -1.1 million (4.1). EBIT was -1.5 per cent (4.8) of the review period’s net sales.

The decline in profitability was mainly due to lower sales during the review period. In addition, the company was not able to transfer the increased costs in full to the sales prices. The company continues to invest in sales development and is accelerating its cost-savings programme to support the strengthening of profitability.

Financial income and expenses in the third quarter of the year totalled EUR -0.6 million (-0.2), of which EUR -0.6 million (-0.3) was interest expenses and EUR 0.1 million (0.1) exchange rate changes. Net income for the quarter was EUR -0.3 million (1.7).

In January–September, financial income and expenses totalled EUR -1.8 million (-1.2), of which EUR -1.6 million (-0.9) was interest expenses and EUR 0.0 million (-0.1) exchange rate changes. Review period net income was EUR -2.7 million (3.1).

CASH FLOW AND INVESTMENTS

Consolidated cash flow statement

EUR thousand

Q3 2023

Q3 2022

Q1–Q3 2023

Q1–Q3 2022

2022

Net cash flows from operating activities

 

 

 

 

 

Cash flows before changes in working capital

1,196

3,323

2,330

8,904

10,014

Cash flows from operating activities before financial items and taxes

-465

3,197

2,791

5,267

7,277

Net cash inflow (outflow) from operating activities

-695

2,934

1,332

3,981

5,556

 

 

 

 

 

 

Net cash inflow (outflow) from investing activities

-23

-177

-410

-982

-1,057

 

 

 

 

 

 

Net cash inflow (outflow) from financing activities

-587

-2,697

-1,098

-5,809

-6,421

 

 

 

 

 

 

Net increase (+)/decrease (-) in cash and cash equivalents

-1,305

59

-175

-2,810

-1,921

Cash and cash equivalents at the beginning of the period

8,616

7,079

7,688

9,525

9,525

Exchange gains/losses on cash and cash equivalents

42

-122

-159

300

84

Cash and cash equivalents at end of the period

7,353

7,016

7,353

7,016

7,688

The Group’s cash flow before changes in working capital during the third quarter was EUR 1.2 million (3.3). Net cash flow for operating activities was EUR -0.7 million (2.9). The changes in working capital had an impact of EUR -1.7 million (-0.1). The change in working capital was affected by the EUR 3.9 million decrease in accounts payable due to lower purchases as part of the company’s goal to reduce inventories. The growth in sales and other receivables had a negative impact of EUR 0.4 million on cash flow, and the decline of inventories a positive impact of EUR 2.6 million.

The net cash flow from investing activities for the third quarter was EUR -0.0 million (-0.2). Gross investments in production during the review period totalled EUR 0.0million (0.2). The share of investments in net sales was 0.2 per cent (0.8).

The net cash flow from financing activities for the third quarter was EUR -0.6 million (-2.7). Net changes in loans totalled EUR -0.0 million (0.1). The change in bank overdrafts was EUR 0.1 million (-2.4). Returns on equity were EUR -0.4 million. The repayment of lease liabilities reported in net cash flow from financing activities under IFRS 16 totalled EUR 0.3 million (0.4).

Depreciation, amortization, and write-downs totalled EUR 1.1 million (1.5).

FINANCIAL POSITION

 

30 September 2023

30 September 2022

31 December 2022

Cash and cash equivalents, EUR thousand

7,353

7,016

7,688

Interest-bearing liabilities, EUR thousand

34,903

36,366

36,345

of which short-term interest-bearing financial liabilities:

5,102

5,480

8,922

Net interest-bearing liabilities, EUR thousand

27,549

29,350

28,657

Undrawn credit facility, EUR thousand

3,888

5,807

4,218

Gearing, %

58.9%

54.6%

56.4%

Equity ratio, %

46.3%

48.2%

46.5%

The Group had interest-bearing debt amounting to EUR 34.9 million (36.4), of which EUR 5.9 million (7.3) was interest-bearing debt under IFRS 16. The company had liquid assets of EUR 7.4 million (7.0) and an undrawn credit facility of EUR 3.9 million (5.8). Interest-bearing net liabilities were EUR 27.5 million (29.4), and interest-bearing net bank debt without IFRS 16 debt impact was EUR 21.7 million (22.1).

The Group’s equity at the end of the review period was EUR 46.7 million (53.6). The Group’s equity ratio was 46.3 per cent (48.2). Gearing was 58.9 per cent (54.6).

PERSONNEL AND MANAGEMENT

The number of employees decreased by 28 persons compared to the end of the comparison period and stood at 238 (266) at the end of the period, mainly due to the closure of the Australian factory and other organisational changes. At the end of the review period, 69.1 per cent of the company’s personnel were located outside Finland.

In addition to CEO Arto Halonen, the company’s Management Team at the end of the reporting period included Perttu Aho (VP Down the Hole), Ville Iljanko (VP Distributor Sales), Jorge Leal (VP Top Hammer), Ville Peltonen (CFO), Ville Pohja (VP Geotechnical) and Jaana Rinne (HR Director).

FINANCIAL TARGETS

Robit’s long-term target is to achieve organic net sales growth of 15 per cent annually and comparable EBITDA profitability of 13 per cent.

 

Long-term target

2021

2022

1–9 2023

Net sales growth, p.a.

15%

10.0%

11.1%

-8.2%

Comparable EBITDA, % of net sales

13%

7.5%

7.9%

5.3%

RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2023

The Annual General Meeting of Robit Plc was held in Tampere on 15 March 2023. The decisions and other materials related to the meeting are available on the company's website at  https://www.robitgroup.com/investor/corporate-governance/general-meeting/.

SHARES AND SHARE TURNOVER

On 30 September 2023, the company had 21,179,900 shares and 5,601 shareholders. Trading volume in January–September was 7,001,449 shares (4,254,349).

On 30 September 2023, the company held 24,273 treasury shares (0.11 per cent of total shares). On 30 September 2023, the market value of the company’s shares was EUR 31.8 million. The closing price of the share was EUR 1.50. The highest price in January–September was EUR 3.48 and the lowest price EUR 1.31.

RISKS AND BUSINESS UNCERTAINTIES

The covenant of the Robit parent company’s financing agreement, net interest-bearing debt/EBITDA, did not meet the terms of the financing agreement on 30 September 2023. The company obtained the consent of its main financier to the breach of the covenant on 26 September 2023. This led to a higher financial cost and risk for the company. The company has hedged against interest rate risk with an EUR 10 million interest rate swap agreement, which entered into force on 30 June 2023 and expires on 30 June 2026.

The geopolitical situation, which is growing tenser, poses a risk to the company’s business. The war in Ukraine and the sanctions imposed on Russia affect the development of net sales and profitability especially in Russia, Belarus and Ukraine, which accounted for approximately 8 per cent of the company’s sales in the 2022 financial year.  The company has no business operations in Russia in 2023.

Other uncertainty factors include the exchange rate development, functioning of information systems, risks related to the security of supply and logistics as well as IPR risks. Fully transferring the increase in raw material costs to customer prices may pose a financial risk. Changes in export countries’ tax and customs legislation may adversely impact the company’s export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit’s business. Potential changes in the business environment may adversely impact the payment behaviour of the Group’s customers and increase the risk of litigation, legal claims and disputes related to Robit’s products and other operations.

CHANGES IN GROUP STRUCTURE

There were no changes in the Group structure during the review period.

OTHER EVENTS IN JULY–SEPTEMBER 2023

Half-year Report

On 1 August 2023, Robit Plc published its financial reporting for 1 January–30 June 2023.

Shareholders' Nomination Committee

On 4 September 2023, the four largest shareholders of the company elected their representatives to the Shareholders' Nomination Committee on the basis of the list of shareholders dated 1 September 2023:

  • Harri Sjöholm, Chairman of the Board, Five Alliance Oy

  • Timo Sallinen, Senior Vice President, Investments, Varma Mutual Pension Insurance Company

  • Jukka Vähäpesola, Head of Equities, Mutual Employment Pension Insurance Company Elo

  • Markus Lindqvist, Director, Sustainability, Aktia Bank Plc

The Nomination Committee will submit its proposal regarding the members of the Board of Directors and the remuneration to the Board of Directors by 31 January 2024.

Acquisition of treasury shares

Based on the authorisation given to the Board of Directors by the Annual General Meeting on 15 March 2023, Robit Plc decided on 18 September 2023 to repurchase a maximum of 100 000 shares, corresponding to approximately 0.5 per cent of the company's share capital. The acquisition of shares was announced to start on 20 September 2023 at the earliest and to end on 30 November 2023 at the latest.

Change in number of treasury shares

Robit Plc announced on 29 September 2023 that on 27 September 2023 a total of 2,500 of its treasury shares were returned to the company free of charge in accordance with the terms of the share-based compensation plan 2020 due to the termination of the employment of a key employee. After this transaction, the company held 24,273 treasury shares.

EVENTS AFTER THE REVIEW PERIOD

No events after the review period.

Lempäälä, 23 October 2023

ROBIT PLC
Board of Directors

For more information, contact:

Arto Halonen, CEO
+358 40 028 0717
arto.halonen@robitgroup.com

Ville Peltonen, CFO
+358 40 759 9142
ville.peltonen@robitgroup.com

Distribution:  
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com

Robit is a strongly international growth company servicing global customers and selling drilling consumables for applications in mining, construction, geotechnical engineering and well drilling. The company’s offering is divided into three product and service ranges: Top Hammer, Down the Hole and Geotechnical. Robit has sales and service points in seven countries as well as an active sales network in more than 100 countries. Robit’s manufacturing units are located in Finland, South Korea and the UK. Robit’s shares are listed on Nasdaq Helsinki Ltd. Further information is available at www.robitgroup.com.

The information presented above includes statements about future prospects. These relate to events or the company’s economic development in the future. In some cases, such statements can be recognised by their use of conditional words (such as “may”, “expected”, “estimated”, “believed”, “predicted” and so on) or other similar expressions. Statements such as these are based on assumptions and factors that Robit’s management have at their disposal and on current decisions and plans. There is always risk and uncertainty attached to any statements regarding future events because they pertain to events and depend on factors that are not possible to predict with certainty. For this reason, future results may differ – even significantly – from the figures expressed or assumed in statements about future prospects.

CONDENSED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

EUR thousand

 7–9/2023

 7–9/2022

 1–9/2023

 1–9/2022

2022

Net sales

23,706

28,424

70,016

85,751

111,962

Other operating income

319

1211

1,092

3,817

4,117

Materials and services*

-15,849

-18,860

-46,672

-56,120

-73,729

Employee benefit expense

-3,724

-3,749

-11,694

-12,538

-17,075

Depreciation, amortisation and impairment

-1,105

-1,504

-3,838

-4,361

-5,779

Other operating expenses*

-3,083

-3,538

-9,979

-12,438

-16,425

EBIT (Operating profit/loss)

265

1,984

-1,076

4,111

3,071

 

 

 

 

 

 

Finance income and costs

 

 

 

 

 

Interest income and finance income

1

711

205

2272

2,277

Interest cost and finance cost

-603

-954

-1,986

-3,477

-4,010

Finance income and costs net

-602

-243

-1,781

-1,205

-1,733

 

 

 

 

 

 

Profit/loss before tax

-337

1,741

-2,857

2,906

1,338

 

 

 

 

 

 

Taxes

 

 

 

 

 

Income tax

14

-15

7

-158

-533

Change in deferred taxes

46

-7

163

303

80

Income taxes

60

-22

170

145

-453

Result for the period

-277

1,718

-2,687

3,051

885

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

Parent company shareholders

-354

1,647

-2,823

2,788

819

Non-controlling interest**

77

71

136

264

66

 

-277

1,718

-2,687

3,051

885

Other comprehensive income

 

 

 

 

 

Items that may be reclassified to profit or loss in subsequent periods:

Cash flow hedges

5

221

75

587

633

Translation differences**

218

-1,019

-1,045

763

41

Other comprehensive income, net of tax

224

-798

-970

1,351

674

Total comprehensive income

-53

920

-3,657

4,402

1,560

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

Parent company shareholders

-143

849

-3,747

4,165

1,501

Non-controlling interest**

90

71

90

268

58

Consolidated comprehensive income

-53

920

-3,657

4,402

1,560

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

-0.02

0.08

-0.13

0.13

0.04

 

 

 

 

 

 

 

 

 

 

 

*In the condensed income statement, changes in inventories are presented in Materials and services, and manufacture for own use in Other operating expenses.
**Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.
*** The Group has internal loans that are treated as net investments in foreign entities in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

 

 

EUR thousand

30 Sep 2023

30 Sep 2022

31 Dec 2022

ASSETS

 

 

 

Non-current assets

 

 

 

Goodwill

5,335

5,225

5,203

Other intangible assets

915

1,770

1,498

Property, plant and equipment

21,519

25,375

24,929

Loan receivables

377

264

248

Other receivables

0

0

6

Derivatives

941

790

848

Deferred tax assets

2,188

2,203

1,859

Total non-current assets

31,274

35,628

34,590

 

 

 

 

Current assets

 

 

 

Inventories

40,347

45,847

44,311

Account and other receivables

21,768

23,471

22,342

Loan receivables

74

92

80

Current tax assets

178

200

108

Cash and cash equivalents

7,353

7,016

7,688

Total current assets

69,720

76,627

74,529

Total assets

100,994

112,255

109,119

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Equity

 

 

 

Share capital

705

705

705

Share premium

202

202

202

Reserve for invested unrestricted equity

82,178

82,570

82,570

Translation differences

-2,744

-1,026

-1,744

Fair value reserve

753

632

678

Retained earnings

-31,957

-32,794

-32,748

Profit/loss for the year

-2,823

2,788

819

Equity attributable to parent company shareholders in total

46,313

53,077

50,482

Non-controlling interests*

429

541

339

Capital and reserves in total

46,743

53,618

50,822

 

 

 

 

Liabilities

 

 

 

Non-current liabilities

 

 

 

Borrowings

25,372

25,270

22,085

Lease liabilities

4,429

5,617

5,338

Deferred tax liabilities

926

683

690

Employee benefit obligations

540

754

732

Total non-current liabilities

31,267

32,323

28,846

 

 

 

 

Current liabilities

 

 

 

Borrowings

3,680

3,813

7,278

Lease liabilities

1,421

1,667

1,644

Advances received

40

763

145

Income tax liabilities

27

3

321

Account payables and other liabilities

17,661

19,796

19,916

Other provisions

154

273

147

Total current liabilities

22,984

26,314

29,451

Total liabilities

54,251

58,637

58,297

 

 

 

 

Total equity and liabilities

100,994

112,255

109,119

 

 

 

 

 

 

* Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.

CONSOLIDATED CASH FLOW STATEMENT

 

 

 

 

 

 

EUR thousand

 7-9/2023

 7-9/2022

 1-9/2023

 1-9/2022

2022

Cash flows from operating activities

 

 

 

 

 

Profit before tax

-337

1,741

-2,857

2,906

1,338

Adjustments:

 

 

 

 

 

Depreciation, amortisation and impairment

1,105

1,504

3,838

4,361

5,779

Finance income and costs

602

243

1,781

1,205

1,733

Share-based payments to employees

-2

4

-67

93

115

Loss (+)/Gain (-) on sale of property, plant and equipment

7

0

-260

-24

-74

Other non-cash transactions

-178

-169

-105

363

1,122

Cash flows before changes in working capital

1,196

3,323

2,330

8,904

10,014

 

 

 

 

 

 

Change in working capital

 

 

 

 

 

Increase (-) in account and other receivables

-364

2,694

-864

3,455

2,975

Increase (-)/decrease (+) in inventories

2,615

844

2,943

-1,345

-606

Increase (+) in account and other payables

-3,912

-3,664

-1,619

-5,747

-5,107

Cash flows from operating activities before financial items and taxes

-465

3,197

2,791

5,267

7,277

 

 

 

 

 

 

Interest and other finance expenses paid

-197

-121

-1,166

-722

-1,250

Interest and other finance income received

19

4

48

4

20

Income taxes paid

-52

-146

-340

-569

-490

Net cash inflow (outflow) from operating activities

-695

2,934

1,332

3,981

5,556

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property, plant and equipment

-36

-183

-450

-1,009

-1,194

Purchases of intangible assets

-5

-42

-59

-80

-131

Proceeds from the sale of property, plant and equipment

-3

48

229

81

150

Proceeds from loan receivables

22

-1

-130

27

119

Net cash inflow (outflow) from investing activities

-23

-177

-410

-982

-1,057

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Dividend payment

-393

0

-393

0

-30

Changes in non-current loans

-45

134

1,785

-1,416

-3,187

Change in bank overdrafts

112

-2,409

-1,669

-3,068

-1,480

Payment of leasing liabilities

-253

-423

-811

-1,325

-1,723

Net cash inflow (outflow) from financing activities

-587

-2,698

-1,098

-5,809

-6,421

 

 

 

 

 

 

Net increase (+)/decrease (-) in cash and cash equivalents

-1,305

59

-175

-2,810

-1,921

Cash and cash equivalents at the beginning of the financial year

8,616

7,079

7,688

9,525

9,525

Exchange gains/losses on cash and cash equivalents

42

-122

-159

300

84

Cash and cash equivalents at end of the year

7,353

7,016

7,353

7,016

7,688

 

 

 

 

 

 

 

 

 

 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

A = Share capital

 

 

 

 

 

 

 

 

 

B = Share premium

 

 

 

 

 

 

 

 

 

C = Reserve for invested unrestricted equity

 

 

 

 

 

 

 

 

 

D = Cumulative translation difference

 

 

 

 

 

 

 

 

 

E = Fair value reserve

 

 

 

 

 

 

 

 

 

F = Retained earnings

 

 

 

 

 

 

 

 

 

G = Equity attributable to parent company shareholders

 

 

 

 

 

 

 

 

 

H = Non-controlling interests

 

 

 

 

 

 

 

 

 

I = Capital and reserves in total

 

 

 

 

 

 

 

 

 

EUR thousand

A

B

C

D

E

F

G

H

I

Equity as at 1 January 2022

705

202

82,570

-1,793

45

-32,846

48,883

281

49,114

Profit for the period

 

 

 

 

 

2,788

2,788

264

3,051

Other comprehensive income

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

 

587

 

587

 

587

Translation differences

 

 

 

767

 

 

767

-4

763

Total comprehensive changes

 

 

 

767

587

2,788

4,142

260

4,402

Share-based payments to employees

 

 

 

 

 

52

52

 

52

Total transactions with owners, recognised directly in equity

 

 

 

 

 

52

52

 

52

Equity as at 30 September 2022

705

202

82,570

-1,026

632

-30,006

53,077

541

53,618

 

 

 

 

 

 

 

 

 

 

EUR thousand

A

B

C

D

E

F

G

H

I

Equity as at 1 January 2023

705

202

82,570

-1744

678

-31,928

50,483

339

50,822

Profit for the period

 

 

 

 

 

-2,823

-2,823

135

-2,688

Other comprehensive income

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

 

 

 

75

 

75

 

75

Translation differences

 

 

 

-999

 

 

-1,207

-45

-1,045

Total comprehensive changes

 

 

 

-999

75

-2,823

-3,748

90

-3,658

Share-based payments to employees

 

 

 

 

 

-20

-20

 

-20

Acquisition of treasury shares

 

 

 

 

 

-9

-9

 

-9

Distribution of dividends

 

 

-393

 

 

 

-393

 

-393

Total transactions with owners, recognised directly in equity

 

 

 

 

 

-29

-422

 

-422

Equity as at 30 September 2023

705

202

82,178

-2,744

753

-34,780

46,313

429

46,743

NOTES
Contents

  1. Scope and principles of the interim report

  2. Key figures and calculation

  3. Breakdown of net sales

  4. Financing arrangements

  5. Changes to property, plant and equipment

  6. Given guarantees

  7. Business acquisitions

  8. Goodwill impairment testing

  9. Derivatives

1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT

This interim report has been prepared in accordance with the IAS 34 standard for interim financial reporting and using the same principles as for the annual financial statements. The interim report has not been audited.

Robit is reporting 2023 net sales for three business units: Top Hammer, Down the Hole and Geotechnical. Previously, the company reported the Geotechnical unit as part of the Down the Hole unit. The Geotechnical unit focuses on drill piling, which is a support method used in different kinds of construction projects. Down the Hole focuses on DTH drilling equipment used in mines, quarries and well drilling. Top Hammer focuses on top hammer drilling equipment used in mines, quarries, construction projects and tunnelling.

All figures in the summarised financial statement have been rounded to the nearest figure and, therefore, the sum of the reported figures may not exactly match those presented.
2.1 KEY FIGURES

Consolidated key figures

Q3 2023

Q3 2022

Q1-Q3 2023

Q1-Q3 2022

2022

Net sales, EUR 1,000

23,706

28,424

70,016

85,751

111,962

EBIT, EUR 1000

265

1,984

-1,076

4,111

3,071

EBIT, per cent of sales

1.1%

7.0%

-1.5%

4.8%

2.7%

Earnings per share (EPS), EUR

-0.02

0.08

-0.13

0.13

0.04

Return on equity (ROE), %

 

 

-7.7%

1.8%

1.6%

Return on capital employed (ROCE), %

 

 

-2.2%

2.5%

3.5%

Equity ratio, %

 

 

46.3%

48.1%

46.5%

Net gearing, %

 

 

58.9%

54.6%

56.4%

Gross investments, EUR 1,000

41

188

509

1,089

1,326

Gross investments, % of net sales

0.2%

0.7%

0.7%

1.3%

1.2%

Number of shares (outstanding shares)

 

 

21,153,331

21,091,436

21,127,592

Treasury shares (owned by the Group)

 

 

26,569

88,464

52,308

Percentage of votes/shares

 

 

0.13%

0.42%

0.24%

2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES

Robit presents alternative key figures to supplement the key figures given in the Group’s income statements, balance sheets and cash flow statements that have been drawn up according to IFRS standards. Robit considers that the alternative figures give significant extra insight into the result of Robit’s operations, its financial position and cash flows. These figures are often used by analysts, investors and other parties.

Alternative key figures should not be studied apart from the key figures according to IFRS or instead of them. Not all companies calculate their alternative key figures in the same way and, therefore, Robit’s alternative figures may not be directly comparable to those presented by other companies, even if they carry the same headings.

Adjusted EBITDA and EBITA

 

 

 

 

 

EUR thousand

 7–9/2023

 7–9/2022

 1–9/2023

 1–9/2022

2022

EBIT (Operating profit)

265

1,984

-1,076

4,111

2,080

Depreciation, amortization and impairment

1,105

1,504

3,838

4,361

5,514

EBITDA

1,370

3,488

2,763

8,472

7,595

Items affecting comparability

 

 

 

 

 

Reorganising expenses

150

0

280

0

0

Adjusted EBITDA

1,520

3,488

3,042

8,472

7,595

 

 

 

 

 

 

EBIT (Operating profit)

265

1,984

-1,076

4,111

2,080

Amortisation of acquisitions

32

227

453

671

859

EBITA

296

2,211

-623

4,781

2,940

 

 

 

 

 

 

EBIT (Operating profit)

265

1,984

-1,076

4,111

2,080

Items affecting comparability

 

 

 

 

 

Reorganising expenses

150

0

280

0

0

Adjusted EBIT (Operating profit)

415

1,984

-796

4,111

2,080

Items affecting comparability

 

 

 

 

 

Amortization of acquisitions

32

0

453

0

859

Adjusted EBITA

446

2,211

-343

4,781

2,940

 

 

 

 

 

 

 

 

 

 

2.3 CALCULATION OF KEY FIGURES

EBITDA:

EBIT + Depreciation, amortization and impairment

 

EBITA

EBIT + Amortisation of customer relationships

 

Net working capital

Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities

 

Earnings per share (EPS), EUR

 

Profit (loss) for the financial year

 

Amount of shares adjusted with the share issue (average during the financial year)

 

 

Return on equity (ROE), %

Profit (loss) for the financial year

x 100

Equity (average during the financial year)

 

Return on capital employed (ROCE), %

Profit before appropriations and taxes + Interest expenses and other financing expenses

x 100

Equity (average during the financial year) + Interest-bearing financial liabilities (long-term and short-term loans from financial institutions, average during the financial year)

 

Net interest-bearing financial liabilities

Long-term and short-term loans from financial institutions – Cash and cash equivalents – Short-term financial securities

 

 

Equity ratio, %

Equity

x 100

Balance sheet total – Advances received

 

Gearing, %

Net interest-bearing financial liabilities

x 100

Equity

3. BREAKDOWN OF NET SALES

Entries are recorded according to IFRS 15 in the same way for each business unit and market area.

NET SALES 

 

 

 

 

 

 

 

Net sales by product area

EUR thousand

 7–9/2023

 7–9/2022

Change %

 1–9/2023

 1–9/2022

Change %

2022

Top Hammer

13,829

16,492

-16.2%

40,862

50,086

-18.4%

66,834

Down the Hole

5,635

6,218

-9.4%

15,998

19,488

-17.9%

22,141

Geotechnical

4,243

5,713

-25.7%

13,156

16,177

-18.7%

22,987

Total

23,706

28,424

-16.6%

70,016

85,751

-18.4%

111,962

 

 

 

 

 

 

 

 

Net sales by market area

 

 

 

 

 

 

EUR thousand

 7–9/2023

 7–9/2022

Change %

 1–9/2023

 1–9/2022

Change %

2022

EMEA

12,539

12,199

2.8%

36,459

36,105

1.0%

48,651

Americas

4,859

6,933

-29.9%

15,407

20,192

-23.7%

26,349

Asia

2,228

2,836

-21.5%

6,657

8,919

-25.4%

11,686

Australasia

3,920

3,671

6.8%

10,804

10,665

1.3%

13,892

East

160

2,785

-94.2%

688

9,870

-93.0%

11,384

Total

23,706

28,424

-16.6%

70,016

85,751

-18.4%

111,962

4. FINANCING ARRANGEMENTS

The company’s cash and cash equivalents were EUR 7.4 million on 30 September 2023. The company has sufficient liquidity to take care of its debt management and liquidity.

The parent company’s covenants are based on the company’s net debt/EBITDA ratio and the company’s equity ratio. The covenants are tested on a quarterly basis. The ratio of net debt to EBITDA on 30 September 2023 was 8.8.

The covenant of Robit Plc’s financing agreement, net interest-bearing debt/EBITDA, did not meet the terms of the financing agreement on 30 June 2023. The company obtained the consent of its main financier to the breach of the covenant on 26 September 2023.

BORROWINGS/LOANS/INTEREST-BEARING LOANS

 

 

 

 

EUR thousand

30 Sep 2023

30 Sep 2022

31 Dec 2022

Non-current borrowings

 

 

 

Loans from credit institutions

25,360

25,259

22,073

Other loans

12

11

11

Lease liabilities

4,429

5,616

5,338

Total non-current borrowings

29,801

30,886

27,423

 

 

 

 

Current borrowings

 

 

 

Loans from credit institutions

3,568

3,563

5,462

Other loans

0

0

10

Bank overdrafts

112

193

1,782

Lease liabilities

1,422

1,724

1,669

Total current borrowings

5,102

5,480

8,922

 

 

 

 

Total borrowings

34,903

36,366

36,345


5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT

 

EUR thousand

30 Sep 2023

30 Sep 2022

31 Dec 2022

Cost at the beginning of period

55,562

53,794

53,794

Additions

600

961

2,251

Disposals

-537

-43

-195

Reclassification

0

0

0

Exchange differences

-1,268

124

-288

Cost at the end of period

54,357

54,836

55,562

 

 

 

 

Accumulated depreciation and impairment at the beginning of period

-30,634

-26,398

-26,398

Depreciation

-3,054

-2,176

-4,477

Disposals

375

34

131

Reclassification

0

-44

0

Exchange differences

567

-116

110

Accumulated depreciation and impairment at the end of period

-32,746

-28,700

-30,634

Net book amount at the beginning of period

24,928

27,396

27,396

Net book amount at the end of period

21,611

26,135

24,928

 

 

 

 


6. GIVEN GUARANTEES

 

 

 

 

EUR thousand

30 Sep 2023

30 Sep 2022

31 Dec 2022

Guarantees and mortgages given on own behalf

48,166

47,839

48,425

Other guarantee liabilities

49

48

49

Total

48,214

47,888

48,474

7. BUSINESS ACQUISITIONS

There were no changes in the Group structure during the review period.

8. GOODWILL IMPAIRMENT TESTING

The amount of goodwill is reviewed at least annually in accordance with the IFRS provisions. The values of the goodwill testing variables are also revised if there have been material changes in business, competition, the market or other assumptions of goodwill testing. The company has three cash flow-generating units (Top Hammer, Down the Hole and Geotechnical). The company weakened its guidance on 27 June 2023, as a result of which the company has performed goodwill testing in the 31 August situation. Based on the impairment testing, there is no need for write-downs, but the sensitivity for impairment is highest in the Geotechnical business unit. The factors affecting goodwill items will be reviewed during the fourth quarter.

9. DERIVATIVES

The company hedges the most significant net currency positions that can be predicted in time and volume and interest rate risk.

There were no open currency derivatives at the end of the review period.

On 8 June 2021, the company concluded a financing agreement of EUR 30 million and, in connection with this, an interest rate swap of EUR 10 million with an interest rate cap in order to hedge part of its exposure to fluctuating interest rates. The interest rate swap took effect on 30 June 2023 and it will end on 30 June 2026. The company applies hedge accounting in accordance with IFRS 9. This effectively leads to the recording of interest expenses on a hedged floating rate loan at a fixed rate.

The company’s main interest rate risk arises from long-term loans with floating interest rates that expose the Group’s cash flow to interest rate risk. The Group’s policy is to use, if necessary, a floating to fixed interest rate swap.

Interest derivatives

 

 

 

EUR thousand

30 September 2023

30 September 2022

31 December 2022

Interest rate swaps

 

 

 

Nominal value

10,000

10,000

10,000

Fair value

941

790

848

Attachment